Minnesota Legislature
HF 4435
as introduced - 92nd Legislature (2021 - 2022) Posted on 03/21/2022 02:32pm
Current Version - as introduced
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A bill for an act
relating to mining; facilitating mineral commodity and nonfuel gas leases; amending
Minnesota Statutes 2020, sections 9.071; 93.245; 93.25, subdivisions 1, 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2020, section 9.071, is amended to read:
9.071 SETTLEMENT OF CLAIMS; OTHER SPECIFIED POWERS.
The council has the powers with respect to:
(1) timberlands provided in sections 90.031, 90.041, and 90.151;
(2) lands acquired from the United States provided in section 94.50;
(3) lands subject to delinquent drainage assessments provided in section 84A.20;
(4) transfer of lands between departments of state government provided in section 15.16;
(5) sale or exchange of lands within national forests provided in sections 92.30 and
92.31;
(6) approval of acquisition of land for camping or parking area provided in sections
97A.135 and 97A.141;
(7) awarding leases to prospect for iron ore provided in section 93.17;
(8) approval of rules for issuance of leases to prospect for mineralsnew text begin , mineral commodities,
or nonfuel gasesnew text end under state lands provided in section 93.25; and
(9) construction of dams provided in section 103G.545.
Sec. 2.
Minnesota Statutes 2020, section 93.245, is amended to read:
93.245 MINING MINERALS OTHER THAN IRON ORE.
(a) If a mineral new text begin or mineral commodity new text end other than iron ore or taconite ore deleted text begin isdeleted text end new text begin , including
nonfuel gases, arenew text end found on or in a mining unit covered by a state iron ore or taconite iron
ore mining lease, the state lessee may apply to the commissioner of natural resources for a
negotiated lease to explore for, mine, and remove the mineralnew text begin , mineral commodity, or
nonfuel gasesnew text end . The terms and conditions under which the mineralnew text begin , mineral commodity, or
nonfuel gasesnew text end may be mined or products recovered shall be as agreed upon by the
commissioner and the state lessee. A mineral lease deleted text begin for ores other than iron ore or taconite
iron oredeleted text end new text begin under this sectionnew text end must comply with section 93.25 and rules adopted thereunder.
(b) The right is reserved to the state to reject any or all applications for a negotiated lease
under paragraph (a). The state may lease, under section 93.25 and rules adopted thereunder,
any minerals new text begin or mineral commodities new text end other than iron ore or taconite iron orenew text begin , including
nonfuel gases,new text end on or in a mining unit covered by a state iron ore or taconite iron ore mining
lease.
Sec. 3.
Minnesota Statutes 2020, section 93.25, subdivision 1, is amended to read:
Subdivision 1.
Leases.
The commissioner may issue leases to prospect for, mine, and
remove minerals new text begin and mineral commodities new text end other than iron orenew text begin , including nonfuel gases,new text end
upon any lands owned by the state, including trust fund lands, lands forfeited for nonpayment
of taxes whether held in trust or otherwise, and lands otherwise acquired, and the beds of
any waters belonging to the state. For purposes of this section, iron ore means iron-bearing
material where the primary product is iron metal.
Sec. 4.
Minnesota Statutes 2020, section 93.25, subdivision 2, is amended to read:
Subd. 2.
Lease requirements.
All leases for nonferrous metallic minerals or petroleum
must be approved by the Executive Council, and any other mineralnew text begin , mineral commodity, or
nonfuel gasnew text end lease issued pursuant to this section that covers 160 or more acres must be
approved by the Executive Council. The rents, royalties, terms, conditions, and covenants
of all such leases shall be fixed by the commissioner according to rules adopted by the
commissioner, but no lease shall be for a longer term than 50 years, and all rents, royalties,
terms, conditions, and covenants shall be fully set forth in each lease issued. No lease shall
be canceled by the state for failure to meet production requirements prior to the 36th year
of the lease. The rents and royalties shall be credited to the funds as provided in section
93.22.