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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

Official Publication of the State of Minnesota
Revisor of Statutes