Section 38.05.560. Competitive sales of materials.

   (a) The department shall offer materials from a source or site designated under AS 38.05.550(b) for competitive sale if the department determines that
        (1) the sale would result in an exclusive use by the purchaser of a designated source or site;
        (2) materials available at a designated source or site are insufficient to supply all anticipated buyers;
        (3) the size of the designated source or site is too small to accommodate the extraction operations of all anticipated buyers; or
        (4) it is in the best interests of the state.
   (b) Notice of a competitive sale of materials from a source or site designated under AS 38.05.550(b) shall be given under AS 38.05.945(a)(4) and shall
        (1) describe the location of the designated source or site, and the type and quantity of the materials to be sold;
        (2) solicit potential bidders to register with the department to participate in the proposed sale; only persons registered to bid at a proposed sale of materials may bid; and
        (3) include the minimum bid for materials to be sold.
   (c) A notice of competitive sale required under (b) of this section may be combined with a notice required under AS 38.05.550.
   (d) If, after notice under (b) of this section, only one potential bidder has registered to bid at a proposed competitive sale, the competitive sale may be cancelled and the materials sold by negotiation under AS 38.05.555.
   (e) Materials sold under this section may be sold either by sealed bid or by public outcry or online auction, in the discretion of the department, to the highest qualified bidder as determined by the department. An aggrieved bidder may appeal to the commissioner under AS 44.37.011 within five days after the sale for a review of the determination. The sale shall be conducted by the director or the director's designee, and, at the time of sale, the successful bidder shall deposit the amount specified in the terms of sale. The means by which the amount of deposit is determined shall be prescribed by regulation. The director shall immediately issue a receipt containing a description of the materials purchased, the price bid, and the terms of sale. The receipt shall be accepted in writing by the bidder. A contract of sale, on a form approved by the attorney general, shall be signed by the purchaser, and the contract shall be signed by the director on behalf of the state. The director may impose conditions, limitations, and terms considered necessary and proper to protect the interests of the state.

Notes

History

(Sec. 18 ch 27 SLA 2012)