State proposal would give agencies free gravel for public projects

The Alaska Department of Natural Resources proposed regulatory language earlier this month that would allow state agencies and public corporations to receive gravel and fill material at a base price of $0 per cubic yard, with applicants still responsible for processing and transport costs. The change would let transfers be treated as already serving the public purpose required when state resources are sold below market value, effectively bypassing a market sale process for certain projects.

Gravel is a scarce, high-value input for northern construction, and the North Slope’s economy depends on reliable supplies for pads, roads and industrial sites. Earlier reporting called gravel a "precious commodity" on the North Slope. Major state-led projects cited in the discussion include AIDEA’s proposed 211-mile access road linking the Dalton Highway to Northwest Alaska mine sites and work tied to the Alaska Gasline Development Corp.’s proposed trans-Alaska gas pipeline. The Bureau of Land Management has estimated Ambler Road construction could require 15 to 22 million cubic yards of gravel, plus ongoing annual maintenance volumes — underscoring how large infrastructure projects can rapidly consume regional rock supplies.

The proposal includes a carve-out that treats transfers to state entities as meeting the public-purpose threshold for discounted resource conveyance. Proponents argue that allowing state projects to use state land materials without a formal market sale could reduce costs and speed construction for public-benefit projects. But the policy raises fiscal and resource-management questions: transferring low-cost material to state agencies reduces revenue that would otherwise come from competitive sales, and it concentrates consumption decisions within state-controlled entities rather than market actors.

The Dalton Highway and its quarries were explicitly discussed in background materials. In 2024 the department issued an order prohibiting certain mining near Dalton Highway quarries to protect gravel reserved for highway maintenance, reflecting the highway’s central role in northern logistics. That protection illustrates the tension at the heart of the proposed rule: balancing state infrastructure priorities against preserving long-term supply for maintenance, private contractors and communities on the North Slope, including Prudhoe Bay/Deadhorse operations that depend on steady gravel deliveries for pads and access roads.

The public comment period for the proposed regulation closed Jan. 2, and the department has not announced when or whether the change will be finalized. For North Slope residents and municipal leaders, the immediate concerns are clear: potential shifts in who controls access to scarce gravel, how quickly large projects can draw down regional supplies, and whether local maintenance and commercial needs will be prioritized.

Our two cents? Track the department’s rulemaking and press for clear inventories, allocation rules and transparency so borough leaders can protect road maintenance and local contractors. Ask your assembly to request regular reporting on gravel stocks, transport plans and any agreements that would funnel state-supplied rock to large projects. Practical oversight now can help ensure scarce material isn’t allocated in ways that leave communities scraping for the gravel they depend on.