1998 Minnesota Statutes

CHAPTER 93. Mineral lands

     93.001 Policy for mineral development. 

    It is the policy of the state to provide for the 
 diversification of the state's mineral economy through long-term 
 support of mineral exploration, evaluation, environmental 
 research, development, production, and commercialization.  

    HIST: 1987 c 386 art 7 s 1; 1993 c 113 art 2 s 1 

     93.002 Mineral coordinating committee. 

    Subdivision 1.    Establishment.  The mineral 
 coordinating committee is established to plan for diversified 
 mineral development.  The mineral coordinating committee 
 consists of the director of the minerals division of the 
 department of natural resources, the deputy commissioner of the 
 Minnesota pollution control agency, the director of United 
 Steelworkers of America, district 11, or the director's 
 designee, the commissioner of the iron range resources and 
 rehabilitation board, the director of the Minnesota geological 
 survey, the dean of the University of Minnesota institute of 
 technology, the director of the natural resources research 
 institute, and three individuals appointed by the governor for a 
 four-year term, one each representing the iron ore and taconite, 
 the nonferrous metallic minerals, and the industrial minerals 
 industries within the state.  The director of the minerals 
 division of the department of natural resources shall serve as 
 chair.  A member of the committee may designate another person 
 of the member's organization to act in the member's place.  The 
 commissioner of natural resources shall provide staff and 
 administrative services necessary for the committee's activities.

    The mineral coordinating committee is encouraged to solicit 
 and receive advice from representatives of the United States 
 Geological Survey and the United States Environmental Protection 
 Agency. 

    Subd. 2.    Mineral diversification plan.  The mineral 
 coordinating committee shall prepare and adopt a ten-year plan 
 for mineral diversification.  The plan must include a strategy 
 to: 

    (1) increase the knowledge of the state's mineral 
 potential; 

    (2) stimulate the development of mineral resources in the 
 state; and 

    (3) promote basic minerals research. 

    The plan must also include a two-year plan that establishes 
 funding priorities for the minerals programs under subdivision 
 3.  The funding priorities must be updated every two years. 

    Subd. 3.    Minerals programs.  The mineral 
 diversification programs must address at least the following:  
 aeromagnetic surveys, glacial till geochemistry surveys, 
 geologic drilling and mapping, LMIC minerals database, drill 
 core examination and assay, industrial minerals characterization 
 and research, bedrock geochemistry, nonferrous minerals 
 research, environmental research and protection, reclamation 
 studies, economic evaluation of mineral resources, improved 
 geophysical and remote sensing base, acquisition of sampling 
 equipment and analyses, determination of mineral rights 
 ownership, ferrous minerals research, evaluation of mineral 
 resource occurrence, evaluation of value added processes, ore 
 deposit modeling, and basic mineral research.  

    Subd. 4.    Submission of plan and funding priorities.  
 (a) The minerals coordinating committee shall submit the 
 minerals diversification plan to the legislature by December 31, 
 1987. 

    (b) By January 15 of each odd-numbered year, the minerals 
 coordinating committee shall submit the two-year funding 
 priority plan required under subdivision 2 to the chairs of the 
 house appropriations and environment and natural resources 
 committees and the chairs of the senate finance and environment 
 and natural resources committees.  

    HIST: 1987 c 386 art 7 s 2; 1993 c 113 art 2 s 2,3; 1998 c 401 
 s 32 

*   NOTE: See section 15.059, subdivision 5a, for expiration of 
*committee.

     93.003 Iron mining; conditions. 

    Legal authority to mine and process iron ore, a basic 
 irreplaceable natural resource of the people of the state of 
 Minnesota, is subject to the conditions of this section.  When 
 the owner or operator of an iron mine or related production or 
 beneficiation facilities determines to discontinue the operation 
 of the mine or facilities for any reason it shall maintain the 
 mine or facilities in salable operating condition for at least 
 one year after it discontinues operation in order to allow the 
 state of Minnesota and other interested public and private 
 bodies to seek a new owner and operator.  The requirement 
 imposed by this section is a preliminary and permanent 
 requirement on the right of an owner to commence or continue the 
 operation of an iron mine or related facilities.  This 
 requirement is enforceable on all owners and operators and 
 successors of owners and operators and shall be enforced by the 
 state in any action in bankruptcy or other litigation that may 
 affect it. 

    HIST: 1993 c 107 s 1 

     93.01 Reservation of minerals and water powers.  

    The state hereby reserves for its own use all the iron, 
 coal, copper, gold, and other valuable minerals, and all water 
 powers in or upon all lands which now or hereafter may belong to 
 it by virtue of any act of Congress.  This reservation shall not 
 apply to lands granted or contracted to be conveyed by the 
 United States or by this state to aid in the construction of any 
 railroad.  

    HIST: (6395) RL s 2483; 1909 c 109 s 1 

     93.02 Certificate of sale, patents; reservation.  

    When any such land is sold, granted, conveyed, or 
 transferred in any way the certificate of sale, patent, or other 
 instrument of transfer shall state that the sale, grant, 
 conveyance, or transfer does not include any right, title, or 
 interest in or to any iron, coal, copper, gold, or other 
 valuable minerals which may be in or upon the land and that all 
 these minerals are reserved by the state for its own use; but no 
 instrument shall be effective to transfer any right, title, or 
 interest in or to any such minerals, notwithstanding the failure 
 of the proper officer to insert such statement.  

    HIST: (6396) RL s 2484 

     93.03 Patent under land grant to railroad; reservation.  

    In all cases where the state of Minnesota shall execute any 
 patent or conveyance of lands under any land grant heretofore 
 made to any railroad company to aid in the construction of any 
 railroad there shall be expressly reserved to and retained in 
 the state of Minnesota all the iron, coal, copper, gold, and 
 other valuable minerals in or upon all such lands and the 
 commissioner of finance is hereby prohibited from executing or 
 delivering any patent or instrument of conveyance which shall 
 not contain the reservations aforesaid.  

    HIST: (6397) 1913 c 6 s 1; 1973 c 492 s 14 

     93.04 Disposition of minerals reserved.  

    All minerals in or upon lands which have been or may be 
 sold, granted, conveyed, or in any way transferred by the state 
 shall remain subject to sale, lease, or contract by the state 
 upon the same terms and conditions as are minerals upon lands 
 belonging to the state; and the state and all persons claiming 
 under it shall have the right to enter upon these lands and to 
 prospect for, mine, and remove such minerals and, for this 
 purpose, to construct all necessary roads, buildings, and 
 improvements thereon, including machinery for mining or removing 
 such minerals.  All such minerals shall be disposed of by the 
 commissioner in the same manner and on the same terms as 
 minerals on lands belonging to the state.  

    HIST: (6398) RL s 2485 

     93.05 Holder of permit or lease.  

    Subdivision 1.    Right of entry.  In all cases where 
 state lands have been heretofore or may hereafter be sold 
 pursuant to the provisions of law upon which minerals have been 
 reserved, the holder of any mineral permit or lease subsequently 
 issued thereon may nevertheless enter upon the same and prospect 
 thereon thereunder.  

    Subd. 2.    Security for damages; condemnation.  Before 
 entering upon the same the permit or lease holder shall pay or 
 secure to the owner of the lands all damages which may arise 
 therefrom and the same may be determined either by mutual 
 agreement or, if the interested parties cannot agree, then the 
 holder of the mineral permit or lease may, in the name of the 
 state of Minnesota, institute proceedings to condemn the same in 
 accordance with the general provisions of chapter 117; provided, 
 that the state shall bear no part of the cost of these 
 proceedings, nor pay any part of the damages awarded therein.  

    Subd. 3.    Attorney general to institute condemnation.  
  Upon written request of the holder of any mineral prospecting 
 permit or mineral lease from the state, not in default, with the 
 approval of the commissioner of natural resources, the attorney 
 general shall institute, in the name of the state, proceedings 
 to acquire by condemnation any lands, rights-of-way, drainage or 
 flowage rights, easements or other interests necessary in 
 connection with prospecting for or mining the ore covered by 
 such permit or lease.  All costs and expenses of such 
 proceedings and all damages awarded therein shall be paid by the 
 holder of the permit or lease.  In any eminent domain 
 proceedings hereunder, any value which the land taken may have 
 by reason of its location or availability for the depositing of 
 stripping, tailings or other wastes from general mining 
 operations in its vicinity, or for the erection of buildings or 
 structures thereon in connection with such operations, shall be 
 considered in determining the damages to be awarded the owner 
 thereof.  

    HIST: (6399, 6400) 1907 c 411 s 1,2; 1949 c 593 s 1; 1969 c 
 1129 art 10 s 2; 1986 c 444 

     93.055 Action to quiet title to lands covered by mineral 
  permit or lease.  

    Upon written request of the holder of any mineral 
 prospecting permit or mineral lease from the state, not in 
 default, with the approval of the commissioner of natural 
 resources, the attorney general may institute proceedings to 
 quiet the title and determine adverse claims or to register the 
 title of the state to the lands or interests covered by the 
 permit or lease.  All costs and expenses of such proceedings 
 including compensation of attorneys for the state shall be paid 
 by the holder of the permit or lease.  Upon receipt of such 
 request from the holder of a prospecting permit, if approved by 
 the commissioner of natural resources, and if such action is 
 authorized by the attorney general, the running of the time 
 within which the permit holder must begin prospecting thereunder 
 and the time within which the permit holder must apply for a 
 lease or do any other act required by the permit shall be 
 suspended until the entry of final judgment in the action, and 
 the term of the permit and the time required for any action by 
 the holder thereunder shall be extended by a period equivalent 
 to the time from the receipt of the request to the entry of the 
 judgment.  

    HIST: 1949 c 594 s 1; 1969 c 1129 art 10 s 2; 1986 c 444 

     93.06 Reservation of minerals under navigable lakes.  

    All iron ores and other minerals on, in or under lands 
 within this state which lie beneath the waters of navigable 
 lakes and rivers belong to the state, together with the right to 
 enter upon such lands and explore for and mine and remove such 
 iron ore and other minerals and that the state now has and since 
 its organization has had the right to sell, lease, or otherwise 
 use or dispose of such mineral lands and such iron ores and 
 other minerals in the same manner as any other mineral lands, 
 ores, or minerals belonging to the state, and that the title of 
 the state to such iron ore or other minerals, together with the 
 right to explore for, mine, or remove the same, shall not be 
 affected by the subsequent drying up of such lakes or rivers.  

    HIST: (6401) 1909 c 49 s 1; 1947 c 521 s 1 

     93.07 Disposal of funds.  

    The principal of all funds derived from the sale or other 
 disposition of such minerals and lands so situate shall forever 
 be preserved inviolate and undiminished, but the same may be 
 invested as the permanent school fund of the state is now 
 invested, and the proceeds arising therefrom shall be paid into 
 the school endowment fund.  

    HIST: (6402-1) 1909 c 49 s 3; 1965 c 313 s 1 

     93.08 Prospecting for minerals under waters of meandered 
  lakes and streams.  

    Subdivision 1.    Rules for issuance of permits.  The 
 department, with the approval of the executive council, shall 
 adopt rules for the issuance of permits to prospect for gold, 
 silver, copper, cobalt, coal, graphite, petroleum, sand, gravel, 
 stone, natural gas, and all minerals, excepting iron ore, under 
 the waters of any public lake or stream in the state, including 
 that portion of boundary lakes and streams within the boundaries 
 of the state, and for the issuance of leases for the mining and 
 removal of such minerals upon such terms and conditions as such 
 rules may prescribe.  

    Subd. 2.    Scope of rules.  It shall be provided in 
 such rules, among other things: 

    (1) No permit to prospect shall be issued for a period to 
 exceed two years; 

    (2) Each permit shall authorize prospecting only within the 
 area designated therein, which area shall not exceed the 
 limitations upon size prescribed by the rules; 

    (3) At any time prior to the expiration of any such 
 prospective permit, the holder thereof shall have the right to a 
 lease giving the exclusive right to mine and remove the minerals 
 specified in such permit within the area specified in the 
 permit; provided, if the rules adopted hereunder shall permit or 
 prescribe larger areas for permits than for leases, the permit 
 holder shall designate the specific part of the area covered by 
 the permit (not exceeding the limitations upon size of lease 
 areas) upon which a lease is desired; 

    (4) Minimum rents and royalties, and the other terms, 
 conditions, and covenants of all such leases shall be prescribed 
 by such rules prior to the issuance of any permits hereunder; 
 provided no rents or royalties shall be paid for muck and silt, 
 or sand, or gravel removed under a lease or permit issued to any 
 department of the state, any political subdivisions, the federal 
 government, watershed district, drainage and conservancy 
 district, drainage and flood control district, sanitary district 
 of the state, or any port authority, if such materials are used 
 for public purposes only, and are not resold to any private 
 party; and provided further that no rents or royalties shall be 
 charged for muck and silt, or sand, or gravel furnished to or 
 taken by any department of the state or any political 
 subdivision of the state, or any port authority, subsequent to 
 July 1, 1958, and prior to the effective date of Laws 1961, 
 chapter 336, if such materials were used for public purposes; 

    (5) No such lease shall be for a longer term than 50 years; 

    (6) All rents and royalties paid under such leases shall be 
 paid to the state treasurer on the order of the commissioner of 
 finance and shall be credited to the permanent school funds of 
 the state; 

    (7) No minerals shall be removed under such permits until 
 lease has been issued as provided by such rules, except that, 
 with the approval of the commissioner, sufficient minerals or 
 ore material may be removed for exploratory or assaying 
 purposes; 

    (8) The grantee of such permit or lease, the assigns, 
 representatives, and successors in interest of the grantee, may 
 be required to secure riparian owners against damage from the 
 use of such lease or permit.  

    Subd. 3.    Issuance of permits.  The commissioner 
 shall issue permits and leases in accordance with such rules. 

    Subd. 4.    Recording of permits and leases.  All 
 permits and leases, with the names and post office addresses of 
 all parties having an interest, issued by the commissioner under 
 authority of sections 93.08 to 93.12 and the rules adopted 
 thereunder, before delivery, shall be duly recorded at length by 
 the commissioner of finance in office record books to be 
 provided and kept for that purpose, and a certificate of such 
 record showing the date of record and the book and page thereof 
 shall be endorsed on each such permit or lease.  

    HIST: (6402-2, 6402-3, 6402-4, 6402-5) Ex1935 c 42 s 1-4; 1947 
 c 473 s 1,2; 1953 c 537 s 1; 1961 c 336 s 1; 1963 c 647 s 1; 
 1973 c 492 s 14; 1985 c 248 s 70; 1986 c 444 

     93.09 Assignments and contracts.  

    Subdivision 1.    Written; registered.  All assignments 
 and agreements or contracts affecting any such permit or lease 
 shall be made in writing and signed by both parties thereto, 
 witnessed by two witnesses, and properly acknowledged, and 
 contain the post office addresses of all parties having an 
 interest; and when so executed shall be presented to the 
 commissioner of finance for recording.  The commissioner of 
 finance shall then record such assignment, agreement, or 
 contract at length in office record books kept and provided for 
 that purpose, and a certificate of such record showing the date 
 thereof and the book and page shall be endorsed on the 
 assignment, agreement, or contract which then shall be returned 
 to the party entitled thereto.  

    Subd. 2.    Approval; recording; fee.  All instruments 
 by virtue of which the title to any permit or lease provided for 
 in sections 93.08 to 93.12 is in any way affected shall receive, 
 as to form and execution, the approval of the commissioner, 
 which approval shall be endorsed thereon, and such instrument 
 when so approved shall be duly recorded.  For recording any 
 assignment or other instrument affecting the title to any permit 
 or lease or for furnishing certified copies of the records, the 
 commissioner of finance shall charge a fee of ten cents per 
 folio.  All such fees shall be turned into the state treasury.  

    HIST: (6402-6, 6402-7) Ex1935 c 42 s 5,6; 1973 c 492 s 14; 
 1986 c 444 

     93.10 Right of lessee to prospect for minerals. 

    The holder of any such lease shall have the right to 
 prospect for, mine, and remove any such minerals under the 
 public waters within the area described by such lease. 

    HIST: (6402-8) Ex1935 c 42 s 7 

     93.11 Minerals matter of public interest.  

    The discovery and mining or removing of the minerals 
 described in section 93.08 under the public waters in the state 
 is a matter of public interest to the state.  

    HIST: (6402-9) Ex1935 c 42 s 8 

     93.12 Forfeiture of permits and leases. 

    In the event the holder of such permit or lease shall fail 
 to comply with all the provisions contained in sections 93.08 to 
 93.12 to be performed or observed by the holder and such default 
 shall continue for a period of 30 days the commissioner of 
 natural resources upon 30 days' notice to the holder of such 
 permit or lease by certified mail to the address of such holder 
 as shown by the records of the commissioner of natural resources 
 may declare such permit or lease and all rights acquired 
 thereunder forfeited.  Upon the filing of the order of 
 forfeiture with the commissioner of natural resources all rights 
 under such lease or permit shall cease. 

    HIST: (6402-10) Ex1935 c 42 s 9; 1973 c 492 s 14; 1976 c 231 s 
 22; 1978 c 674 s 60; 1986 c 444 

     93.13 Draining of lakes and leasing of ore lands in beds 
  thereof.  

    When a meandered or public lake does not exceed 80 acres in 
 area, within the original meander line, and is surrounded in 
 part by state land upon which a state mineral lease has been 
 issued and is in force and effect, then such lake, with the 
 approval of the executive council, may be drained and the iron 
 ore removed from the bed thereof by the lessee or its assigns 
 under such state mineral lease for the purpose of mining iron 
 ore owned by the state underneath the bed of such lake adjoining 
 the lands covered by such state mineral lease under the terms 
 and conditions of such state mineral lease.  

    The royalty payments by the lessee to the state for the ore 
 that shall be removed from such lake bed shall be fixed by the 
 executive council and shall be not less than the minimum 
 royalties provided for in section 93.20.  In case the addition 
 of the lake bed to the area subject to such state mineral lease 
 shall increase the area covered by such lease to an area 
 exceeding 80 acres then the annual ground rental for such 
 enlarged area shall be increased by $1,000.  

