Usibelli Coal Mine, Inc. v. State, Department of Natural Resources

OPINION

EASTAUGH, Justice.

I. INTRODUCTION

We consider here whether Usibelli Coal Mine, Inc. (UCM) owes back royalties to the State of Alaska under three state coal leases for coal mined between 1989 and March 1993. The Alaska Department of Natural Resources (DNR) ruled administratively that it does. On appeal by UCM, the superior court affirmed. We affirm the superior court’s decision.

II. FACTS AND PROCEEDINGS

DNR claims back royalties, plus interest, of $346,550.35 due on three noncompetitive coal leases held by UCM. 1 DNR entered into the three leases in accordance with the provisions for coal…