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SF 3636

as introduced - 89th Legislature (2015 - 2016) Posted on 05/23/2016 01:56pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to mining; modifying responsibilities for mining promotion in the state;
amending Minnesota Statutes 2014, sections 93.001; 93.0015, subdivisions
1, 2, 3; 93.15, subdivisions 1, 2; 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 2014, 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-termdeleted 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 shall 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 2014, 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 resourcesdeleted text end new text begin employment and economic developmentnew 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) fourdeleted text end new text begin (8) fivenew 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 statenew text begin , materials recycling industries, local
governments, environmental organizations,
new text end and deleted text begin one representingdeleted text end labor.

Sec. 3.

Minnesota Statutes 2014, section 93.0015, subdivision 2, is amended to read:


Subd. 2.

Staffing.

The commissioner of deleted text begin natural resourcesdeleted text end new text begin employment and
economic development
new text end shall serve 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 2014, section 93.0015, subdivision 3, is amended to read:


Subd. 3.

Expiration.

The committee expires June 30, deleted text begin 2016deleted text end new text begin 2020new text end .

Sec. 5.

Minnesota Statutes 2014, 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 developmentnew 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 which 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. 6.

Minnesota Statutes 2014, 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. 7.

Minnesota Statutes 2014, 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 productiondeleted text end new text begin and pollution reductionnew 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 2014, 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
June 30, 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 2014, 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 resourcesdeleted 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 2014, 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 resourcesdeleted 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 commissionernew text begin
of natural resources. The sale of a lease is considered a project for the purpose of
environmental review
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 2014, 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 miningdeleted text begin ,deleted text end new text begin andnew text end the encouragement of good mining
practicesdeleted text begin , and the recognition and identification of the beneficial aspects of miningdeleted text end .