    The lessee or its assigns shall have the power to institute 
 condemnation proceedings, to pay for the interests of private 
 persons or corporations who or which may be injured or whose 
 rights may be destroyed by the carrying on of such operations.  

    HIST: (6402-11) 1937 c 118 s 1; 1945 c 340 s 1 

     93.14 Issuance of permits to prospect for ores; leases.  

    The commissioner may execute permits to prospect for iron 
 ore and other ores upon lands belonging to the state or in which 
 the state has an interest and leases for the mining of such 
 ores, subject to the conditions provided in sections 93.15 to 
 93.28.  

    HIST: (6403) 1921 c 412 s 1; 1925 c 395 s 1; 1927 c 389 s 1 

     93.15 Mining units; designation; area.  

    Subdivision 1.  The commissioner of natural resources may 
 designate any lands belonging to the state or in which the state 
 has an interest as mining units and may rearrange or modify such 
 mining units from time to time, subject to the limitations 
 herein prescribed.  No mining unit shall contain lands belonging 
 to more than one permanent trust fund.  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.  Each mining unit shall consist of a 
 contiguous tract not exceeding 80 acres in area except as 
 follows: 

    (1) An area not exceeding 90 acres consisting of or 
 including one or more government lots or fractional or oversized 
 subdivisions according to the government survey may be included 
 in one mining unit.  

    (2) An area of any size which has been covered by a state 
 mining lease or contract heretofore issued and heretofore or 
 hereafter terminated may be included in one mining unit.  

    (3) An area of any size within the bed of any public waters 
 belonging to the state may be included in one mining unit.  

    Subd. 2.  The commissioner 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 
 hereunder, giving the descriptions thereof and such other 
 information as the commissioner deems necessary.  In case the 
 commissioner shall prescribe special conditions to be included 
 in a prospecting permit or lease for any mining unit as 
 authorized by law, a statement of such conditions shall be 
 included with the designation of such unit in the list.  

    Subd. 3.  Except as otherwise expressly provided by law, 
 each prospecting permit or mining lease shall cover only one 
 entire mining unit designated as herein provided, and the 
 designation of a mining unit in force at the time an application 
 for a prospecting permit therefor is received by the 
 commissioner according to law shall govern and shall remain 
 unchanged for the purposes of such permit or any lease issued 
 pursuant thereto.  

    HIST: (6404) 1921 c 412 s 2; 1925 c 395 s 1; 1927 c 389 s 1; 
 1941 c 546 s 1; 1943 c 233 s 1; 1951 c 547 s 1; 1953 c 558 s 1; 
 1969 c 1129 art 10 s 2; 1986 c 444 

     93.16 Permits; sale, notice. 

    Except as otherwise expressly provided by law, prospecting 
 permits for iron ore or other minerals belonging to the state 
 shall be issued only upon public sale as herein provided.  The 
 sale of permits may be held at such times and places as 
 designated by the commissioner.  The commissioner shall give 
 public notice of each sale by publication for three successive 
 weeks in a daily newspaper printed and published in each of the 
 cities of St. Paul, Minneapolis, Duluth, Hibbing, and Virginia.  
 The last publication shall be not less than seven days nor more 
 than 30 days before the date of sale.  Like notice may be 
 published in not to exceed two additional newspapers and two 
 trade magazines, as the commissioner may direct.  

    Each notice shall contain the following information: 

    (1) Time and place of holding the sale; 

    (2) The general requirements of law affecting bidders and 
 purchasers of permits; 

    (3) The place or places where the list of mining units, to 
 be offered for sale will be available for inspection and where 
 forms for bids and applications for prospecting permits may be 
 obtained; 

    (4) Such other information as the commissioner may direct.  

    HIST: (6405) 1921 c 412 s 3; 1925 c 395 s 1; 1927 c 389 s 1; 
 Ex1933 c 14 s 1; 1941 c 546 s 2; 1951 c 547 s 2; 1991 c 194 s 1 

     93.17 Application for permits; bids; awards. 

    Subdivision 1.  Applications for permits to prospect for 
 iron ore shall be presented to the commissioner in writing in 
 such form as the commissioner may prescribe at any time before 
 4:30 p.m., St. Paul, Minnesota time, on the last business day 
 before the day specified for the opening of bids, and no bids 
 submitted after that time shall be considered.  The application 
 shall be accompanied by a certified check payable to the state 
 treasurer in the sum of $50 for each mining unit as set out 
 above.  Each application shall be accompanied also by a sealed 
 bid setting forth the amount of royalty per gross ton of crude 
 ore based upon the iron content of the ore when dried at 212 
 degrees Fahrenheit, in its natural condition or when 
 concentrated, as set out in detail hereafter, that the applicant 
 proposes to pay to the state of Minnesota in case the permit 
 shall be awarded.  

    Subd. 2.  Whenever a bid on any mining unit exceeds the 
 minimums prescribed in section 93.20, the bidder shall offer a 
 uniform amount above the minimums on all schedules unless the 
 mining unit is expressly excepted from this requirement by the 
 commissioner of natural resources by so specifying in the list 
 of lands and mining units.  A separate sealed bid shall be 
 required for each mining unit as established by the commissioner 
 covered by the application, and shall be accompanied by a 
 certified check made payable to the state treasurer in the sum 
 of $200 as a guarantee that the applicant will carry out and 
 perform in good faith all the covenants set out in the permit.  
 The envelope containing each bid shall be plainly marked on the 
 outside showing the date of application, date received by the 
 commissioner, and the name of the applicant.  The commissioner 
 shall endorse upon each application and sealed bid the exact 
 time of presentation and preserve the same unopened in the 
 commissioner's office.  

    Subd. 3.  At the time and place fixed for the sale, the 
 commissioner shall publicly announce the number of applications 
 and bids received.  The commissioner, together with at least one 
 member of the executive council as designated by the council, 
 shall then publicly open the bids and announce the amount of 
 each bid separately.  Thereafter, the commissioner, together 
 with the executive council, shall award the permits to the 
 highest bidders for the respective mining units, but no bids 
 shall be accepted that shall not equal or exceed the minimum 
 amounts provided for in section 93.20, nor shall any bid be 
 accepted that shall not comply with the law and be accompanied 
 by a certified check for the faithful performance of the terms 
 of each permit as hereinbefore set out.  The right is reserved 
 to the state to reject any and all bids.  All applications for 
 permits and bids not accepted at such sale shall become void at 
 the close of the sale and the checks accompanying the 
 applications and bids shall be returned to the applicants 
 entitled to them.  Upon the award of a permit, the certified 
 check submitted with the application as provided by subdivision 
 1, shall be deposited with the state treasurer as a fee for the 
 permit, to be credited to the same fund as the rental or royalty 
 from the mining unit affected, and the certified check submitted 
 with the bid as provided by subdivision 2, shall be deposited 
 with the state treasurer and held for further disposition as 
 provided by law.  

    HIST: (6406) 1921 c 412 s 4; 1925 c 395 s 1; 1927 c 389 s 1; 
 1941 c 546 s 3; 1949 c 434 s 1; 1951 c 547 s 3; 1969 c 1129 art 
 10 s 2; 1986 c 444; 1991 c 194 s 2,3 

     93.18 Permit holders; rights, duties.  

    Subdivision 1.    Prospect for iron ore.  The holder of 
 any permit to prospect for iron ore issued upon public sale 
 under section 93.17 shall have the right to prospect for such 
 ore on the land described in the permit for one year from the 
 date thereof and no longer; but no ore shall be removed 
 therefrom until a lease has been executed.  No permit for the 
 same land shall be issued to the same person for two years in 
 succession.  The work of prospecting under a permit shall begin 
 in a substantial manner within 90 days from the date thereof and 
 shall be continued until the permit expires or is surrendered, 
 or a lease is requested by the holder of the permit.  The holder 
 of a permit shall report in writing to the commissioner the time 
 of beginning such prospecting, and thereafter on the first 
 business day of each April, July, October, and January shall 
 report the progress of the work of prospecting, and shall 
 accompany these reports with maps showing the character and 
 extent of the work done, the nature of materials encountered in 
 the work, and the analysis for iron, silica, phosphorus, 
 alumina, and manganese of all iron-bearing formation 
 encountered; provided, that if any hard rock or any taconite as 
 defined in section 93.20 is encountered, the commissioner may 
 require only such analytical information as the commissioner 
 deems essential.  The permit holder shall split all samples 
 taken and furnish the commissioner or representative, from time 
 to time as the commissioner or representative shall direct, with 
 a portion of the samples properly marked for identification.  
 Subject to the approval of the commissioner and under such 
 conditions the commissioner may prescribe, a geophysical survey 
 of the area may be accepted in lieu of drilling.  If the 
 permittee elects to make a geophysical survey, upon completion 
 thereof, the permittee shall make such further exploration of 
 the property as the commissioner may direct, and shall continue 
 such exploration until the permit expires or is surrendered, or 
 an application is made for a lease.  The work done by the permit 
 holder shall be subject to inspection at all reasonable times by 
 the commissioner or representatives thereof.  

    Subd. 2.    Cancellation of permit.  Every permit to 
 prospect for ore is granted upon the express condition that if 
 the permit holder shall fail to perform any of the terms, 
 covenants, or conditions specified in the permit to be performed 
 by the holder, then it shall be the duty of the commissioner to 
 cancel the permit, first having mailed to the permit holder at 
 least 20 days' notice in writing thereof.  

    HIST: (6407) RL s 2489; 1921 c 412 s 5; 1925 c 395 s 1; 1927 c 
 389 s 1; 1951 c 546 s 1; 1986 c 444 

     93.19 Permit holders; leases, royalties.  

    Subdivision 1.    Conditions requisite prior to lease.  
 At any time prior to the expiration of an iron ore prospecting 
 permit issued upon public sale under section 93.17, if the 
 commissioner shall determine that all the terms and conditions 
 of the permit and applicable provisions of law have been 
 complied with, the holder of the permit shall have the right to 
 receive from the commissioner of natural resources a mining 
 lease as prescribed in section 93.20, which shall bind the state 
 and the lessee to the mutual observance of the obligations and 
 conditions thereof.  As a condition precedent to the issuing of 
 such mining lease, the holder of the permit shall file a full 
 verified report of all work of exploration done under the 
 permit, in accordance with the terms and conditions thereof and 
 applicable provisions of law, or, in case no work was done, an 
 affidavit so stating, and shall pay to the state treasurer as 
 rental to the end of the first quarter under the lease an amount 
 commensurate with the unexpired portion of that quarter at the 
 rate specified in section 93.20.  

    Subd. 2.    Rental.  If the holder of any such permit 
 shall indicate in an application for a lease that the holder 
 considers the lands covered by the permit to be principally 
 valuable for the taconite thereon and that the holder desires a 
 taconite mining lease thereon, the commissioner of natural 
 resources, on the basis of all available information, including 
 information acquired as the result of exploratory work under the 
 permit, if any, shall determine whether the lands covered by the 
 permit are principally valuable for the taconite thereon and 
 have no substantial value because of merchantable deposits of 
 iron ores of other kinds defined in section 93.20.  If the 
 commissioner shall so determine, the applicant shall be entitled 
 to a lease for mining taconite ore as prescribed in section 
 93.20, upon compliance with the provisions of subdivision 1, so 
 far as applicable, and upon payment to the state treasurer of 
 rental to the end of the first quarter at the rate specified in 
 said section for such leases.  In such cases the commissioner 
 shall designate the lease as taconite iron ore mining lease and 
 shall insert the reduced rental rates for such leases as 
 specified in section 93.20.  

    Subd. 3.    Surrender or cancellation of permit.  Upon 
 the surrender or expiration of a prospecting permit or upon the 
 issuance of a mining lease pursuant thereto, if the commissioner 
 shall determine that the terms and conditions of the permit and 
 applicable provisions of law have been fully complied with, the 
 certified check deposited as security for performance of the 
 covenants of the permit, as provided by section 93.17, 
 subdivision 2, shall be returned to the holder of the permit or 
 assigns of the holder.  Otherwise, upon the surrender, 
 cancellation, or expiration of such a permit, such check shall 
 be deemed forfeited to the state for failure of performance of 
 the covenants of the permit, and the proceeds shall be credited 
 to the same fund as the rental or royalty from the mining unit 
 affected.  

    HIST: (6408) 1921 c 412 s 6; 1925 c 395 s 1; 1927 c 389 s 1; 
 1941 c 546 s 4; 1943 c 233 s 2; 1951 c 546 s 2; 1969 c 1129 art 
 10 s 2; 1986 c 444 

     93.191 Iron ore mining lease, modification.  

    Subdivision 1.    Conversion to taconite schedule; 
 approval.  The holder of any iron ore mining lease from the 
 state not containing a schedule of royalties covering taconite 
 ore as defined in section 93.20 may apply to the commissioner of 
 natural resources for the modification thereof to provide such a 
 schedule.  Upon such application the commissioner, with the 
 approval of the executive council, may enter into a modification 
 of the lease by the insertion of such a schedule of royalties, 
 which modification shall prescribe rental at not less than the 
 highest rate specified in said section for taconite mining 
 leases, and shall prescribe royalties for taconite ore not less 
 than the minimum royalty specified for such ore in said section, 
 and by the insertion of provisions in the form prescribed by 
 said section with respect to the beneficiation, measuring, 
 sampling, analysis and stockpiling of said taconite ore and 
 concentrates and the deposit of tailings or waste therefrom.  

    Subd. 2.    Modification.  The holder of any iron ore 
 mining lease issued pursuant to section 93.20, or of any mining 
 lease which has been modified pursuant to subdivision 1, may 
 apply to the commissioner to designate such lease as a taconite 
 iron ore mining lease subject to the annual rentals for such 
 taconite leases prescribed in section 93.20.  The holder shall 
 submit such information with respect to exploration or mining 
 operations upon the lands covered by said leases as the 
 commissioner may require.  The commissioner shall investigate 
 such application, and if the commissioner determines that the 
 lands covered by such lease are principally valuable for the 
 taconite thereon, and have no substantial value because of 
 merchantable deposits of iron ores of other kinds defined in 
 section 93.20, and if such determination be approved by the 
 executive council, the commissioner shall modify the lease by 
 designating it as a taconite iron ore mining lease and by 
 adjusting the annual rental required thereunder to conform with 
 the annual rental prescribed for taconite iron ore mining leases 
 in said section, provided that the highest rental rate specified 
 in said section for taconite mining leases shall apply in the 
 case of any mining lease which has been modified under 
 subdivision 1.  

    Subd. 3.    Increase of rental.  If following the 
 issuance of a taconite iron ore mining lease pursuant to section 
 93.20, or the designation of a lease as a taconite iron ore 
 mining lease under subdivision 2, additional information 
 acquired by the commissioner of natural resources shall disclose 
 that the lands covered by the lease have merchantable deposits 
 of iron ore of the classes defined in section 93.20, schedules 1 
 to 6, which deposits, without reference to the taconite upon 
 such lands, would give substantial value thereto, the 
 commissioner shall report the facts to the executive council.  
 If the executive council, after hearing upon reasonable notice 
 to the holder of the lease, shall determine that the lands 
 covered thereby contain such merchantable deposits, it may order 
 the rental stipulated in the lease to be increased to the same 
 rates as prescribed by section 93.20 for a lease for mining iron 
 ores other than taconite, payable from and after the date of the 
 order until the commissioner shall determine that the 
 merchantable deposits of such ores other than taconite ores so 
 found on such lands have been exhausted, after which the lower 
 rates of rental provided by the taconite iron ore mining lease 
 shall be reinstated.  

    HIST: 1947 c 111 s 1,2; 1951 c 546 s 3; 1969 c 1129 art 10 s 
 2; 1986 c 444 

     93.192 State lease to adjacent permittee.  

    In any case where the state owns unmined iron ore not under 
 lease, whether on land or in the bed of a lake or stream, which 
 state ore is adjacent to iron ore owned or leased for mining 
 purposes by another owner or lessee, and where the commissioner 
 of natural resources shall find that it is impracticable to mine 
 such state ore except in conjunction with the mining of the 
 adjacent ore, the commissioner, with the approval of the 
 executive council, upon application of the owner or lessee for 
 mining purposes of such adjacent ore, may enter into a mining 
 lease with such owner or lessee under the following terms and 
 conditions: 

    (a) All applications shall be in such form and contain such 
 information as the commissioner may prescribe.  

    (b) Where any of the ore to be mined under such lease lies 
 within the bed of a public lake or stream, such lease shall be 
 conditioned upon the lessee applying for and procuring an 
 appropriate license and permit from the commissioner, pursuant 
 to Laws 1937, chapter 468, as amended.  

    (c) The mining lease shall be in the form set forth in 
 Minnesota Statutes 1945, section 93.20, with such additional 
 terms and conditions not inconsistent therewith as may be agreed 
 upon.  The minimum royalties and rentals agreed upon shall be 
 not less than those prescribed in Minnesota Statutes 1945, 
 section 93.20.  

    HIST: 1947 c 409 s 1; 1969 c 1129 art 10 s 2 

     93.193 Taconite iron ore mining permits and leases.  

    Subdivision 1.  Upon written application by the holder of 
 any mining lease heretofore issued, or hereafter issued upon a 
 prospecting permit heretofore issued, which has been or may be 
 designated as a taconite iron ore mining lease pursuant to 
 section 93.19 or 93.191, the commissioner of natural resources, 
 with the approval of the executive council, may extend the term 
 thereof for an additional period of 25 years beyond the term 
 specified therein, upon the terms and conditions hereinafter 
 prescribed.  The additional period of 25 years for which such a 
 lease is extended, shall be the extended period as such term is 
 used herein.  

    Subd. 2.  As a condition of receiving such extended period 
 the applicant therefor shall agree that during the extended 
 period the royalty rates specified in the lease for ores other 
 than taconite or taconite concentrates shall not be applicable, 
 and no such other ores or concentrates shall be removed except 
 after the royalties and rentals to be paid therefor shall have 
 been negotiated with and agreed to by the commissioner of 
 natural resources, with the approval of the executive council.  
 Until such royalty is agreed upon the lessee may mine and 
 stockpile such other ores upon the leased premises, or other 
 lands, pursuant to section 93.20, subdivision 28, if such mining 
 is necessary or desirable in connection with the mining and 
 removal of taconite.  

