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CHAPTER 93. MINERAL LANDS

Table of Sections
SectionHeadnote

NATURAL RESOURCES

93.001POLICY FOR MINERAL DEVELOPMENT.
93.0015MINERAL COORDINATING COMMITTEE.
93.002Repealed, 2001 c 161 s 58
93.003IRON MINING; CONDITIONS.

RESERVATIONS, LEASES

93.01RESERVATION OF MINERALS AND WATER POWERS.
93.02CERTIFICATE OF SALE, PATENTS; RESERVATION.
93.03PATENT UNDER LAND GRANT TO RAILROAD; RESERVATION.
93.04DISPOSITION OF MINERALS RESERVED.
93.05HOLDER OF LEASE.
93.055ACTION TO QUIET TITLE TO LANDS COVERED BY MINERAL LEASE.
93.06RESERVATION OF MINERALS UNDER NAVIGABLE LAKES.
93.07Repealed, 2000 c 495 s 53
93.08Repealed, 2000 c 495 s 53
93.09Repealed, 2000 c 495 s 53
93.10Repealed, 2000 c 495 s 53
93.11Repealed, 2000 c 495 s 53
93.12Repealed, 2000 c 495 s 53
93.13Repealed, 2000 c 495 s 53
93.14ISSUANCE OF LEASES TO PROSPECT FOR ORES.
93.15MINING UNITS; DESIGNATION; AREA.
93.16LEASES; SALE, NOTICE.
93.17APPLICATION FOR LEASES; BIDS; AWARDS.
93.18Repealed, 2000 c 495 s 53
93.19Repealed, 2000 c 495 s 53
93.191Repealed, 2000 c 495 s 53
93.192Repealed, 2000 c 495 s 53
93.1925NEGOTIATED LEASES.
93.193TACONITE IRON ORE MINING LEASE EXTENSION.
93.20RENTALS, ROYALTIES, FORM OF LEASE.
93.201ROYALTIES FOR TACONITE CONCENTRATES.
93.202Repealed, 2000 c 495 s 53
93.21EXECUTION OF LEASE.
93.22DISPOSITION OF PAYMENTS.
93.221Repealed, 1989 c 335 art 4 s 109
93.222TACONITE IRON ORE SPECIAL ADVANCE ROYALTY ACCOUNT.
93.223MINERAL LEASE SUSPENSE ACCOUNTS.
93.2235TACONITE MINING GRANTS; APPROPRIATIONS.
93.2236MINERALS MANAGEMENT ACCOUNT.
93.23Repealed, 2000 c 495 s 53
93.24Repealed, 2000 c 495 s 53
93.245MINING OF MINERALS OTHER THAN IRON ORE.
93.25ORES OTHER THAN IRON; LEASES.
93.251Inoperative
93.252Repealed, 1953 c 540 s 1
93.253Repealed, 1953 c 540 s 1
93.254Repealed, 1953 c 540 s 1
93.255Repealed, 1953 c 540 s 1
93.256Repealed, 1953 c 540 s 1
93.257Repealed, 1953 c 540 s 1
93.26LEASES TO BE FILED.
93.27ASSIGNMENTS, AGREEMENTS, OR CONTRACTS AFFECTING LEASES; FILING.
93.28APPROVAL OF INSTRUMENTS.
93.283Repealed, 2000 c 495 s 53
93.285STOCKPILED IRON ORE.
93.29Repealed, 1965 c 79 s 2
93.30Repealed, 2000 c 495 s 53
93.31Repealed, 2000 c 495 s 53
93.32Repealed, 2000 c 495 s 53
93.33SURFACE OF LAND MAY BE LEASED.
93.335STATE LANDS, MINERALS, MINERAL RIGHTS ACQUIRED UNDER TAX LAWS.
93.34UNLAWFUL TO MINE UNDER PUBLIC WATERS.
93.351Repealed, 2000 c 495 s 53
93.352Repealed, 2000 c 495 s 53
93.353Repealed, 2000 c 495 s 53
93.354Repealed, 2000 c 495 s 53
93.355Repealed, 2000 c 495 s 53
93.356Repealed, 2000 c 495 s 53
93.357Repealed, 2000 c 495 s 53
93.37Repealed, 2000 c 495 s 53
93.38Repealed, 2000 c 495 s 53
93.39Repealed, 2000 c 495 s 53
93.41STATE-OWNED IRON-BEARING MATERIALS.
93.42Repealed, 2000 c 495 s 53
93.43LEASES TO NONFERROUS METALLIC MINERALS PRODUCERS.

