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A. The Mayor may grant to a mining claim owner or operator a mining use license for mining on Borough land where surface disturbance will be greater than a “casual” use as defined in FNSBC 20.16.060. A mining claim owner or operator who has obtained a mining use license and is complying with the conditions of the license shall be presumed by the Mayor to have made arrangements with the Borough, as the surface owner, to pay for damages before mining begins as required by AS 38.05. With the exception of reimbursement for valuable surface resources, the Mayor shall accept reclamation as payment for damages on undeveloped Borough land which has not been leased or sold.

B. The Mayor shall formulate conditions for mining use licenses to ensure that mining activities do not result in the creation of hazards or undue degradation of Borough land. As used in this section, “undue degradation” means surface disturbance greater than what would normally result when an activity is being accomplished by a prudent operator in usual, customary, and proficient operations of similar character.

C. A mining use license is nonexclusive and is valid for a period no greater than five years from the date of issue. A license may be reissued with the same conditions, upon application by the licensee, if there are no substantial changes in the projected plan of operations and all conditions of the previous license have been met.

D. The applicant shall pay to the Borough the mining use license fee required by the fee schedule established by the Mayor.

E. If the applicant has demonstrated a lack of good faith efforts to comply with the conditions of a prior license, the Mayor shall require that the applicant post a bond or other suitable guarantee of payment at the Fairbanks North Star Borough in an amount sufficient to pay for the cost of restoring the land to the extent required by the conditions of the license before issuing another license. The Mayor shall not release the bond until the licensee has complied with all conditions of the license.

F. A mining use license is transferable subject to the written approval of the Mayor and subject to the agreement of the transferee to abide by all terms and conditions of the mining use license. Within 30 days of receipt of written notification of a transfer, the Mayor shall provide written approval or disapproval. The licensee remains liable for all license conditions until the transfer has been approved or the Mayor receives written notice from the licensee requesting cancellation of the license.

G. The Mayor may require the licensee to reimburse the Borough for timber of commercial quality which is used or destroyed by the mining operation on Borough land. The amount of reimbursement shall be determined by the Mayor, based upon accepted forestry practices for the appraisal of timber value.

H. The Mayor shall require the licensee to submit an annual plan of operations and summary of previous work done on Borough land during the term of the license.

I. The Mayor may inspect the Borough land at any time to ensure compliance with conditions of the license. If a licensee fails to demonstrate good faith efforts to comply with the conditions of the license, and after receiving written notice, fails to remedy such default within the time specified in the notice, the Mayor may revoke the license, upon 30 days’ notice, and require the posting of a bond before issuing a new license.

J. License conditions may be appealed to the Borough Assembly by the applicant or licensee as follows:

1. A notice of appeal shall be filed in duplicate with the Borough Clerk and shall contain:

a. The appellant’s name, mailing address, and telephone number;

b. Detailed and specific allegations of error in the license conditions being appealed;

c. A statement of the result desired by the appellant.

2. The appellant shall pay an appeal fee as provided in a fee schedule to be approved by the Assembly. A notice of appeal which does not conform with the requirements of this subsection shall be denied. No further proceedings shall be made on a defective notice of appeal until the defect is corrected.

3. The Borough Clerk shall schedule appeals for hearing by the Borough Assembly. Notice of the hearing shall be sent to the appellant and the Mayor not later than 10 days prior to the date of the hearing.

4. The Borough Assembly shall hear evidence presented by the appellant and the Mayor.

5. The Borough Assembly shall make a final determination regarding the license stipulations at issue in the appeal and instruct the Mayor to prepare a resolution accomplishing the Assembly’s determination to be considered at the next regularly scheduled Borough Assembly meeting.

6. During the period of appeal, the appellant may proceed with operations as long as the appellant operates in compliance with the conditions included in the license by the Mayor.

K. If agreement cannot be reached between the Borough and the applicant or if a mining operator refuses to arrange to pay for damages and the applicant or operator intends to proceed with mining without a license, the Mayor may, in accordance with AS 38.05, request the director of the Alaska Department of Natural Resources to determine a surety bond to be posted by the operator, prior to entering Borough land, in sufficient amount to pay for the cost of restoring the land to the same extent required of other mining use licensees on Borough land. (Ord. 88-047 § 3, 1988. 2004 Code § 25.10.100.)