Land Use Permit Bond - Alaska Dept. of Natural Resources in Alaska

Brief Summary

DNR will not issue a land use permit that calls for security until the security is in hand. A corporate surety bond on the division's own form lets you meet that condition without locking up cash or a certificate of deposit for the life of the permit.

Under 11 AAC 96.060, the Alaska Department of Natural Resources can require a performance guaranty before it issues a land use permit on state land. DNR sets the amount for each permit based on the scope and nature of the activity and what it could cost to restore the site. A corporate surety bond on DNR form 102-1174 is one accepted way to post it.

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How to Apply for a Land Use Permit Bond:

• Apply for the land use permit with the Division of Mining, Land and Water and get the required security amount from the permit decision.
• Have the state file number for the permit ready, since it goes on the bond.
• Complete the bond application and review the quoted premium.
• Have the surety execute DNR form 102-1174 with notarized signatures for the principal and the surety and a power of attorney if an agent signs.
• If the principal is a sole proprietor, partnership or LLC, list and have the owners, partners or members sign as the form instructions require.
• Deliver the bond to the regional DNR office handling the permit before the permit is issued.

Detailed Information About the Alaska Land Use Permit Bond:

There is no single bond amount

The amount is not fixed in regulation. 11 AAC 96.060(b) says the department decides whether security is needed and how much, based on the scope and nature of your planned activity and the potential cost of restoring the permit site. Your amount comes from the Division of Mining, Land and Water when it reviews your application, and it will be stated in your permit decision.

Who has to post it

Anyone receiving a land use permit for state land managed by the Division of Mining, Land and Water may be asked for security. The department can waive the requirement after looking at the applicant's history of compliance and the risk to the state. A permit that requires security will not be issued until acceptable security has been furnished.

Ways to post security

11 AAC 96.060(a) lets DNR accept a corporate surety bond from a surety authorized to do business in Alaska, or a personal bond backed by an irrevocable letter of credit, a certificate of deposit in the bond amount issued in sole favor of the department, or a cash deposit. A surety bond keeps your cash free for the work.

The DNR bond form

The surety bond is written on the division's Land Use Performance Guaranty (Corporate Surety), form 102-1174. The same form is used for material sale contracts, rights of way, industrial leases and similar agreements on state land. The bond names the State of Alaska, Department of Natural Resources as obligee and ties coverage to the state file number of your permit.

Terms that catch people off guard

The surety cannot cancel the bond until the state releases it in writing. Coverage carries into any extension of the permit, and DNR can review the bond and ask for a higher amount later, although the surety must agree in writing to any increase. If the state declares a default, the surety either pays the face amount or, with the director's approval, completes the work.

Eligibility and Requirements for a Alaska Land Use Permit Bond:

• Surety company authorized to do business in Alaska.
• State of Alaska, Department of Natural Resources named as obligee.
• Bond amount set by DNR under 11 AAC 96.060(b).
• Bond conditioned on compliance with all terms of the permit.
• Bond stays in force until DNR releases it in writing.

Alaska Land Use Permit Bond FAQs:

Official and Additional Resources for the Alaska Land Use Permit Bond: