For other versions of this document, see http://wikileaks.org/wiki/CRS-RL32813 ------------------------------------------------------------------------------ Order Code RL32813 CRS Report for Congress Received through the CRS Web Hardrock Mining: State Regulation March 14, 2005 Aaron M. Flynn Legislative Attorney American Law Division Congressional Research Service ~ The Library of Congress Hardrock Mining: State Regulation Summary Various state and federal laws play important roles in the regulation of mining activities. Mining for hardrock minerals on federal public lands is governed primarily by the General Mining Act of 1872. The General Mining Act authorizes a prospector to locate and claim an area believed to contain a valuable mineral deposit, subject to the payment of certain fees. The General Mining Act does not, however, require payment of a production-related royalty, as is required for federal oil, gas, and other minerals governed by more recently enacted laws. Critics of the General Mining Act suggest that the lack of a royalty payment serves as an unnecessary subsidization of the mining industry, while proponents of the current system suggest that it encourages investment in the domestic mining industry. Legislation has been introduced in previous Congresses that would have required royalty payments, but such provisions have not been enacted into law. Many states have enacted laws governing mineral rights and mineral development on state-owned lands. Of these laws, those applicable to hardrock minerals on state-owned lands vary considerably. Unlike the comparable federal law, however, many states now provide for state-owned hardrock mineral leases and authorize royalty and rental payment collection. In addition to financial issues, environmental regulation of hardrock mining also varies significantly under federal and state law. Significantly, the federal Surface Mining Control and Reclamation Act, which requires certain environmental remediation activities with respect to surface coal mining on federal and non-federal lands, is not applicable to hardrock minerals. Legislative proposals to address concerns related to hardrock mining environmental impacts and abandoned mine reclamation have been introduced in past Congresses (e.g. H.R. 2141 and H.R. 504 in the 108th Congress), but none have been enacted into law. In addition to federal regulation, states are authorized to implement surface mining reclamation laws and many have chosen to regulate hardrock mining operations in addition to surface coal mining. These laws vary from state to state, but most apply equally to federal, state, and private lands. This report provides a survey of state laws governing these above-mentioned aspects of hardrock mining. It is not meant to serve as a comprehensive description of each state's regulatory program, but instead provides an overview of the regulation of several specific activities associated with hardrock mineral development; focusing on (1) state imposed royalty rates and rental charges for hardrock minerals on state lands and (2) reclamation and bonding requirements for hardrock mining activities applicable to all mining operations. Contents Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 List of Tables State-by-State Summaries of Hardrock Mining Regulation . . . . . . . . . . . . . . . . . 4 Hardrock Mining: State Regulation Overview Both federal and state laws play important roles in the regulation of the mining activities. Mineral development rights on federal public lands are governed by several statutes applicable to specific resources. The 1872 General Mining Act1 governs access to hardrock minerals2 on federal public lands. The General Mining Act authorizes claimants to locate and patent lode and placer claims on federal public lands.3 Briefly, to stake a legitimate claim a prospector must locate a valuable mineral deposit4 on or underlying federal lands eligible for entry under the act,5 and comply with the procedures set out in the regulations of the Bureau of Land Management (BLM).6 The claimant may remove all minerals from the claim, subject to the terms of the Mining Act, even without obtaining a patent (title) to the minerals or lands.7 The Mining Act does require the payment of certain fees to insure that a 1 General Mining Act of 1872, Act of May 10 1872, ch. 152, 17 Stat. 91, codified at 30 U.S.C. §§ 21-54 (2003). 2 Hardrock minerals include most metals and non-fuel nonmetals, such as gold, silver, copper, zinc, barite, and fluorspar. 3 A lode is a mineral deposit found in a continuous vein form that is reasonably distinguishable from neighboring nonmineral rock. Common examples are gold, silver, or tin. 30 U.S.C. § 23. A placer claim is defined as those mineral deposits which are not lodes, and are usually widely dispersed, unconsolidated mineral deposits such as gypsum. Location is the process by which a mining claim is found and its boundaries delineated. Patenting is a method through which the federal government passes title to a private entity. 4 30 U.S.C. 22, 23; see United States v. Coleman, 390 U.S. 599 (1968). 5 30 U.S.C. §§ 23, 28, 35-36. 6 43 U.S.C. § 1744(a), (c). 7 The law also authorizes mineral claimants to patent -- or acquire title to -- the federal lands or minerals encompassed within a mining claim, so long as established procedures are satisfied and specified conditions are met. 30 U.S.C. §§ 29, 37. The availability of a patent is often cited as a reasonable incentive to encourage domestic mining operations, or conversely as an anachronistic windfall to industry. See Andrew P. Morriss, et al., Homesteading Rock: A Defense of Free Access Under the General Mining Law of 1872, 34 ENVTL. L. 745 (2004); Daphne Werth, Comment, Where Regulation and Property Rights Collide: Reforming the Hardrock Act of 1872, 65 U. COLO. L. REV. 427, 443 (1994). It should be noted that the minerals on a valid claim may be developed without a patent, and Congress has imposed an annual moratorium on the processing of new patent applications, most recently in Pub. L. No. 108-447. CRS-2 claim is maintained;8 however, unlike the laws governing oil, gas, and several other minerals, the Mining Act does not require payment of a production-related royalty. Legislation has been introduced in previous Congresses to reform the General Mining Act in a variety of ways, including provisions for royalty payments, although no such legislation has been enacted into law.9 Most states also have statutes governing exploration and mining on state lands, with laws ranging from single-paragraph authorizations to detailed regulation applying different standards to different minerals and land classifications. This makes it difficult to describe a common model for state mining regulation. Many states, like the federal system outlined above, provide separate regulatory regimes for hardrock minerals and oil, gas, and coal. Unlike current federal law, however, many states now charge royalty fees associated with hardrock mineral production in addition to land use rental fees. In some instances royalty and rental rates are specified by statute, and, in others, such determinations are left to state administrative agencies. State and federal law also regulate certain aspects of the environmental impacts caused by mining activities, often regardless of whether such activities take place on federal, state, or private lands. At the federal level, multiple environmental laws will generally impact mineral development, including the National Environmental Policy Act,10 the Clean Air Act,11 the Federal Water Pollution Control Act (Clean Water Act),12 the Safe Drinking Water Act,13 the Toxic Substance Control Act,14 the Comprehensive Environmental Response Compensation and Liability Act,15 and the Endangered Species Act.16 In addition, the federal Surface Mining Control and Reclamation Act (SMCRA)17 was enacted to regulate the environmental impacts of surface coal mining operations on federal, state, and private lands. SMCRA requires coal mine operators to obtain a permit for surface mines or surface operations associated with underground mines and provides specific reclamation standards for land and 8 30 U.S.C. § 28f(a). 9 See Robert J. Uram, Prospects for Mining Law Reform, 12 NAT. RESOURCES & ENV'T 191, 191-95 (1998) (providing an overview of attempts to reform the General Mining Act). 10 42 U.S.C. §§ 4321-4347. 11 42 U.S.C. §§ 7401-7671. 12 33 U.S.C. §§ 1251-1387. 13 42 U.S.C. §§ 300f-300j(25). 14 15 U.S.C. §§ 2601-2692. 15 42 U.S.C. §§ 9601-9675. 16 16 U.S.C. §§ 1531-1544. 17 30 U.S.C. §§ 1201-1338. CRS-3 resources affected by these activities.18 In addition, operators must, among other things, submit reclamation and operation plans and supply performance bonds and financial guarantees sufficient to cover the costs of reclamation.19 The states are authorized to implement SMCRA, and, while its provisions are not applicable to hardrock mining operations, many states have enacted state laws with similar reclamation requirements applicable to hardrock mining activities as well.20 This report provides a survey of state laws governing hardrock mining. It is not meant to serve as a comprehensive description of each state's regulatory program, but instead provides an overview of the regulation of several specific activities associated with hardrock mineral development. This report focuses on (1) state imposed royalty rates and rental charges for hardrock minerals on state lands and (2) reclamation and bonding requirements for hardrock mining activities. As mentioned above, state reclamation and bonding requirements are typically applicable on federal state and private lands. Variations from this scheme are specifically identified. 18 See id. §§ 1265(b)(1)-(25), 1291(28), 1266(b)(1)-(12). 19 See 30 U.S.C. § 1259(a), (b). The performance bond must cover the entire area of mining operations and is "conditional upon faithful performance" of all SMCRA and permit requirements. The exact amount is set by the regulatory authority, federal or state as appropriate, and can be forfeited if the operator fails to adequately perform the requisite reclamation. Several different types of bonds are permissible under the act and additional alternative bonding programs may be implemented with approval by the Secretary of the Interior. See also 43 C.F.R. §§ 3809.500 to 600(BLM bonding requirements for locatable minerals; 43 C.F.R. § 3452.3(b) (bond required under the Mineral Leasing Act); 36 C.F.R. § 228.13 (U.S. Forest Service bonding requirements). 20 Id. § 1253(a). CRS-4 State-by-State Summaries of Hardrock Mining Regulation State State Mineral Royalties and Rental Fees Reclamation and Bonding Alabama Ala. Code §§ 9-17-60 et seq. The Commissioner of ALA. CODE §§ 9-16-1 et seq. The state requires a surface Conservation and Natural Resources (CNR) is authorized to mining permit that applies to hardrock mining operations. lease any lands under CNR jurisdiction for exploration, Section 9-16-7 governs basic reclamation requirements. development, and production of oil, gas and other minerals. A performance bond is required under section 9-16-8 for Lands of any other state agency may be leased for mineral surface mining. Bond form is to be determined by the development by the Commissioner upon written request of director of the state Department of Industrial Relations, the head of such agency. signed by the operator as principal and a state licensed corporate surety. The bond amount is set by statute at $2,500 Land is leased on the basis of competitive bids with leases for each acre covered by the permit. In lieu of this bond, the going to the highest bidder or otherwise most advantageous operator may deposit cash or negotiable U.S. bonds or AL offer. (9-17-65). State law does reference rentals, state or municipal bonds. AL law also provides for royalties and other revenues, designating which state increasing or reducing the total penalty of the bond (or agencies and state funds will receive which proportions of cash/securities) as land is added to or withdrawn from the accrued funds. (9-17-65). State statute does not, however, permit. (9-16-6). Bond substitution is required if the appear to set a particular royalty or rental rate for state- corporate surety cancels the bond or loses its AL license. owned hardrock minerals. When an operator has completed reclamation on a given tract of land, the bond is to be released. Bonds may be forfeited pursuant to civil action for violations of final director orders. (9-16-11). Forfeited bonds are placed in the Surface Mining Reclamation Fund and used for reclamation purposes. (9-16- 12). CRS-5 State State Mineral Royalties and Rental Fees Reclamation and Bonding Alaska ALASKA STAT. §§ 38.05.135 et seq. State owned lands are ALASKA STAT. §§ 27.19.010 et seq. Minerals other than oil, generally open to mineral development and may be obtained gas, and coal are subject to the following reclamation by "permit or lease for the purpose of exploration, standards. Mines are to be operated in a manner that prevents development, and the extraction of minerals." "unnecessary and undue degradation" of land and waters, and the operation must be reclaimed so as "to leave the site in a Hardrock mineral royalty rates are set by statute at 3% of stable condition." (27.19.020). A reclamation plan must be net income as determined under section 43.65. (38.05.212). approved before mining can take place, and financial They are also subject to the exploration incentive credit assurance in an amount reasonably necessary to ensure authorized by section 27.30. Royalties may be taken in kind performance of the plan must be provided. when the commissioner of the Division of Lands Financial assurance is generally capped at $750 per acre, determines it to be in the best interests of the state. but there is no cap for lode claims. A bonding pool is also (38.05.182). Interest on late royalty payments is also provided for certain eligible mining operations where provided for at the higher of 11% or "the rate of five participants pay a deposit and an annual fee not to exceed percentage points above the annual rate charged member 15% and 5% of the otherwise required financial assurance banks for advances by the 12th Federal Reserve District as amount, respectively. (27.19.040). of the first day of that calendar quarter ...." in which the Bonds may take the following forms: (1) a surety bond; (2) a royalty is deemed late. (38.05.135). letter of credit; (3) a certificate of deposit; (4) a corporate guarantee that meets certain financial tests; (5) payments into The holder of a mineral interest must pay a yearly rental fee the mine reclamation trust fund; or (6) any other form that in advance for the right to continue to hold the mining right. meets the above-referenced financial tests. (27.19.040). Rental fees are set at $200 for a two-year term for each site Violation of reclamation requirements results in forfeiture of and are thereafter determined by formula based on the the bond to the state pool. (27.19.040). Violators must pay number of years since location and either the number of five times the normal bond amount for future operations. lease acres or number of claims held. Rental amounts are (27.19.070). also credited against the production royalty. (38.05.211). Failure to pay rent/royalty constitutes abandonment of mining rights. (38.05.265). CRS-6 State State Mineral Royalties and Rental Fees Reclamation and Bonding Arizona ARIZ. REV. STAT. §§ 27-231 et seq. The state land Financial Security for State Mineral Leases: ARIZ. REV. commissioner is authorized to lease state-owned metallic STAT. § 27-235(E). The land commissioner may require ore and industrial minerals. financial security to guarantee payment of royalties. Financial security is also required for (1) surface reclamation Rental: The commissioner must establish the annual land to a reasonable condition as described in the lease and (2) rental for each lease prior to issuance. Rental fees are based losses to land caused by specified damages. Form: cash on an appraisal of the land not including the contributory deposit, a certificate of deposit, a surety bond or any other value of mining. The annual rental must also be (1) at least form of financial assurance acceptable to the commissioner. the average rental assessed in Colorado, New Mexico and Utah; and (2) payable in advance of lease agreement Metal Mine Reclamation: ARIZ. REV. STAT. §§ 27-901 et execution and at the beginning of each annual period seq., applicable to non-state lands only. Reclamation plan and thereafter. (27-234(A)). Royalty appraisal costs are added financial assurance required for surface disturbances over to the amount due as rental. (27-234(E)). five acres. (27-921, 27-923, 27-951). Plans must be renewed annually and be accompanied by additional financial Royalties must be at least 2% of the gross value of assurance, if necessary. (27-955). Financial assurance must produced minerals, and are to be paid monthly based on the be in a form provided for in 40 C.F.R.§ 264.143(f) or other previous month. (27-234(B), (I)). The commissioner may form acceptable to the inspector. (27-991, 27-931). Amount: raise rates based on standard appraisal methods and market Inspector determines amount, assuming 3rd party will reclaim rates to obtain fair market value. Royalty appraisal is land, unless operator can show financial ability to perform performed before the lease is issued and at each renewal. reclamation; generally $2000 per acre of disturbance, unless Rates may be adjusted at any time if circumstances justify reduction based on rules or ability of operator to perform changes. (27-234(C)). Gross value of minerals produced is reclamation is established. (27-992, 27-993). Operators may based on: (1) monthly average price as quoted by the apply for release for reclaimed areas and may provide mineral commodities market/industry trade journals, as financial assurance incrementally. The Inspector must adopt determined by the commissioner and specified in the lease; rules for forfeiture that provide for a hearing. (27-995 - 27- or (2) an appraisal that establishes the fair market price if 997). there is no published price quote. (27-234(B)). CRS-7 State State Mineral Royalties and Rental Fees Reclamation and Bonding Arkansas ARK. CODE ANN. §§ 22-5-801 et seq. The Commissioner of The Arkansas Open-Cut Land Reclamation Act: ARK. State Lands is authorized to lease oil, gas and "other CODE ANN. §§ 15-57-301 et seq. applicable to open-cut minerals" on state lands. A lease or permit is required mining for "materials for commercial purposes." before "taking" any minerals. (22-5-805). Bond form: cash, securities, or other collateral, including letters of credit and mortgages on real property, as prescribed Royalties: The Natural Resources Committee must establish by Dep't of Envtl. Quality. Bonds must be signed by the a schedule of minimum fees and royalties, as well as the operator and a licensed corporate surety. (15-37-316). terms and conditions for various types of permits and leases. The bond amount shall be equal to the estimated reclamation No permit or lease can be granted for less than the cost. The Dep't may retain independent experts to establish minimums prescribed in the schedule. (22-5-804). the amount. Bond amounts may be altered as necessary. Accurate accounting of produced minerals is required, and Bond and substituted security regulations must be lease/permit holders must pay monthly royalties based on promulgated to ensure small operators will not be precluded the amount of "actual consideration" for the minerals taken from developing mineral resources due to high bond under the lease or permit. The holder of lease/permit is amounts. (15-57-316). absolutely liable for all royalties, and the Commissioner Forfeiture: Bonds are conditioned on compliance with all may require a corporate surety bond to guarantee the royalty statutory and regulatory requirements and are subject to payment. (22-5-809). forfeiture until the affected area has been reclaimed, approved, and released. (15-57-317). Operators with substantial violations may not receive a new or renewed permit unless a change of circumstances justifies an exception. (15-57-316). Bond release may be incremental and occurs on a Dep't determination that land has been reclaimed. (15-57-316). CRS-8 State State Mineral Royalties and Rental Fees Reclamation and Bonding California State statutes do not appear to specify which minerals are Reclamation: Surface mining operations require submission leasable; however, mineral leases are referenced in multiple and approval of a reclamation plan. (CAL. PUB. RES. CODE § provisions, described below. 2770). Financial Assurance is required of all operators until Rent: The lease must provide for an annual rental of not less reclamation is complete. Assurance must be approved by the than $1 per acre, as determined by the State Lands lead agency and resubmitted annually. (2770, 2207). Form: Commission. (CAL. PUB. RES. CODE § 6895). surety bonds executed by an admitted surety insurer, irrevocable letters of credit, trust funds, or other forms of Royalty: The lease must provide for a royalty, to be taken in financial assurances specified by the Board, which are money or in kind, at the option of the Commission, of not determined to be adequate. The amount is to be adjusted less than 10 percent of the gross value of all mineral annually to account for new lands disturbed by surface production from the leased lands. (6895). mining operations, inflation, and accomplished reclamation. (2773.1). Until a mining permittee applies for a lease for a mining To pursue forfeiture, the Board must hold a public hearing, area, all minerals produced from the area that would be determine that operator is financially incapable of or has covered by a permit are subject to a 20% royalty. (6896). abandoned reclamation, notify the operator that forfeiture will be sought, and allow 60 days for reclamation to An annual reporting fee is also required and is to be commence. Upon forfeiture, use of the proceeds must be to adopted by the Mining and Geology Board for each active reclaim land. (2773.1). or idle surface mining operation. The maximum fee for any Release occurs upon written notification by the lead agency single mining operation may not exceed $4,000 annually that reclamation has been completed in accordance with the and may not be less than $100 annually. In addition, the plan. (2773.1). board shall collect $5 per ounce of gold and ten cents per ounce of silver. (2207). CRS-9 State State Mineral Royalties and Rental Fees Reclamation and Bonding Colorado The State Board of Land Commissioners may lease state Performance and financial warranties are required before a land for the removal of minerals. The Board must mining permit may be issued. A performance warranty is a determine a rent to be charged and a royalty amount to be written promise by the operator to meet reclamation applied to produced minerals. (COLO. REV. STAT. § 36-1- requirements. A financial warranty is a written promise to be 113). responsible for reclamation costs up to the amount specified by the Board, together with proof of financial responsibility. The Board has the authority to adjust rentals under any The Board must prescribe the amount and duration of existing, expired, or defaulted lease when, in its opinion, financial warranties and adjust amounts from time to time. conditions justify changes. (36-1-114). (COLO. REV. STAT. § 34-32.5-117). Surety may be: (1) a surety bond issued by a corporate surety All leases of state or school land are conditioned upon the licensed in CO; (2) a letter of credit issued by a U.S. licensed payment of rent in advance, and the violation of this bank; (3) a certificate of deposit; (4) a deed of trust or condition results in a forfeiture of the lease, at the option of security agreement encumbering real or personal property and the Board. (36-1-117). creating a first lien in favor of the state; (5) assurance that, upon commencement of production, the operator will establish a trust comprised of periodic payments representing a fraction of receipts, (6) a lien on project fixtures and equipment of sufficient value, (7) a certified financial statement for the warrantor's most recent fiscal year and a certification by an independent