DNR material-site designation process bypassed public notice, ombudsman found in 2019

The Alaska Department of Natural Resources has issued a public notice of its intent to issue negotiated material sale contract ADL 422879 to Revine Creek Environmental LLC along the Parks Highway near Milepost 230. The notice arrives amid a longstanding dispute over DNR's material-site designation practices identified in a 2019 Alaska State Ombudsman report. That report concluded that the Division of Mining, Land and Water made 20 site designations without public notice, relying on "in addition to" language in a 2012 omnibus decision. The Ombudsman found the allegation justified.

The Structural Stakes

Under state law, once a site is designated, DNR can issue negotiated sale contracts without further public notice or comment. According to the Ombudsman, the designation stage is the critical point for public input, because subsequent sales like ADL 422879 do not require additional notice or comment beyond what the initial designation process provided.

"The post-2012 statutory structure requires DMLW to provide public notice and opportunity to comment before designating a site," Alaska State Ombudsman Kate Higgins said in the report. "Once a site is designated, DMLW is authorized to enter into sales contracts without additional notice or comment."

DMLW rejected the Ombudsman's recommendation to stop the practice. DNR argued that its interpretation of the statute was lawful and necessary for the efficient processing of material sales for statewide projects.