1997 Minnesota Statutes

     116J.992 Taconite mining grants. 

    (a) The commissioner shall establish a program to make 
 grants to taconite mining companies to enable them to research 
 technologies that: 

    (1) reduce energy consumption; 

    (2) reduce environmental emissions; 

    (3) improve productivity; or 

    (4) improve pellet quality. 

    (b) To receive a grant a recipient must convey to the state 
 permanent ownership of both mineral reserves and corresponding 
 surface lands that: 

    (1) contain unmined taconite with a 23 percent minimum 
 magnetic iron content; 

    (2) have an open pit stripping ratio of less than 1.5 to 1; 

    (3) are unencumbered by current or planned surface 
 development; 

    (4) are substantially unencumbered by past mining activity; 

    (5) have marketable title for both surface and mineral 
 interests; and 

    (6) are in an area that could reasonably be expected to be 
 mined within 50 years. 

    (c) A grant may not exceed the value of the mineral 
 reserves and surface land as assessed by the commissioner of 
 natural resources.  When assessing value, the commissioner must, 
 at a minimum, take into account the future value of any royalty 
 stream, the state's cost of capital, the costs of removing any 
 encumbrances, and the probability that the reserves will be 
 mined in the future.  Any revenue generated by ownership or sale 
 of the property must be deposited in the general fund. 

    HIST: 1997 c 200 art 1 s 57