auditor that the financial warrantor is the issuer of one or more currently outstanding senior credit obligations that have been rated "A" or better by a nationally recognized rating organization and the warrantor's net worth is at least two times the amount of all financial warranties; (8) a certified financial statement for the financial warrantor's most recent fiscal year CRS-10 State State Mineral Royalties and Rental Fees Reclamation and Bonding Colorado (cont.) and a certification by an independent auditor that (a) the warrantor's net worth is at least ten million dollars and is at least two times the amount of all financial warranties, (b) the warrantor's tangible fixed assets in the U.S. are worth at least twenty million dollars, (c) the financial warrantor's total liabilities-to-net-worth ratio are not more than two to one; and (d) the warrantor's net income, excluding nonrecurring items, is positive; (9) proof that the operator is a department or division of state government or a unit of county or municipal government. Operators may file a written notice of reclamation completion, and, subject to Board inspection, the Board must release all applicable warranties. If the Board finds noncompliance with reclamation requirements, then it must notify the operator within 60 days of property inspection. (34-32.5-117). Forfeiture may be pursued when an operator has violated a cease and desist order, an operator is in default under his performance warranty, or a warrantor has failed to maintain his financial warranty in good standing or no longer has the financial ability to carry out his obligations. The Board must notify the operator and all warrantors and provide opportunity for a hearing. Forfeited funds must be used to reclaim lands. (34-32-118). Connecticut State statutes do not appear to address leases, royalties, or State statutes do not appear to address reclamation and rental fees for state-owned hardrock minerals. bonding requirements for hardrock mining operations. CRS-11 State State Mineral Royalties and Rental Fees Reclamation and Bonding Delaware The Department of Natural Resources and Environmental Submerged lands bonds: Sufficient bonding or insurance Control may lease public lands for "the exclusive right of requirements, as determined by the Secretary, are required to mining, exploring by geophysical and other methods, and secure performance and the faithful compliance by the lessee operating for and producing therefrom, oil, gas, casing head with lease terms and to secure the public against damages gas, casing head gasoline ...." It is not clear whether this arising from operations. (DEL. CODE ANN. tit. 7 § 6115). includes hardrock minerals. (DEL. CODE ANN. tit. 7 § The Secretary may require, prior to any exploration or 4511). exploitation of offshore minerals, that a bond in the amount of at least $1,000,000 be posted to secure the State against Rent payments associated with the lease of public lands are any damages or claims arising from the offshore operations. to be deposited with the State Treasurer and placed in a (29 § 8003). specified account. (7 § 4512). Offshore and submerged land mineral (including hardrock mineral) leases may be granted by the Governor and the Secretary of the Dep't of Nat. Res. and Envtl. Control. (7 § 6102). Royalties for offshore production are set by statute at not less than 12.5 % of production; however, it is unclear if this is meant to apply to minerals other than oil. (7 § 6112). Annual rental of submerged lands is to be at least 25 cents per acre, as specified by the Secretary. (7 § 6114). CRS-12 State State Mineral Royalties and Rental Fees Reclamation and Bonding Florida Mineral Leases: The Board of Trustees of the Internal Reclamation: FLA. STAT. ANN. §§ 378.401 et seq. The Improvement Trust Fund may sell or lease any mineral or Department of Environmental Protection must require similar substance in, on, or under state land "the title to operators to submit and abide by a reclamation plan with which is vested in the state, the Department of Management baseline reclamation standards for various categories of Services, the Department of Environmental Protection, the minerals established by law. Fish and Wildlife Conservation Commission, the State Financial Security: The Board of Trustees may require a Board of Education, or any other state board, department, or surety or property bond, an irrevocable letter of credit, or agency; provided that the board of trustees may not grant other proof of financial responsibility from each lessee of such a sale or lease on the land of any other state board, public land or mineral interest prior to any mineral department, or agency without first obtaining approval extraction. The surety bond or irrevocable letter of credit therefrom." (FLA. STAT. ANN. § 253.45). must be from a surety company or bank authorized to do business in FL. The surety bond, irrevocable letter of credit, Royalty and rent provisions do not directly address or other proof of financial responsibility serves as security hardrock minerals, stating: "[t]he board shall determine in and is to be forfeited to the board to pay for any damages advance the amount of royalty, never less than one-eighth in caused by mining operations performed by the lessee. kind, or in value, and a definite rental, increasing annually (253.571). after the first two years, upon lands not developed for oil or Greater financial security amounts must be considered for gas, or upon which no well has been commenced in good mining operations planned for the waters of the state or under faith to secure production in paying quantities of gas or oil." other particular circumstances that may pose the risk of (253.53). Royalties are also to be reduced by deducting any greater potential damages. (253.571). oil or gas used in production, but again the provision would appear applicable only to oil and gas production. (253.57.) CRS-13 State State Mineral Royalties and Rental Fees Reclamation and Bonding Georgia The State Properties Commission is authorized to permit Georgia Surface Mining Act: GA. CODE ANN. §§ 12-4-70 et exploration and to lease state lands for mineral development seq. apply to all hardrock mined lands. (12-4-72). A permit upon such terms and conditions as the Commission shall to conduct surface mining operations is required and a determine. (GA. CODE ANN. § 50-16-43). reclamation and land use plan must be approved. Operators must file a bond, unless the director of the Rent and Royalties: Each lease must provide for a primary Commission issues an exemption. If an operator is exempted term of not more than ten years. Oil and gas royalties are and subsequently violates rules/lease/plan terms, the director specified, but not other minerals. The lease must provide for may require bond submission. Bonds must be written by a delay rentals in the sum of at least 10¢ per net mineral acre director-approved and GA-licensed surety. In determining payable on or before the first anniversary date of the lease, bond amount, the director must consider the character and 25¢ per net mineral acre payable on or before the second nature of the land reclamation requirements as approved in anniversary date of the lease, 50¢ per net mineral acre the plan. Amount cannot exceed $2,500 per acre. Bonds are payable on or before the third anniversary date of the lease, conditioned upon the faithful performance of the and at least $ 1.00 per net mineral acre payable on or before requirements law and regulations. Amount and reclamation each subsequent anniversary date during the primary term of requirements are to be reviewed at least every five years and the lease. (50-16-43). adjusted according to circumstances. (12-4-75). Form: bond, government securities, cash, or any combination thereof. (12-4-75). Release & Forfeiture: Release occurs upon the director's determination that reclamation has been completed. Upon failure to complete reclamation requirements, the state may pursue forfeiture and reclaim lands with recovered funds. (12-4-75). CRS-14 State State Mineral Royalties and Rental Fees Reclamation and Bonding Hawaii Any minerals on state lands may be leased by the Board of State Land Bond requirement: HAW. REV. STAT. §§ 182-1 Land and Natural Resources. (HAW. REV. STAT. §§ 182-4, et seq. Lessees must file with the Board a bond, in a form 182-5). and in an amount approved by the Board. The bond must be conditioned upon the faithful performance by the lessee of all Leases are awarded at public auction at which bidders may the lease terms and statutory requirements, and also be required to bid on the amount of annual rental (to be conditioned upon the full payment by the lessee of all paid in advance, price based on an upset price fixed by the damages suffered by the other land occupiers. (182-3). board), and royalty, based on the gross proceeds or net profits. (182-4, 182-9). Strip Mine Reclamation: HAW. REV. STAT. §§ 181-1 et seq. Specific royalties are set for each "long dry ton" of bauxite, apply to all hardrock mined lands. The Board is empowered bauxitic clay, gibbsite, diaspore, boehmite, and all ores of to issue strip mine permits and to approve reclamation plans. aluminum at the higher amount of either (1) twenty-five Permits are accompanied by an annual fee based on number cents or (2) the equivalent of the price of one pound of of acres mined ranging from $100 for less than ten acres to virgin pig aluminum. Royalties for ore processed into $500 for one hundred acres. (181-4, 181-6). aluminous oxide in the State are set at 80% of the rate of A bond, conditioned on performance of reclamation royalty for ore processed outside the State. Royalties must requirements, must be filed. It generally must be signed by also be set at a rate to encourage establishment and HI licensed corporate surety. The amount will be set by the continuation of the HI mining industry. (182-7). Board, but cannot exceed $300 an acre. The amount is to be adjusted to reflect any additional mined land or completed reclamation. A surety's signature is not required if a cash deposit in the amount of the bond is made. (181-5). Release occurs upon showing that land has been reclaimed as required by law/regulation/permit terms. (181-5). CRS-15 State State Mineral Royalties and Rental Fees Reclamation and Bonding Idaho State lands are open to hardrock mineral "casual" State Lands: Non-casual exploration requires a reclamation exploration to the extent the Board of Land Commissioners plan and a bond in such form as prescribed by the Board. has not withdrawn lands. (IDAHO CODE §§ 47-702, 47- The amount may not exceed $750 per affected acre. Bonds 1403). are conditioned on the payment of all damages to the land and resources thereon caused by the entry and/or exploration. The Board may lease tracts (not exceeding six hundred forty (IDAHO CODE § 47-703A). acres) for prospecting and mining for an annual rental, not less than $1 per acre per year, to be determined by the Violations of responsibilities under law/regulations/leases Board. The Board may set a production royalty as the may result in a legal action for an injunction and to forfeit the Board deems fair and in the interest of the state. Rental operator's bond and recover the cost of reasonable repair and payments are deducted from royalties each year. (47-704, reclamation. (47-718) 47-710). Placer and Dredge Reclamation: IDAHO CODE §§ 47-1317 et seq. apply to all lands. Requires permit and bond in an amount necessary to pay the estimated reasonable costs of reclamation required under the permit for each acre of land to be disturbed during the first season of operation plus 10%, not to exceed $1,800 per acre. Bond amount must be adjusted annually to reflect changes in conditions. Exemption from bonding is possible if the applicant has insured faithful performance of the requirements of the reclamation act and regulations by having a current and valid bond with the U.S. government, which equals or exceeds the amount required by state law. Form: surety, cash, certificate of deposit, or other bond acceptable to the director. (47-1317). CRS-16 State State Mineral Royalties and Rental Fees Reclamation and