1998 Minnesota Statutes

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

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

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

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

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

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

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

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

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

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

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

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