RECLAMATION OF LANDS

93.44DECLARATION OF POLICY.
93.45IRON RANGE TRAIL.
93.46DEFINITIONS.
93.461PEAT INCLUDED IN MINELAND RECLAMATION.
93.47DUTIES AND AUTHORITY OF COMMISSIONER.
93.48VARIANCE.
93.481PERMIT TO MINE.
93.49FINANCIAL ASSURANCE OF OPERATOR.
93.50APPEAL.
93.51PENALTIES FOR VIOLATION.

OIL AND GAS WELLS

93.515OIL AND GAS WELLS; RULES RELATING TO SPACING, POOLING, AND UNITIZATION.

SEVERED MINERAL INTERESTS

93.52OWNERSHIP OF SEVERED MINERAL INTERESTS.
93.53Repealed, 1973 c 650 art 20 s 9
93.54Repealed, 1973 c 650 art 20 s 9
93.55FORFEITURE OF SEVERED MINERAL INTEREST.
93.551VALIDATION OF CERTAIN STATEMENTS; CORRECTION OF CERTAIN ERRORS.
93.56Repealed, 1973 c 650 art 20 s 9
93.57Repealed, 1973 c 650 art 20 s 9
93.58PUBLICATION OF ACT.

NATURAL RESOURCES

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.
History: 1987 c 386 art 7 s 1; 1993 c 113 art 2 s 1
93.0015 MINERAL COORDINATING COMMITTEE.
    Subdivision 1. Establishment; membership. The Mineral Coordinating Committee is
established to plan for diversified mineral development. The Mineral Coordinating Committee
consists of:
(1) the commissioner of natural resources;
(2) the deputy commissioner of the Minnesota Pollution Control Agency;
(3) the director of United Steelworkers of America, District 11, or the director's designee;
(4) the commissioner of Iron Range resources and rehabilitation;
(5) the director of the Minnesota Geological Survey;
(6) the dean of the University of Minnesota Institute of Technology;
(7) the director of the Natural Resources Research Institute; and
(8) three individuals appointed by the governor for a four-year term, one each representing
the iron ore and taconite, nonferrous metallic minerals, and industrial minerals industries within
the state.
    Subd. 2. Staffing. The commissioner of natural resources shall serve as chair of the
committee. A member of the committee may designate another person of the member's
organization to act in the member's place. The commissioner shall provide staff and administrative
services necessary for the committee's activities.
    Subd. 3. Expiration. Notwithstanding section 15.059, subdivision 5, or other law to the
contrary, the committee expires June 30, 2007.
    Subd. 4. Advice. The Mineral Coordinating Committee is encouraged to solicit and receive
advice from representatives of the United States Geological Survey, United States Environmental
Protection Agency, and United States Department of Energy.
History: 1Sp2003 c 13 s 5
93.002 [Repealed, 2001 c 161 s 58]
93.003 IRON MINING; CONDITIONS.
    Subdivision 1. Duty to maintain mine. 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 two years
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.
    Subd. 2. Temporary maintenance plan. At least 60 days before the owner or operator of an
iron mine or related production or beneficiation facilities determines to discontinue the operation
of the mine or facilities, it shall submit a temporary maintenance plan to the state for approval.
The plan must provide for:
(1) the orderly shutdown of the mine and facilities, including:
(i) movement of all mobile equipment to an area above the high water mark;
(ii) drainage of water from all bins, mills, thickeners, storage tanks, water lines, and slurry
lines; and
(iii) the emptying and cleaning of all tailings handling equipment, including thickeners,
pipes, belts, and bins;
(2) health, safety, and security, including:
(i) security of any blasting materials and hazardous materials;
(ii) provisions for fire prevention; and
(iii) staffing for security;
(3) maintenance of mine, plant facilities, and tailing basins, including:
(i) supplying heat or cooling where needed;
(ii) maintenance of utility lines needed to support the property;
(iii) maintenance of mills, grates, kilns, coolers, and other machinery in running condition;
(iv) taking dust prevention measures; and
(v) maintenance of tailings dikes, water level controls, water run-off control structures,
and erosion controls;
(4) compliance with all permit requirements; and
(5) a schedule for reporting periodically to the state on all maintenance activities and any
plans to liquidate assets.
History: 1993 c 107 s 1; 2001 c 30 s 1; 2003 c 113 s 1