    Subd. 3.  All applications for the extension of the term of 
 such taconite iron mining leases shall be made within 18 months 
 from April 27, 1957, and shall be in such form and contain such 
 information as the commissioner may prescribe.  Upon such 
 application the commissioner and the applicant shall negotiate, 
 and, with the approval of the executive council, shall determine 
 the rentals and royalties to be paid for taconite or taconite 
 concentrates or both during the extended period.  Upon such 
 determination the commissioner shall enter into an agreement 
 providing for such rentals and royalties, and containing the 
 other provisions required by this section, which agreement, upon 
 due execution by the commissioner and the holder of such lease, 
 shall be effective to extend the lease for the period 
 hereinbefore specified.  

    HIST: 1957 c 722 s 1-3; 1969 c 1129 art 10 s 2 

     93.20 Rentals, royalties, form of lease. 

    Subdivision 1.  Except as otherwise provided by law, the 
 body of every lease for mining iron ore belonging to the state 
 shall consist of the provisions set forth in subdivisions 4 to 
 36, omitting subdivision headings, with such insertions, 
 changes, or additions as may be necessary to incorporate the 
 royalty rates and other particulars applicable to each case or 
 as may be authorized under subdivision 2.  

    Subd. 2.  The commissioner of natural resources, with the 
 approval of the executive council, 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.  

    Subd. 3.  The royalty rates hereinafter specified shall be 
 deemed minimums.  In any case where a higher rate has been bid 
 or agreed upon as provided by law, such higher rate shall be 
 inserted in the lease in place of the rate hereinafter specified 
 and with like effect for all purposes so far as applicable, 
 except as otherwise expressly provided by law.  

    Subd. 4.  This indenture, made this ..... day of 
 ................, ......., by and between the state of 
 Minnesota, party of the first part, and ................. 
 part..... of the second part.  

    Witnesseth:  That the party of the first part, for and in 
 consideration of the sum of ....... Dollars to it in hand paid 
 by the part..... of the second part, being the payment of rental 
 for the unexpired portion of the first quarter, hereinafter 
 provided for, the receipt whereof is hereby acknowledged, and in 
 further consideration of the covenants and conditions hereof, to 
 be kept and performed by the part..... of the second part, does 
 hereby lease and demise unto the part..... of the second part 
 for the term of 50 years from and after the ..... day of 
 ........, ......., the following described land, situated in the 
 County of ........, in the state of Minnesota, to-wit: 
 ...........................  

    Subd. 5.  The above described premises are leased to the 
 part.....  of the second part for the purpose of exploring for, 
 mining, taking out and removing the iron ore found on or in said 
 land, together with the right to construct or make such 
 buildings, excavations, openings, ditches, drains, railroads, 
 roads and other improvements upon said premises as may be 
 necessary or suitable for such purposes.  The part.....  of the 
 second part may contract with others for doing any work 
 authorized or required hereunder, or for the use of said land or 
 any part thereof for the purposes hereof, but no such contract 
 shall relieve the part..... of the second part from any duty, 
 obligation, or liability hereunder.  Three executed duplicates 
 of every such contract shall be filed with the commissioner of 
 natural resources before it shall become effective for any 
 purpose.  

    Subd. 6.  The party of the first part reserves the right to 
 sell and dispose of, under the provisions of law now or 
 hereinafter governing the sale of timber on state lands, all the 
 timber upon the land hereby leased, and reserves to the 
 purchaser of such timber, or agents and servants of the 
 purchaser, the right at all times to enter thereon, and to cut 
 and remove any and all such timber therefrom, according to the 
 terms of the purchaser's contract with the state, and without 
 let or hindrance from the part.....  of the second part; but 
 such purchaser shall not unnecessarily or materially interfere 
 with the mining operations carried on thereon.  The party of the 
 first part further reserves the right to grant to any person or 
 corporation the right-of-way necessary for the construction and 
 operation of one or more railroads over or across the land 
 thereby leased, without let or hindrance from the part.....  of 
 the second part; but such railroads shall not unnecessarily or 
 materially interfere with the mining operations carried on 
 thereon.  The party of the first part further reserves the right 
 to grant leases, permits or licenses to any portion of the 
 surface of the demised premises to any person or corporation 
 under authority of section 92.50, or other applicable laws, 
 without let or hindrance from the part..... of the second part, 
 but such leases, permits or licenses shall not unnecessarily or 
 materially interfere with the mining operations carried on 
 thereon.  

    Subd. 7.  The part..... of the second part covenants and 
 agrees to pay to the treasurer of said state rental for said 
 premises at the rate of $1,250 for the first year after the date 
 of this lease and $5,000 per year for the remainder of the term 
 hereof; provided, that in case and so long as this lease is 
 designated as a taconite iron ore mining lease the rate for the 
 first five years after the date hereof shall be $400 per year 
 and the rate for the remainder of the term hereof shall be 
 $1,600 per year.  Such rental shall be payable quarterly on or 
 before the 20th day of April, July, October, and January each 
 year during the term hereof.  Each quarterly payment shall cover 
 the rental at the rates hereinbefore specified for the calendar 
 quarter or fraction thereof ending on the last day of the 
 calendar month next preceding the due date for such payment.  
 The rental for any fraction of a quarter shall be computed 
 proportionately at the applicable rate.  Any amount paid for 
 rental accrued during any calendar year shall be credited on any 
 royalty that may become due for iron ore removed hereunder 
 during the same calendar year but no further, and any amount 
 paid for such royalty in excess of such credit during such year 
 shall be credited on rental, if any, subsequently accruing 
 during such year but no further.  

    Subd. 8.  The term "dried iron" as used herein shall mean 
 iron ore dried at 212 degrees Fahrenheit; and the word "ton" 
 shall mean a gross ton of 2240 pounds.  

    Subd. 9. Repealed, 1991 c 194 s 5 

    Subd. 9a.  (1) The royalties to be paid by the part.... of 
 the second part to the party of the first part on ore removed in 
 each calendar quarter that the lease remains in force as 
 hereinbefore specified shall be subject to increase by fifty 
 percent (50%) of the sum of the amounts determined in accordance 
 with subparagraphs (a) and (b) below: 

    (a) Reference shall be made to the Producer Price Index for 
 Iron Ores (December 1984=100) (Industry Code No. 1011), as 
 originally published (unrevised) by the Bureau of Labor 
 Statistics of the United States Department of Labor, or any 
 succeeding federal agency publishing such index, for the first 
 month in the calendar quarter for which royalty payment is to be 
 made.  If the Producer Price Index for Iron Ores exceeds ....., 
 which was the level of such index for the month in which this 
 lease was issued (hereafter called the "PPI - IO Base Index"), 
 the excess shall be computed and this excess shall become the 
 numerator of a fraction, the denominator of which shall be the 
 PPI - IO Base Index, and the resulting fraction shall be 
 multiplied by the royalty rate per ton payable on the ore mined 
 and removed during any such quarter. 

    For example, if the PPI - IO Base Index under this lease 
 was 119.2, and if the Producer Price Index for Iron Ores for 
 January, ....... was 125.3, the additional amount for the 
 calendar quarter of January, February, and March ....... would 
 be computed as follows:  

  [(125.3-119.2)/119.2] x  base royalty rate  =  additional amount

    (b) Reference shall be made to the Producer Price Index for 
 the Iron and Steel Subgroup of the Metals and Metal Products 
 Group (1982=100) (Commodity Code No. 101), as originally 
 published (unrevised) by the Bureau of Labor Statistics of the 
 United States Department of Labor, or any succeeding federal 
 agency publishing such index, for the first month in the 
 calendar quarter for which royalty payment is to be made.  If 
 the Producer Price Index for the Iron and Steel Subgroup of the 
 Metals and Metal Products Group exceeds ....., which was the 
 level of such index for the month in which this lease was issued 
 (hereafter called the "PPI - I&>S Base Index"), the excess shall 
 be computed and this excess shall become the numerator of a 
 fraction, the denominator of which shall be the PPI - I&>S Base 
 Index, and the resulting fraction shall be multiplied by the 
 royalty rate per ton payable on the ore mined and removed during 
 any such quarter. 

    For example, if the PPI -  I&>S Base Index under this lease 
 was 129.5, and if the Producer Price Index for the Iron and 
 Steel Subgroup of the Metals and Metal Products Group for 
 January, ....... was 139.5, the additional amount for the 
 calendar quarter of January, February, and March ....... would 
 be computed as follows: 

  [(139.5-129.5)/129.5] x  base royalty rate  =  additional amount

    (2) In the event some other period than December 1984 is 
 used as a base of 100 in determining the Producer Price Index 
 for Iron Ores or some other period than 1982 is used as a base 
 of 100 in determining the Producer Price Index for the Iron and 
 Steel Subgroup of the Metals and Metal Products Group, for the 
 purposes of this lease these indexes shall be adjusted so as to 
 be in correct relationship to the appropriate base.  In the 
 event either such index is not published by any federal agency, 
 the index to be used as aforesaid shall be that index 
 independently published, which, after necessary adjustments, if 
 any, provides the most reasonable substitute for the appropriate 
 index during any period subsequent to the month in which this 
 lease is issued; it being intended to substitute for the 
 Producer Price Index for Iron Ores and index that most 
 accurately reflects fluctuations in the prices of Great Lakes 
 iron ores in the manner presently reported by the Producer Price 
 Index for Iron Ores (December 1984=100), as originally published 
 (unrevised) by the Bureau of Labor Statistics of the United 
 States Department of Labor, and it being intended to substitute 
 for the Producer Price Index for the Iron and Steel Subgroup of 
 the Metals and Metal Products Group an index that most 
 accurately reflects fluctuations in the prices of iron and steel 
 in the manner presently reported by the Producer Price Index for 
 the Iron and Steel Subgroup of the Metals and Metal Products 
 Group (1982=100), as originally published (unrevised) by the 
 Bureau of Labor Statistics of the United States Department of 
 Labor. 

    If the parties to this lease cannot agree upon substitute 
 indexes which accomplish these purposes, each shall choose an 
 arbitrator and the two thus selected shall choose a third.  The 
 decision of the arbitrators or any two of them shall be final 
 and binding on the parties in interest.  The agreement or the 
 decision of the arbitrators shall be attached as a supplement to 
 the lease.  Each party to the arbitration shall bear their 
 representative share of the costs for the arbitration. 

    Subd. 10.  In computing royalty rates hereunder, any 
 fraction of a cent less than 5/1000 shall be disregarded and any 
 fraction amounting to 5/1000 or more shall be counted as 1/100 
 of a cent.  

    The method of computing increased rates upon analysis 
 illustrated by the following example shall apply in all cases 
 hereunder, with such changes as may be necessary for adaptation 
 to a particular schedule.  Assuming that the royalty rate for 
 the lowest grade of ore, with analysis 25.49 percent or less, is 
 18 cents per ton, the rate will be 18.9 cents per ton for all 
 dried iron analyses higher than 25.49 percent but less than 
 26.50 percent; 19.85 cents per ton for all dried iron analyses 
 higher than 26.49 percent but less than 27.50 percent; and so 
 on, adding to the amount of royalty for a given grade five 
 percent thereof for an increase in dried iron content of one 
 percent or fraction thereof.  

    Subd. 11.  Subject to the foregoing provisions, the 
 royalties to be paid by the part..... of the second part to the 
 party of the first part shall be as hereinafter specified.  

    Subd. 12.  Schedule 1.  Direct shipping open pit ore shall 
 be understood to mean all ore lying beneath the final stripped 
 area of the particular mine in which it shall be situated and 
 lying within reasonably safe mining slopes therein, that is 
 shipped in its natural state without beneficiation of any kind 
 other than crushing or dry screening.  

    On a ton of direct shipping open pit ore averaging in dried 
 iron 25.49 percent or less, the royalty shall be 18 cents.  The 
 royalty rate shall be increased five percent for each increase 
 of one percent, or fraction thereof, in dried iron analysis.  

    Subd. 13.  Schedule 2.  Open pit wash ore concentrates 
 shall be understood to mean all concentrates produced from open 
 pit ore which, in accordance with good engineering and 
 metallurgical practice, requires treatment by straight washing 
 to make it suitable for blast furnace use.  

    On a ton of open pit wash ore concentrates averaging in 
 dried iron 25.49 percent or less, the royalty shall be 18 
 cents.  The royalty rate shall be increased 4-1/2 percent for 
 each increase of one percent, or fraction thereof in dried iron 
 analysis.  

    Subd. 14.  Schedule 3.  Open pit special concentrates shall 
 be understood to mean all concentrates produced from open pit 
 ore which, in accordance with good engineering and metallurgical 
 practice, requires treatment by roasting, sintering, 
 agglomerating, or drying through the use of fuel, or by jigging, 
 or by heavy medium separation to make them suitable for blast 
 furnace practice.  

    On a ton of such open pit special concentrates averaging in 
 dried iron 25.49 percent or less, the royalty shall be 18 
 cents.  The royalty rate shall be increased four percent for 
 each increase of one percent, or fraction thereof, in dried iron 
 analysis.  

    Subd. 15.  Schedule 4.  Underground direct shipping ore 
 shall be understood to mean all ore in any particular mine, 
 other than open pit ore, that is shipped in its natural state 
 without beneficiation of any kind other than crushing or dry 
 screening.  

    On a ton of underground direct shipping ore averaging in 
 dried iron 25.49 percent or less, the royalty shall be 15 
 cents.  The royalty rate shall be increased 3-1/2 percent for 
 each increase of one percent, or fraction thereof, in dried iron 
 analysis.  

    Subd. 16.  Schedule 5.  Underground wash ore concentrates 
 shall be understood to mean all concentrates produced from 
 underground ore which, in accordance with good engineering and 
 metallurgical practice, requires treatment by straight washing 
 to make it suitable for blast furnace use.  

    On a ton of underground wash ore concentrates averaging in 
 dried iron 25.49 percent or less, the royalty shall be 15 
 cents.  The royalty rate shall be increased three percent for 
 each increase of one percent, or fraction thereof, in dried iron 
 analysis.  

    Subd. 17.  Schedule 6.  Underground special concentrates 
 shall be understood to mean all concentrates produced from 
 underground ore which, in accordance with good engineering and 
 metallurgical practice, require treatment by roasting, 
 sintering, agglomerating, or drying through the use of fuel, or 
 by jigging, or by heavy medium separation to make them suitable 
 for blast furnace practice. 

    Ponded fine tailings special concentrates shall be 
 understood to mean all concentrates produced from fine tailings 
 stored in tailings ponds which, in accordance with good 
 engineering and metallurgical practice, require additional 
 treatment by one or more of the types described in schedules 2 
 and 3 to make them suitable for blast furnace practice.  

    On a ton of such underground special concentrates or ponded 
 fine tailings special concentrates, averaging in dried iron 
 25.49 percent or less, the royalty shall be 15 cents.  The 
 royalty rate shall be increased two percent for each increase of 
 one percent, or fraction thereof, in dried iron analysis.  

    Subd. 18.  Schedule 7.  Taconite ore shall be understood to 
 mean a ferruginous chert or ferruginous slate in the form of 
 compact siliceous rock, in which the iron oxide is so finely 
 disseminated that substantially all of the iron bearing 
 particles of merchantable grade are smaller than 20 mesh.  

    Taconite concentrates shall be understood to mean the 
 merchantable product, suitable for blast furnace use, which, in 
 accordance with good engineering and metallurgical practice, has 
 been produced from taconite ore which requires treatment by fine 
 grinding, magnetic separation, flotation, or some other method 
 or methods other than or in addition to one or more of the 
 methods specified in schedules 1 to 6, inclusive.  

    On a ton of taconite concentrates averaging in dried iron 
 40.49 percent or less, the royalty shall be 11 cents.  The 
 royalty rate shall be increased one percent for each increase of 
 one percent, or fraction thereof, in dried iron analysis.  

    In lieu of payment of such royalty on the taconite 
 concentrates, royalty payments may be made on the taconite ore 
 as set forth in section 93.201. 

    Subd. 19.  The part..... of the second part covenant ..... 
 and agree ..... to pay to the treasurer of said state, on or 
 before the twentieth day of April, July, October, and January in 
 each year during the period this lease continues in force 
 royalty at the rates hereinbefore specified for all the iron ore 
 mined and removed from said land during the three months 
 preceding the first day of the month in which such payment is 
 due as hereinbefore provided. 

    Subd. 20.  The part..... of the second part at the time of 
 such payment shall transmit to the commissioner of natural 
 resources an exact and truthful statement of the amount of iron 
 ore removed under each schedule during the three months for 
 which such payment is made and the royalty due thereon, 
 determined as hereinafter provided.  The part..... of the second 
 part shall provide for all the operations required for such 
 determination except as otherwise specified.  

    Subd. 21.  Except as otherwise hereinafter provided, all 
 iron ore removed from said land hereunder shall be shipped by 
 rail.  Each shipment shall be sampled in accordance with 
 standard practice so as to show the true grade of the ore 
 contained therein under each schedule, taking specimens from 
 five carloads to make up a sample for analysis; provided, that 
 with the approval of the commissioner of natural resources a 
 sample may consist of specimens from any other number of 
 carloads.  The ore in each sample shall be thoroughly mingled 
 and then split into two portions, both of which shall be 
 properly marked for identification.  One portion shall be 
 delivered to the commissioner of natural resources or authorized 
 agent, and the other retained by the part..... of the second 
 part.  Each sample, dried at 212 degrees Fahrenheit, shall be 
 analyzed for iron and manganese, and also, if directed by the 
 commissioner or agent, for silica, phosphorus, and alumina, at 
 the expense of the part...... of the second part, by a competent 
 chemist approved in writing by the commissioner.  