Bonding Idaho (cont.) Release & Forfeiture: Release occurs upon termination of mining operations and compliance with all reclamation requirements. Failure to reclaim lands results in forfeiture proceedings as required by sections 47-1318 and 47-1320. Surface Mining Reclamation: IDAHO CODE §§ 47-1501 et seq. apply to all lands. Requires approval of reclamation plan and bond submission. Bond amount is to be determined by Board (estimated reasonable costs of reclamation plus 10%). Generally, bond amount may not exceed $2,500 per acre, unless the Board holds a hearing, determines it is necessary, and notifies operator. Bonds are not required if the operator deposits cash and government securities in amounts equal to that of the required bond. (47-1512.) The law also provides for appropriate forfeiture proceedings. (47-1513). CRS-17 State State Mineral Royalties and Rental Fees Reclamation and Bonding Illinois State statutes do not appear to address leases, royalties, or Abandoned Mined Lands and Water Reclamation Act: 20 rental fees for state-owned hardrock minerals. ILL. COMP. STAT. 1920/1.01 et seq. generally apply to coal mining, but contains non-coal reclamation provision. The Department of Natural Resources is authorized and empowered to fill or seal abandoned tunnels, shafts, and entryways and remove equipment, structures, and facilities which it determines could endanger life and property and constitute a hazard. Annual expenditures cannot exceed 2% of the Department's annual budget for mine land reclamation through 1999. All expenditures had to be made by 2001. (1920/2.11) Surface Mining Reclamation: 225 ILL. COMP. STAT. 715/1 et seq. Surface mining disturbing more than ten acres cannot proceed without permit. (715/4). Financial security is required, and must be adjusted in accordance with changes in circumstances. (715/5). Bond amount must be between $600 and $5,000 per acre as determined by the Director of the Department. (715/8). Form: as the Director prescribes or operator may deposit cash, certificates of deposits, government securities, or irrevocable letters of credit in an amount equal to bond requirements. (715/8). Forfeiture: procedures provided for by statute, forfeiture fully satisfies reclamation obligations. (715/11). CRS-18 State State Mineral Royalties and Rental Fees Reclamation and Bonding Indiana State may grant permits for extraction, removal, and State Land Bond requirement: Permits must be disposition of minerals on or under land or non-navigable accompanied by sufficient bond in an amount to be waters. (IND. CODE 14-35-1-1). determined by the department for the restoration of land or water disturbed by exploration and mining (IND. CODE 14- Commercial production and accompanying royalty 35-1-10). payments must be established by the end of the initial term. (14-35-1-9). Other reclamation statutes do not appear to apply to hardrock mining operations. Iowa The state, counties, cities, and other political subdivisions Reclamation: State law provides for reclamation of all lands may lease public lands under their respective jurisdictions affected by mining for gypsum, clay, stone, sand, gravel, or for the purpose of metallic minerals exploration and other ores or mineral solids, except coal. (IOWA CODE § production. 208.1). Operations cannot begin without a license. (208.7). Royalties are not specifically provided for; however, statutes Bond: Permit application shall be accompanied by a bond or indicate that revenues derived from the leasing of state- security. (208.14). Bonds must be in a form prescribed by owned lands are to be paid into the general fund of the state. the state and conditioned on faithful performance by the Revenues derived from the leasing of other public lands operator of all reclamation requirements. Bonds must be shall be paid into the general fund of the respective lessor signed by the operator as principal and by a IA licensed political subdivision. (IOWA CODE § 458A.21). corporate surety. In lieu of a bond, the operator may deposit cash or certificates of deposit subject to the same bond conditions. Bond amount must be equal to the cost of reclaiming the site as required under section 208.17 and as estimated by the Division. (208.23). A bond may not be released until required reclamation work has been performed. (208.17). Forfeiture procedures are provided under § 208.28. If the proceeds from bond forfeiture are insufficient to satisfy the cost of reclamation, the operator shall be liable for remaining costs. (208.28). CRS-19 State State Mineral Royalties and Rental Fees Reclamation and Bonding Kansas Various governmental entities agencies are authorized to State Lease Liabilty: Lessee is liable for all surface damage lease state lands under their jurisdiction for mineral caused by any act or omission of the lessee. (KAN. STAT. production, including the Board of County Commissioners ANN. § 76-166). of any county, the KS Board of Regents, and the Secretary of the Department of Wildlife and Park Lands. (KAN. STAT. Surface-mining Land Conservation and Reclamation Act: ANN. §§ 19-110, 32-850, 75-52,136). KAN. STAT. ANN. §§ 49-601 et seq. apply to surface mining of hardrock minerals on all lands. Licensing is required and must be renewed yearly. (49-605). Board of County Commissioner and Board of Regent issued leases require a royalty of not less than one eighth part of A bond or security is required. Form: as prescribed by the the produced minerals. County leases may provide for a state; bond shall be signed by the operator as principal and by payment to the county of the market value of such royalty in a corporate surety licensed to do business in KS. Operators lieu of payment in kind. (19-110, 32-850, 75-52,136). may deposit cash, certificates of deposit, or government securities subject to the same conditions as bonds, in lieu thereof. Minimum bond amount is $250 per acre, and the maximum is $1,500 per acre. States may waive or reduce the amount to the extent that the operator has a sufficient bond or security on file with the city or county where the site or affected land is located. (49-615). Forfeiture proceedings are provided for by statute. Forfeiture of the operator's bond fully satisfies all obligations of the operator to reclaim affected land covered by the bond. (49- 619, 49-620). CRS-20 State State Mineral Royalties and Rental Fees Reclamation and Bonding Kentucky State statutes do not appear to address leases, royalties, or Surface Coal Mining Regulation: KY. REV. STAT. ANN. § rental fees for state-owned hardrock minerals. 350.010 et seq. Although generally inapplicable to hardrock minerals, the statute does authorize some regulation of "strip mining," which is defined in a manner that would appear to include hardrock minerals. Certain provisions are arguably applicable to noncoal strip mined land. (See 350.050, 350.152, 350.445). CRS-21 State State Mineral Royalties and Rental Fees Reclamation and Bonding Louisiana The State Mineral Board is authorized to lease minerals for State statutes do not appear to address reclamation for development and production on any lands belonging to the hardrock mineral mines. state. (LA. REV. STAT. ANN. §§ 30:124, 30:152). Minimum royalties must be stipulated in the lease, and royalties for various minerals are specified. Hardrock minerals are covered by the general provision requiring one- eighth of all minerals produced and saved; or if the lease is on behalf of a School Board, one-sixth of all minerals produced and saved. The state may choose to take any royalty in kind. (30:127, 30:142). The state may remit 10% of all royalties to the parish where production occurs. (30:145). Where a lease provides for delay rental, the annual rental shall not be for less than one-half the cash bonus. (30:127). Proceeds from mineral royalties, leases, and any bonuses are to be paid into the Bond Security and Redemption Fund, and when it is fully funded, into the Louisiana Investment Fund for Enhancement. (30:136.1). CRS-22 State State Mineral Royalties and Rental Fees Reclamation and Bonding Maine The Bureau of Geology and Natural Areas and other State Lands Bond: Lessees are required to provide a bond in agencies with jurisdiction over state-owned lands have an amount necessary to reclaim the area mined and to protect jurisdiction for the purpose of mineral development and against damage to any property located outside the leased mining on that land. (ME. REV. STAT. ANN. tit.12 § 549). area caused by the mining operations. The amount is determined by the director of the agency with jurisdiction over the state lands. In lieu of a bond, other security may be Exploration permits are required, at which point claims may provided so long as determined by the relevant agency be located. Rental fees are levied when an exploration director to provide the same protection as a bond. (ME. REV. claim is recorded, increasing each year as follows: STAT. ANN. tit. 12 § 549-B). First year $ .25 per acre 2nd year $ .75 per acre Reclamation: Applicable to all lands. Mining activities 3rd year $ 1.50 per acre require a reclamation plan for the maintenance of the mine site during mining and for a period after termination of 4th year $ 2.50 per acre mining. Security is required for metallic ore mining to 5th year $ 5.00 per acre ensure reclamation, closure, and postclosure care 6th year $20.00 per acre maintenance requirements are met. Form: a bond payable to the State or other satisfactory forms, including a security 7th year $30.00 per acre deposit with the State, an escrow account and agreement, Leases are available to persons with a valid recorded insurance, or an irrevocable trust. Amount is determined by exploration claim. Lessees must make royalty payments considering the character of the overburden, the future annually or more frequently as specified in the lease; the suitable use of the land involved and the cost of grading and amount of royalty payments is set jointly by the director reclamation to be required. Forfeited security must be Bureau of Geology and Natural Areas and the director of the expended for the reclamation of the area subject to the bond. agency having jurisdiction over the state lands. The royalty (ME. REV. STAT. ANN. tit. 38 § 490). rate set must reasonably relate to applicable royalty rates generally prevailing. (549-B). CRS-23 State State Mineral Royalties and Rental Fees Reclamation and Bonding Maryland State statutes do not appear to address leases, royalties, or Surface Mining Reclamation: MD. CODE ANN., ENVIR. §§ rental fees for state-owned hardrock minerals. 