A non-refundable filing fee of $500.00 is required for each application.
Applications must be typed or printed in ink. Applications that are incomplete or illegible will be returned.
An environmental disclosure questionnaire must accompany each application.
Only one (1) section or any contiguous portion(s) of one section is permitted per application.
- A lease is issued initially for a ten (10) year term with provisions to extend up to a maximum of twenty (20) years.
- Lease boundaries, access routes, mine workings, roads, water sources, residences, utilities, etc. much be plotted separately on a USGS Topographic Map.
- The application must be signed by the applicant(s) or an authorized agent. If an agent is filing for the applicant, a notarized Power of Attorney must be filled with the Department. The filing fee for a Power of Attorney is $50.00.
- The approval process takes a minimum of six (6) months.
- A pre-application technical conference is recommended to discuss the application.
- A comment request letter is sent to all ASLD divisions, outside agencies and any interested parties. Comments are requested in thirty (30) days.
- Archaeological and Biological surveys and any other applicable permits are submitted for review (three (3) copies of each and an electronic copy in pdf format).
- Applicant must prepare and submit three (3) copies of a Mineral Development Report (MDR) in white 3-ring binders and an electronic copy in pdf format. All confidential information must be submitted separately in three (3) white 3-ring binders and an electronic copy in pdf format. The MDR must include the following but is not limited to:
a. geologic assessment
b. economic feasibility
c. environmental assessment
d. mining plan of operation
e. reclamation and closure plan
- A surface appraisal is required to determine lease rents and royalties.
- Rent is based on 2%-8% of the appraised surface value per disturbed acre.
- Royalties are established as follows:
- Royalty rates are in dollars per ton ($/ton). Initially it is determined by the lease administrator according to market analysis and then it is the auction process which determines the market value (royalty rate) of the commodity at public auction. A minimum annual production guarantee (MAG) measured in tons is assessed for each lease.
- Bond is set by scope of work and mining operations as described in the MDR.
- Proof of paid receipts is submitted to ASLD for consideration of reimbursable expenditures should the applicant not be the successful bidder.
- The application is advertised for ten (10) weeks in the Capitol Times and the publication closest to the subject property. Advertising costs are paid by the applicant.
- The lease application is sold at public auction.
- The winning bidder immediately pays the year one’s rent, MAG, administration fee (3% of MAG), and the advertising fee. The winning bidder must pay any difference in MAG and the reimbursable expenditure amounts within thirty (30) days.