    Subd. 22.  The iron ore so taken and shipped shall be 
 weighed by the railroad carrier.  Weight bills or certificates, 
 signed by the weigher, shall be transmitted to the commissioner 
 at the close of each day when ore is shipped.  Except as 
 otherwise permitted by the commissioner of natural resources, 
 the part..... of the second part shall transmit to the 
 commissioner on or before the tenth of each month a statement in 
 such form as the commissioner shall prescribe, covering all ore 
 removed from said land during the preceding calendar month, 
 showing the weight and analysis of the ore under each schedule, 
 the royalty computed to be due thereon, and such other 
 information pertaining thereto as the commissioner may require.  
 The amount of royalty due upon the ore under each schedule shall 
 be determined according to the percentage of iron shown by the 
 analysis at the rates hereinbefore prescribed.  If the manganese 
 content is four percent or more, the royalty due thereon shall 
 be determined and paid as provided by law.  With the approval of 
 the commissioner, for the purpose of computing and accounting 
 for royalty, ore may be considered as removed from said land in 
 the month in which it was weighed as shown by the weight bills 
 or certificates, but the party of the second part shall 
 nevertheless be liable for the royalty on all ore from and after 
 the actual time of removal from said land.  With the approval of 
 the commissioner the royalty on all the ore under a given 
 schedule removed during a given calendar month may be computed 
 on the average dried iron analysis thereof.  The grades and 
 weights of ore as set forth in said monthly statements shall be 
 prima facie binding as between the parties, but the party of the 
 first part shall have the right at any time, and in such manner 
 as it may see fit, to sample the ore, check the analyses, and 
 inspect, review, and test the correctness of the methods, books, 
 records, and accounts of the part..... of the second part in 
 sampling, analyzing, recording, and reporting such grades and 
 weights, and to inspect, review, and test the correctness of the 
 scales and other equipment used in weighing the ore and of the 
 weights reported as aforesaid, it being understood that any 
 errors in these respects, when ascertained, shall be corrected.  
 Should the party of the second part desire to remove crude ore 
 for experimental purposes from the demised premises, the 
 commissioner of natural resources may prescribe the method of 
 such removal and the method of sampling and weighing such crude 
 ore for the purpose of determining the amount of royalty due.  

    Subd. 23.  The part..... of the second part shall have the 
 right to beneficiate and treat, for the purpose of improving the 
 character or quality thereof, any iron ore which without such 
 treatment or beneficiation will not meet general market 
 requirements at the time.  Subject to the approval of the 
 commissioner of natural resources, such ore may be so 
 beneficiated or treated either upon the demised premises or 
 elsewhere.  The part..... of the second part agree ..... that 
 any treatment or beneficiation of ore conducted hereunder shall 
 be done with suitable and proper machinery and appliances, and 
 in a careful, good and workmanlike manner, according to good 
 engineering practice, and so as not to cause any greater waste 
 of the ore mined than is necessary in order to produce an ore 
 concentrate of proper composition and character for satisfactory 
 furnace use.  No ore shall be treated or beneficiated which, 
 without treatment or beneficiation, will meet general market 
 requirements at the time.  As to any ore so beneficiated or 
 treated during any quarter year, royalty at the rates per ton 
 hereinbefore provided for such ore shall be paid upon the 
 merchantable product of such beneficiation or treatment and not 
 upon the ore as mined.  The residue of such treatment or 
 beneficiation may be deposited upon the demised premises, in 
 such place or places as shall not unnecessarily hinder or 
 embarrass the future operation of the mine or mines therein, or 
 on other state-owned lands conveniently located for the purpose, 
 or may be otherwise disposed of in such manner as the 
 commissioner of natural resources may approve.  The merchantable 
 product of such beneficiation shall be sampled, analyzed and 
 weighed and the royalty thereon determined in like manner as 
 hereinbefore provided for direct shipping ore.  The part..... of 
 the second part shall nevertheless be liable for royalty on all 
 ore removed from the demised premises for beneficiation or 
 treatment from and after the actual time of removal.  If any 
 such ore shall not be beneficiated or treated or if the royalty 
 due thereon shall not be determined and accounted for as herein 
 otherwise provided by the next quarterly payment date after the 
 end of the quarter in which such ore is removed from the demised 
 premises, the commissioner may determine such royalty by such 
 method as the commissioner deems appropriate and give the 
 part..... of the second part written notice thereof, whereupon 
 such royalty shall be due and payable within 20 days after the 
 mailing or delivery of such notice, unless the time therefor 
 shall be extended by the commissioner.  

    Subd. 24.  It is understood and agreed that should the 
 part.....  of the second part desire to stockpile concentrates 
 off the demised premises or on land not owned by the state, the 
 parties shall agree upon a method of sampling and weighing such 
 concentrated ore for the purpose of determining the amount of 
 royalty due, and in case they are unable to agree, each shall 
 choose a referee and the two referees so chosen shall choose a 
 third.  The decision of such board of referees shall be binding 
 on the parties in interest as to the methods to be employed in 
 such sampling and weighing only.  Should the party of the second 
 part desire to stockpile crude ore off the demised premises for 
 a temporary period not to exceed one year, the commissioner of 
 natural resources may prescribe the method of removal and the 
 method of sampling and weighing such crude ore for the purpose 
 of determining the amount of royalty due.  

    Subd. 25.  The party of the first part shall have the right 
 to enter upon and into said premises at any time, and to inspect 
 and survey the same, and to measure the quantity of ore which 
 shall have been mined or removed therefrom, not unreasonably 
 hindering or interrupting the operations of the part..... of the 
 second part.  

    The part..... of the second part shall provide, upon 
 written request from the commissioner of natural resources, a 
 suitable room in the dry or wash house or in some other suitable 
 place on said premises, with water, light and heat free, for the 
 use of the commissioner or agents thereof in the work of 
 inspection on said premises, such room to be at least equal in 
 size and equipment to that customarily furnished for the use of 
 the mining captain or superintendent at mines comparable to the 
 mine or mines on said premises.  The commissioner or agents 
 thereof shall have the right to enter and inspect at any time 
 any plant where ore from said land is treated or beneficiated, 
 and to take such samples and make such tests as may be necessary 
 to determine the effects of such treatment or beneficiation.  In 
 case ore from more than one state mining unit or other property 
 is treated or beneficiated at the same plant, the commissioner 
 may appoint such special inspectors for such plant as the 
 commissioner deems necessary to insure proper accounting and 
 protect the interests of the state, and the part..... of the 
 second part shall reimburse the state monthly for the cost of 
 all such inspection service, upon notification thereof by the 
 commissioner.  

    Subd. 26.  In addition to other reports or statements 
 required hereunder, the part..... of the second part shall 
 furnish the commissioner of natural resources with the following:

    (1) Copies of all exploration reports, concentrating plant 
 reports, mine maps, analysis maps, cross sections and plans of 
 development made and used in the operations on said leased 
 premises; 

    (2) At least a quarter portion of all exploration samples, 
 and, when requested by the commissioner in writing, a quarter 
 portion of mine or mill samples; 

    (3) A monthly report showing the estimated weight and 
 analysis of all ore material stockpiled according to each 
 classification, whether merchantable, concentratable, or 
 nonmerchantable; 

    (4) A monthly report showing the estimated weight and 
 analysis of concentrated ore when stockpiled on state-owned 
 land; 

    (5) A monthly report of all ore beneficiated, showing the 
 tonnage and analysis of crude ore treated, the tonnage and 
 analysis of concentrates recovered, and a record of any analysis 
 made of tailings and rejects; 

    (6) Not later than February 1st of each year during said 
 term, a summary statement of the tonnage of all iron ore and 
 other iron-bearing material mined on said land during the 
 previous calendar year under each schedule or classification, 
 showing the average analysis of iron, silica, phosphorus, 
 alumina, and manganese on all merchantable ore, such analysis as 
 the commissioner may require on other iron-bearing material, and 
 such other information as to the grade, character and 
 disposition of such ore and other material as the commissioner 
 may direct. 

    Subd. 27.  The part..... of the second part further 
 covenant..... and agree ..... to pay all taxes, general and 
 specific, which may be assessed against said land and the 
 improvements thereon made, used or controlled by said part..... 
 of the second part, and the iron ore product thereof, and any 
 personal property thereat owned, used, or controlled by the 
 part..... of the second part, in all respects as if said land 
 was owned in fee by the part..... of the second part.  

    Subd. 28.  It is further understood and agreed as follows: 

    (1) The part..... of the second part will open, use and 
 work the mine or mines on said land in such manner only as is 
 usual and customary in skillful and proper mining operations of 
 similar character when conducted by the proprietors on their own 
 land and in accordance with the requirements, methods, and 
 practices of good mining engineering, and in such manner as not 
 to cause any unnecessary or unusual permanent injury to such 
 mine or mines or inconvenience or hindrance in the subsequent 
 operation of the same or in the development, mining, or disposal 
 of any iron ore or other valuable mineral left on or in said 
 land.  

    (2) Subject to the approval of the commissioner of natural 
 resources, all iron ore and other material produced or 
 accumulated in connection with any operations hereunder and not 
 otherwise lawfully disposed of shall be deposited or disposed of 
 by the part........ of the second part at such places and in 
 such manner as will not hinder or embarrass such subsequent 
 operations or activities; provided, that any such material 
 containing iron or other minerals in such quantity or form as to 
 have present or potential value shall be deposited only on the 
 land covered by this lease, or on other land belonging to the 
 state and available for the purpose, unless the commissioner of 
 natural resources shall approve in writing its disposal in some 
 other manner.  

    (3) Land conveyed to the state upon condition that it shall 
 be used for the storage of iron ore or other materials having 
 present or potential value belonging to the state, subject to 
 termination or reversion of title when no longer needed or used 
 for that purpose, shall be deemed suitable and available 
 therefor.  The commissioner may accept such a conveyance in 
 behalf of the state if the commissioner determines that the 
 conditions thereof conform with the foregoing provisions and 
 will fully protect the interests of the state in the materials 
 to be so stored, but no consideration shall be paid for such 
 conveyance unless authorized by law.  The existence of mineral 
 reservations with rights to use or destroy the surface in 
 connection therewith, shall not prevent lands being deemed 
 suitable and available if the commissioner finds that the lands 
 are located off the generally recognized limits of the iron 
 formation, and the commissioner finds that no minerals of any 
 present or foreseeable commercial value are known to exist 
 thereon.  The provisions of section 500.20, shall not apply to 
 any conveyance of land to the state pursuant to this subdivision 
 and shall not limit the duration of any covenant, condition, 
 restriction, or limitation created by any such conveyance.  

    Subd. 29.  It is understood and agreed that in case any 
 interest in the land covered by this lease or in any minerals 
 therein is owned by anyone other than the state, this lease 
 shall not be construed as authorizing any invasion of or 
 trespass upon such other interest, that in case it shall be 
 necessary to make use of any such other interest in connection 
 with any operations hereunder, the part...... of the second part 
 shall obtain all necessary legal rights therefor before 
 proceeding therewith, that the part...... of the second part 
 shall be liable for all damages to any such other interest 
 caused by any operations hereunder, and that the state shall not 
 incur or be subject to any liability therefor.  

    Subd. 30.  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, with the approval of the 
 executive council, 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.  

    Subd. 31.  All remittances by the part..... of the second 
 part hereunder shall be made payable to the state treasurer and 
 shall be transmitted to the commissioner of natural resources, 
 who shall audit the same, take such action as may be necessary 
 on account of any error or discrepancy discovered, and deposit 
 all remittances found due with the state treasurer.  

    Subd. 32.  The party of the first part reserves and shall 
 at all times have a lien upon all ore mined and upon all 
 improvements made by the part.....  of the second part upon the 
 land covered by this lease for any unpaid sums due hereunder.  

    Subd. 33.  The part..... of the second part shall have the 
 right at any time to terminate this lease in so far as it 
 requires the part..... of the second part to mine ore on said 
 land, or to pay royalty therefor, by delivering written notice 
 of such intention to terminate to the commissioner of natural 
 resources, who shall in writing acknowledge receipt of such 
 notice, and this lease shall terminate 60 days after such 
 delivery unless such notice is revoked by the part..... of the 
 second part by further written notice delivered to the 
 commissioner before the expiration of said 60 days, and all 
 arrearages and sums which shall be due under this lease up to 
 the time of such termination shall be paid upon settlement and 
 adjustment thereof by the part..... of the second part.  

    Subd. 34.  This lease is granted upon the express condition 
 that if any sum owing hereunder by the part...... of the second 
 part for rental, royalty, taxes, or otherwise shall remain 
 unpaid after the expiration of 60 days from the time when the 
 same became payable as herein provided, or in case the part..... 
 of the second part or any agent or servant thereof shall 
 knowingly or willfully make any false statement in any 
 statement, report, or account submitted to the state or to the 
 commissioner of natural resources or any agents of the 
 commissioner pertaining to any matter hereunder, or in case the 
 part..... of the second part shall fail to perform any of the 
 covenants or conditions herein expressed to be performed by said 
 part..... of the second part, then it shall be the duty of the 
 commissioner of natural resources to cancel this lease, first 
 having mailed or delivered to the part...... of the second part 
 at least 20 days' notice in writing thereof, whereupon this 
 lease shall terminate at the expiration of said 20 days, and the 
 party of the first part shall reenter and again possess said 
 premises as fully as if no lease had been given to the part..... 
 of the second part, and the part..... of the second part and all 
 persons claiming under such part..... shall be wholly excluded 
 therefrom except as hereinafter provided, but such termination 
 and reentry shall not relieve the part..... of the second part 
 from any payment or other liability thereupon or theretofore 
 incurred hereunder.  

    Subd. 35.  It is mutually agreed that upon the termination 
 of this lease, whether by expiration of the term thereof or by 
 act of either party, the part..... of the second part shall have 
 90 days thereafter in which to remove all equipment, materials, 
 railroad tracks, structures, and other property placed or 
 erected by the part..... of the second part upon said land, and 
 any such property not removed within said time shall become the 
 property of the party of the first part; but the part..... of 
 the second part shall not remove or impair any supports placed 
 in any mine or mines on said land, or any timber or frame work 
 necessary to the use or maintenance of shafts or other 
 approaches to such mine or mines or tramways within the same.  
 Subject thereto, it is understood and agreed that upon the 
 termination of this lease by expiration of the term thereof or 
 otherwise, the part.... of the second part will quietly and 
 peaceably surrender possession of the land covered thereby to 
 the party of the first part.  

    Subd. 36.  The covenants, terms and conditions of this 
 lease shall run with the land and shall extend to and bind all 
 assignees and other successors in interest of the part..... of 
 the second part.  

    Subd. 37.  The provisions of this section relating to the 
 contents of mining leases shall be deemed to be enabling 
 provisions, and the respective officers and agencies of the 
 state concerned therewith shall have all the authority, powers, 
 and duties required for the execution and administration thereof.

    Subd. 38.  Any state iron ore mining lease heretofore or 
 hereafter issued and in force may be modified by the 
 commissioner of natural resources, with the approval of the 
 executive council, 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.  

    Subd. 39.  Any iron ore or other material which is subject 
 to stockpiling under a state iron ore mining lease heretofore 
 issued and in force on April 20, 1951, may, with the approval of 
 the commissioner of natural resources, be stockpiled on land 
 conveyed to the state for the purpose, subject to the provisions 
 of subdivision 28.  

    HIST: (6409) 1921 c 412 s 7; 1925 c 395 s 1; 1927 c 389 s 1; 
 1941 c 546 s 5; 1951 c 616 s 1-3; 1953 c 421 s 1; 1953 c 552 s 
 1-3; 1955 c 575 s 1; 1957 c 688 s 1; 1959 c 536 s 1,2; 1969 c 
 1129 art 10 s 2; 1973 c 492 s 14; 1983 c 216 art 1 s 17; 1986 c 
 444; 1991 c 194 s 4; 1998 c 254 art 1 s 107 

     93.201 Royalties for taconite concentrates.  

    Subdivision 1.  All ores or concentrates shipped from the 
 lands covered by any lease under section 93.20 shall be 
 classified and paid for under and in accordance with the 
 particular schedule of said law properly applicable thereto.  
 The royalty provided for taconite concentrates in section 93.20, 
 schedule 7, shall be applicable to concentrates produced from 
 taconite ores which, in accordance with good engineering and 
 metallurgical practice, require treatment by fine grinding, 
 magnetic separation, flotation, or some other method or methods 
 other than or in addition to one or more of the methods 
 specified in schedules 1 to 6, inclusive, of said section to 
 make them suitable for blast furnace use.  

    Subd. 2.  In lieu of payment of such royalty on the 
 taconite concentrates, royalty payments may be made on the 
 taconite ore as defined herein.  The method of computing the 
 weight and the royalty rate per ton on such taconite ore shall 
 be determined by agreement between the holder of the lease and 
 the commissioner of natural resources.  In case they are unable 
 to agree, each shall choose an arbitrator, and the two thus 
 selected shall choose a third.  The decision of the arbitrators 
 or any two of them shall be final and binding on the parties in 
 interest.  The agreement or the decision of the arbitrators 
 shall be attached as a supplement to the lease.  The holder of 
 the lease shall reimburse the state for all costs and expenses 
 incurred in connection with the determination of weight of 
 taconite ore. 

    Taconite ore shall be understood to mean a ferruginous 
 chert or ferruginous slate in the form of compact siliceous 
 rock, in which the iron oxide is so finely disseminated that 
 substantially all of the iron-bearing particles of merchantable 
 grade are smaller than 20 mesh.  

    Subd. 3.  The provisions of subdivisions 1 and 2 for 
 payment of royalty on taconite ore shall apply to existing 
 leases as well as subsequent leases, subject to vested rights, 
 if any, of the holders of existing leases.  

    HIST: 1943 c 233 s 3; 1949 c 616 s 1,2; 1957 c 158 s 1; 1969 c 
 1129 art 10 s 2 

     93.202 Taconite leases.  

    In any case where, pursuant to a permit holder's 
 application for a lease in which it is indicated in the 
 application that the holder considers the lands covered by the 
 permit to be principally valuable for the taconite thereon or 
 that the holder desires a taconite lease thereon, the 
 commissioner of natural resources heretofore shall have issued a 
 lease in which was inserted in the blank provided for the amount 
 of the first quarterly payment the figure representing the 
 reduced quarterly rental for taconite leases, as herein 
 provided, and shall have designated such lease a "taconite 
 lease" or a "taconite iron ore mining lease" upon the lease or 
 upon the commissioner's records, such act shall be construed as 
 a determination that such lands were principally valuable for 
 the taconite thereon and had no substantial value because of 
 merchantable deposits of ores of the kinds defined in Laws 1941, 
 chapter 546, section 5, schedules 1 to 6, and such lease so 
 issued shall be valid as a lease designated a "taconite iron ore 
 mining lease," and subject to the right of the executive council 
 to redetermine the classification of the mining unit covered 
 thereby in the manner provided by section 93.19, and subject to 
 the provisions of sections 93.15 and 93.201.  Any lessee 
 desiring the protection of this section shall file with the 
 commissioner of natural resources, within 90 days from the 
 approval of Laws 1943, chapter 233, written consent to the 
 application of all provisions of Laws 1943, chapter 233, to said 
 lease.  

