1999 Minnesota Statutes

     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