For purposes of establishing the annual rental owed under 11 AAC 86.221, the rental age of a converted MTRSC location is the number of years since the first posting of the traditional location from which the MTRSC location was converted. If more than one existing traditional location is used to establish a converted MTRSC location, the rental age of the converted location is the average of the rental ages of the existing traditional locations, then rounded to the nearest whole year. For purposes of calculating that average,

1. (1) if a converted quarter-section MTRSC location includes fewer than four existing traditional locations, the department will count each existing location's rental age as only 25 percent of the average; additional imaginary locations, each assumed to be one year old and each counting as 25 percent, will be added to the average to reach 100 percent; the average age will then be rounded to the nearest whole year; and

2. (2) the rental age of a relinquished location, as determined by that location's posting date, will be included in calculating a converted MTRSC location's rental age if the converted MTRSC location

   1. (A) includes any part of the relinquished location;
   2. (B) is established less than a year after the relinquishment; and
   3. (C) is established by the locator of the relinquished location or by that locator's successor in interest under 11 AAC 86.223.

(Eff. 1/19/2002, Register 161)

Authority: AS 38.05.020, AS 38.05.195, AS 38.05.211, AS 38.05.035, AS 38.05.210, AS 38.05.265