RESERVATIONS, LEASES

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.
History: (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.
History: (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.
History: (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.
History: (6398) RL s 2485
93.05 HOLDER OF 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 lease subsequently issued thereon may nevertheless enter upon the lands
and prospect on the lands under the lease.
    Subd. 2. Security for damages; condemnation. Before entering upon lands described in
subdivision 1, the 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 lease may, in the name of the state
of Minnesota, institute proceedings to condemn the same according to chapter 117; provided,
that the state shall bear no part of the cost of these proceedings, nor pay any part of the damages
awarded in the proceedings.
    Subd. 3. Attorney general to institute condemnation. (a) Upon written request of the
holder of any 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 the lease.
All costs and expenses of the proceedings and all damages awarded therein shall be paid by the
holder of the lease.
(b) In any eminent domain proceedings under this section, 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 of the land.
History: (6399, 6400) 1907 c 411 s 1,2; 1949 c 593 s 1; 1969 c 1129 art 10 s 2; 1986 c
444; 2000 c 495 s 9
93.055 ACTION TO QUIET TITLE TO LANDS COVERED BY MINERAL LEASE.
Upon written request of the holder of any 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 lease. All costs and expenses of the proceedings including compensation
of attorneys for the state shall be paid by the holder of the lease.
History: 1949 c 594 s 1; 1969 c 1129 art 10 s 2; 1986 c 444; 2000 c 495 s 10
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.
History: (6401) 1909 c 49 s 1; 1947 c 521 s 1
93.07 [Repealed, 2000 c 495 s 53]
93.08 [Repealed, 2000 c 495 s 53]
93.09 [Repealed, 2000 c 495 s 53]
93.10 [Repealed, 2000 c 495 s 53]
93.11 [Repealed, 2000 c 495 s 53]
93.12 [Repealed, 2000 c 495 s 53]
93.13 [Repealed, 2000 c 495 s 53]
93.14 ISSUANCE OF LEASES TO PROSPECT FOR ORES.
The commissioner may execute leases to prospect for iron ore and other ores upon lands
belonging to the state or in which the state has an interest and for the mining of the ores, subject to
the conditions provided in sections 93.15 to 93.28.
History: (6403) 1921 c 412 s 1; 1925 c 395 s 1; 1927 c 389 s 1; 2000 c 495 s 11
93.15 MINING UNITS; DESIGNATION; AREA.
    Subdivision 1. Designation of mining units. (a) The commissioner of natural resources may
designate any lands belonging to the state and the beds of any waters belonging to the state or any
lands in which the state has an interest as mining units and may rearrange or modify the mining
units from time to time, subject to the limitations of this section.
(b) No mining unit shall contain lands belonging to more than one permanent trust fund,
except mining units leased under section 93.25.
(c) Lands which have been sold by the state and are in use as part of the site of a plant for the
production of taconite concentrates shall not be designated as mining units.
    Subd. 2. List of mining units. 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 under this section,
giving the descriptions of the mining units and such other information as the commissioner deems
necessary. In case the commissioner shall prescribe special conditions to be included in a lease for
any mining unit as authorized by law, a statement of the conditions shall be included with the
designation of the unit in the list.
    Subd. 3. One mining unit per lease. Except as otherwise expressly provided by law, each
mining lease shall cover only one entire mining unit designated under this section.
History: (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; 2000 c 495 s 12
93.16 LEASES; SALE, NOTICE.
(a) Except as otherwise expressly provided by law, leases for iron ore or other minerals
belonging to the state shall be issued only upon public sale as provided under this section.
(b) The sale of leases shall be held at such times and places as designated by the
commissioner.
(c) The commissioner shall give public notice of intent to hold a public sale by publication in
the State Register, the EQB Monitor, and such other publications as the commissioner may direct
at least 90 days prior to the proposed date of sale.
(d) The commissioner shall give public notice of each sale by publication for three successive
weeks in a newspaper that has its known office of issue in the county seat of the county in
which the mining units to be leased are located and in a daily newspaper printed and published
in Hibbing and Virginia. If no newspaper has its known office of issue in the county seat of a
particular county, the commissioner shall publish notice in the newspaper designated as the
publisher of the official proceedings of the county board of that county. The first publication shall
be at least 30 days before the date of sale. The public notice of sale shall also be published in the
State Register and the EQB Monitor at least 30 days before the date of sale and may be published