    HIST: 1943 c 233 s 4; 1969 c 1129 art 10 s 2; 1986 c 444 

     93.21 Execution of lease.  

    The lease provided for in section 93.20 shall be signed by 
 the commissioner for and in behalf of the state, with the 
 official seal of the commissioner attached, and shall be signed 
 by the party of the second part in the presence of two 
 witnesses, and such signatures and execution of the same by the 
 party of the second part shall be duly acknowledged.  

    HIST: (6410) 1921 c 412 s 8; 1925 c 395; 1927 c 389 s 1; 1986 
 c 444 

     93.22 Disposal of moneys received.  

    All payments under sections 93.14 to 93.28 shall be made to 
 the state treasurer on the order of the commissioner of finance, 
 or the commissioner, as the case may be, and shall be credited 
 to the permanent fund of the class of land to which the demised 
 premises belong and in case the land shall not belong to any 
 class of land having a permanent fund then all payments shall be 
 credited to such fund as the legislature shall by law direct.  

    HIST: (6411) 1921 c 412 s 9; 1925 c 395; 1927 c 389 s 1; 1973 
 c 492 s 14 

  93.221 Repealed, 1989 c 335 art 4 s 109 

     93.222 Taconite iron ore special advance royalty account.

    The taconite iron ore special advance royalty account is 
 created as an account in the state treasury for disposal of 
 certain mineral lease money received under the terms of 
 extension agreements adopted under section 93.193, relating to 
 state iron ore or taconite iron ore mining leases.  The 
 principal of the account is distributed under the terms of the 
 extension agreements to the account or entity entitled by 
 applicable law and lease terms to receive the income from the 
 class of land being leased.  Interest accruing from investment 
 of the account remains with the account until distributed as 
 provided in this section.  The interest accrued through June 30 
 under each extension agreement is distributed annually, as soon 
 as possible after June 30, to the account or entity entitled by 
 applicable law and lease terms to receive the income from the 
 class of land being leased in the same proportion that the total 
 acres included in a particular class of land bears to the total 
 acreage of the leased land covered by each extension agreement.  
 Money in the taconite iron ore special advance royalty account 
 is appropriated for distribution as provided in this section.  

    HIST: 1989 c 335 art 1 s 80 

     93.23 Possession of premises, when.  

    The commissioner is hereby authorized and empowered, in 
 case the permit holder or lessee under any permit or lease fails 
 or neglects fully to comply with all the conditions and 
 covenants of such permit or lease, to enter at once upon the 
 premises described in such permit or lease and take possession 
 of the same.  

    HIST: (6412) 1921 c 412 s 10; 1925 c 395 s 1; 1927 c 389 s 1 

     93.24 Mining of other than iron ores.  

    Subdivision 1.    Permit, agreement.  Should gold, 
 copper, silver, cobalt, coal, graphite, manganese (four percent 
 or over, dried), iron sulphides or other sulphur ores, 
 titaniferous magnetites, or any other valuable mineral be 
 believed to exist on lands included within a prospecting permit 
 or lease not covering such mineral, upon written application of 
 the permit holder or lessee the terms and conditions on which 
 such mineral may be mined or products recovered therefrom shall 
 be agreed upon by the commissioner and the permit holder or 
 lessee and embodied in a supplement to the permit or lease.  In 
 case they are unable to agree each shall choose a referee.  The 
 two persons thus selected shall choose a third.  The decision of 
 this board shall be final and binding on the parties in 
 interest.  Any iron or iron ore extracted from iron sulphides, 
 sulphur ores or titaniferous magnetites mined under such a 
 supplemental agreement shall be paid for in accordance with the 
 minimum schedule for taconite concentrates provided in section 
 93.20, schedule 7, and any iron or iron ore extracted from any 
 other kind of ore hereinbefore specified mined under such a 
 supplemental agreement shall be paid for at rates fixed by 
 agreement or arbitration as hereinbefore provided.  

    Subd. 2.    Rental, payments.  If, upon the application 
 of the permit holder or lessee the commissioner shall determine 
 that the lands covered by any mining permit or lease are 
 principally valuable for the iron sulphides or other sulphur 
 ores or titaniferous magnetites contained therein, and have no 
 substantial value because of ores of the kind defined in section 
 93.20, schedules 1 to 6, the rental required in any lease issued 
 pursuant to such permit, or any lease modified as above 
 provided, shall be payable at the same rates, and in the same 
 manner provided in section 93.20 in cases of leases for the 
 mining of taconite ore.  Thereupon such lease shall be 
 designated as an iron sulphide or sulphur ore mining lease or a 
 titaniferous magnetite lease, as the case may be.  

    Subd. 3.    Increase of rental.  If, following the 
 issuance or designation of a lease as an iron sulphide or 
 sulphur ore or titaniferous magnetite mining lease, additional 
 information acquired by the commissioner of natural resources 
 shall disclose that the lands covered by the lease have 
 merchantable deposits of iron ore of the classes defined in 
 section 93.20, schedules 1 to 6, which deposits, without 
 reference to the iron sulphide or sulphur ore or titaniferous 
 magnetites in such lands, would give substantial value thereto, 
 the commissioner shall report the facts to the executive 
 council, and thereupon further action shall be taken as provided 
 by section 93.191, subdivision 3, in the case of taconite iron 
 ore mining leases.  

    HIST: (6413) 1921 c 412 s 11; 1925 c 395 s 1; 1927 c 389 s 1; 
 1941 c 329 s 1; 1947 c 96 s 1; 1951 c 546 s 4; 1969 c 1129 art 
 10 s 2 

     93.25 Ores other than iron; leases. 

    Subdivision 1.    Leases.  The commissioner may issue 
 leases to prospect for, mine, and remove minerals other than 
 iron ore upon any lands owned by the state, including trust fund 
 lands, lands forfeited for nonpayment of taxes whether held in 
 trust or otherwise, and lands otherwise acquired, and the beds 
 of any waters belonging to the state.  

    Subd. 2.    Lease requirements.  All leases for 
 nonferrous metallic minerals or petroleum must be approved by 
 the 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.  The rents, royalties, terms, 
 conditions, and covenants of all such leases shall be fixed by 
 the commissioner pursuant to such rules as may be prescribed by 
 the commissioner, but no lease shall be for a longer term than 
 50 years, and all such rents, royalties, terms, conditions, and 
 covenants shall be fully set forth in each lease thus issued and 
 the rents and royalties therein provided for shall be credited 
 to the funds as provided in section 93.22 or 93.335, subdivision 
 4, as amended.  

    Subd. 3.    Effect.  The provisions of this section 
 shall not be deemed to repeal or supersede any other applicable 
 provision of law, but shall be supplementary thereto.  

    HIST: (6414) 1921 c 412 s 12; 1925 c 395 s 1; 1927 c 389 s 1; 
 1949 c 565 s 1; 1953 c 538 s 1; 1985 c 248 s 70; 1986 c 444; 
 1993 c 113 art 1 s 2 

  93.251 Inoperative 

  93.252 Repealed, 1953 c 540 s 1 

  93.253 Repealed, 1953 c 540 s 1 

  93.254 Repealed, 1953 c 540 s 1 

  93.255 Repealed, 1953 c 540 s 1 

  93.256 Repealed, 1953 c 540 s 1 

  93.257 Repealed, 1953 c 540 s 1 

     93.26 Permits and leases to be recorded.  

    All permits and leases, with the names and post office 
 addresses of all parties in interest, issued by the commissioner 
 under authority of sections 93.14 to 93.28, before delivery 
 shall be duly recorded at length in the record books to be 
 provided and kept in the commissioner's office for that purpose 
 and a certificate of such record showing the date of record, the 
 book and page thereof, shall be endorsed on each such permit or 
 lease. 

    HIST: (6415) 1921 c 412 s 13; 1925 c 395 s 1; 1927 c 389 s 1; 
 1986 c 444 

     93.27 Assignments, agreements, or contracts affecting 
  permits or leases; records.  

    All assignments, agreements, or contracts, underlying, 
 overriding, or operating agreements affecting any such permit or 
 lease shall be made in writing and signed by both parties 
 thereto, witnessed by two witnesses, and properly acknowledged 
 and contain the post office addresses of all parties having an 
 interest; and when so executed presented in triplicate to the 
 commissioner for record.  The commissioner shall then record 
 such assignments, agreements, or contracts, underlying, 
 overriding, or operating agreements at length in record books 
 kept and provided for that purpose in the commissioner's office 
 and a certificate of such record showing the date thereof and 
 the book and page shall be endorsed on the the assignments, 
 agreements, contracts, underlying, overriding, or operating 
 agreements, a copy of which then shall be returned to the party 
 entitled thereto.  

    HIST: (6416) 1921 c 412 s 14; 1925 c 395; 1927 c 389 s 1; 1941 
 c 546 s 6; 1986 c 444 

     93.28 Approval of instruments; fees.  

    All instruments by virtue of which the title to any permit 
 or lease herein provided for is in any way affected shall 
 receive, as to form and execution, the approval of the 
 commissioner, which approval shall be endorsed thereon, and the 
 instrument when so approved shall be duly recorded as provided 
 in section 93.27.  For recording any assignment or other 
 instrument affecting the title to any permit or lease or for 
 furnishing certified copies of the records, the commissioner may 
 charge a fee of ten cents per folio.  All such fees shall be 
 turned into the state treasury.  

    HIST: (6417) 1921 c 412 s 15; 1925 c 395; 1927 c 389 s 1; 1941 
 c 546 s 7 

     93.283 Iron ore; prospecting, encouragement.  

    Subdivision 1.    Purposes.  The purpose of this 
 section is to encourage prospecting for iron ores in sections of 
 the state classified as not known to contain merchantable 
 deposits of such ores, in an attempt to assure continued 
 production from Minnesota of a raw material essential to the 
 economic security of the country in time of peace and its 
 defense in time of war.  It shall be liberally construed to 
 carry out that purpose.  

    Subd. 2.    Prospecting permits, mining leases, for 
 certain lands.  All parts of the state of Minnesota except 
 St. Louis, Lake, Itasca, Crow Wing, and Fillmore counties are 
 hereby classified as areas in which no merchantable deposits of 
 iron ore are known to exist and with respect to which 
 prospecting permits and mining leases may be issued hereunder 
 covering lands belonging to the state or lands in the minerals 
 of which the state has an interest.  At any time prior to the 
 receipt of an application for a permit thereon in accordance 
 with the provisions of this section, the commissioner of natural 
 resources may withdraw for such time as deemed fit from the 
 operation of this section any designated townships or portions 
 thereof by publishing notice of such withdrawal in a legal 
 newspaper published in the county in which the lands so 
 withdrawn are situated.  The commissioner of natural resources, 
 with the approval of the executive council, may classify as 
 being subject to this section particular areas in St. Louis, 
 Itasca, Crow Wing, Lake, or Fillmore counties situated more than 
 one mile from any known occurrence of iron ore or iron-bearing 
 formation, and thereupon lands in such areas shall be subject 
 hereto.  

    Subd. 3.    Commissioner of natural resources to issue 
 permits.  The commissioner of natural resources may execute 
 permits to prospect for iron ore under lands belonging to the 
 state or lands in the minerals of which the state has any 
 interest, in trust or otherwise, within the areas classified by 
 or in accordance with subdivision 2 as not known to contain 
 merchantable deposits of iron ore, including lands in 
 conservation areas, game refuges, forest areas, or state or 
 national forests, but excluding lands within any state park, and 
 upon compliance with the provisions of such permits may issue 
 leases for the mining of such ore subject to the conditions 
 hereinafter provided.  The powers and duties vested in or 
 imposed upon such commissioner by this section are hereby 
 declared to be cumulative and in addition to the powers and 
 duties vested in or imposed upon the commissioner by any other 
 law of this state, and such powers and duties so invested or 
 imposed by this section shall not be limited by any other such 
 law.  The commissioner may refuse to issue permits on any lands 
 being used at the time of the application for permit for tree 
 plantation, nursery, administrative purposes or similar uses 
 essential for the operation and maintenance of any state forest 
 area or game refuge, or may impose such conditions upon the 
 issuance of any permit covering lands used for such purposes as 
 the commissioner deems necessary.  

    Subd. 4.    Rights under permit.  Permits hereunder 
 shall confer the same rights to prospect for iron ore on the 
 lands described therein and shall be subject to the same 
 conditions with respect to prospecting and reporting thereon as 
 are provided under section 93.18, with respect to holders of 
 permits granted in accordance therewith, but shall otherwise be 
 in form appropriate to the provisions of this section.  The term 
 of such permit shall be for a period of two years and the work 
 of prospecting thereunder shall begin within six months from the 
 date thereof.  It shall contain provisions requiring the payment 
 of any damages sustained by the state to timber, structures or 
 other improvements belonging to the state.  The requirements for 
 prospecting work thereunder may be satisfied by work performed 
 upon either the lands covered by the permit or on lands included 
 in other permits issued to the same permit holder hereunder in 
 the same general mineral formation or area as those covered by 
 the permit and in the same section according to the United 
 States Government survey or in an adjoining section; provided 
 work done under one permit cannot be credited upon more than 
 three additional permits hereunder located in the same section 
 or one adjoining section.  In case the prospecting work is not 
 performed on the lands covered by the permit the holder's 
 reports on the progress of the work shall show work performed on 
 other lands within the limitations above set forth sufficient to 
 constitute compliance with the foregoing provisions.  

    Subd. 5.    Applications, fees.  Applications for 
 permit to prospect for iron ore hereunder shall be presented to 
 the commissioner of natural resources either by the applicant or 
 agent thereof in person or by mail.  The application shall 
 describe the lands to be embraced in the permit, which shall 
 consist of contiguous descriptions and shall not exceed 160 
 acres unless some of the descriptions are fractional 
 subdivisions, in which case the acreage may exceed that number 
 by not more than the amount by which any one or more of such 
 fractional subdivisions shall exceed 40 acres each.  The lands 
 covered by any such permit are herein referred to as a "mining 
 unit," and no such mining unit shall contain lands belonging to 
 more than one permanent trust fund, or shall intermingle 
 tax-forfeited lands not held in trust for taxing districts with 
 tax-forfeited lands held in trust for taxing districts, or 
 intermingle either with permanent trust fund lands. Each 
 application shall be accompanied by a certified check or a 
 cashier's check on a national or state bank in Minnesota, 
 payable to the state treasurer, in the sum of $50 as fee for the 
 permit, and a like check in the sum of $200 as a guarantee that 
 the applicant will carry out and perform in good faith all the 
 covenants set out in the permit.  The commissioner of natural 
 resources shall endorse upon each application the exact time of 
 presentation and shall preserve the same in the office of the 
 commissioner.  The first applicant for permit on any land whose 
 application hereunder, with accompanying fees, is filed with the 
 commissioner of natural resources in accordance herewith shall 
 be entitled to receive a permit hereunder.  

    Subd. 6.    Permit holders, receipt of mining leases.  
 At any time prior to the expiration of any such permit, if the 
 commissioner shall determine that all the terms and conditions 
 of the permit and applicable provisions of law have been 
 complied with, the original holder or any assignee thereof shall 
 have the right to receive from the commissioner of natural 
 resources a mining lease, which shall bind the state and the 
 person to whom it shall be issued to the mutual observance of 
 the obligations and conditions thereof, and the mining lease 
 shall be in the form set forth in section 93.20, and require the 
 payment of the royalties set forth in Laws 1941, chapter 546, 
 section 5, as originally enacted, except that the royalties 
 shall be modified so as to comply with and be subject to the 
 provisions of section 93.20, subdivision 9, as amended by Laws 
 1951, chapter 616, or any subsequent amendment thereof in force 
 at the time of submission of the application for the permit, and 
 also except that the rental shall be modified so as to provide 
 that the annual rental for that part of the first calendar year 
 remaining after the effective date of the lease and for the four 
 succeeding calendar years shall be at the rate of $500 per 
 calendar year, and the annual rate of rental thereafter shall be 
 $5,000 per calendar year.  As a condition precedent to the 
 issuing of such mining lease the holder of the permit shall file 
 a full report, properly verified, of all work of exploration 
 done under the permit, or an affidavit in case no work was done, 
 stating such facts, and pay to the state treasurer a sum of 
 money based on the quarterly royalty payment of $125 for the 
 first quarter, as set out in the lease, in the ratio that the 
 unexpired portion of the quarter bears to the full quarter.  

    Subd. 7.    Leases on tax-forfeited lands.  In the 
 event that any lands covered by any lease hereunder shall be 
 tax-forfeited lands held by the state in trust for the taxing 
 districts, the rentals and royalties paid under any such permit 
 or lease shall be distributed annually by the commissioner of 
 finance on the first day of September as follows:  20 percent to 
 the general fund of the state, and 80 percent to the respective 
 counties in which the lands lie, to be apportioned among the 
 taxing districts interested therein as follows: county, 
 three-ninths; town or city, two-ninths; and school district, 
 four-ninths.  In the event that with respect to any lands leased 
 hereunder the state owns or has an interest in the minerals 
 only, without ownership of the surface of such lands, such 
 lessee shall make proper compensation to the owner of the 
 surface rights for any damage caused thereto.  In the event that 
 the state shall own only a fractional undivided interest in the 
 minerals in any land leased hereunder, the royalty and annual 
 rental to be paid the state under such lease shall be such 
 fractional part of the royalty or annual rental payable in the 
 event the state had the entire interest in said minerals that 
 the interest owned by the state bears to the entire interest 
 therein.  Except as herein otherwise provided, royalty and 
 rental payable hereunder shall be paid into the same fund as if 
 the particular lands had been leased or sold under existing laws.

    There is hereby appropriated to such persons or political 
 subdivisions as are entitled herein to such payments, from the 
 fund or account in the state treasury to which the money was 
 credited, an amount sufficient to make the payment.  

