HF 2200

as introduced - 90th Legislature (2017 - 2018) Posted on 03/07/2017 12:57pm

A bill for an act
relating to mining; modifying responsibilities for mining promotion in the state;
amending Minnesota Statutes 2016, sections 93.001; 93.0015, subdivisions 1, 2;
93.15, subdivisions 1, 2; 93.16; 93.2235, subdivision 1; 93.2236; 93.285,
subdivisions 2, 3; 93.44.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 93.001, is amended to read:

93.001 POLICY FOR MINERAL DEVELOPMENT.

new text begin (a) new text end It is the policy of the state to provide for the diversification of the state's mineral
economy through deleted text begin long-term deleted text end support of mineral exploration, evaluation, environmental
new text begin protection, new text end research, development, production, and commercialization. new text begin The commissioner
of natural resources is responsible for mineral evaluation and environmental protection.
The commissioner of employment and economic development is responsible for supporting
appropriate mineral research, exploration, development, production, and commercialization.
new text end

new text begin (b) The commissioner of natural resources must ensure that mining is conducted with
sound natural resource conservation and management principles that protect the environment
for future generations.
new text end

Sec. 2.

Minnesota Statutes 2016, section 93.0015, subdivision 1, is amended to read:

Subdivision 1.

Establishment; membership.

The Mineral Coordinating Committee is
established to plan for diversified new text begin and environmentally sound new text end mineral development. The
Mineral Coordinating Committee consists of:

(1) the commissioner of deleted text begin natural resources deleted text end new text begin employment and economic development new text end ;

(2) the commissioner of the Minnesota Pollution Control Agency;

(3) the commissioner of Iron Range resources and rehabilitation;

(4) the director of the Minnesota Geological Survey;

(5) the dean of the University of Minnesota Institute of Technology;

(6) the director of the Natural Resources Research Institute; deleted text begin and
deleted text end

new text begin (7) the commissioner of natural resources; and
new text end

deleted text begin (7) four deleted text end new text begin (8) five new text end individuals appointed by the governor for a four-year term, one each
representing deleted text begin the iron ore and taconite, nonferrous metallic minerals, and industrial minerals
industries deleted text end new text begin mining interests new text end within the state new text begin , materials recycling industries, local governments,
environmental organizations, new text end and deleted text begin one representing deleted text end labor.

Sec. 3.

Minnesota Statutes 2016, section 93.0015, subdivision 2, is amended to read:

Subd. 2.

Staffing.

The commissioner of deleted text begin natural resources shall serve deleted text end new text begin employment and
economic development serves new text end as chair of the committee. A member of the committee may
designate another person of the member's organization to act in the member's place. The
commissioner new text begin of employment and economic development new text end shall provide staff and
administrative services necessary for the committee's activities.

Sec. 4.

Minnesota Statutes 2016, section 93.15, subdivision 1, is amended to read:

Subdivision 1.

Designation of mining units.

(a) The commissioner of deleted text begin natural resources deleted text end new text begin
employment and economic development new text end may designate any lands belonging to the state
and the beds of any waters belonging to the state or any lands in which the state has an
interest as mining units and may rearrange or modify the mining units from time to time,
subject to the limitations of this section.

(b) No mining unit shall contain lands belonging to more than one permanent trust fund,
except mining units leased under section 93.25.

(c) Lands deleted text begin which deleted text end new text begin that new text end have been sold by the state and are in use as part of the site of a
plant for the production of taconite concentrates shall not be designated as mining units.

Sec. 5.

Minnesota Statutes 2016, section 93.15, subdivision 2, is amended to read:

Subd. 2.

List of mining units.

The commissioner new text begin of employment and economic
development new text end shall prepare and keep on file in the Office of the Division of Lands and
Minerals of the Department of Natural Resources and at such other places as the
commissioner may direct a list of the mining units designated under this section, giving the
descriptions of the mining units and such other information as the commissioner deems
necessary. In case the commissioner new text begin of natural resources new text end shall prescribe special conditions
to be included in a lease for any mining unit as authorized by law, a statement of the
conditions shall be included with the designation of the unit in the list.

Sec. 6.

Minnesota Statutes 2016, section 93.16, is amended to read:

93.16 LEASES; SALE, NOTICE.

(a) Except as otherwise expressly provided by law, leases for iron ore or other minerals
belonging to the state shall be issued only upon public sale as provided under this section.

(b) The sale of leases shall be held at such times and places as designated by the
commissioner.

(c) The commissioner shall give public notice of intent to hold a public sale by publication
in the State Register, the EQB Monitor, and such other publications as the commissioner
may direct at least 90 days prior to the proposed date of sale.