in additional newspapers and trade magazines, as the commissioner may direct.
(e) Each notice shall contain the following information:
(1) time and place of holding the sale;
(2) 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 leases may be obtained; and
(3) such other information as the commissioner may direct.
History: (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; 2000 c 495 s 13
93.17 APPLICATION FOR LEASES; BIDS; AWARDS.
    Subdivision 1. Lease application. (a) Applications for leases 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, cashier's check, or bank money order payable to the
Department of Natural Resources in the sum of $100 for each mining unit.
(b) Each application shall be accompanied 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 section 93.20, subdivisions
12 to 18
, that the applicant proposes to pay to the state of Minnesota in case the lease shall be
awarded.
    Subd. 2. Bid requirements. (a) 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.
(b) 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. Bid acceptance. (a) At the time and place fixed for the sale, the commissioner
shall publicly announce the number of applications and bids received. The commissioner 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 leases to the highest bidders
for the respective mining units, but no bids shall be accepted that do not equal or exceed the
minimum amounts provided for in section 93.20, nor shall any bid be accepted that does not
comply with the law. The right is reserved to the state to reject any and all bids.
(b) All applications for leases and bids not accepted at the sale shall become void at the
close of the sale and the payment accompanying the applications and bids shall be returned
to the applicants entitled to them.
(c) Upon the award of a lease, the payment submitted with the application as provided by
subdivision 1 shall be deposited with the commissioner of finance as a fee for the lease.
History: (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; 2000 c 495 s
14; 2003 c 112 art 2 s 50
93.18 [Repealed, 2000 c 495 s 53]
93.19 [Repealed, 2000 c 495 s 53]
93.191 [Repealed, 2000 c 495 s 53]
93.192 [Repealed, 2000 c 495 s 53]
93.1925 NEGOTIATED LEASES.
    Subdivision 1. Conditions required. When the commissioner finds that the best interests of
the state will be served and the circumstances in clause (1), (2), or (3) exist, the commissioner,
with the approval of the Executive Council, may issue an iron ore or taconite iron ore mining
lease through negotiations to an applicant. A lease may be issued through negotiations under
any of the following circumstances:
(1) the state taconite iron ore is adjacent to taconite iron ore owned or leased for mining
purposes by the applicant and the commissioner finds that it is impracticable to mine the state
taconite iron ore except in conjunction with the mining of the adjacent ore;
(2) the lands to be leased are primarily valuable for their natural iron ore content; or
(3) the state's mineral ownership interest in the lands to be leased is an undivided fractional
interest and the applicant holds under control a majority of the remaining undivided fractional
mineral interests in the lands to be leased.
    Subd. 2. Application. (a) An application for a negotiated lease shall be submitted to the
commissioner of natural resources. The commissioner shall prescribe the information to be
included in the application. The applicant shall submit with the application a certified check,
cashier's check, or bank money order, payable to the Department of Natural Resources in the sum
of $100, as a fee for filing the application. The application fee shall not be refunded under any
circumstances.
(b) The right is reserved to the state to reject any or all applications for a negotiated lease.
    Subd. 3. Terms. A lease issued under this section shall be in the form set forth in section
93.20, with such additional terms and conditions consistent with the lease as may be agreed upon.
The rental and royalty rates agreed upon shall be not less than those prescribed in section 93.20.
History: 2000 c 495 s 15
93.193 TACONITE IRON ORE MINING LEASE EXTENSION.
    Subdivision 1. Application for extension. Upon written application by the holder of any
mining lease heretofore issued, or hereafter issued upon a prospecting permit heretofore issued,
which has been designated as a taconite iron ore mining lease pursuant to Minnesota Statutes
1998, section 93.19 or 93.191, the commissioner of natural resources, with the approval of the
Executive Council, may extend the term of the lease for an additional period of 25 years beyond
the term specified in the lease, upon the terms and conditions prescribed under this section.
The additional period of 25 years for which the lease is extended shall be the extended period
as the term is used in this section.
    Subd. 2. Royalty rates; other ores. 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. Form; terms. 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.
History: 1957 c 722 s 1-3; 1969 c 1129 art 10 s 2; 2000 c 495 s 16
93.20 RENTALS, ROYALTIES, FORM OF LEASE.