15-801 et seq. apply to hardrock minerals on all lands. The law establishes a Reclamation Fund for carrying out purposes of the act and to reclaim lands affected prior to enactment of the law. (15-805). A license and surface mining permit are required before operations may begin. Applications for these must be accompanied by submission of a reclamation plan along with various fees based on the number of acres affected. (15-807, 15-808). Bonds must be filed prior to commencement of operations. Amount: maximum of $1,250 per affected acre, but not less than a total of $8,000. The Department of the Environment may make adjustments if the bond fee is unreasonable and excessive upon consideration of the size of the operation, the amount of land to be mined, the acreage that is unreclaimed at any one time, the proposed method of regrading and revegetation of the site, the proposed use of the land after reclamation, and any other relevant factors. Liability under the bond extends throughout operations and for five years after its expiration unless the bond is released. (15-823). Release is authorized upon completion of operations and reclamation and may be incremental. (15-824). Forfeiture occurs on failure to perform reclamation in accordance with plan under procedures provided for by statute. (15-825). CRS-24 State State Mineral Royalties and Rental Fees Reclamation and Bonding Massachusetts The Division of Mineral Resources, within the Department Bond: A licensee or lessee must keep the state indemnified of Environmental Protection, administers all laws and against all claims and costs in relation to the license or lease regulations pertaining to hardrock mining on state lands. by posting a bond satisfactory to the director. No extraction The Division has authority to license exploration, lease can occur until the bond is posted. (MASS. GEN. LAWS ch. minerals for extraction, and set charges and fees for mining 21, § 54). operations. Leases may not be issued until the Dep't has received reliable information on the quantities, quality, and location of the resources, as well as potential impacts on Additional reclamation laws are not applicable to noncoal natural resources. (MASS. GEN. LAWS ch. 21, § 54). minerals. (MASS. GEN. LAWS ch. 21B, § 2). CRS-25 State State Mineral Royalties and Rental Fees Reclamation and Bonding Michigan There would not appear to be a generally applicable law Ferrous Metallic Mine Reclamation: MICH. COMP. LAWS governing leasing on state-owned lands. However, state- §§ 324.63101 et seq. apply to all lands. A permit is required owned unpatented overflowed lands, made lands, and lake before operations may begin. Permits require submission of bottomlands are subject to lease for the removal of "metallic mining and reclamation plan. (324.63103a). Security may be minerals, marl, stone, rock, sand, gravel, earth, oil, and gas" required if the supervisor of reclamation has reasonable from or under the beds thereof. Leases may include such doubts about an operator's ability to perform reclamation. consideration as may be considered fair and reasonable. Security may be a performance bond or other satisfactory Special leasing rules apply to lands adjacent to and form of financial assurance. (324.63107). underlying the Great Lakes. (MICH. COMP. LAWS §§ 324.33936, 324.33938). Nonferrous Metallic Mine Reclamation: MICH. COMP. LAWS §§ 324.63201 et seq. apply to all lands. A permit is required before operations may begin, as is an environmental impact assessment for the proposed mining operation. These require preparation of a mining, reclamation, and environmental protection plan. Operators must maintain financial assurance until the Dep't determines reclamation is complete. Form: a conformance bond, escrow, cash, certificate of deposit, irrevocable letter of credit, or other equivalent security, or any combination thereof, covering at least 75% of the total required amount; the balance of the required total amount, if any, shall consist of a statement of financial responsibility. Assurance amount must be sufficient to cover the cost to administer reclamation. Amounts shall be adjusted every three years or as the Dep't deems necessary. CRS-26 State State Mineral Royalties and Rental Fees Reclamation and Bonding Minnesota The commissioner of natural resources may designate state Mined Land Reclamation: MINN. STAT. §§ 93.44 et seq. lands as mining units and execute leases to prospect for apply to metallic minerals on all lands. A permit to mine for "iron ore and other ores." Generally, leases may cover only metallic minerals is required prior to operations. one mining unit. (MINN. STAT. §§ 93.14, 93.15). Applications must include a proposed plan for reclamation or restoration, or both. Lease form is provided by statute, and incorporates Financial Assurance: A bond or other financial assurance minimum royalty rates. Increases to royalty rates are satisfactory to the commissioner is required and must be provided for by equations referencing the Producer Price reviewed annually. Operators must also supply a certificate Index for Iron Ores and the Iron and Steel Subgroup of the showing the applicant has a public liability insurance policy Metals and Metal Products Group. Base royalty rates are set in force for the mining operation or evidence that the for various categories of ores, ranging from $.11 to $.18 per applicant has satisfied other state or federal self-insurance ton. (93.20) requirements. Insurance must cover personal injury and property damage. (93.481, 93.49). Rental for state lands is $1,250 for the first year after the date of the lease and $5,000 per year for the remainder of the term; provided, that for a taconite iron ore mining lease the rent is set at $400 per year for the first five years and $1,600 per year thereafter. (93.20). CRS-27 State State Mineral Royalties and Rental Fees Reclamation and Bonding Mississippi The Mississippi Major Economic Impact Authority may Mississippi Surface Mining and Reclamation Act: MISS. lease state owned lands for mineral development for such CODE ANN. §§ 53-7-1 et seq. apply to surface mining on all consideration and upon such terms and conditions as it lands. The Mississippi Commission on Environmental deems just and proper. (MISS. CODE ANN. §§ 29-7-1 et Quality Permit Board may issue surface mining permits. A seq.) Certain types of lands, including designated offshore reclamation plan must also be submitted. Reclamation must tracts, are not subject to lease. be consistent with local, physical, environmental, and climatological conditions and current mining and reclamation technology. The Board may, in its discretion, authorize the Royalties to the state must be at least three-sixteenths of oil reclamation of non-permit lands in lieu of the lands included and gas or other minerals. in the permit application. (53-7-31). Operators must submit a performance bond in an amount sufficient to properly reclaim the permit area, but not less than $500 nor more than $2,500 per acre. No bond will be required if mining is funded by Mississippi Department of Transportation or the Division of State Aid Road Construction and the operator has submitted a bond to one of those entities. (53-7-23). Form: bonds must be executed by the applicant and a state-licensed corporate surety; in lieu of the surety bond cash, negotiable U.S./MS bonds, assignment of real property, personal property, or savings account, negotiable certificates of deposit, or a letter of credit of a qualified bank are acceptable. Bond amount may be adjusted to reflect changed circumstances. (53-7-37). CRS-28 State State Mineral Royalties and Rental Fees Reclamation and Bonding Mississippi (cont.) Forfeiture proceedings must be conducted in accordance with section 49-17-31 through 49-17-41 and may be pursued when the commission finds that (i) reclamation of the affected area is not proceeding in accordance with the plan and the operator fails to take the required corrective action, or (ii) revegetation has not been completed in conformance with the plan within two years or longer, or upon revocation of a permit. (53-7-35). Upon completion of operations, the operator may file for the release of the performance bond or deposit. The application must describe of the results achieved in accordance with the operator's reclamation plan. The Dep't and state water authorities must then inspect the site. Release may occur, incrementally or in whole, upon Permit Board's satisfaction with reclamation performance. (53-7-67). CRS-29 State State Mineral Royalties and Rental Fees Reclamation and Bonding Missouri State statutes do not appear to address leases, royalties, or Metallic Mineral Waste Management Act: MO. ANN. rental fees for state-owned hardrock minerals. STAT. §§ 444.350 et seq. apply to all lands. The director of the Department of Natural Resources coordinates all environmental regulation and oversees the permitting process. Permitting requires submission of a closure plan and inspection-maintenance plan that provide for compliance with applicable water pollutant discharge permits, dam safety registration requirements, waste management program requirements, and air pollution control regulations. Plans must be reviewed every five years and updated as necessary. (444.362, 444.365). Financial assurance is required before a permit will issue. Form: bond, certificate of deposit, letter of credit, insurance, company guarantee, escrow agreement or other form of financial assurance as approved by the director. Amount: generally $1,000 per acre or fraction thereof, subject to director discretion, but not less than $20,000 per permit. Once the director determines that reclamation has been completed for any area, the financial assurance must be released or reduced proportionately. Forfeiture procedures are provided by law, requiring written notice of violations and a 90-day period for corrective measures. (444.368, 444.378). CRS-30 State State Mineral Royalties and Rental Fees Reclamation and Bonding Missouri (cont.) Land Reclamation Act: MO. ANN. STAT. §§ 444.760 et seq. apply on all lands to surface mining for minerals other than iron, lead, zinc, gold, silver, coal, surface or subsurface water, fill dirt, natural oil or gas together with other chemicals recovered therewith. (444.765). Covered operations require permit from the Land Reclamation Commission. Bonds must be filed with the Commission and signed by a surety. In lieu of surety bond, the operator may furnish a bond secured by a personal certificate of deposit or irrevocable letter of credit. Amount: $8,000 per permit up to eight acres and $500 for each acre thereafter. An additional bond of $4,500 per acre is required when topsoil will be removed. (444.778). Bonds are retained until the Commission is satisfied that operators have (1) complied with applicable regulations and plans and (2) begun operation of a sanitary land fill or solid waste disposal area. (444.770). Release procedures are provided by statute (444.775). CRS-31 State State Mineral Royalties and Rental Fees Reclamation and Bonding Montana Mineral Leases on State Lands: MONT. CODE ANN. §§ 77- Hardrock Mining Impact Regulation: MONT. CODE ANN. 3-101 et seq. The board of Land Commissioners may lease §§ 90-6-301 et seq. The Hardrock Mining Impact Board is state lands, including submerged lands, for the purpose of authorized to regulate certain aspects of hardrock mining on prospecting for or mining metalliferous minerals or gems. all lands. Applicants for mining permits must submit an The term of the lease and any applicable limitations are to impact plan describing economic effects of mining be determined by the Board. (77-3-102). Before issuance operations. Upon approval of the plan, developers may make of any lease, the department must investigate the character payments as specified in the plan directly to a local of the lands and mineral deposits to determine if mining is government unit or to the board to be deposited into an appropriate and to determine the royalty and rental amounts. impact fund for use in implementing the plan. Local (77-3-112). governments may also enter into agreements with developers for the issuance of any special industrial local government facility impact bonds to provide for the construction, The Board may require rental payment "in conjunction with renovation, improvement, or acquisition of local government the work requirements" or "cash rentals as an alternative or facilities resulting from the large-scale mineral development. otherwise." (77-3-115). (90-6-310). Leases are to specify applicable royalties. Royalties, along Metal Mine Reclamation: MONT. CODE ANN. §§ 82-4-301 with all other considerations, must constitute the "full et seq. apply to mines for any ore, rock, or substance, other market value" of the conveyed leasehold. In no case will than oil, gas, bentonite, clay, coal, sand, gravel, peat, soil royalties be less than 5% of the returns from or of the full materials, or uranium on all lands. General exemptions for market value of the recovered metalliferous minerals or small miners are provided, although special bonding gems. (77-3-106). Bonds to cover royalty payments or to requirements apply to placer or dredge mining (equal to state protect other state land lessees/purchasers may also be estimate for reclamation, but not to exceed $10,000). (82-4- required. (77-3-119, 77-3-120). 