DNR proposes mandatory back-fees for unauthorized use of state land

The Alaska Department of Natural Resources has proposed making back-fees mandatory for anyone seeking to authorize an unauthorized use of state land, removing the department's prior discretion and creating financial exposure for utilities and pipeline operators whose installations may lack formal easements. The proposal is open for public comment and is not yet final.

Under the proposed amendment, applicants must pay annual fees for each year an installation occupied state land prior to approval.

The proposed rule replaces language that gave a director discretion to require payment with a mandatory obligation. Back-fees may be waived if DNR determines improvements are in the public interest or predate the applicant's ownership, but both conditions require an affirmative departmental determination.

The proposal also sets a one-time utility easement fee of 70 cents per linear foot for the first 100 miles and 10 cents per linear foot for each additional mile, and establishes site-development entry fees. The Alaska Supreme Court upheld DNR's authority to require leases for unauthorized use in a 2010 ruling.

Public comments on the proposed changes are currently being accepted.