HF 2097

as introduced - 88th Legislature (2013 - 2014) Posted on 02/25/2014 03:05pm

A bill for an act
relating to natural resources; eliminating Executive Council control over certain
timber sales and minerals leases; amending Minnesota Statutes 2012, sections
93.17, subdivision 3; 93.1925, subdivision 1; 93.20, subdivisions 2, 30, 38;
93.25, subdivision 2; Minnesota Statutes 2013 Supplement, section 90.031,
subdivision 4.

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

Section 1.

Minnesota Statutes 2013 Supplement, section 90.031, subdivision 4, is
amended to read:

Subd. 4.

Timber rules.

The Executive Council may formulate and establish, from
time to time, rules it deems advisable for the transaction of timber business of the state deleted text begin ,
including approval of the sale of timber on any tract in a lot exceeding 12,000 cords
in volume when the sale is in the best interests of the state, deleted text end and may abrogate, modify,
or suspend rules at its pleasure.

Sec. 2.

Minnesota Statutes 2012, section 93.17, subdivision 3, is amended to read:

Subd. 3.

Bid acceptance.

(a) At the time and place fixed for the sale, the
commissioner shall publicly announce the number of applications and bids received. The
commissioner shall then publicly open the bids and announce the amount of each bid
separately. Thereafter, the commissioner deleted text begin , together with the Executive Council, deleted text end shall
award the leases to the highest bidders for the respective mining units, but no bids shall
be accepted that do not equal or exceed the minimum amounts provided for in section
93.20, nor shall any bid be accepted that does not comply with the law. The right is
reserved to the state to reject any and all bids.

(b) All applications for leases and bids not accepted at the sale shall become void at
the close of the sale and the payment accompanying the applications and bids shall be
returned to the applicants entitled to them.

(c) Upon the award of a lease, the payment submitted with the application as
provided by subdivision 1 shall be deposited with the commissioner of management
and budget as a fee for the lease.

Sec. 3.

Minnesota Statutes 2012, section 93.1925, subdivision 1, is amended to read:

Subdivision 1.

Conditions required.

When the commissioner finds that the best
interests of the state will be served and the circumstances in clause (1), (2), or (3) exist,
the commissioner deleted text begin , with the approval of the Executive Council, deleted text end may issue an iron ore or
taconite iron ore mining lease through negotiations to an applicant. A lease may be issued
through negotiations under any of the following circumstances:

(1) the state taconite iron ore is adjacent to taconite iron ore owned or leased for
mining purposes by the applicant and the commissioner finds that it is impracticable to
mine the state taconite iron ore except in conjunction with the mining of the adjacent ore;

(2) the lands to be leased are primarily valuable for their natural iron ore content; or

(3) the state's mineral ownership interest in the lands to be leased is an undivided
fractional interest and the applicant holds under control a majority of the remaining
undivided fractional mineral interests in the lands to be leased.

Sec. 4.

Minnesota Statutes 2012, section 93.20, subdivision 2, is amended to read:

Subd. 2.

Term; conditions.

The commissioner of natural resources deleted text begin , with the
approval of the Executive Council, deleted text end may, so far as the commissioner deems advisable in
furtherance of the public interests, fix the term of any lease at any period not exceeding
that hereinafter prescribed, or may include in a lease any other conditions not inconsistent
herewith relating to performance by the lessee or other pertinent matters, provided, that
in case of a lease made pursuant to a permit issued upon public sale, a statement of
such conditions shall be included in the designation of the mining unit affected before
publication of the notice of sale.

Sec. 5.

Minnesota Statutes 2012, section 93.20, subdivision 30, is amended to read:

Subd. 30.

Supplemental agreement.

In case it shall become impossible or
impracticable at any time during the term of this lease to comply with the provisions
hereof relating to sampling, analysis, shipping, or weighing of ore, or in case methods
for any of said operations shall be developed which appear to be superior to those herein
prescribed and which will not result in any loss or disadvantage to the state hereunder,
the commissioner of natural resources deleted text begin , with the approval of the Executive Council, deleted text end may
make a supplemental agreement with the part..... of the second part, modifying this lease
so as to authorize the adoption of such other methods for any of said operations so far as
deemed expedient.

Sec. 6.

Minnesota Statutes 2012, section 93.20, subdivision 38, is amended to read:

Subd. 38.

Lease modification.

Any state iron ore mining lease heretofore or
hereafter issued and in force may be modified by the commissioner of natural resources deleted text begin ,
with the approval of the Executive Council, deleted text end upon application of the holder of the lease,
by written agreement with the holder, so as to conform with the provisions of the laws in
force at the time of such application with respect to the methods of shipping, weighing,
and analyzing ore and computing royalty thereon, the time of payment of rental and
royalty, the beneficiation or treatment of iron ore and the disposal of concentrates and
residues therefrom, the stockpiling, depositing, or disposal of iron ore or other material,
and the making of statements and reports pertaining to said matters.

Sec. 7.

Minnesota Statutes 2012, 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 deleted text begin Executive Council, and any other mineral lease issued
pursuant to this section that covers 160 or more acres must be approved by the Executive
Council deleted text end new text begin commissioner new text end . 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. The rents and
royalties shall be credited to the funds as provided in section 93.22.