305). Exemptions for small scale activities are also allowed, although such operations cannot generally use mercury, cyanide, or leaching chemicals. (82-4-310). CRS-32 State State Mineral Royalties and Rental Fees Reclamation and Bonding Montana (cont.) Exploration licenses and operation permits are also required, each of which must be accompanied by a reclamation plan. A plan must be developed for each operation with specific requirements regarding erosion control, water issues, pollutants, vegetative cover, and other issues. (82-4-332). Adequate performance bonds are also required. Form: bond, cash deposit, an assignment of a certificate of deposit, an irrevocable letter of credit, or other surety acceptable to the department. Bond amount covering reclamation costs must be filed, and may not be less than $200 per acre. The amount is subject to review annually and extensive review every five years. The Dep't may modify bond amounts to account for changed circumstances. (82-4-338). Forfeiture of the bond may be had to abate public dangers at the operation site. (82-4-338). Forfeiture for failure to reclaim lands and release of bonds for successfully reclaimed lands are provided for under § 82-4-341. Nebraska Development of Mineral Lands: NEB. REV. STAT. §§ 72- State statutes do not appear to address reclamation for 301 et seq. All state owned lands are open to mineral hardrock mineral mines. development. Lease terms shall not exceed three years. (72-303). The lease must provide for a royalty that is not less than 5% of production. An additional rent may be charged as determined by the Board of Educational Lands and Funds. (72-308). CRS-33 State State Mineral Royalties and Rental Fees Reclamation and Bonding Nevada State law provides for coal, oil, gas, and geothermal leases State reclamation law is applicable to all minerals. A of state lands, but does not appear to address hardrock permit is required before any mining operation can minerals specifically. General lease provisions authorize the commence. Reclamation plans must provide for vegetative administrator of the Division of State Lands to lease lands cover and land reclamation to an extent comparable to subject to terms and conditions deemed appropriate. (NEV. adjacent areas. Reclamation should be performed REV. STAT. §§ 322.010-322.075). simultaneously with operations or promptly upon completion or abandonment of operations. (NEV. REV. STAT. §§ 519A.210, 519A.160). An applicant must agree in writing to be responsible for all reclamation and must file a bond or other surety in a form and amount approved by the Division and as required by its regulations. (519A.210, 519A.160). Bond forfeiture procedures are provided for by statute. (519A.270, 519A.280). CRS-34 State State Mineral Royalties and Rental Fees Reclamation and Bonding New Hampshire The Commissioner of the Department of Resources and Reclamation: The Commissioner is directed to review all Economic Development is directed to make mining permits applications and may deny permits if the recommendations to the Long Range Capital Planning and operation will not comply with reclamation laws, the impact Utilization Committee in accordance with state law will be too great or is in an area unsuitable for mining requiring Committee and governor review prior to lease or because of historical, archaeological or environmental disposal of state land (N.H. REV. STAT. §§ 12-E:9, 4:40). reasons, or the reclamation plans or pollution prevention The Commissioner is authorized to issue mineral measures are insufficient. (N.H. REV. STAT. § 12-E:2). prospecting permits and to determine lease terms, including Permit applications must include a reclamation plan, and "the amount of acreage, duration of lease, rental cost, permits may be modified and subjected to new conditions as royalties and any conditions concerning extraction of the Director deems necessary, consistent with promulgated minerals or reclamation of the leased land ...." (12-E:9). regulations. Upon approval of a plan, a bond or other security satisfactory to the commissioner must be filed with the state. Bond amount is to be the estimated cost of reclamation based on the future suitable use of the land, but in no case shall the bond be less than $1,000 per acre. Amounts are to be reviewed and adjusted at least every three years. Bonds may be released, in whole or in part, upon reclamation performance to the satisfaction of the Commissioner and in no case sooner than three years from its filing. (12-E:6). New Jersey State statutes do not appear to address leases, royalties, or State statutes do not appear to address reclamation for rental fees for state-owned hardrock minerals. hardrock mineral mines. CRS-35 State State Mineral Royalties and Rental Fees Reclamation and Bonding New Mexico The Commissioner of Public Lands may issue leases for Bonds for State Leases: Lessees may be required to file a hardrock minerals on state lands. (N. M. STAT. ANN. § 19- bond or undertaking of not less than $5,000 for the benefit of 8-24). any surface lessee, patentee or contract purchaser, to secure against damage to livestock, water, crops or other tangible land improvements. A blanket bond of not less than $10,000 Annual rental is required for all leases, to be paid in for holders of multiple leases may be filed instead. Bond advance, in an amount fixed by the Commissioner. Rent requirement may be waived by holder of surface rights. (N. may not be less than five cents per acre for the primary term M. STAT. ANN. § 19-8-24). nor less than fifty cents per acre for the secondary term; total annual rental per lease may not be less than $10. (19-8-21). New Mexico Mining Act: N. M. STAT. ANN. §§ 69-36-1 et seq. generally govern reclamation of all lands mined for Royalties are required for all leases and generally may not hardrock minerals and apply to all processes of obtaining be less than 2% of gross returns from all ores or materials useful minerals "from the earth's crust or from previously mined and extracted from the land. Additional royalties: not disposed or abandoned mining wastes, including exploration, less than 2% of premiums and bonuses received; not less open-cut mining and surface operation, the disposal of refuse than 5% on production bonuses and premiums for deposits from underground and in situ mining, mineral transportation, of rare earths, precious or semi-precious stones, uranium, concentrating, milling, evaporation, leaching and other thorium, plutonium or any other materials determined to be processing." (69-36-3). The State Mining Commission is needed for the production of fissionable materials; special responsible for regulating mining operations under the act rental and royalty rates for nonproducing leases; and special and is required to establish permit and reclamation rates for potassium, sodium, phosphorus and "other minerals requirements incorporating site-specific characteristics. (69- of similar occurrence and their salts ...." (19-8-21, 19-8-24). 36-12). Operations and reclamation requirements must (1) use the most appropriate technology and the best management practices; (2) assure protection of human health and safety, the environment, wildlife and domestic animals; CRS-36 State State Mineral Royalties and Rental Fees Reclamation and Bonding New Mexico (3) include backfilling or partial backfilling when necessary; (cont.) (4) generally require permit areas that will achieve a "self- sustaining ecosystem appropriate for the life zone of the surrounding areas following closure"; (5) be designed to reduce the formation of acid and other toxic drainage; (6) require that nonpoint surface releases of toxic substances be contained within the permit area; (7) require facilities to be designed to facilitate contemporaneous reclamation; and (8) preserve topsoil in a usable condition for sustaining vegetation. (69-36-7). The statute requires financial assurance. The amount must be sufficient to assure completion of performance requirements if the work must be performed by the state or a third party contractor. Amount is subject to periodic review to account for inflation or other reclamation cost changes. Financial requirements must not duplicate nor be less comprehensive than federal financial requirements. Financial assurance cannot be any type or variety of self-guarantee or self-insurance. (69-36-7). Release will occur upon a permittee's application and commission inspection of the site, and may be incremental. Release of amounts for revegetation is subject to additional requirements. (69-36-7). CRS-37 State State Mineral Royalties and Rental Fees Reclamation and Bonding New York The Commissioner of General Services may issue a permit, The New York State Mined Land Reclamtion Law: N.Y. consent, or lease to enter upon state lands to explore for ENVTL. CONSERV. LAW §§ 23-2701 et seq. apply to all minerals, work mines, and extract minerals. For minerals on all lands. The Department of Environmental appropriated state lands, the state entity with jurisdiction Conservation regulates reclamation and is authorized to over such lands is entitled to notice from the commissioner establish environmental standards and criteria for mining and of any mining application and shall have a period of not less reclamation of the affected land and to permit mining and than thirty days to report in writing to the Commissioner. reclamation activities. (23-2709.) A mining permit governs (N.Y. PUB. LANDS LAW §§ 81, 83). certain aspects of operations and must be accompanied by a "mined land-use plan," which governs mining and reclamation activities. (23-2713.) Annual rental and royalties are to be set by the Commissioner at a reasonable and proper rate. The Financial security in the form of a bond signed by a minimum royalty cannot be less than 2% of the market qualified surety (or other form accepted by the Dep't) is value of all minerals. Royalty payments are made semi- required and must be sufficient to ensure performance of annually. (82). applicable reclamation requirements. The Dep't determines the amount, conditions and terms of the security. It must generally remain in force until reclamation is complete, although incremental release is authorized. (23-2715.) CRS-38 State State Mineral Royalties and Rental Fees Reclamation and Bonding North Carolina The State, acting at the request of the Department of The Mining Act of 1971: N.C. GEN. STAT. §§ 74-46 et seq. Environment and Natural Resources, may sell, lease, or govern reclamation of surface effects of hardrock mining otherwise dispose mineral deposits on submerged lands. operations on all lands. A permit from the Department of (N.C. GEN. STAT. § 146-8). Environment and Natural Resources is required before mining can commence. Permits require a reclamation plan, with specific requirements as to erosion, revegetation, and The Department of Administration may sell, lease, or reclamation time frames. (74-49, 74-53). otherwise dispose of mineral rights or deposits in the vacant and unappropriated lands, swamplands, and lands acquired Permits will not become effective until an applicant has by the State by virtue of being sold for taxes (but not submitted an acceptable performance bond or other security submerged lands), for such consideration, in such portions, (74-50, 74-54). Bond amount must be set by the Dep't and and upon such terms as are deemed proper by the is based on the area to be reclaimed under the approved Department and approved by the Governor and Council of reclamation plan(s) to which the bond pertains, less any area State. (146-9). where reclamation has been completed and released, pursuant to § 74-56. Alternative forms: cash deposit, an irrevocable letter of credit, a guaranty of payment from an acceptable bank, an assignment of a savings account in an acceptable bank on an assignment form prescribed by the Department, or other security acceptable to the Department. (74-56, 74-59). Bond release and forfeiture procedures are also provided by statute. (74-56, 74-59). North Dakota The state may issue prospecting permits or leases for the Abandoned Surface Mine Reclamation: N.D. CENT. CODE purpose of prospecting for and mining minerals contained in §§ 38-14.2-01 et seq. apply to all lands mined for noncoal state lands. (N.D. CENT. CODE §§ 38-11-01, 38-11-02). minerals. The Public Service Commission is authorized to develop a reclamation plan for abandoned mine sites. The law creates an abandoned mine fund, from which moneys may be used to reclaim lands to protect against subsidence, erosion and sedimentation, and water pollution, among