    Subdivision 1. Required provisions. 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. Term; conditions. 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. Minimum rates. 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. Parties; consideration; land description. 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. Purpose; rights. 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. Reservations. 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. Rental rate. The part.......... of the second part covenants and agrees to pay to the
commissioner of finance 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. Dried iron. 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. Royalty increase. (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. Fractions; method of computation. 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. Royalties. 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. 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. 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. 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. 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. 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. 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. 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. Quarterly payment. The part.......... of the second part covenant .......... and
agree ........... to pay to the commissioner of finance 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. Quarterly statement. 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. Shipment; sampling. 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. Weighing; monthly statement; crude ore. 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. Beneficiation or treatment. 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. Stockpiling. 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. Right to enter, inspect, and survey. 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. Required submissions. 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. Payment of taxes. 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. Operational requirements. 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. Construction; liability to third parties. 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. Supplemental agreement. 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. Remittances. All remittances by the part..... of the second part hereunder shall be
made payable to the commissioner of finance 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 commissioner
of finance.
    Subd. 32. Lien. 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. Voluntary termination. 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. Cancellation. 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. Surrender after termination. 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. Binding effect. 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. Enabling provisions. 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. Lease modification. 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. Stockpiling on conveyed land. 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.
History: (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; 2003 c 112 art 2 s 50
93.201 ROYALTIES FOR TACONITE CONCENTRATES.
    Subdivision 1. Royalty on certain concentrates produced from taconite ore. 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. Alternate royalty determination. 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. Applicability. 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.
History: 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 [Repealed, 2000 c 495 s 53]
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 and shall be signed by the party of the second part in the presence of two
witnesses, and the signatures and execution of the same by the party of the second part shall be
duly acknowledged.
History: (6410) 1921 c 412 s 8; 1925 c 395; 1927 c 389 s 1; 1986 c 444; 2000 c 495 s 17
93.22 DISPOSITION OF PAYMENTS.
    Subdivision 1. Generally. All payments under sections 93.14 to 93.285 shall be made to the
Department of Natural Resources and shall be credited according to this section.
(a) If the lands or minerals and mineral rights covered by a lease are held by the state by
virtue of an act of Congress, payments made under the lease shall be credited to the permanent
fund of the class of land to which the leased premises belong.
(b) If a lease covers the bed of navigable waters, payments made under the lease shall be
credited to the permanent school fund of the state.
(c) If the lands or minerals and mineral rights covered by a lease are held by the state in
trust for the taxing districts, payments made under the lease shall be distributed annually on the
first day of September as follows:
(1) 20 percent to the general fund; and
(2) 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.
(d) Except as provided under this section and except where the disposition of payments may
be otherwise directed by law, all payments shall be paid into the general fund of the state.
