1999 Minnesota Statutes

     93.17 Application for permits; bids; awards. 

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

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

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

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