other things. (38-14.2-04). CRS-39 State State Mineral Royalties and Rental Fees Reclamation and Bonding Ohio Various entities are authorized to issue mining permits and Noncoal Surface Mining Regulation: OHIO REV. CODE leases for state lands. The director of natural resources is ANN. §§ 1514.01 et seq. apply to hardrock mining operations responsible for the bed of Lake Erie. (OHIO REV. CODE on all lands. A permit from the Division of Mineral ANN. § 1505.07). The chief of the Division of Water is Resources Management is required for surface mining responsible for canal lands. (1520.02). The chief Division operations. Permit applications must include a plan of of Wildlife is responsible leasing of lands under the reclamation, which must provide for various environmental division's jurisdiction. (1531.06). Finally, counties, standards, including reclamation adequate for the land's townships, and boards of education are authorized to lease intended future uses, soil stability and erosion protections, minerals on lands under their authority. (307.11, 505.11, revegetation, removal of unwanted structures, and prevention 3313.45). of water contamination. (1514.02). Applicants must also provide proof of adequate liability Consideration for such leases shall be on a royalty or rental insurance, various filing fees, and a performance bond. basis, as determined by the relevant entity. (1514.02). The performance bond may take the form of a surety bond, cash, an irrevocable letter of credit, or certificates of deposit. Amount: Unless otherwise provided by rule, $10,000 plus $1,000 per acre. (1514.04). CRS-40 State State Mineral Royalties and Rental Fees Reclamation and Bonding Oklahoma The Commissioners of the Land Office are authorized to The Mining Lands Reclamation Act: OKLA. STAT. tit. 45, offer mineral leases for sale through competitive bids. §§ 721 et seq. apply to all lands. Operators must obtain a (OKLA. STAT. tit. 64, § 454). permit from the Department of Mines for each mining operation. Permit applications are to be accompanied by a plan of reclamation, which must, among other things, set Leases require an annual rental of not less than $1 per acre, forth the proposed use to be made of the affected land, the or if minerals are produced, a royalty not less than 5% of grading to be accomplished, the type of revegetation, and an the gross receipts from sale of minerals produced. If the approximate time frame for such efforts. minerals are not sold, a royalty of 5% of the market value of the minerals produced may be elected by the A bond to cover reclamation requirements must be filed as Commissioners. The Commissioners are to require a bond required by the Director of the Dep't of Mines. Form: Bonds sufficient for the faithful performance of all lease shall be co-signed by the operator as principal and by a "good requirements. (455). and sufficient corporate surety," or operators may deposit cash government securities, certificates of deposit or an irrevocable letter of credit, or by using existing reclaimed The Department of Central Services is authorized to lease areas in excess of cumulative reclamation requirements. minerals on lands under its jurisdiction upon a basis of a Bond amount is to be determined by the Dep't based on retained royalty of not less than 1/8 of all minerals permit performance requirements and consideration of the produced and such additional cash bonus as may be character and nature of the overburden, the future suitable procured. (OKLA. STAT. tit. 74, § 107). land use, and the cost of reclamation to be required. Minimum: $2,000. Withdrawals of land from permit or amendments to permit must be reflected in bond amount. (724). Financial surety must remain in effect until the land has been reclaimed and released by the Dept in accordance with 45 Okl.St.Ann. §§ 728 and 729. CRS-41 State State Mineral Royalties and Rental Fees Reclamation and Bonding Oregon The Department of State Lands is authorized to issue Reclamation of Surface-Mined Lands: OR. REV. STAT. §§ mineral leases and also appears to have authority to fix 517.702 to 517.951. apply to all lands. Operators cannot terms, conditions, and royalties (as provided in § 274.530). engage in surface mining without a permit from the State (OR. REV. STAT. §§ 273.225, 273.551). Department of Geology and Mineral Industries for each operation. (517.790). Additional permit requirements and more stringent review of certain reclamation issues are applicable to nonaggregate mineral mines. (517.915). Permits require a bond or security acceptable to the Dep't. The amount is to be determined by the Dep't, but may not exceed the total cost for reclamation (if performed by the state) or, generally, $10,000 per acre. Amount is to be calculated and adjusted based upon the total area expected to be in a disturbed condition in the following year. (517.810). Amount can be increased to the lower of actual cost of reclamation or $100,000 per acre if specified threats may be present. (517.950). The state must also provide a pooling program to assist operators in complying with bonding requirements. (517.815). Release and adjustment are to be performed in accordance with § 517.870. CRS-42 State State Mineral Royalties and Rental Fees Reclamation and Bonding Pennsylvania State statutes do not appear to address leases, rental fees, or Noncoal Surface Mining Conservation and Reclamation royalties for hardrock minerals on state lands. Act: 52 PA. CONS. STAT. §§ 3301 et seq. apply to hardrock mining on all lands. The Department of Environmental Resources may issue an operating permit. Applicants must also submit a complete and detailed plan for the reclamation of the affected land. (3307). Applicants must file a bond for the land affected by each operation. The amount is to be the total estimated cost to the state of completing the reclamation plan or an amount established by the Dep't under regulations for an alternate bonding program. The minimum amount is $5,000 per permit area. Liability under the bond is for the duration of surface mining and a period of five years after reclamation work, unless the bond is released. Alternative bond forms are provided (e.g. irrevocable bank letters of credit, cash) and self-bond may be accepted. Stricter bonding requirements are applicable when overburden produced will exceed specified levels. Forfeiture proceedings are provided for by statute. (3309). Rhode Island State statutes do not appear to address leases, rental fees, or State statutes do not appear to address reclamation or bonding royalties for hardrock minerals on state lands. requirements for hardrock mining operations. CRS-43 State State Mineral Royalties and Rental Fees Reclamation and Bonding South Carolina The Public Service Authority may issue mineral leases on South Carolina Mining Act: S.C. CODE ANN. §§ 48-20-10 lands owned by the Authority; the State Budget and Control et seq. apply to all lands. South Carolina Department of Board and county forfeited land commissions may, with the Health and Environmental Control may issue certificates of approval of the Attorney General, issue leases on state exploration and operating permits. Both must be lands/waters under the ownership, management or control of accompanied by a reclamation plan. The basic objective of the Board or commissions, respectively. (S.C. CODE ANN. reclamation is to "establish on a continuing basis the §§ 10-9-10, 10-9-30).. vegetative cover, soil stability, water conditions, and safety conditions appropriate to the area." (48-20-50, 48-20-60, 48- 20-90). Adequate bonding is also required. The Dep't sets the amount of the performance bond or other security within statutory limits: for exploration, bonds must be $2,500; for operations, bonds must be based on affected land. Less than 10 acres: $10,000. Between 10 and 15 acres: $15,000. 15 acres or more: $25,000. Over 25 acres: may be in excess of $25,000. (48-20-70, 48-20-110). Bonds must be signed by a surety approved by the Department of Insurance or be an acceptable alternative form: cash deposit, registered securities acceptable to the department, an assignment of a savings account in a SC bank, or other securities acceptable to the department. (48-20-110). Release must be done pursuant to section 48-20-130. Forfeiture is ordered pursuant to section 48-20-170. CRS-44 State State Mineral Royalties and Rental Fees Reclamation and Bonding South Dakota The Commissioner of School and Public Lands may lease South Dakota Mined Land Reclamation Act: S.D. mineral interests owned by the state, although for leases on CODIFIED LAWS §§ 45-6B-1 et seq. apply to noncoal minerals lands administered by the Department of Game, Fish and on all lands. The Board of Minerals and Environment may Parks, the consent of the department is a prerequisite. (S.D. issue permits for operations. Permit applications must CODIFIED LAWS § 5-7-1). include a reclamation plan and post-closure plan for mine waste disposal facilities. (45-6B-7). Reclamation is to be reasonably designed to minimize the disruption from the Annual rentals are required. They must be paid in advance mining operation and to rehabilitate affected plant cover, soil in an amount to be fixed by the Commissioner. Rental may stability, water and other resources. not be less than $1 per acre for the primary term, nor less than $2 per acre for the secondary term. The annual rental Bonding is required. Generally, the amount is to be set by for any one lease may not be less than $10. (5-7-54). the Board based on a site inspection, the reclamation plan, and "the magnitude, type, and costs of reclamation activities planned for the affected land and the nature, extent, and Royalties are required. They may not be less than 2% of the duration of the mining." The amount must be sufficient to gross returns from the sale of ores and mineral products, less cover reclamation costs and may be adjusted over time, as reasonable transportation, smelting, reduction, or other necessary (45-6B-21, 45-6B-26, 45-6B-27). If cyanide or customary charges, as determined by the Commissioner. An another leaching agent is used, additional assurance (at least additional royalty of not less than 2% of any premiums and $25,000 but not more than $500,000) may be required. (45- bonuses received in connection with the discovery, 6B-20.1). Form may be as required by the Board; cash or production or marketing is also required. (5-7-55). government securities are acceptable. (45-6B-20, 45-6B-23). Additional assurance may be insurance, cash, company net worth, or as required by the Board. (45-6B-20.1). A bond to secure surface lessees, patentees, or contract Forfeiture and Release proceedings are provided for. (45- purchasers against damage to livestock, water, crops, or 6B-25, 45-6B-66 - 45-6B-68). other tangible land improvements caused by the mining lessee may also be required. (5-7-57). CRS-45 State State Mineral Royalties and Rental Fees Reclamation and Bonding Tennessee The Governor of the state may lease any of the property Tennessee Mineral Surface Mining Law of 1972: TENN. owned by the state at a reasonable rental or royalty in order CODE ANN. §§ 59-8-201 et seq. apply to hardrock mining on that mineral resources may be properly developed. (TENN. all lands. The Commissioner of Environment and CODE ANN. § 12-2-101). Conservation may issue operations permits. Permits are conditioned upon approval of a bond as provided in § 59-8- 207 and a mining and reclamation plan as provided in § 59-8- 208. Bonds must be executed by the operator and a qualified corporate surety approved by the Commissioner. Additional acceptable forms of security are: cash, negotiable U.S. treasury bonds, or negotiable general obligation municipal or corporate bonds with at least an "A" rating by Moodys and/or Standard and Poors. (59-8-207). Bond amount shall not be less than $600 per acre or fraction thereof. The amount shall be increased or decreased to account for any change in the acreage covered by the permit as provided in § 59-8- 205(a)(2). Forfeiture procedures are provided by § 59-8-211. CRS-46 State State Mineral Royalties and Rental Fees Reclamation and Bonding Texas Any tract of land that belongs to the