    Subd. 2.[Repealed, 1Sp2003 c 9 art 5 s 37]
History: (6411) 1921 c 412 s 9; 1925 c 395; 1927 c 389 s 1; 1973 c 492 s 14; 2000 c 495 s
18; 1Sp2001 c 6 art 1 s 1
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.
History: 1989 c 335 art 1 s 80
93.223 MINERAL LEASE SUSPENSE ACCOUNTS.
    Subdivision 1.[Repealed, 1Sp2003 c 9 art 5 s 37]
    Subd. 2. University fund mineral lease suspense account. The university fund mineral
lease suspense account is created as an account in the state treasury for mineral lease money
deposited according to section 93.22, subdivision 2, clause (2). Interest earned on money in the
account accrues to the account. After money is annually deposited in the account under section
93.22, subdivision 2, clause (2), the commissioner of finance shall certify 20 percent of the
payments made during the preceding fiscal year as costs for the administration and management
of mineral leases on permanent university fund lands. The commissioner of finance shall transfer
the certified amount from the university fund mineral lease account to the general fund. The
balance remaining in the account is annually transferred to the permanent university fund.
History: 1Sp2001 c 6 art 1 s 2
93.2235 TACONITE MINING GRANTS; APPROPRIATIONS.
    Subdivision 1. Commissioner. The commissioner shall establish a program to award grants
to taconite mining companies for:
(1) taconite pellet product improvements;
(2) value-added production of taconite iron ore; or
(3) cost-savings production improvements at Minnesota taconite plants.
An amount equal to the sum of money transferred to the general fund under section 93.223,
subdivision 1
, reduced by $100,000, is annually appropriated from the general fund to the
commissioner for the purposes of this section.
    Subd. 2. Coleraine laboratory. The director of the Coleraine laboratory shall establish a
program to award grants for the purpose of transferring technology from the Coleraine laboratory
to taconite mining companies for:
(1) taconite pellet product improvements;
(2) value-added production of taconite iron ore; or
(3) cost-savings production improvements at Minnesota taconite plants.
An amount equal to the sum of money transferred to the general fund under section 92.223,
subdivision 2
, is annually appropriated from the general fund to the Board of Regents of the
University of Minnesota for the purposes of this section.
History: 1Sp2001 c 6 art 1 s 3; 2002 c 220 art 8 s 11
93.2236 MINERALS MANAGEMENT ACCOUNT.
(a) The minerals management account is created as an account in the natural resources fund.
Interest earned on money in the account accrues to the account. Money in the account may be
spent or distributed only as provided in paragraphs (b) and (c).
(b) If the balance in the minerals management account exceeds $3,000,000 on June 30,
the amount exceeding $3,000,000 must be distributed to the permanent school fund and the
permanent university fund. The amount distributed to each fund must be in the same proportion
as the total mineral lease revenue received in the previous biennium from school trust lands
and university lands.
(c) Subject to appropriation by the legislature, money in the minerals management account
may be spent by the commissioner of natural resources for mineral resource management and
projects to enhance future mineral income and promote new mineral resource opportunities.
History: 1Sp2005 c 1 art 2 s 77
93.23 [Repealed, 2000 c 495 s 53]
93.24 [Repealed, 2000 c 495 s 53]
93.245 MINING OF MINERALS OTHER THAN IRON ORE.
(a) If a mineral other than iron ore or taconite ore is found on or in a mining unit covered by
a state iron ore or taconite iron ore mining lease, the state lessee may apply to the commissioner
of natural resources for a negotiated lease to explore for, mine, and remove the mineral. The terms
and conditions under which the mineral may be mined or products recovered shall be as agreed
upon by the commissioner and the state lessee. A mineral lease for ores other than iron ore or
taconite iron ore must comply with section 93.25 and rules adopted thereunder.
(b) The right is reserved to the state to reject any or all applications for a negotiated lease
under paragraph (a). The state may lease, under section 93.25 and rules adopted thereunder, any
minerals other than iron ore or taconite iron ore on or in a mining unit covered by a state iron ore
or taconite iron ore mining lease.
History: 2000 c 495 s 19
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. For purposes of this section, iron ore
means iron-bearing material where the primary product is iron metal.
    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 according
to rules adopted by the commissioner, but no lease shall be for a longer term than 50 years, and all
rents, royalties, terms, conditions, and covenants shall be fully set forth in each lease issued. The
rents and royalties shall be credited to the funds as provided in section 93.22.
    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.
History: (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; 2000 c 495 s 20,21
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 LEASES TO BE FILED.
