HF 916

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:42am

A bill for an act
relating to natural resources; prohibiting issuance of nonferrous metallic mineral
mining permits under certain circumstances; defining financial assurance
required for nonferrous metallic mineral mining; increasing civil penalty for
nonferrous metallic mineral mining law violations; requiring rulemaking;
amending Minnesota Statutes 2008, sections 93.481, subdivisions 1, 7, by adding
subdivisions; 93.49; 93.51, subdivision 1; proposing coding for new law in
Minnesota Statutes, chapter 93.

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

Section 1.

Minnesota Statutes 2008, section 93.481, subdivision 1, is amended to read:

Subdivision 1.

Prohibition against mining without permit; application for
permit.

Except as provided in this subdivision, after June 30, 1975, no person shall
engage in or carry out a mining operation for metallic minerals within the state unless the
person has first obtained a permit to mine from the commissioner. Any person engaging in
or carrying out a mining operation as of the effective date of the rules promulgated under
section 93.47 shall apply for a permit to mine within 180 days after the effective date of
such rules. Any such existing mining operation may continue during the pendency of the
application for the permit to mine. The person applying for a permit shall apply on forms
prescribed by the commissioner and shall submit such information as the commissioner
may require, including but not limited to the following:

(a) A proposed plan for the reclamation or restoration, or both, of any mining area
affected by mining operations to be conducted on and after the date on which permits
are required for mining under this section;

(b) A certificate issued by an insurance company authorized to do business in
the United States that the applicant has a public liability insurance policy in force for
the mining operation for which the permit is sought, or evidence that the applicant has
satisfied other state or federal self-insurance requirements, to provide personal injury
and property damage protection in an amount adequate to compensate any persons who
might be damaged as a result of the mining operation or any reclamation or restoration
operations connected with the mining operation;

(c) deleted text begin A bond which may be deleted text end new text begin Financial assurance as new text end required deleted text begin pursuant to section deleted text end new text begin under
sections new text end 93.49 new text begin and 93.491 new text end ; and

(d) A copy of the applicant's advertisement of the ownership, location, and
boundaries of the proposed mining area and reclamation or restoration operations, which
advertisement shall be published in a legal newspaper in the locality of the proposed site
at least once a week for four successive weeks before the application is filed, except that if
the application is for a permit to conduct lean ore stockpile removal the advertisement
need be published only once.

Sec. 2.

Minnesota Statutes 2008, section 93.481, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Permits to conduct nonferrous metallic mineral mining. new text end

new text begin (a) For
purposes of this section, "nonferrous metallic mineral mining" means mining for
nonferrous metals in a mineral deposit containing or associated with sulfide minerals.
new text end

new text begin (b) For purposes of this section, "water treatment" means the use of mechanical,
chemical, or biological processes, whether part of mechanical systems, biological systems,
or permeable barriers, or other applicable systems or methods, that are necessary to avoid
the contamination of surface water and groundwater with metals or acidity resulting from
the oxidation of sulfide minerals exposed to air and water during and following closure of
a nonferrous metallic mineral mining operation.
new text end

new text begin (c) The commissioner shall not issue a permit to mine under this section to a
nonferrous metallic mineral mining operation unless the applicant establishes that the
mining conditions, activities, and practices will not require water treatment after the mine's
closure or otherwise result in irreparable harm to significant scientific or environmental
resources.
new text end

Sec. 3.

Minnesota Statutes 2008, section 93.481, subdivision 7, is amended to read:

Subd. 7.

Mining administration account.

The mining administration account is
established as an account in the natural resources fund. Ferrous mining administrative fees
charged to owners, operators, or managers of mines shall be credited to the account and
may be appropriated to the commissioner to cover the costs of providing and monitoring
permits to mine ferrous metals under this section. new text begin Nonferrous metallic mineral mining
administrative fees charged to owners, operators, or managers of nonferrous metallic
mineral mines shall be credited to a nonferrous metallic mineral mining fund within the
mining administration account and may be appropriated to the commissioner to cover
the costs of providing and monitoring permits for nonferrous metallic mineral mines
under this section.
new text end

Sec. 4.

Minnesota Statutes 2008, section 93.481, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Responsible persons. new text end

new text begin For purposes of nonferrous metallic mineral mining
operations, the permittee and any person who manages, directs, or conducts operations
under this section, including a parent entity or affiliate who materially participates in that
management, direction, or conduct, is responsible for complying with all provisions of
sections 93.44 to 93.51, with any rules adopted under those sections, and with any permit
conditions required by those sections or rules.
new text end

Sec. 5.