    HIST: 1943 c 277; 1951 c 171 s 1-4; 1953 c 551 s 1,2; 1959 c 
 158 s 10; 1969 c 399 s 1; 1969 c 1129 art 10 s 2; 1973 c 123 art 
 5 s 7; 1973 c 492 s 14; 1986 c 444 

     93.285 Stockpiled iron ore.  

    Subdivision 1.    Definition.  "Stockpiled iron ore" as 
 used in this section means any artificial pile or other 
 accumulation of any type of iron-bearing material, whether in 
 its natural state or the product or residue of treatment of 
 beneficiation, belonging to the state or in which the state has 
 an interest.  

    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, such ore 
 may, in the discretion of the commissioner of natural resources, 
 be included in such unit by inserting a description of such ore 
 in the designation of the unit.  Otherwise such ore shall not be 
 considered as included in such unit.  Upon the inclusion of such 
 ore in such unit, it shall be subject to all provisions of law 
 relating to the sale, issuance, terms, and conditions of a 
 prospecting permit and lease covering such unit and other 
 matters pertaining thereto, so far as applicable, except as 
 hereinafter provided.  

    Subd. 3.    Stockpile mining unit.  Any stockpiled iron 
 ore, wherever situated, may, in the discretion of the 
 commissioner of natural resources, be designated as a stockpile 
 mining unit for disposal separately from ore in the ground, such 
 designation to be made in accordance with the provisions of 
 section 93.15, so far as applicable.  Thereupon such stockpile 
 mining unit shall be subject to all provisions of law relating 
 to the sale, issuance, terms, and conditions of prospecting 
 permits and leases covering mining units designated under such 
 section 93.15 and other matters pertaining thereto, except as 
 hereinafter provided.  Upon application of the holder of a 
 prospecting permit for such a stockpile mining unit, the 
 commissioner of natural resources may, for good cause shown, 
 extend the time for beginning the work of prospecting under the 
 permit to not exceeding six months from the date of the permit.  

    Subd. 4.    Additional provisions in permit or lease.  
 The commissioner of natural resources, with the approval of the 
 executive council, may include in any prospecting permit or 
 lease covering any stockpiled iron ore as hereinbefore provided 
 such additional provisions, not inconsistent with law, as the 
 commissioner deems advisable for the proper disposal of such ore 
 in furtherance of the public interest; provided, that in case a 
 mining unit consisting of or including such ore is offered at 
 public sale, a statement of such additional provisions shall be 
 included in the designation of the unit before publication of 
 the notice of sale.  

    Subd. 5.    Commingling.  In case any stockpiled iron 
 ore consisting of tailings from a treatment or beneficiation 
 plant or other material shall be commingled with other such 
 material owned or held under lease by another, the commissioner 
 of natural resources, with the approval of the executive 
 council, upon application of such owner or lessee, without 
 public sale and without prior issuance of a prospecting permit, 
 may enter into a mining lease with such owner or lessee for the 
 removal and disposal of the state's portion of such commingled 
 material under the following terms and conditions: 

    (1) The application shall be in such form and shall contain 
 such information as the commissioner shall prescribe; 

    (2) The mining lease shall be in the form prescribed by 
 section 93.20 and subject to all the provisions of said section, 
 so far as applicable, except that it may provide for the payment 
 of rental and royalty at such rates as may be agreed upon 
 between the parties, not less than the applicable minimum rates 
 prescribed by section 93.20, and may contain such additional 
 provisions, not inconsistent with law, as may be appropriate for 
 the proper disposal of the material covered thereby in 
 furtherance of the mutual interests of the parties, and as may 
 be agreed upon between them.  

    HIST: 1945 c 342 s 1; 1951 c 520 s 1; 1969 c 1129 art 10 s 2; 
 1986 c 444 

  93.29 Repealed, 1965 c 79 s 2 

     93.30 Payment of lease money by coowner in case of 
  default.  

    Upon the failure of any one of several coowners of any 
 lease of mineral land from the state of Minnesota which it may 
 heretofore have made or may hereafter make to pay the 
 appropriate share representing the proportionate interest in the 
 lease, of any annual payment or royalty payment of taxes 
 assessed against the land covered by the lease or the 
 improvements thereon or the iron ore products thereof or any 
 personal property at any mine on the land, according to, as 
 required by, and when due under the terms of the lease or the 
 laws of this state, any coowner of the lease who may have 
 heretofore paid or who may hereafter pay the same or any part 
 thereof, who was not under contract obligation, at the time of 
 making the payment, to make it, may after the expiration of the 
 time fixed by the lease or the law for making the payment, give 
 the delinquent coowner and the other coowners, if any, personal 
 notice in writing or by publication for at least six successive 
 weeks once a week in the newspaper published nearest the land 
 entitled under the laws of this state to publish legal notices 
 that the payment has been made, describing the lease and the 
 land covered thereby on account of which it was made, the amount 
 due, when due, and for what due, on account of which the payment 
 was made, and the date of making the same, and demand that the 
 delinquent coowner contribute the proportionate share of the 
 payment due from that coowner by paying the same, together with 
 six percent interest thereon from the time of the payment until 
 the time of repayment, together with the cost of the 
 publication, to the coowner or coowners making payment within 90 
 days after the personal service of the notice or within 90 days 
 after the completion of the publication, and that in the event 
 of failure so to do the delinquent coowner's interest in the 
 lease will become the property of and be forfeited to the 
 coowner or coowners paying the same.  

    HIST: (6420) 1915 c 303 s 1; 1986 c 444 

     93.31 Coowners to share in benefit of original owner.  

    If the delinquent coowner, before the expiration of the 
 time, shall refuse or fail to contribute and pay the 
 proportionate share due, together with the interest and cost of 
 publication, as and when herein and in the notice provided, the 
 delinquent's coowners interest in the lease shall thereafter 
 become the property of and belong to the coowner making the 
 payment and the other coowners thereof, if any, who shall within 
 ten days after the expiration of the 90 days pay their share of 
 the amount due under the notice, represented by their respective 
 interests in the lease, with the same force and effect, as to 
 the delinquent's interest in the lease, as if the lease, as to 
 the delinquent's interest, had been forfeited and canceled by 
 the state of Minnesota and a new lease on the same terms and 
 conditions as the old lease had been issued by the state of and 
 for the delinquent's share therein to the coowner or coowners 
 making the payment.  The coowners so contributing and paying 
 within ten days shall share in the interest of the coowner so 
 forfeited in proportion to their then respective interests in 
 the lease.  

    HIST: (6421) 1915 c 303 s 2; 1986 c 444 

     93.32 Sufficiency of notice.  

    The affidavit of the party making such personal service and 
 the affidavit of the publisher of the newspaper, accompanied by 
 a duplicate original of the notice, together with the affidavit 
 of the coowner making the payment that the delinquent has not 
 paid the amount due under the notice within the time herein and 
 in the notice specified, with the names of the other coowners, 
 if any, who during the ten days contributed their proportionate 
 share thereof, may be filed in the office of the commissioner 
 and shall constitute conclusive evidence in all courts and 
 proceedings of the matters therein stated, except as to such as 
 may be proven to be untrue.  The commissioner shall receive, 
 file without charge, and safely keep the foregoing and all 
 thereof, which shall be open to the inspection of any one 
 interested therein.  

    HIST: (6422) 1915 c 303 s 3; 1986 c 444 

     93.33 Surface of land may be leased.  

    Subdivision 1.    Purposes of lease.  The commissioner 
 may, at public or private vendue and at such prices and upon 
 such terms and conditions as prescribed, lease the surface of 
 any unsold state lands for the purpose of stockpiling, storing, 
 handling, or depositing thereon any ore, ore material, 
 stripping, or waste taken from other state lands which may be 
 under state mineral lease, and remove therefrom any such ore, or 
 material, stripping, or waste taken from such other state land 
 and stocked, stored, handled, or deposited thereon; provided, 
 that the rights of the state and of the lessee under the lease 
 herein authorized as to the ownership, lien, and right of 
 removal and all other rights in and to the materials placed 
 thereon from the lands under such state mineral lease shall be 
 and remain in all respects the same as though such materials had 
 been stockpiled, stored, handled, or deposited on the land 
 covered by such state mineral lease; that any such lease shall 
 be made for a term no longer than the then remaining unexpired 
 term of such state mineral lease and shall in any and all events 
 terminate with the termination of such state mineral lease for 
 any cause, and any material remaining on the land at the 
 termination of such state mineral lease, or at the earlier 
 termination of the lease herein authorized, shall belong to the 
 state of Minnesota; and that all such leases shall be made 
 subject to leasing the land for mineral purposes under legal 
 provisions.  

    Subd. 2.    Receipts placed to credit of certain funds.  
  All money received from leases granted under this section 
 shall be credited to the fund to which the leased land belongs 
 and all royalties and proceeds which shall be received by the 
 state for any material stockpiled or stored thereon and later 
 removed shall be credited on the state mineral lease covering 
 the lands from which such ore was originally taken.  

    HIST: (6423, 6424) 1919 c 213 s 1,2; 1986 c 444 

     93.335 State lands, minerals, mineral rights acquired 
  under tax laws. 

    Subdivision 1.    Land grouped into mining units; leases. 
  Lands or minerals and mineral rights, including fractional 
 undivided interests therein, becoming the absolute property of 
 the state under the tax laws, may be grouped into mining units, 
 permits to prospect for iron ore thereon shall be awarded, and 
 mining leases thereon issued as provided by sections 93.14 to 
 93.33, and, except as otherwise specifically provided herein, 
 all the terms, conditions, and provisions of such sections shall 
 be applicable thereto, regardless of whether or not such lands 
 or minerals and mineral rights are held in trust for taxing 
 districts.  Leases issued hereunder shall be in the form 
 provided by law, with only such changes as the commissioner of 
 natural resources shall find necessary to indicate the specific 
 interest covered by the lease and the proportion of the 
 stipulated royalty or rental payable under subdivision 2 or 
 otherwise to conform with the provisions hereof.  In case the 
 state owns such a fractional undivided interest and the 
 remaining undivided interest in the property is owned or held 
 under lease for mining purposes by another, the commissioner of 
 natural resources, with the approval of the executive council, 
 upon application of such owner or lessee, without public sale 
 and without prior issuance of a prospecting permit, may enter 
 into a mining lease with such owner or lessee covering the 
 state's interest under the following terms and conditions: 

    (1) The application shall be in such form and shall contain 
 such information as the commissioner shall prescribe; 

    (2) Where any of the ore to be mined under such lease lies 
 within the bed of a public lake or stream, the lessee shall 
 obtain an appropriate permit from the commissioner, pursuant to 
 applicable laws; 

    (3) The lease shall be in the form herein prescribed, 
 except that it may provide for the payment of rental and royalty 
 at such rates as may be agreed upon between the parties and may 
 contain such additional appropriate provisions, not inconsistent 
 with law, as may be agreed upon in furtherance of the mutual 
 interests of the parties; provided, that the rental and royalty 
 rates for iron ore shall not be less than the applicable minimum 
 rates prescribed in section 93.20.  

    Subd. 2.    Undivided interests; amendment of leases.  
 If the interest in lands or minerals and mineral rights acquired 
 by the state under the tax laws is an undivided part of the 
 whole interest therein, the quarterly and annual rentals and 
 minimum royalty to be bid and paid to the state upon the leasing 
 thereof shall be such proportion of the amounts stipulated in 
 the laws under which such leases are executed as the undivided 
 part owned by the state bears to the whole interest in such 
 lands, or minerals and mineral rights.  The specification in any 
 such lease issued in the form provided by such sections that the 
 interest covered thereby is a fractional undivided interest 
 shall be a sufficient statement that the quarterly rentals, 
 annual rentals, and minimum royalties to be paid thereunder 
 shall be such proportion of the amount stated in the lease as 
 the undivided interest covered thereby bears to the whole 
 interest in such lands or minerals and mineral rights.  

    If it shall be determined by final judgment or decree that 
 the interest owned by the state in any tract of land covered by 
 any iron ore or taconite iron ore mining lease issued pursuant 
 to this section is less than that described in said lease, such 
 lease, upon application by the lessee to the commissioner of 
 natural resources, shall be amended in such form as the attorney 
 general shall approve to delete the interest not owned by the 
 state as determined by said judgment or decree.  The lessee 
 shall be entitled to a credit against royalties which shall 
 thereafter become due pursuant to said lease for all moneys 
 previously paid to the state for such deleted interest.  

    Subd. 3.    Lease to be for mineral rights only in certain 
 cases.  If, because of having sold the surface of such lands, 
 reserving the minerals and mineral rights, or from any other 
 cause, the state owns only the minerals and mineral rights in 
 any lands leased hereunder, the commissioner of natural 
 resources shall confine such lease to such minerals and mineral 
 rights.  The amount of the quarterly rentals, annual rentals, 
 and minimum royalties to be bid and paid to the state upon such 
 leases shall not be reduced by reason of that fact, and the 
 lessee shall acquire all such rights to use the surface of such 
 lands as were reserved or are owned by the state under its 
 reservation of minerals and mineral rights.  Any specification 
 of rights to the surface in such lease shall be construed as 
 limited by this subdivision. 

    Subd. 4.    Rental and royalties, annual distribution; 
 appropriation.  If the lands or minerals and mineral rights 
 covered by any such permit or lease are held by the state in 
 trust for the taxing districts, the rentals and royalties paid 
 under any such permit or lease shall be distributed annually by 
 the commissioner of finance on the first day of September as 
 follows:  20 percent to the general fund and 80 percent to the 
 respective counties in which the lands lie, to be apportioned 
 among the taxing districts interested therein as follows:  
 county, three-ninths; town, or city, two-ninths; and school 
 district, four-ninths.  

    There is hereby appropriated from such moneys in the state 
 treasury not otherwise appropriated to such persons or political 
 subdivisions as are entitled to payment herein, an amount 
 sufficient to make the payment.  

    Subd. 5.    Disposition of funds.  Except as provided 
 by subdivision 4, and except where the disposition of proceeds 
 of the lands involved may be otherwise directed by existing law, 
 all rentals and royalties payable hereunder shall be paid into 
 the general fund of the state.  

    HIST: 1943 c 287; 1949 c 587 s 1; 1951 c 451 s 1; 1959 c 158 s 
 11; 1963 c 685 s 1; 1967 c 152 s 1; 1969 c 399 s 1; 1969 c 1129 
 art 10 s 2; 1973 c 123 art 5 s 7; 1973 c 492 s 14; 1987 c 404 s 
 116; 1989 c 335 art 4 s 30; 1990 c 391 art 8 s 19 

     93.34 Unlawful to mine under public waters.  

    Subdivision 1.    Authority required.  It shall be 
 unlawful for any individual, copartnership, or corporation to 
 mine any mineral below the low water mark of any public lake or 
 river without first having obtained authority from the state.  

    Subd. 2.    Draining of meandered public lake for mineral 
 purposes forbidden.  It shall be unlawful for any individual, 
 copartnership, or corporation to drain any meandered public lake 
 for the purpose of mining of minerals without first having 
 received the consent of the executive council.  

    Subd. 3.    Violation; penalty.  Any individual, 
 copartnership, or corporation violating the provisions of this 
 section shall upon conviction thereof be punished by a fine of 
 not exceeding $10,000 or by imprisonment in the Minnesota 
 correctional facility-Stillwater for not to exceed five years or 
 by both such fine and imprisonment, at the discretion of the 
 court.  

    HIST: (6425, 6426, 6427) 1915 c 78 s 1-3; 1979 c 102 s 13 

     93.351 Prospecting for iron ore in bed of state waters.  

    The commissioner of natural resources may semiannually give 
 public notice of sale permits to prospect for iron ore situate 
 in the bed of any public lake or river within the state in the 
 same manner and at the same time as provided for sale of permits 
 to prospect for iron ore under the provisions of section 93.16.  

    HIST: 1943 c 208 s 1; 1969 c 1129 art 10 s 2; 1986 c 444 

     93.352 Application for permits to prospect.  

    Applications for permits to prospect for iron ore shall 
 conform in all respects to the requirements set forth in section 
 93.17, and the permits issued thereunder shall be issued in the 
 same manner and upon the same conditions as therein provided.  

    HIST: 1943 c 208 s 2 

     93.353 Rights of permit holders.  

    The holder of any such permit shall have the right to 
 prospect for iron ore on the land described therein for one year 
 from the date thereof, and no longer; but no ore shall be 
 removed therefrom until a lease has been executed.  The work of 
 prospecting under such permit shall begin in a substantial 
 manner as soon after the date thereof as conditions will permit 
 and shall be continued until the permit expires, is surrendered 
 or a lease asked for.  The holder of such permit shall report in 
 writing to the commissioner of natural resources on the first 
 business day of each April, July, October, and January, the 
 progress of the work of prospecting and accompany such reports 
 with maps showing the character and extent of the work done, the 
 nature of materials encountered in such work and the analysis 
 for iron, silica, phosphorus, alumina, and manganese of all iron 
 bearing formation encountered.  The permit holder shall split 
 all samples taken and furnish the commissioner or representative 
 of the commissioner from time to time as the commissioner or 
 representative shall direct, with a portion of such samples, 
 properly marked for identification.  The work done by the permit 
 holder shall be subject to inspection at all reasonable times by 
 the commissioner or representatives.  The permit to prospect for 
 ore is granted upon the express condition that if the permit 
 holder shall fail to perform any of the terms, covenants or 
 conditions in such permit to be performed by the permit holder, 
 then it shall be the duty of the commissioner to cancel such 
 permit, first having given said permit holder at least 20 days' 
 notice in writing thereof.  