All leases, with the names and post office addresses of all parties in interest, issued by the
commissioner under authority of sections 93.14 to 93.285, before delivery shall be duly filed
for record in the commissioner's office. A certificate of filing showing the date of filing shall
be endorsed on each lease.
History: (6415) 1921 c 412 s 13; 1925 c 395 s 1; 1927 c 389 s 1; 1986 c 444; 2000 c 495 s 22
93.27 ASSIGNMENTS, AGREEMENTS, OR CONTRACTS AFFECTING LEASES;
FILING.
All assignments, agreements, or contracts, underlying, overriding, or operating agreements
affecting a 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 filing of record.
A certificate of filing showing the date of filing shall be endorsed on the assignments, agreements,
contracts, underlying, overriding, or operating agreements, a copy of which then shall be returned
to the party entitled thereto.
History: (6416) 1921 c 412 s 14; 1925 c 395; 1927 c 389 s 1; 1941 c 546 s 6; 1986 c
444; 2000 c 495 s 23
93.28 APPROVAL OF INSTRUMENTS.
All instruments by virtue of which the title to a lease herein provided for is in any way
affected shall receive the approval of the commissioner, which approval shall be endorsed thereon,
and the instrument when so approved shall be duly filed as provided in section 93.27.
History: (6417) 1921 c 412 s 15; 1925 c 395; 1927 c 389 s 1; 1941 c 546 s 7; 2000 c 495 s 24
93.283 [Repealed, 2000 c 495 s 53]
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, the stockpiled ore
may, in the discretion of the commissioner of natural resources, be included in the unit by
inserting a description of the ore in the designation of the unit. Otherwise the ore shall not be
considered as included in the unit. Upon the inclusion of the ore in the unit, it shall be subject to
all provisions of law relating to the sale, issuance, terms, and conditions of a lease covering the
unit and other matters pertaining thereto, so far as applicable.
    Subd. 3. Stockpile mining unit. (a) 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 according to
section 93.15, so far as applicable.
(b) The commissioner may lease the mining unit at public or private sale for an amount and
under terms and conditions prescribed by the commissioner. The lease term may not exceed 25
years. The amount payable for stockpiled iron ore material shall be at least equivalent to the
minimum royalty that would be payable under section 93.20.
    Subd. 4.[Repealed, 2000 c 495 s 53]
    Subd. 5.[Repealed, 2000 c 495 s 53]
History: 1945 c 342 s 1; 1951 c 520 s 1; 1969 c 1129 art 10 s 2; 1986 c 444; 2000 c 495 s
25,26
93.29 [Repealed, 1965 c 79 s 2]
93.30 [Repealed, 2000 c 495 s 53]
93.31 [Repealed, 2000 c 495 s 53]
93.32 [Repealed, 2000 c 495 s 53]
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.
History: (6423, 6424) 1919 c 213 s 1,2; 1986 c 444
93.335 STATE LANDS, MINERALS, MINERAL RIGHTS ACQUIRED UNDER TAX
LAWS.
    Subdivision 1. Lands held in trust for taxing districts; lease terms and conditions.
Mining leases issued as provided by sections 93.14 to 93.33, except as otherwise specifically
provided under this section, shall be subject to all the terms, conditions, and provisions of sections
93.14 to 93.33, regardless of whether or not the lands or minerals and mineral rights are held
in trust for taxing districts.
    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.[Repealed, 2000 c 495 s 53]
    Subd. 5.[Repealed, 2000 c 495 s 53]
History: 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; 2000 c 495 s 27
93.34 UNLAWFUL TO MINE UNDER PUBLIC WATERS.
    Subdivision 1.[Repealed, 2000 c 495 s 53]
    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.[Repealed, 2000 c 495 s 53]
History: (6425, 6426, 6427) 1915 c 78 s 1-3; 1979 c 102 s 13
93.351 [Repealed, 2000 c 495 s 53]
93.352 [Repealed, 2000 c 495 s 53]
93.353 [Repealed, 2000 c 495 s 53]
93.354 [Repealed, 2000 c 495 s 53]
93.355 [Repealed, 2000 c 495 s 53]
93.356 [Repealed, 2000 c 495 s 53]
93.357 [Repealed, 2000 c 495 s 53]
93.37 [Repealed, 2000 c 495 s 53]
93.38 [Repealed, 2000 c 495 s 53]
93.39 [Repealed, 2000 c 495 s 53]
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.
History: 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 [Repealed, 2000 c 495 s 53]
93.43 LEASES TO NONFERROUS METALLIC MINERALS PRODUCERS.
(a) The business of mining, producing, or beneficiating nonferrous metallic minerals 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.
(b) The commissioner of natural resources is authorized to grant permits, licenses, or leases
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 nonferrous
metallic minerals 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.
(c) 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. The permits, licenses, and leases shall
be upon the conditions, for the consideration, and for the period of time as the commissioner
may determine.
(d) 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 the conditions, for the considerations, and for the period
of time as the county board may determine. Any proceeds from granting the 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.
History: 1967 c 557 s 1; 1969 c 1129 art 10 s 2; 2000 c 495 s 28