(d) The commissioner shall give public notice of each sale by publication for three
successive weeks in a newspaper that has its known office of issue in the county seat of the
county in which the mining units to be leased are located and in a daily newspaper printed
and published in Hibbing and Virginia. If no newspaper has its known office of issue in the
county seat of a particular county, the commissioner shall publish notice in the newspaper
designated as the publisher of the official proceedings of the county board of that county.
The first publication shall be at least 30 days before the date of sale. The public notice of
sale shall also be published in the State Register and the EQB Monitor at least 30 days
before the date of sale and may be published in additional newspapers and trade magazines,
as the commissioner may direct.

(e) Each notice shall contain the following information:

(1) time and place of holding the sale;

(2) the place or places where the list of mining units to be offered for sale will be available
for inspection and where forms for bids and applications for leases may be obtained; and

(3) such other information as the commissioner may direct.

new text begin (f) The sale of a lease is considered a project for the purpose of environmental review
under chapter 116D.
new text end

Sec. 7.

Minnesota Statutes 2016, section 93.2235, subdivision 1, is amended to read:

Subdivision 1.

Commissioner.

The commissioner new text begin of employment and economic
development new text end shall establish a program to award grants to taconite mining companies for:

(1) taconite pellet product improvements;

(2) value-added production of taconite iron ore; or

(3) cost-savings deleted text begin production deleted text end new text begin and pollution-reduction new text end improvements at Minnesota taconite
plants.

An amount equal to the sum of money transferred to the general fund under section
93.223, subdivision 1, reduced by $100,000, is annually appropriated from the general fund
to the commissioner for the purposes of this section.

Sec. 8.

Minnesota Statutes 2016, section 93.2236, is amended to read:

93.2236 MINERALS MANAGEMENT ACCOUNT.

(a) The minerals management account is created as an account in the natural resources
fund. Interest earned on money in the account accrues to the account. Money in the account
may be spent or distributed only as provided in paragraphs (b) and (c).

(b) If the balance in the minerals management account exceeds $3,000,000 on March
31, June 30, September 30, or December 31, the amount exceeding $3,000,000 must be
distributed to the permanent school fund, the permanent university fund, and taxing districts
as provided in section 93.22, subdivision 1, paragraph (c). The amount distributed to each
fund must be in the same proportion as the total mineral lease revenue received in the
previous biennium from school trust lands, university lands, and lands held by the state in
trust for taxing districts.

(c) Subject to appropriation by the legislature, money in the minerals management
account may be spent by the commissioner of natural resources for deleted text begin mineral resource
management deleted text end new text begin the purposes cited in section 93.001, paragraph (b), new text end and new text begin the commissioner of
employment and economic development for new text end projects to enhance future mineral income and
promote new mineral resource opportunities.

Sec. 9.

Minnesota Statutes 2016, section 93.285, subdivision 2, is amended to read:

Subd. 2.

Inclusion in mining unit.

In case any stockpiled iron ore is situated on land
designated or suitable for designation as a mining unit under section 93.15, the stockpiled
ore may, in the discretion of the commissioner of deleted text begin natural resources deleted text end new text begin employment and economic
development new text end , be included in the unit by inserting a description of the ore in the designation
of the unit. Otherwise the ore shall not be considered as included in the unit. Upon the
inclusion of the ore in the unit, it shall be subject to all provisions of law relating to the sale,
issuance, terms, and conditions of a lease covering the unit and other matters pertaining
thereto, so far as applicable.

Sec. 10.

Minnesota Statutes 2016, section 93.285, subdivision 3, is amended to read:

Subd. 3.

Stockpile mining unit.

(a) Any stockpiled iron ore, wherever situated, may,
in the discretion of the commissioner of deleted text begin natural resources deleted text end new text begin employment and economic
development new text end , be designated as a stockpile mining unit for disposal separately from ore in
the ground, such designation to be made according to section 93.15, so far as applicable.

(b) The commissioner new text begin of natural resources new text end may lease the mining unit at public or private
sale for an amount and under terms and conditions prescribed by the commissioner new text begin of natural
resources new text end . The lease term may not exceed 25 years. The amount payable for stockpiled iron
ore material shall be at least equivalent to the minimum royalty that would be payable under
section 93.20.

Sec. 11.

Minnesota Statutes 2016, section 93.44, is amended to read:

93.44 DECLARATION OF POLICY.

In recognition of the effects of mining upon the environment, it is hereby declared to be
the policy of this state to provide for the reclamation of certain lands hereafter subjected to
the mining of metallic minerals or peat where such reclamation is necessary, both in the
interest of the general welfare and as an exercise of the police power of the state, to control
possible adverse environmental effects of mining, to preserve the natural resources, and to
encourage the planning of future land utilization, while at the same time promoting the
orderly development of mining deleted text begin , deleted text end new text begin and new text end the encouragement of good mining practices deleted text begin , and the
recognition and identification of the beneficial aspects of mining deleted text end .