    HIST: 1943 c 208 s 3; 1969 c 1129 art 10 s 2; 1986 c 444 

     93.354 Permit holders may receive leases; royalties.  

    At any time prior to the expiration of any such prospecting 
 permit, the original holder or any assignee thereof shall have a 
 right to receive from the commissioner of natural resources a 
 mining lease which shall bind the state and the person to whom 
 it is issued to the mutual observance of the obligations and 
 conditions thereof.  The minimum royalty provided in any such 
 lease to be paid to the state of Minnesota as a consideration 
 for its issuance shall be not less than the minimum royalty upon 
 a gross ton which would be required by the existing law to be 
 paid for such ore if located in state lands not under any such 
 waters and the royalty on manganese (four percent or over dried) 
 shall be arrived at by the methods prescribed for determining 
 such royalty on manganese as provided in Laws 1941, chapter 
 329.  Such leases for the mining, removing and disposing of such 
 iron ore may contain provisions permitting the beneficiation by 
 the lessee or purchaser of any ore not merchantable in its 
 natural conditions, and for the payment of royalties at not less 
 than such minimum rates per ton, upon the merchantable product 
 of such beneficiation instead of upon the ore as mined.  Such 
 leases may further provide for the drainage of such lake or 
 river, or the diversion of the waters thereof to a new bed or 
 channel.  Before any mining or drainage operations are commenced 
 under the provisions of any such lease, the lessee shall furnish 
 such security as the commissioner of natural resources, with the 
 approval of the executive council, may require to assure the 
 payment of any injury or damage which may be occasioned to any 
 riparian owners affected by such operations.  The commissioner 
 of natural resources with the approval of the executive council, 
 upon the written request of the lessee or successor in interest 
 and at the sole expense of the lessee, shall have power to 
 institute condemnation proceedings to pay for the interests of 
 private persons or corporations who may be injured or whose 
 rights may be destroyed by the carrying on of such operations, 
 and such contract, lease or agreement for mining, removing or 
 disposing of such iron ore may contain a covenant on the part of 
 the second party to return the waters of such lake or river to 
 their former beds as nearly as possible after the ore shall have 
 been removed.  Any such contract, lease or agreement shall 
 expressly provide that all persons engaged in exploring, mining, 
 or removing any ores or minerals thereunder, shall comply with 
 all laws, lawful orders or rules relating to or affecting the 
 safety of those engaged in such operations.  

    HIST: 1943 c 208 s 4; 1969 c 1129 art 10 s 2; 1985 c 248 s 70; 
 1986 c 444 

     93.355 Payments on leases.  

    Such contracts, lease, or agreements shall provide for an 
 annual minimum rental payable quarterly in such sum as shall be 
 determined by the commissioner of natural resources with the 
 approval of the executive council, and shall contain a provision 
 requiring the lessee to assume and agree to pay all damages 
 sustained by riparian owners occasioned by operations under such 
 lease.  

    HIST: 1943 c 208 s 5; 1969 c 1129 art 10 s 2 

     93.356 Revenues paid into permanent school fund.  

    All revenues derived from any permits, contracts, leases, 
 or agreements issued hereunder shall be paid into the permanent 
 school fund of the state.  

    HIST: 1943 c 208 s 6 

     93.357 Approval of instruments.  

    All instruments affecting the title or ownership of any 
 interest granted by the state hereunder shall be invalid and 
 ineffectual for any purpose, unless approved by the commissioner 
 of natural resources and filed with the commissioner within 30 
 days of the execution thereof.  

    HIST: 1943 c 208 s 7; 1969 c 1129 art 10 s 2; 1986 c 444 

     93.37 Agreements for weighing ore.  

    When it shall appear that any iron ore or iron-bearing 
 material found on state lands leased for mining purposes shall 
 be capable of being made merchantable by beneficiation the 
 commissioner is hereby authorized and empowered to enter into 
 agreements with the lessees, assignees, or sublessees under the 
 mineral contracts or leases for weighing this iron ore or 
 iron-bearing material before the same shall be beneficiated; 
 provided, that the state shall be reimbursed by the lessee, 
 assignee, or sublessee for all costs and expenses connected with 
 such weighing.  

    HIST: (6431) 1921 c 148 s 1 

     93.38 Expense paid by lessee.  

    The lessee, assignee, or sublessee shall, at the sole cost 
 and expense of the lessee, assignee, or sublessee, install and 
 maintain all necessary scales, tracks, buildings, records, and 
 supplies necessary or expedient in conducting such weighing; and 
 the scales so installed shall conform to the types approved by 
 the department of public service through the division of weights 
 and measures.  

    HIST: (6432) 1921 c 148 s 2; 1971 c 25 s 67; 1973 c 35 s 23; 
 1986 c 444 

     93.39 Existing contracts not modified.  

    Nothing in sections 93.37 and 93.38 shall be construed as a 
 modification of the provisions of such mineral contract or 
 lease.  The rights and privileges as to weighing therein 
 provided for are to be deemed as supplemental to the provisions 
 and terms found in such mineral leases or contracts.  

    HIST: (6433) 1921 c 148 s 3 

     93.41 State-owned iron-bearing materials. 

    Subdivision 1.    Use for road construction and other 
 purposes.  In case the commissioner of natural resources shall 
 determine that any paint rock, taconite, or other iron-bearing 
 material belonging to the state is needed and suitable for use 
 in the construction or maintenance of any road, tailings basin, 
 settling basin, dike, dam, bank fill, or other works on public 
 or private property, and that such use would be in the best 
 interests of the public, the commissioner may authorize the 
 disposal of such material therefor as hereinafter provided.  

    Subd. 2.    Materials subject to state iron ore mining 
 lease.  If such material is subject to an existing state iron 
 ore mining lease or located on property subject to an existing 
 state iron ore mining lease, the commissioner, by written 
 agreement with the holder of the lease, may authorize the use of 
 the material for any purpose specified in subdivision 1 that 
 will facilitate the mining and disposal of the iron ore therein 
 on such terms as the commissioner may prescribe consistent with 
 the interests of the state, or may authorize the holder of the 
 lease to dispose of the material otherwise for any purpose 
 specified in subdivision 1 upon payment of an amount therefor 
 equivalent to the royalty that would be payable under the terms 
 of the lease if the material were shipped or otherwise disposed 
 of as iron ore, but not less than the applicable minimum rate 
 prescribed by section 93.20.  

    Subd. 3.    Issuance of leases, royalties.  If such 
 material, whether in the ground or in stockpile, is not subject 
 to an existing lease, the commissioner may issue leases for the 
 taking and removal thereof for the purposes specified in 
 subdivision 1 in like manner as provided by section 92.50 for 
 leases for the taking and removal of sand, gravel, and other 
 materials specified in said section, and subject to all the 
 provisions thereof, so far as applicable.  

    Subd. 4.    Sale of stockpiled iron-bearing material in 
 place.  If such material is in stockpile and is not subject to 
 an existing lease, the commissioner may sell stockpiled 
 iron-bearing material in place.  The sale must be to a person 
 holding an interest in the surface of the property upon which 
 the stockpile is located or to a person holding an interest in 
 publicly or privately owned stockpiled iron-bearing material 
 located in the same stockpile.  

    HIST: 1951 c 452 s 1; 1953 c 550 s 1,2; 1969 c 1129 art 10 s 
 2; 1986 c 444; 1989 c 116 s 1; 1997 c 231 art 8 s 1 

     93.42 Extension of certain contracts. 

    Subdivision 1.  The commissioner of natural resources, with 
 the approval of the executive council, may extend state iron ore 
 mining contracts and leases issued pursuant to Laws of 1889, 
 chapter 22, and acts amendatory thereof, which contracts and 
 leases are in effect on April 24, 1959, upon the following terms 
 and conditions: 

    (a) Such contracts and leases may be extended for not more 
 than 25 years beyond the termination of the present term 
 thereof; 

    (b) The minimum royalties and rentals agreed upon for the 
 extended period shall be not less than those provided by section 
 93.20; 

    (c) Section 93.20, shall apply to and govern such contracts 
 and leases during the extended period, together with such 
 additional terms and conditions not inconsistent therewith as 
 may be agreed upon. 

    Subd. 2.  All applications for the extension of such 
 contracts and leases shall be submitted in writing to the 
 commissioner of natural resources within six months from April 
 25, 1959, and shall be in such form and contain such information 
 as the commissioner shall prescribe. 

    HIST: 1959 c 455 s 1,2; 1969 c 1129 art 10 s 2 

     93.43 Permits, licenses, and leases to copper, 
  copper-nickel or nickel producers.  

    The business of mining, producing or beneficiating copper, 
 copper-nickel or nickel is declared to be in the public interest 
 and necessary to the public welfare, and the use of property 
 therefor is declared to be a public use and purpose.  The 
 commissioner of natural resources is authorized to grant permits 
 or licenses on and across lands owned by the state to any 
 corporation or association engaged in the business of or 
 preparing to engage in the business of mining, producing or 
 beneficiating copper, copper-nickel or nickel for pipe lines, 
 pole lines, conduits, sluiceways, roads, railroads, tramways or 
 flowage, and to lease any lands owned by the state to any such 
 corporation or association for the depositing of stripping, lean 
 ores, tailings, or waste products of such business.  The 
 commissioner of natural resources is also authorized to license 
 the flooding of state lands in connection with any permit or 
 authorization for the use of public waters issued by the 
 legislature or by the commissioner pursuant to law.  Such 
 permits, licenses, and leases shall be upon such conditions and 
 for such consideration and for such period of time as the 
 commissioner may determine.  The county auditor, with the 
 approval of the county board, is authorized to grant permits, 
 licenses, or leases for all such purposes of or across tax 
 forfeited lands held by the state in trust for any and all 
 taxing districts, upon such conditions and for such 
 considerations and for such period of time as the county board 
 may determine.  Any proceeds from the granting of such permits, 
 licenses, or leases by the county auditor shall be apportioned 
 and distributed as other proceeds from the sale or rental of tax 
 forfeited lands.  

    HIST: 1967 c 557 s 1; 1969 c 1129 art 10 s 2 

     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 mining, the encouragement of good mining 
 practices, and the recognition and identification of the 
 beneficial aspects of mining.  

    HIST: 1969 c 774 s 1; 1983 c 270 s 1 

     93.45 Iron Range Trail; establishment, commissioner's 
  duties. 

    Subdivision 1.  In recognition of the unique combination of 
 cultural, geological, industrial, historical, recreational, and 
 scenic characteristics of Minnesota's iron ranges, an "Iron 
 Range Trail" is hereby established on the Vermillion, Mesabi, 
 and Cuyuna iron ranges and at related points on Lake Superior.  
 The commissioner of natural resources shall establish, develop, 
 and maintain the trail, and related places of interest under the 
 commissioner's jurisdiction and control, for the purposes 
 specified in this subdivision.  The trail need not be continuous 
 between or within ranges and related points, but shall be 
 developed as a coordinated unit and for multiple use.  The 
 commissioner, in cooperation with other state agencies, local 
 governments, and private organizations and individuals shall 
 mark and, where necessary, interpret places of cultural, 
 geological, industrial, historical, recreational, and scenic 
 interest.  In cooperation with state and local road authorities, 
 local governments, and private organizations and individuals, 
 the commissioner also shall mark access, where available, to 
 these places of interest from public roads and highways.  

    Subd. 2.  The commissioner may acquire by gift or purchase 
 necessary trail easements and related interest in and across 
 lands not under the commissioner's jurisdiction and control. The 
 commissioner also may enter into contracts, leases, or other 
 agreements with the operator or the owner of active or inactive 
 mine areas and with the person having the right of possession 
 thereof for the use and development of these areas for iron 
 range trail purposes.  The commissioner may develop, maintain, 
 and operate such areas or may enter into contracts with third 
 parties for the development, maintenance, or operation of the 
 areas.  If the commissioner enters into such a contract with a 
 third party, the contract shall provide that the operator, owner 
 and any person entitled to possession or control of the area 
 shall be held harmless and indemnified by the third party from 
 and against any and all claims for injuries or damage to person 
 or property, from such use or development.  Nothing in this 
 section prohibits a person from asserting any claim for alleged 
 damages brought pursuant to section 3.732 or 3.736. 

    HIST: 1969 c 774 s 2; 1969 c 1129 art 10 s 2; 1975 c 271 s 6; 
 1980 c 509 s 23; 1Sp1981 c 4 art 2 s 9; 1986 c 444 

     93.46 Definitions. 

    Subdivision 1.  For the purposes of sections 93.46 to 
 93.51, the terms defined in this section have the meanings given 
 to them.  

    Subd. 2.  "Mining area" or "Area subjected to mining" means 
 any area of land from which material is hereafter removed in 
 connection with the production or extraction of metallic 
 minerals or peat, the lands upon which material from such mining 
 is hereafter deposited, the lands upon which beneficiating 
 plants and auxiliary facilities are hereafter located, the lands 
 upon which the water reservoirs used in the mining process are 
 hereafter located, and auxiliary lands which are hereafter used 
 or intended to be used in a particular mining operation.  

    Subd. 3.  "Mine waste" means any material, including but 
 not limited to surface overburden, rock, lean ore, or tailings 
 which in the process of mining and beneficiation has been 
 removed from the earth and stored elsewhere on the surface.  

    Subd. 4.  Repealed, 1973 c 526 s 8 

    Subd. 5.  "Department" means the department of natural 
 resources.  

    Subd. 6.  "Operator" means any owner or lessee of mineral 
 rights or peat rights engaged in or preparing to engage in 
 mining operations with respect thereto.  

    Subd. 7.  "Person" includes firms, partnerships, 
 corporations, and other groups.  

    Subd. 8.  "Commissioner" means the commissioner of natural 
 resources.  

    Subd. 9.  "Lean ore stockpile removal" means the mining and 
 processing of low-grade mineralized material from stockpiles for 
 the purpose of extracting iron. 

    HIST: 1969 c 774 s 3; 1969 c 1129 art 10 s 2; 1973 c 526 s 1; 
 1983 c 270 s 2,3; 1993 c 113 art 4 s 1 

     93.461 Peat included in mineland reclamation. 

    Sections 93.46 to 93.51 apply to peat in the same manner as 
 to metallic minerals, to the greatest extent practicable, with 
 the following exceptions:  

    (a) For the purposes of sections 93.46 to 93.51, "peat 
 mining" means the removal of peat for commercial purposes, 
 including activities associated with the removal.  "Peat mining" 
 does not include removal of peat which is incidental to the 
 harvesting of an agricultural or horticultural crop, or to 
 mining of a metallic mineral that is subject to a mineland 
 reclamation rule and a permit to mine.  

    (b) No permit to mine peat is required under section 93.481 
 until 180 days after the effective date of rules promulgated to 
 regulate peat mining and reclamation.  The rules shall be 
 adopted by July 1, 1985.  

    (c) No permit is required for a peat mining operation of 40 
 acres or less, unless the commissioner determines that there is 
 potential for significant environmental effects which may result 
 from the peat mining operation.  A person intending to engage in 
 or carry on a peat mining operation of 40 acres or less, if the 
 intended operation involves removal of more than 1,000 tons of 
 air-dried peat per year, shall notify the commissioner in 
 writing before beginning any mining, specifying the legal 
 description of the tract to be mined and the mining methods to 
 be used.  Within 20 days after receipt of written notice of 
 intent to mine such a tract, or after receiving additional 
 information requested, the commissioner shall notify the person 
 of the decision to require, or not to require, a permit.  

    HIST: 1983 c 270 s 4; 1986 c 444 

     93.47 Duties and authority of commissioner.  

    Subdivision 1.  The commissioner shall conduct a 
 comprehensive study and survey in order to determine, consistent 
 with the declared policy of sections 93.44 to 93.51, the extent 
 to which regulation of mining areas is necessary in the interest 
 of the general welfare.  

    Subd. 2.  In determining the extent and type of regulation 
 required, the commissioner shall give due consideration to the 
 effects of mining upon the following:  (a) environment; (b) the 
 future utilization of the land upon completion of mining; and 
 (c) the wise utilization and protection of the natural resources 
 including but not limited to the control of erosion, the 
 prevention of land or rock slides, and air and water pollution.  
 The commissioner also shall give due consideration to (a) the 
 future and economic effect of such regulations upon the mine 
 operators and landowners, the surrounding communities, and the 
 state of Minnesota; (b) the effect upon employment in the state; 
 (c) the effect upon the future mining and development of 
 metallic minerals owned by the state of Minnesota and others, 
 and the revenues received therefrom; and (d) the practical 
 problems of the mine operators and mineral owners including, but 
 not limited to, slope gradients as achieved by good mining or 
 soil stabilization practices.  

    Subd. 3.  Upon completion of the study and survey and 
 consistent with the declared policy of sections 93.44 to 93.51, 
 the commissioner, pursuant to chapter 14, may adopt rules 
 pertaining to that portion of mining operations conducted 
 subsequent to the effective date of such rules and subject to 
 the provisions of any rights existing pursuant to any permit, 
 license, lease or other valid existing authorization issued by 
 the commissioner, the Pollution Control Agency or any other 
 governmental entity, or their predecessors in office, and 
 subject to any applicable mine safety laws or rules now existing 
 or hereafter adopted, in regard to the following:  (a) Mine 
 waste disposal, (b) mining areas, including but not limited to 
 plant facilities and equipment, and (c) permits to mine, as 
 required by section 93.481.  To the greatest extent possible, 
 within the authority possessed by the commissioner, the rules so 
 promulgated shall substantially comply with or exceed any 
 minimum mineland reclamation requirements which may be 
 established pursuant to a federal Mineland Reclamation Act.  The 
 rules so promulgated also shall conform with any state and local 
 land use planning program; provided further the commissioner 
 shall develop procedures that will identify areas or types of 
 areas which, if mined, cannot be reclaimed with existing 
 techniques to satisfy the rules promulgated under this 
 subdivision, and the commissioner will not issue permits to mine 
 such areas until the commissioner determines technology is 
 available to satisfy the rules so promulgated.  

    Subd. 4.  The commissioner shall administer and enforce 
 sections 93.44 to 93.51 and the rules adopted pursuant hereto.  
 In so doing the commissioner may (a) conduct such investigations 
 and inspections as the commissioner deems necessary for the 
 proper administration of sections 93.44 to 93.51; (b) enter upon 
 any parts of the mining areas in connection with any such 
 investigation and inspection without liability to the operator 
 or landowner provided that reasonable prior notice of intention 
 to do so shall have been given the operator or landowner; (c) 
 conduct such research or enter into contracts related to mining 
 areas and the reclamation thereof as may be necessary to carry 
 out the provisions of sections 93.46 to 93.50. 