RECLAMATION OF LANDS

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.
History: 1969 c 774 s 1; 1983 c 270 s 1
93.45 IRON RANGE TRAIL.
    Subdivision 1. Establishment. 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. Commissioner's powers; contract terms. 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.
History: 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. Applicability. 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. "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. "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. "Department" means the Department of Natural Resources.
    Subd. 6. Operator. "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. "Person" includes firms, partnerships, corporations, and other groups.
    Subd. 8. Commissioner. "Commissioner" means the commissioner of natural resources.
    Subd. 9. Lean ore stockpile removal. "Lean ore stockpile removal" means the mining and
processing of low-grade mineralized material from stockpiles for the purpose of extracting iron.
History: 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.
History: 1983 c 270 s 4; 1986 c 444
93.47 DUTIES AND AUTHORITY OF COMMISSIONER.
    Subdivision 1. Study and survey. 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. Considerations. 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. Adoption of rules. 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. Administration and enforcement. 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. Plan maps. 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.
History: 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.
History: 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.
History: 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.
History: 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.
History: 1969 c 774 s 7; 1982 c 424 s 130
93.51 PENALTIES FOR VIOLATION.
    Subdivision 1. Civil penalty. 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. Criminal penalty; injunctive relief. 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.
History: 1969 c 774 s 8; 1973 c 526 s 7; 1985 c 248 s 70

OIL AND GAS WELLS

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.
History: 1993 c 113 art 4 s 4

SEVERED MINERAL INTERESTS

93.52 OWNERSHIP OF SEVERED MINERAL INTERESTS.
    Subdivision 1. Purpose. 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. Verified statement filing requirement. 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 record in
the office of the county recorder or, if registered property, in the office of the registrar of titles in
the county where the mineral interest is located a verified statement, in triplicate, 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 recorded 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. Exemptions. 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.
History: 1969 c 829 s 1; 1973 c 650 art 20 s 5; 1976 c 181 s 2; 1986 c 444; 2005 c 4 s 20
93.53 [Repealed, 1973 c 650 art 20 s 9]
93.54 [Repealed, 1973 c 650 art 20 s 9]
93.55 FORFEITURE OF SEVERED MINERAL INTEREST.
    Subdivision 1. Forfeiture; failure to record. If the owner of a mineral interest fails to
record 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 recorded 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. Lease of forfeited interest. If the owner of a severed mineral interest fails to
record 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 record 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 record 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. Notice and hearing. The commissioner shall notify the last owner of record 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 recorded 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 recorded 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 recorded, 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 recorded 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. Terms of lease. 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. Recovery of fair market value. 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. Applicability. 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 recorded as required by this section.
History: 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; 2005 c 4 s 21-24
93.551 VALIDATION OF CERTAIN STATEMENTS; CORRECTION OF CERTAIN
ERRORS.
A statement of severed mineral interests which was recorded within the time limits specified
by section 93.55 is validly and timely recorded 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 recorded with the county recorder,
or, if the interest was not registered property, was recorded with the registrar of titles. The owner
may record an amendment or supplement to the original statement for the purpose of correcting
any or all of the errors described in this section.
History: 1979 c 303 art 10 s 2; 2005 c 4 s 25
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.
History: 1969 c 829 s 7; 1969 c 1129 art 10 s 2; 1973 c 650 art 20 s 7