(a) The department may negotiate the sale or otherwise dispose of materials from sources or sites other than those designated under AS 38.05.550(b) to
(1) municipalities, other state and federal agencies, or other entities under AS 38.05.872; sales under this paragraph may be at less than fair market value, and materials may be disposed of free of charge if the director determines that the disposal is in the public interest;
(2) a licensed public utility or a licensed common carrier under AS 38.05.810(e); sales under this paragraph shall be at representative regional sales prices determined under AS 38.05.550(d)(1); or
(3) a holder of a permit, land lease, or right-of-way issued by the department, if the materials to be extracted and removed during the construction, use, or maintenance of a facility authorized by a permit, land lease, or right-of-way, are necessary and incidental to the primary purpose of the permit, land lease, or right-of-way, and the materials are put to beneficial use in a way that alters the character, usefulness, or availability of the materials in their native forms; the department may authorize the sale of materials under terms of the permit, land lease, or right-of-way; sales of materials under this paragraph must be at
(A) the representative regional sales price established under AS 38.05.550(d)(1) unless the sale is to a state or federal agency, political subdivision, or other entity under AS 38.05.810(a); or
(B) a price less than appraised value as determined by the director if the sale is to a state or federal agency, political subdivision, or other entity under AS 38.05.810(a) and the materials to be extracted and removed are used for public purposes.
(b) If materials are moved within and not removed from the boundaries of a permit, land lease, or right-of-way issued by the department without altering the character, usefulness, or availability of the materials in their native forms, the applicant may not be required to purchase the materials.
(c) In this section, “land lease”
(1) means a lease issued under AS 38.05.070 - 38.05.105;
(2) does not include a lease issued under AS 38.05.131 - 38.05.275.