FINAL BILL REPORT
SSB 5193
C 20 L 87
BYSenate Committee on Natural Resources (originally sponsored by Senators Peterson, Sellar, Stratton and Barr)
Regulating mining on public lands.
Senate Committee on Natural Resources
House Committe on Natural Resources
SYNOPSIS AS ENACTED
BACKGROUND:
The Department of Natural Resources leases state lands for mining exploration and development. There is concern that with increased interest in mining and recreational prospecting, the state needs to clarify the Department of Natural Resources' authority to ensure environmental protection and provide a workable leasing process. Existing procedures are cumbersome and there is inadequate authority for the Department to reject applications for mining on state lands that are also managed for other purposes such as agriculture and timber production. Investigation of sites is conducted as part of the Environmental Policy Act inspection process.
SUMMARY:
The Department of Natural Resources is authorized to issue permits and leases for prospecting and mining valuable minerals. Excluded from mineral leases are surface resources and energy commodities.
The Department may: (1) Issue placer mining contracts at public auction; (2) reject an application and refund the fee; (3) promulgate rules for recreational mineral prospecting permits.
DNR no longer is to: (1) conduct a discretionary site investigation and report; (2) require a bond from the lessee; (3) require the first year's rental at time of application for a placer mining contract.
DNR state land leases and mining contracts shall include the language established by law in 1911 which ensures compensation to surface owners for any damages. The term of prospecting leases is extended from a maximum of two years to a maximum of seven years. The statutory minimum allowed for lease is 640 acres or an entire government surveyed section.
A mining contract must be obtained prior to the commencement of commercial mining. A deadline is established for filing an application to convert a prospecting lease to a mining contract and the period for filing is extended from 60 to 180 days. The term of a mining contract is 20 years. The term of the prospecting lease need not be deducted from the term of the mining contract.
The lessee's obligation to make satisfactory arrangements with the holder of surface interests prior to commencing operations is clarified. The lessee is required to submit a plan of development including a reclamation plan as part of the application. Land must be reclaimed after prospecting or mining is completed. Lessees must pay for any timber removed from the leased premises.
The lessee may apply for a renewal of a mining contract within 90 days of the expiration date of the contract. The Department shall investigate to determine if the terms of the contract have been followed. If there is compliance, DNR shall renew the contract with the original terms except that royalty rates are reset based on the rates established by law at the time of renewal.
The lessee has the right to terminate a contract with written notice to the Department and submission of information obtained during the prospecting period. The contract will terminate 60 days after notice if all arrears and sums due to the Department have been paid. The lessee must remove improvements within 60 days after termination unless DNR grants an extension.
The Board of Natural Resources: (1) Sets lease rental rates and policy; (2) authorizes the amount of annual prospecting work; (3) may provide payment of money in lieu of work for up to three years of the seven year lease; (4) sets the minimum amount of annual development work; (5) sets fees for recreational prospecting permits.
The state retains all rights for removal and sale of surface resources, timber, rock, gravel, sand, silt, coal and hydrocarbons except for minerals covered by the prospecting lease or mining contract.
VOTES ON FINAL PASSAGE:
Senate 47 0
House 94 2
EFFECTIVE:July 26, 1987