17 AAC 45.240 - Agreement to complete construction or remediation
(a) If the
department grants a lessee, permittee, or concessionaire a term or term
extension for a land lease based on proposed construction or remediation on the
premises, the lessee, permittee, or concessionaire must agree to complete the
construction or remediation within the following periods:
(1) in the case of construction, the time
that the department sets in the lease, permit, or concession; the time set will
not exceed two years unless the lessee shows to the department's satisfaction
that a longer period of time is required considering the cost, type, and
phasing of construction and any required remediation under
17 AAC 45.225(b) (6) and that granting a longer period of time
to complete the construction or remediation is not inconsistent with the best
interest of the state; or
(2) in
the case of remediation, the time set in a remediation plan that the lessee,
permittee, or concessionaire submits under
17 AAC 45.225(b) (6) and that the department
approves.
(b) The
department will require a performance bond, deposit, personal guarantee, or
other security if the department determines security is necessary or prudent to
ensure completion of the construction or remediation within the time period set
under (a) of this section. The department will determine the form and amount of
the security considering the nature and scope of the construction or
remediation and the financial responsibility of the lessee, permittee, or
concessionaire.
(c) The lessee,
permittee, or concessionaire shall, within 90 days after completion of
construction or remediation, submit to the department written documentation
that the construction or remediation has been completed as required, including
documentation under
17 AAC 45.230 of cost to show
investment required under the lease, permit, or concession or to support term
under 17 AAC 45.225.
(d) If the lessee shows good cause to the
department and if it is not inconsistent with the best interest of the state,
the department will grant an extension that is sufficient to allow for the
completion of the construction or remediation or for submission of
documentation that the construction or remediation has been completed under
this section.
(e) If within the
time required under (a) and (c) of this section or as the department has
extended under (d) of this section, a lessee, permittee, or concessionaire
fails to complete the construction or remediation or to submit documentation
that the construction or remediation has been completed, the department will
execute the forfeiture of the performance bond, deposit, personal guarantee, or
other security posted by the lessee, permittee, or concessionaire to the extent
necessary to reimburse the department for all costs and damages, including
administrative and legal costs, arising from the failure to complete the
construction or remediation and, as applicable,
(1) if one-third or less of the construction
or remediation has been completed, initiate cancellation of the lease, permit,
or concession;
(2) if at least
two-thirds of the construction or remediation has been completed, reduce the
term of the lease, permit, or concession to a period that is consistent with
the portion of the construction timely completed;
(3) if more than one-third but less than
two-thirds of the construction or remediation has been completed, apply the
best interests of the state to take the action described in either (1) or (2)
of this subsection.
(f)
An action that the department takes under (e) of this section must be in
writing and must state the reasons for the action taken.
Notes
Authority:AS 02.15.020
AS 02.15.060
AS 02.15.090
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