state, including Texas Surface Coal Mining and Reclamation Act: TEX. submerged lands, and land sold with a reservation of NAT. RES. CODE ANN. §§ 134.001 et seq. primarily address minerals to the state are subject to prospect by any person coal mine regulation, but also govern "iron ore and iron ore for those minerals. (TEX. NAT. RES. CODE ANN. § 53.011). gravel mining and reclamation operations to the extent [they] can be made applicable" on all lands. (134.012). The Railroad Commission of Texas is given jurisdiction over The General Land Office may issue a prospecting permit for mining and reclamation. A reclamation plan is required for a one year period. Rent at an amount set by the surface mined land and for the surface effects of underground Commissioner is required. Payment extends a permit for mining. (134.015, 134.041). one year; a permit cannot be extended for more than five years. (53.013). A performance bond is required. The form is to be determined by the Commission, although self-insurance or compliance with an alternative system may be allowable. A prospecting permittee may file an application to lease an Acceptable forms include cash, negotiable U.S./TX bonds, or area covered by its permit for mining purposes. (53.015). negotiable certificates of deposit. (134.123, 134.124, The royalty under the lease may not be less than 1/16 of the 134.126). The Commission is to determine the security value of the minerals produced under the lease. (53.018). amount based on estimated reclamation needs; it may not be less than $10,000 per permit area. Additional bonds may be required to cover a succeeding increment of mining in the permit area. (134.121, 134.122). Release of Bond or Deposit is governed by section 134.131. CRS-47 State State Mineral Royalties and Rental Fees Reclamation and Bonding Utah Mineral leases of all state lands, except school and Utah Mined Land Reclamation Act: UTAH CODE ANN. §§ institutional trust lands, are made through the Division of 40-8-1 et seq. apply to exploration, development, and Forestry, Fire and State Lands, with the consent of the state extraction of hardrock minerals on all lands. Every operator agency with jurisdiction over the land. (UTAH CODE ANN. is obligated to conduct reclamation and is responsible for § 65A-4-3). reclamation costs and expenses. (40-8-12.5). After a notice of intention for mining operations has been Mineral deposits in state-owned lands may be leased on a approved, the operator must provide surety, in a form and rental and/or royalty basis. (65A-6-1). The Division is amount determined by either the Division or the Board of Oil, directed to promulgate rules prescribing the annual rental Gas and Mining, based on the type of reclamation needed. and royalty rates. (65A-6-2). Mineral leases must provide The form of surety that the operator may provide includes, for a minimum annual rental of not less than $1 per acre. but is not limited to: collateral, a bond or other form of (65A-6-4, 65A-6-6). insured guarantee, deposited securities, or cash. If any operator fails or refuses to carry out the necessary land reclamation as outlined in the approved notice of intention, the Board may, after notice and hearing, declare any surety filed for this purpose forfeited. The state Attorney General is to then proceed with the necessary legal actions to obtain forfeiture. (40-8-14). CRS-48 State State Mineral Royalties and Rental Fees Reclamation and Bonding Vermont A U.S. citizen, after discovering a valuable mine on state State statutes do not appear to address reclamation or bonding lands may file a notice of discovery and a bond and then requirements for hardrock mining operations. may work such mine or quarry. (VT. STAT. ANN. tit. 29, § 302; see also VT. STAT. ANN. tit. 10, § 2606 for leases on parklands). A royalty of 2% of the market value of all mineral products is required. Valuation for royalty determinations is made when such products are first in a marketable form. (29, § 302). Operators must also file a bond with the Commissioner of Buildings and General Services in such sum and with such sureties as the Commissioner requires. The bond is to secure to the state all sums of money due as a result of mineral production. (29, § 306). CRS-49 State State Mineral Royalties and Rental Fees Reclamation and Bonding Virginia State law authorizes several state agencies to lease the Regulation of Mining Activity: VA. CODE ANN. §§ 45.1-181 minerals underlying state lands under their jurisdiction for et seq. apply to all lands. Operators must obtain a mining mineral production. Rental and/or royalty rates may be set permit accompanied by an operations plan. The operations by these agencies as they see fit, except that leases on plan describes the specifications for surface grading and certain submerged lands require a royalty. (VA. CODE ANN. restoration to a surface suitable for the proposed use of the §§ 28.2-1208, 53.1-31). land after reclamation is completed. (45.1-182.1). A bond is required in an amount that is based on the number of acres of land which the operator estimates will be affected by mining operations during the next year. The amount may not be less than $200 nor more than $1,000 per acre. The minimum amount of bond furnished shall be $1,000, except in areas of five acres or less, which are subject only to the general per acre amount requirements. Bonds must be executed by the operator and a corporate licensed surety; in lieu of this bond form, the operator may deposit cash or collateral security acceptable to the Director. (59-8-207). Bonds may be adjusted annually to reflect new disturbances and work completed (45.1-185). CRS-50 State State Mineral Royalties and Rental Fees Reclamation and Bonding Washington The Department of Natural Resources may issue permits Surface Mining Reclamation: WASH. REV. CODE §§ and leases "for prospecting, and contracts for the mining of 78.44.010 et seq. apply to surface mining on all lands. The valuable minerals and specified materials, except rock, Department of Natural Resources is given the exclusive gravel, sand, silt, coal, or hydrocarbons, upon and from any authority to regulate surface mine reclamation. (78.44.050). public lands belonging to or held in trust by the state ...." The Dep't is responsible for issuing reclamation permits. (WASH. REV. CODE §§ 79.14.300, 79.14.310). Permits cannot be issued until the applicant has deposited an acceptable performance security. (78.44.087). Form: bank An annual rental as set by the Board of Natural Resources letters of credit acceptable to the Dep't; a cash deposit; is required. (79.14.350). Royalties are required under all negotiable securities acceptable to the Dep't; an assignment mining contracts and mineral leases. The rate is to be set by of a savings account or interest in real property; a savings the Board. (79.14.410). certificate in a WA bank; or an adequate corporate surety bond. (78.44.087). The Dep't may determine the amount using a standardized performance security formula developed by the Dep't. Adjustments to the bond amount may be made at any time. (78.44.087). Metals mining and milling operations are subject to additional requirements. (WASH. REV. CODE 78.56.030 et seq.). The Department of Ecology Metals Mining Coordinator oversees the permitting, construction, operation, and reclamation phases of a metals mine project. (78.56.060). Additional performance security may be required (78.56.110). CRS-51 State State Mineral Royalties and Rental Fees Reclamation and Bonding West Virginia The public land corporation, within the Department of State statute does not appear to address reclamation and Natural Resources, is vested with the title of the state of bonding requirements for hardrock mining operations. West Virginia in public lands and may enter into leases for the development and extraction of minerals. (W. VA. CODE §§ 20-1A-1, 20-1A-3, see also § 20-1-7 ). Minerals may be leased "at not less than the fair market value, as determined by an appraisal made by an independent person or firm chosen by the corporation ...." (20-1A-6). The corporation must also hire an independent auditing firm to periodically review a lessee's books and accounts to ensure that the appropriate royalties are being paid. (20-1A-6). A lessee may is also required to provide a bond for the proper performance of the lease. (20-1A-6). CRS-52 State State Mineral Royalties and Rental Fees Reclamation and Bonding Wisconsin The Board of Commissioners of Public Lands may grant Metallic Mining Regulation: WIS. STAT. §§ 293.01 et seq. leases on any public lands, except state park lands and state apply to all lands. The Department of Natural Resources may forest lands, to prospect for and to extract ore, minerals and issue prospecting and mining permits, both of which must be other deposits. Leases may made be made only for a "full accompanied by reclamation plans and bonds. It may also and fair consideration paid or to be paid to the state, the issue exploration licenses, which also subject licensees to a amount and terms whereof shall be fixed by said board ...." bonding requirement. (293.35, 293.37, 293.21). (WIS. STAT. § 24.39). Bonds must be signed by an adequate surety and conditioned on faithful performance of reclamation requirements. In lieu State park and forest lands may be leased for mineral of a bond, the operator may deposit cash, certificates of development. Leases must contain "proper covenants to deposit, or government securities. The amount of the guard against trespass and waste." Any rents arising from security is to be equal to the estimated cost of reclamation "in these leases are to be paid into the state treasury. relation to that portion of the site that will be disturbed by the Prospecting licenses may also be granted. These require end of the following year." (293.51). "proper security" to ensure that licensees will fully report on Exploration bonds: Applications for exploration licenses are mineral discoveries and will restore the surface to its to be accompanied by a bond in the amount of $5,000 "former condition and value" if no discovery is made. conditioned on faithful performance of the termination (26.08). requirements. (293.21). The amount can be adjusted upward at any time. Bond release is governed by § 293.63. CRS-53 State State Mineral Royalties and Rental Fees Reclamation and Bonding Wyoming The Board of Land Commissioners may establish rules and Surface Mining Reclamation: WYO. STAT. ANN. §§ 35-11- regulations governing the issuance of mineral leases and 401 et seq., applicable to surface mining on all lands. Mining covering the conduct of development and mining operations. permits are required and establish that operators must comply "Mineral leases may be issued upon such monthly or annual with mining and reclamation plans. Regulations establishing minimum rental payment basis as shall be fixed by the specific reclamation standards must be promulgated. (35-11- board, which payment shall be annually applied against such 402). royalty as shall accrue for the same lease." (WYO. STAT. Mining licenses and the filing of a bond are also required ANN. § 36-6-101). before operations can begin. (35-11-410). The Administrator of the Land Quality Division can fix the amount of, collect, and maintain performance bond requirements. Minimum: generally, $1,000 per acre of affected land, total amount may not be less than $10,000, except for specified minerals or small operations which must be at least $200 per acre. Within 90 days after mining operations commence, an additional bond of $100 per acre may be required if necessary to insure reclamation. (35-11-401, 35-11-417). Form: All bonds must be signed by the operator as principal, by a good and sufficient corporate surety. A self-bonding program may be created by regulation. (35-11-417). Release of 75% of bond is authorized on completion of reclamation plan, but remainder must be retained five years after the date of reduction. (35-11-423). Forfeiture procedures are set out in section 35-11-421. ------------------------------------------------------------------------------ For other versions of this document, see http://wikileaks.org/wiki/CRS-RL32813