(a) All materials owned by the state may be sold or conveyed as provided in AS 38.05.550 - 38.05.565.
(b) Materials may only be sold or removed from sources or sites designated by the department. The department shall issue a decision under AS 38.05.035(e) that the sale and extraction of materials from that location is in the best interests of the state at the time each source or site is designated. The department shall give notice, in accordance with AS 38.05.945, of the department's decision to designate a source or site for the sale and extraction of materials. After decision and notice, the department may sell materials continuously, without further finding or notice, from that designated source or site under this section until the source or site is closed by the department.
(c) Each sale of materials must be made through a materials sales contract on a form that has been approved by the attorney general. At the time of each sale, the department shall determine
(1) the location of the source or site from which materials are to be removed;
(2) the method of disposal as provided in AS 38.05.555 - 38.05.565; and
(3) the limitations, conditions, and terms of sale, which shall address the utilization, development, and maintenance of the source of the materials.
(d) The commissioner shall provide for valuation of materials in or upon state land. Materials sold or conveyed under AS 38.05.550 - 38.05.565 may, at the director's discretion, be sold at
(1) representative regional sales prices periodically determined by the commissioner for each type of material and for defined geographic regions, under procedures established by regulation; public notice under AS 38.05.945 must be made whenever the commissioner revises the representative regional sales prices;
(2) fair market value determined by appraisal completed and approved within two years of the date of sale; or
(3) a price less than appraised value, determined under AS 38.05.810(a).