    Subd. 5.  For the purpose of information and to assist the 
 commissioner in the proper enforcement of the rules promulgated 
 under sections 93.44 to 93.51 each operator shall within 120 
 days of May 28, 1969, file with the commissioner a plan map in 
 such form as shall be determined by the commissioner showing all 
 existing mining areas or areas subjected to mining by said 
 operator.  Annually thereafter, on or before the 15th day of 
 March, and until the operator's reclamation or restoration plan 
 is approved pursuant to section 93.481, the operator shall file 
 a plan map in similar form showing any changes made during the 
 preceding calendar year and the mining area which it is 
 anticipated will be subjected to mining during the current 
 calendar year.  After approval of a permit to mine, the 
 commissioner may periodically at such times as the commissioner 
 deems necessary require additional reclamation or restoration 
 information or plans from the operator.  

    HIST: 1969 c 774 s 4; 1973 c 526 s 2-4; 1982 c 424 s 130; 1985 
 c 248 s 70; 1986 c 444 

     93.48 Variance.  

    The commissioner may, upon application by the landowner or 
 mine operator, modify or permit variance from the established 
 rules adopted hereunder if it is determined that such 
 modification or variance is consistent with the general welfare. 

    HIST: 1969 c 774 s 5; 1985 c 248 s 70; 1986 c 444 

     93.481 Permit to mine. 

    Subdivision 1.    Prohibition against mining without a 
 permit; application for a 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) A bond which may be required pursuant to section 93.49; 
 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. 

    Subd. 2.    Commissioner's review; hearing; burden of 
 proof.  Within 120 days after receiving the application, or 
 after receiving additional information requested, or after 
 holding a hearing as provided in this section, the commissioner 
 shall grant the permit applied for, with or without 
 modifications or conditions, or deny the application.  If 
 written objections to the proposed application are filed with 
 the commissioner within 30 days after the last publication 
 required pursuant to this section or within seven days after 
 publication in the case of an application to conduct lean ore 
 stockpile removal, by any person owning property which will be 
 affected by the proposed operation or by any federal, state, or 
 local governmental agency having responsibilities affected by 
 the proposed operations, a public hearing shall be held by the 
 commissioner in the locality of the proposed operations within 
 30 days of receipt of such written objections and after 
 appropriate notice and publication of the date, time, and 
 location of the hearing.  The commissioner shall determine that 
 the reclamation or restoration planned for the operation 
 complies with lawful requirements and can be accomplished under 
 available technology and that a proposed reclamation or 
 restoration technique is practical and workable under available 
 technology. 

    Subd. 3.    Term of permit; amendment.  A permit issued 
 by the commissioner pursuant to this section shall be granted 
 for the term determined necessary by the commissioner for the 
 completion of the proposed mining operation, including 
 reclamation or restoration.  A permit may be amended upon 
 written application to the commissioner.  If the commissioner 
 determines that the proposed amendment constitutes a substantial 
 change to the permit, the person applying for the amendment 
 shall publish notice in the same manner as for a new permit, and 
 a hearing shall be held if written objections are received in 
 the same manner as for a new permit.  An amendment may be 
 granted by the commissioner if the commissioner determines that 
 lawful requirements have been met.  

    Subd. 4.    Revocation, modification, suspension.  A 
 permit is irrevocable during its term except as follows: 

    (a) The permittee has not commenced substantial 
 construction of plant facilities or actual mining and 
 reclamation or restoration operations covered by the permit 
 within three years of issuance of the permit; 

    (b) A permit may be canceled at the request or with the 
 consent of the permittee upon such conditions as the 
 commissioner determines necessary for the protection of the 
 public interests; 

    (c) Subject to the rights of the permittee to contest the 
 commissioner's action under sections 14.57 to 14.59 and related 
 sections, a permit may be modified or revoked by the 
 commissioner in case of any breach of the terms or conditions 
 thereof or in case of violation of law pertaining thereto by the 
 permittee, or agents, or servants of the permittee, or in case 
 the commissioner finds such modification or cancellation 
 necessary to protect the public health or safety, or to protect 
 the public interests in lands or waters against injury resulting 
 in any manner or to any extent not expressly authorized by the 
 permit, or to prevent injury to persons or property resulting in 
 any manner or to any extent not so authorized, upon at least 30 
 days' written notice to the permittee, stating the grounds of 
 the proposed modification or revocation or providing a 
 reasonable time of not less than 15 days in which to take 
 corrective action and giving the permittee an opportunity to be 
 heard thereon; 

    (d) By written order to the permittee the commissioner may 
 forthwith suspend operations under a permit if the commissioner 
 finds it necessary in an emergency to protect the public health 
 or safety or to protect public interests in lands or waters 
 against imminent danger of substantial injury in any manner or 
 to any extent not expressly authorized by the permit, or to 
 protect persons or property against such danger, and may require 
 the permittee to take any measures necessary to prevent or 
 remedy such injury.  No suspension order under this clause shall 
 be in effect more than 30 days from the date thereof without 
 giving the permittee at least ten days' written notice of the 
 order and an opportunity to be heard thereon.  

    Subd. 5.    Assignment.  A permit may not be assigned 
 or otherwise transferred without the written approval of the 
 commissioner.  

    Subd. 6.    Reclamation rules required before issuance of 
 a permit to mine.  Except for taconite and iron ore mining 
 permits, no permit to mine metallic minerals may be issued by 
 the commissioner until rules relating to reclamation of metallic 
 mineral minelands have been amended, or new rules adopted, under 
 sections 93.44 to 93.51 and in the manner provided in chapter 
 14, for the reclamation of minelands of the class for which the 
 permit application is submitted.  This section does not apply to 
 metallic minerals which are mined incidentally to the mining of 
 a mineral included in any mineland reclamation rule and covered 
 by the permit to mine which has been issued for the mining 
 project.  

    HIST: 1973 c 526 s 5; 1982 c 424 s 130; 1983 c 270 s 5; 1986 c 
 444; 1993 c 113 art 4 s 2,3 

     93.49 Financial assurance of operator. 

    The commissioner shall require a bond or other security or 
 other financial assurance satisfactory to the commissioner from 
 an operator.  The commissioner shall review annually the extent 
 of each operator's financial assurance under this section. 

    HIST: 1969 c 774 s 6; 1973 c 526 s 6; 1985 c 248 s 70; 1990 c 
 427 s 2 

     93.50 Appeal.  

    Any person aggrieved by any order, ruling, or decision of 
 the commissioner may appeal such order, ruling, or decision in 
 the manner provided in chapter 14.  

    HIST: 1969 c 774 s 7; 1982 c 424 s 130 

     93.51 Penalties for violation.  

    Subdivision 1.  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.  The commissioner may assess and collect any such 
 penalty.  

    Subd. 2.  Any person who knowingly and willfully violates 
 or refuses to comply with any rule, decision, order or ruling of 
 the commissioner shall upon conviction be guilty of a gross 
 misdemeanor.  At the request of the commissioner, the attorney 
 general may institute a civil action in a district court of the 
 state for a restraining order or injunction or other appropriate 
 remedy to prevent or preclude a violation of the terms and 
 conditions of any rules promulgated hereunder.  The district 
 court of the state of Minnesota in which district the mining 
 operation affected is conducted shall have jurisdiction to issue 
 such order or injunction or to provide other appropriate 
 remedies.  

    HIST: 1969 c 774 s 8; 1973 c 526 s 7; 1985 c 248 s 70 

     93.515 Oil and gas wells; rules relating to spacing, 
  pooling, and unitization. 

    The commissioner of natural resources may adopt rules under 
 chapter 14 relating to: 

    (1) spacing of oil and gas wells to regulate the density of 
 drilling to prevent unnecessary draining of the reservoir and to 
 prevent economic waste of products from wells; 

    (2) pooling, which is the combining of tracts and mineral 
 interests to form a drilling or spacing unit; and 

    (3) unitization, which is the acquisition of the legal 
 right to operate a whole reservoir as though all tracts 
 overlying the reservoir were under a single lease. 

    HIST: 1993 c 113 art 4 s 4 

     93.52 Clarification of ownership of severed mineral 
  interests; verified statement as to interests.  

    Subdivision 1.  The purpose of sections 93.52 to 93.58 is 
 to identify and clarify the obscure and divided ownership 
 condition of severed mineral interests in this state.  Because 
 the ownership condition of many severed mineral interests is 
 becoming more obscure and further fractionalized with the 
 passage of time, the development of mineral interests in this 
 state is often impaired.  Therefore, it is in the public 
 interest and serves a public purpose to identify and clarify 
 these interests.  

    Subd. 2.  Except as provided in subdivision 3, from and 
 after January 1, 1970, every owner of a fee simple interest in 
 minerals, hereafter referred to as a mineral interest, in lands 
 in this state, which interest is owned separately from the fee 
 title to the surface of the property upon or beneath which the 
 mineral interest exists, shall file for record in the county 
 recorder office or, if registered property, in the registrar of 
 titles office in the county where the mineral interest is 
 located a verified statement citing sections 93.52 to 93.58 and 
 setting forth the owner's address, interest in the minerals, and 
 both (1) the legal description of the property upon or beneath 
 which the interest exists, and (2) the book and page number or 
 the document number, in the records of the county recorder or 
 registrar of titles, of the instrument by which the mineral 
 interest is created or acquired.  No statement may be filed for 
 record which contains mineral interests from more than one 
 government section unless the instrument by which the mineral 
 interest is created or acquired includes mineral interests from 
 more than one government section.  The county recorder and 
 registrar of titles shall file with the county auditor a copy of 
 each document so recorded within 60 days after recording in the 
 office of county recorder or registrar of titles. 

    Subd. 3.  Sections 93.52 to 93.58 do not apply to the 
 following owners of mineral interests:  The United States of 
 America, the state of Minnesota, and any American Indian tribe 
 or band owning reservation lands in this state. 

    HIST: 1969 c 829 s 1; 1973 c 650 art 20 s 5; 1976 c 181 s 2; 
 1986 c 444 

  93.53 Repealed, 1973 c 650 art 20 s 9 

  93.54 Repealed, 1973 c 650 art 20 s 9 

     93.55 Failure to file or refile; forfeiture after notice 
  and hearing; leasing; recovery of fair market value of forfeited 
  interest. 

    Subdivision 1.  If the owner of a mineral interest fails to 
 file the verified statement required by section 93.52, before 
 January 1, 1975, as to any interests owned on or before December 
 31, 1973, or within one year after acquiring such interests as 
 to interests acquired after December 31, 1973, and not 
 previously filed under section 93.52, the mineral interest shall 
 forfeit to the state after notice and opportunity for hearing as 
 provided in this section.  However, before completing the 
 procedures set forth in subdivision 2, the commissioner of 
 natural resources may lease the severed mineral interest as 
 provided in subdivisions 1a and 3. 

    Subd. 1a.  If the owner of a severed mineral interest fails 
 to file the verified statement required by section 93.52 before 
 the dates specified in subdivision 1, the commissioner of 
 natural resources may lease the mineral interest as provided in 
 this subdivision and subdivision 3 before completing the 
 procedures set forth in subdivision 2.  In any lease issued 
 under this subdivision, the commissioner shall cite, as 
 authority for issuing the lease, this subdivision, subdivision 
 3, and the United States Supreme Court decision in Texaco, Inc., 
 et al. v. Short, et al., 454 U.S. 516 (1982), where the Supreme 
 Court determined, under Amendment XIV to the Constitution of the 
 United States, that enactment of a state law requiring an owner 
 of severed mineral interests to timely file a statement of claim 
 to the mineral interests was constitutional, without individual 
 advance notice of operation of the law, before the owner loses 
 the mineral interests for failing to timely file the statement 
 of claim.  A lessee holding a lease issued under this 
 subdivision may not mine under the lease until the commissioner 
 completes the procedures set forth in subdivision 2 and a court 
 has adjudged the forfeiture of the mineral interest to be 
 absolute.  "Mine" for the purposes of this subdivision is 
 defined to exclude exploration activities, exploratory boring, 
 trenching, test pitting, test shafts and drifts, and related 
 activities. 

    Subd. 2.  The commissioner shall notify the last owner of 
 record on file in either the county recorder's or registrar of 
 titles' office of a hearing on an order to show cause why the 
 mineral interest should not forfeit to the state absolutely.  
 The notice shall be served in the same manner as provided for 
 the service of summons in a civil action to determine adverse 
 claims under chapter 559 and shall contain the following:  (1) 
 the legal description of the property upon or beneath which the 
 interest exists; (2) a recitation that the statement of severed 
 mineral interest either did not comply with the requirements 
 specified by section 93.52 for such a statement or was not filed 
 within the time specified in this section, or both; and (3) that 
 the court will be requested to enter an order adjudging the 
 forfeiture of the mineral interest to be absolute in the absence 
 of a showing that there was substantial compliance with laws 
 requiring the registration and taxation of severed mineral 
 interests.  For the purposes of this section, substantial 
 compliance with laws requiring the registration and taxation of 
 severed mineral interests means:  (1) that the records in the 
 office of the county recorder or registrar of titles specified 
 the true ownership of the severed mineral interest during the 
 time period within which the statement of severed mineral 
 interest should have been registered with the county recorder or 
 the registrar of titles, or that probate, divorce, bankruptcy, 
 mortgage foreclosure, or other proceedings affecting the title 
 had been timely initiated and diligently pursued by the true 
 owner during the time period within which the severed mineral 
 interest statement should have been registered, and (2) that all 
 taxes relating to severed mineral interests had been timely 
 paid, including any taxes which would have been due and owing 
 under section 273.165, subdivision 1, had the interest been 
 properly filed for record as required by section 93.52 within 
 the time specified in this section.  For the purposes of this 
 section, "timely paid" means paid within the time period during 
 which tax forfeiture would not have been possible had a real 
 property tax been assessed against the property.  

    Subd. 3.  The commissioner may lease severed mineral 
 interests described in subdivision 1 in the same manner as 
 provided in section 93.335, for the lease of minerals and 
 mineral rights becoming the absolute property of the state under 
 the tax laws, except that no permit or lease issued pursuant to 
 this section shall afford the permittee or lessee any of the 
 rights of condemnation provided in section 93.05, as to 
 overlying surface interests.  

    Subd. 4.  After the mineral interest has forfeited to the 
 state pursuant to this section, a person claiming an ownership 
 interest before the forfeiture may recover the fair market value 
 of the interest, either:  (1) as an alternative claim raised in 
 the hearing on the order to show cause why the mineral interest 
 should not forfeit absolutely, with fair market value to be 
 determined and paid as provided in this subdivision, or (2) in a 
 separate action brought as follows.  An action may be commenced 
 within six years after entry of judgment under this section to 
 determine the ownership and the fair market value of the mineral 
 interests in the property both at the time of forfeiture and at 
 the time of bringing the action.  The action shall be brought in 
 the manner provided in chapter 559, for an action to determine 
 adverse claims, to the extent applicable.  The person bringing 
 the action shall serve notice of the action on the commissioner 
 of natural resources in the same manner as is provided for 
 service of notice of the action on a defendant.  The 
 commissioner may appear and contest the allegations of ownership 
 and value in the same manner as a defendant in such actions.  
 Persons determined by the court to be owners of the interests at 
 the time of forfeiture to the state under this section may 
 present to the commissioner of finance a verified claim for 
 refund of the fair market value of the interest.  A copy of the 
 court's decree shall be attached to the claim.  Thereupon the 
 commissioner of finance shall refund to the claimant the fair 
 market value at the time of forfeiture, which is the expiration 
 of the period within which tax forfeiture would not have been 
 possible had the mineral interest been properly and timely filed 
 for record under section 93.52, or at the time of bringing the 
 action, whichever is lesser, less any taxes, penalties, costs, 
 and interest which could have been collected during the period 
 following the forfeiture under this section, had the interest in 
 minerals been valued and assessed for tax purposes at the time 
 of forfeiture under this section.  There is appropriated from 
 the general fund to the persons entitled to a refund an amount 
 sufficient to pay the refund.  

    Subd. 5.  The forfeiture provisions of this section do not 
 apply to mineral interests valued and taxed under other laws 
 relating to the taxation of minerals, gas, coal, oil, or other 
 similar interests, so long as a tax is imposed and no forfeiture 
 under the tax laws is complete.  However, if the mineral 
 interest is valued under other tax laws, but no tax is imposed, 
 the mineral interest forfeits under this section if not filed as 
 required by this section. 

    HIST: 1969 c 829 s 4; 1969 c 1129 art 10 s 2; 1973 c 492 s 14; 
 1973 c 650 art 20 s 6; 1979 c 303 art 10 s 1; 1Sp1985 c 14 art 4 
 s 9; 1988 c 508 s 1-3; 1989 c 277 art 2 s 2 

     93.551 Validation of certain statements; correction of 
  certain errors. 

    A statement of severed mineral interests which was filed 
 within the time limits specified by section 93.55 is validly and 
 timely filed even if the interest claimed by the owner does not 
 correctly set forth the whole or fractional interest actually 
 owned; the statement erroneously contained interests from more 
 than one government section; the statement was not properly 
 verified; or the interest, if registered property, was 
 erroneously filed with the county recorder, or, if the interest 
 was not registered property, was filed with the registrar of 
 titles.  The owner may file an amendment or supplement to the 
 original statement for the purpose of correcting any or all of 
 the errors described in this section.  

    HIST: 1979 c 303 art 10 s 2 

  93.56 Repealed, 1973 c 650 art 20 s 9 

  93.57 Repealed, 1973 c 650 art 20 s 9 

     93.58 Publication of act.  

    Sections 93.52 to 93.58, as amended or repealed by Laws 
 1973, chapter 650, article 20, together with the other sections 
 of Laws 1973, chapter 650, article 20, shall be published once 
 during the first week of each month in a legal newspaper in each 
 county in the months of October, November, and December of the 
 year 1973 by the commissioner of natural resources at county 
 expense.  Sections 93.52 to 93.58 also shall be published by the 
 commissioner of natural resources at least once in 1973 in two 
 publications related to mining activities which have nationwide 
 circulation.  Failure to publish as herein provided shall not 
 affect the validity of sections 93.52 to 93.58 or the other 
 sections of Laws 1973, chapter 650, article 20.  

    HIST: 1969 c 829 s 7; 1969 c 1129 art 10 s 2; 1973 c 650 art 
 20 s 7