HF 4067

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to natural resources; providing standards for prevention of water
contamination by nonferrous metallic mineral mining operations; specifying
financial assurance instruments required of nonferrous metallic mineral mining
owners; proposing coding for new law in Minnesota Statutes, chapter 93.

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

Section 1.

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

new text begin Subdivision 1. new text end

new text begin Financial assurance. new text end

new text begin (a) The commissioner may issue a permit to
a nonferrous metallic mineral mining facility only upon determining that the owner or
operator has demonstrated adequate financial assurance to the commissioner as provided
by this subdivision.
new text end

new text begin (b) The commissioner shall establish the amount of financial assurance adequate
to ensure protection of the public and natural resources during the operation of the mine
and in the performance of closure and postclosure care of closed nonferrous metallic
mineral mining operations.
new text end

new text begin Subd. 2. new text end

new text begin Closure and postclosure responsibility and liability. new text end

new text begin An owner or
operator of a nonferrous metallic mineral mining facility is responsible for closure of the
facility and postclosure care relating to the facility. If an owner or operator fails to provide
the required closure or postclosure care of the facility the commissioner may take action
according to rules adopted by the commissioner. The owner or operator is liable for the
costs of the closure and postclosure care taken by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Financial assurance rules. new text end

new text begin (a) The commissioner shall adopt rules
requiring the owner or operator of a nonferrous metallic mineral mining facility to submit
to the commissioner proof of the owner's or operator's financial capability to provide:
new text end

new text begin (1) reasonable and necessary response during the operating life of the facility; and
new text end

new text begin (2) necessary closure and postclosure care following closure of the facility.
new text end

new text begin (b) The amount of financial assurance required from nonferrous metallic mineral
mine owners as a condition to receive an original permit or a permit for expansion shall
be based on the contingency reclamation cost estimates established by rules adopted by
the commissioner.
new text end

new text begin (c) The rules governing the financial assurance requirements may be satisfied if an
owner or operator, prior to issuance of a permit for nonferrous metallic mineral mining
activity, provides any one or more of the following:
new text end

new text begin (1) a trust fund established according to rules adopted by the commissioner;
new text end

new text begin (2) a surety bond or other form of insurance guarantee issued by a corporate surety
authorized to do business in this state;
new text end

new text begin (3) an irrevocable, nonexpiring letter of credit in favor of the state of Minnesota
issued by a bank authorized to do business in the United States;
new text end

new text begin (4) a certificate of deposit; or
new text end

new text begin (5) proof of adequate self-insurance that meets the financial tests established by
rules adopted by the commissioner.
new text end

new text begin (d) Each financial assurance instrument must be in a form that ensures the instrument
will not become an asset of a bankruptcy estate or subject to discharge in a bankruptcy
proceeding.
new text end

new text begin (e) When examining the adequacy of the amount of financial assurance required
for permitting nonferrous metallic mineral mining operations, the commissioner shall
consider any risks indicated by the financial records of the operator and the operator's
parent companies and adjust the amount of financial assurance required accordingly.
new text end

new text begin (f) Proof of financial responsibility is required from the owner or operator of a
facility receiving an original permit or a permit for expansion after the effective date of the
rules adopted under this section.
new text end

new text begin (g) Within 180 days of the effective date of rules adopted under this section or by
January 15, 2009, whichever is later, proof of financial responsibility is required from an
owner or operator of a nonferrous metallic mineral mining facility in operation at the time
the rules are adopted. Compliance with the rules and the requirements of paragraph (b) is
a condition of obtaining or retaining a permit to operate the facility.
new text end

new text begin Subd. 4. new text end

new text begin Annual review. new text end

new text begin The commissioner shall annually review the extent of each
owner's or operator's financial assurance under this section and shall make adjustments
necessitated by any changes to the owner's or operator's nonferrous metallic mineral
mining operation or costs.
new text end