Minnesota Statutes 2008, section 93.49, is amended to read:

93.49 FINANCIAL ASSURANCE OF OPERATOR new text begin ; FERROUS MINING new text end .

The commissioner shall require deleted text begin a bond or other security or other deleted text end financial assurance
satisfactory to the commissioner from an operator new text begin of a ferrous mine new text end . The commissioner
shall review annually the extent of each operator's financial assurance under this section. new text begin
Financial assurance for nonferrous metallic mineral mining operations is governed by
section 93.491.
new text end

Sec. 6.

new text begin [93.491] FINANCIAL ASSURANCE OF OPERATOR; NONFERROUS
METALLIC MINERAL MINING.
new text end

new text begin Subdivision 1. new text end

new text begin Financial assurance required. new text end

new text begin The commissioner shall require
financial assurance satisfactory to the commissioner from an operator of a nonferrous
metallic mineral mine.
new text end

new text begin Subd. 2. new text end

new text begin Amount of financial assurance. new text end

new text begin The commissioner of natural resources,
in consultation with the commissioners of finance and the Pollution Control Agency,
shall determine the amount of the financial assurance required of an operator of a
nonferrous metallic mineral mining operation. The amount shall be the estimated cost to
the state for hiring a third party to perform reclamation activities, including closure and
postclosure maintenance needed if operations cease, and corrective action as required
by the commissioner if noncompliance with design and operating criteria in the permit
to mine occurs. The estimated cost shall include the cost of administering the contract
with the third party. In determining the amount of financial assurance, the commissioner
shall consult with individuals with documented experience and expertise in nonferrous
metallic mineral mining, including closure, cleanup, and reclamation of nonferrous
metallic mineral mines.
new text end

new text begin Subd. 3. new text end

new text begin Form of financial assurance. new text end

new text begin The form of the financial assurance must be
approved by the commissioners of natural resources and finance. Acceptable forms of
financial assurance include:
new text end

new text begin (1) a cash deposit to be deposited and maintained in a federal depository account of
the United States Treasury by the commissioner;
new text end

new text begin (2) an assignment of a certificate of deposit or savings accounts not in excess of the
maximum insurable amount as set by the Federal Deposit Insurance Corporation;
new text end

new text begin (3) an irrevocable, nonexpiring letter of credit from a bank or financial institution
organized or authorized to transact business in the United States that is entirely
independent of the mining operator as verified by the commissioner of commerce;
new text end

new text begin (4) negotiable federal, state, and municipal securities or bonds having a market value
of not less than the required dollar amount of the financial assurance and maintained in a
Securities Investors Protection Corporation insured trust account by a licensed securities
brokerage firm for the benefit of the commissioner of natural resources, acting by and
through the state; and
new text end

new text begin (5) surety bonds meeting the requirements of Treasury Department Circular 570,
including surety bonds arranged or paid for by third parties.
new text end

new text begin Subd. 4. new text end

new text begin Prohibited forms of financial assurance. new text end

new text begin The commissioner may not
accept the following forms of financial assurance under this section: corporate guarantees,
self-guarantees, self-assurances, and mining insurance.
new text end

new text begin Subd. 5. new text end

new text begin Review of financial assurance. new text end

new text begin (a) The commissioner of natural resources
shall review annually the extent and adequacy of each nonferrous metallic mineral mining
operator's financial assurance under this section.
new text end

new text begin (b) In addition to the annual review, the commissioner shall conduct a comprehensive
review of the financial assurance of an operator of a nonferrous metallic mineral mining
operation at least every five years. The commissioner may require further financial
assurance if the commissioner determines during the review or at any time that the
operator's financial assurance is inadequate. The purpose of the review is to determine
whether the amount of the financial assurance is adequate under this section. The
comprehensive review shall also include a detailed assessment of the adequacy of the
financial assurance and shall include consultation with the commissioner of finance and a
third-party expert meeting the qualifications of subdivision 2.
new text end

new text begin (c) After completion of the annual or comprehensive review of a nonferrous metallic
mineral mining operator's financial assurance, the commissioner shall publish a notice in
the State Register and the Environmental Quality Board Monitor stating that the annual
review of the financial assurance has been completed, stating whether the amount and type
of financial assurance in place is adequate, and providing a statement of reasons justifying
the decisions. The commissioner shall consider and respond to written comments filed
with the commissioner within 30 days after the publication required by this subdivision.
The commissioner shall provide opportunity for public comment and contested case
hearing as part of the comprehensive review consistent with the procedures for obtaining a
permit to mine under Minnesota Rules, part 6132.4000.
new text end

new text begin Subd. 6. new text end

new text begin Release of financial assurance. new text end

new text begin Before the release of any amount of the
financial assurance to the permittee of a nonferrous metallic mineral mining operation,
the commissioner shall publish a notice of the action in the State Register and the
Environmental Quality Board Monitor. The commissioner shall provide opportunity for
public comment and contested case hearing consistent with the procedures for obtaining a
permit to mine under Minnesota Rules, part 6132.4000.
new text end

Sec. 7.

Minnesota Statutes 2008, section 93.51, subdivision 1, is amended to read:

Subdivision 1.

Civil penalty new text begin ; nonferrous metallic mineral mining violation new text end .

If
any person fails to comply with any provision of sections 93.44 to 93.51, or any rules
promulgated pursuant to these sections, or any permit condition required by these sections
or the rules, for a period of 15 days after notice of such failure, or the expiration of
time for corrective action as provided for in section 93.481, subdivision 4, such person
shall be liable for a civil penalty of not more than $1,000 for each and every day of the
continuance of such failure. new text begin If the violation is of a provision or permit condition related to
nonferrous metallic mineral mining, the person is liable for a civil penalty of not more
than $10,000 for each day of continued failure to comply. new text end The commissioner may assess
and collect any such penalty.

Sec. 8. new text begin RULEMAKING.
new text end

new text begin The commissioner of natural resources shall amend Minnesota Rules according
to Minnesota Statutes, chapter 14, to implement the financial assurance requirements
for nonferrous metallic mineral mining operations as set forth in Minnesota Statutes,
section 93.491.
new text end