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(a) For the purpose of achieving more economic operations or more efficient and orderly recovery of coal, leases may, with the approval of the commissioner, be united and the lessees may adopt a cooperative or unit plan of development and operation of their leases. As a condition of approval of a Coal Mining Unit or "CMU," the commissioner will, in his discretion and with the consent of the state lessees, establish, alter, change, or revoke the development, production, rental, or royalty requirements of the state leases within the unit area, as he determines necessary or proper to protect the public interest and to conserve natural resources. The commissioner will, in his discretion, require as a term of a competitive lease sale, that the leased area be united into a CMU.
(b) A unit consists of an area of coal land which can be developed and mined in an efficient, economic and orderly manner with due regard for the maximum recovery of coal and conservation of other resources. It may consist of one or more leases and may include intervening or adjacent nonstate lands, but all land in the unit must be capable of being developed and operated as a unified operation. Approval of a CMU is subject to the conditions of diligent development and continued operation of the unit. Diligent development and continued operation anywhere within the CMU, with respect to either state or nonstate coal deposits, will be considered to have occurred on each state lease in the CMU.
(c) After a request by the lessees, a CMU containing any interest other than a single state lease becomes effective upon approval by the commissioner.
(d) The boundaries of a CMU may be changed upon application by the lessee and with the approval of the commissioner.
(e) If any coal lands in a CMU are relinquished, the lease terms for the unit will be adjusted accordingly.
(f) Interests in coal gained through the formation of a CMU shall not be counted as acreage under 11 AAC 85.210.
(g) In this section, "CMU" means coal mining unit as described in (a) - (f) of this section.
History: Eff. 6/18/82, Register 82
Authority: AS 38.05.020
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Last modified 7/05/2006