****
69th Legislature 2025 LC0538.1
1 _____________ BILL NO. _____________
2 INTRODUCED BY _________________________________________________
3 BY REQUEST OF THE DEPARTMENT OF ENVIRONMENTAL QUALITY
4
5 A BILL FOR AN ACT ENTITLED: “AN ACT REVISING HARD ROCK AND ROCK PRODUCTS MINING FEES;
6 PROVIDING FOR AN ANNUAL SMALL MINER ADMINISTRATIVE FEE AND LATE FEE, AN EXPLORATION
7 LICENSE RENEWAL FEE, AN OPERATING PERMIT APPLICATION FEE, AN ANNUAL PERMIT FEE FOR
8 MINES AND ROCK PRODUCTS MINES, AND A FEE FOR PERMIT AMENDMENTS; CREATING A HARD-
9 ROCK MINING PERMITTING PROGRAM ACCOUNT; PROVIDING RULEMAKING AUTHORITY; AMENDING
10 SECTIONS 82-4-305, 82-4-311, 82-4-331, 82-4-332, 82-4-335, 82-4-339, 82-4-342, AND 82-4-343, MCA; AND
11 PROVIDING AN EFFECTIVE DATE.”
12
13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
14
15 NEW SECTION. Section 1. Hard-rock mining permitting program account. (1) There is a hard-
16 rock mining permitting program account in the state special revenue fund established in 17-2-102. Money
17 transferred to the fund by the legislature, fees collected in accordance with this part, and interest and income
18 earned on money in the account must be deposited into the account.
19 (2) The department shall use money in the account to administer and enforce this part.
20
21 Section 2. Section 82-4-305, MCA, is amended to read:
22 "82-4-305. Exemption -- small miners -- written agreement. (1) Except as provided in subsections
23 (3) through (11) (12), the provisions of this part do not apply to a small miner if the small miner annually submits
24 a $100 administrative fee and agrees in writing:
25 (a) that the small miner will not pollute or contaminate any stream;
26 (b) that the small miner will provide protection for human and animal life through the installation of
27 bulkheads installed over safety collars and the installation of doors on tunnel portals;
28 (c) that the small miner will provide a map locating the miner's mining operations. The map must
-1- Authorized Print Version – ****
****
69th Legislature 2025 LC0538.1
1 be of a size and scale determined by the department.
2 (d) if the small miner's operations are placer or dredge mining, that the small miner shall salvage
3 and protect all soil materials for use in reclamation of that site and shall reclaim all land disturbed by the
4 operations to comparable utility and stability as that of adjacent areas.
5 (2) For small-miner exemptions obtained after September 30, 1985, a small miner may not obtain
6 or continue an exemption under subsection (1) unless the small miner annually certifies in writing:
7 (a) if the small miner is an individual, that:
8 (i) no business association or partnership of which the small miner is a member or partner has a
9 small-miner exemption; and
10 (ii) no corporation of which the small miner is an officer, director, or owner of record of 25% or
11 more of any class of voting stock has a small-miner exemption; or
12 (b) if the small miner is a partnership or business association, that:
13 (i) none of the associates or partners holds a small-miner exemption; and
14 (ii) none of the associates or partners is an officer, director, or owner of 25% or more of any class
15 of voting stock of a corporation that has a small-miner exemption; or
16 (c) if the small miner is a corporation, that no officer, director, or owner of record of 25% or more of
17 any class of voting stock of the corporation:
18 (i) holds a small-miner exemption;
19 (ii) is a member or partner in a business association or partnership that holds a small-miner
20 exemption; or
21 (iii) is an officer, director, or owner of record of 25% or more of any class of voting stock of another
22 corporation that holds a small-miner exemption.
23 (3) A small miner whose operations are placer or dredge mining shall post a performance bond
24 equal to the state's documented cost estimate of reclaiming the disturbed land, although the bond may not
25 exceed $10,000 for each operation. If the small miner has posted a bond for reclamation with another
26 government agency, the small miner is exempt from the requirement of this subsection.
27 (4) If a small miner who conducts a placer or dredge mining operation fails to reclaim the
28 operation, the small miner is liable to the department for all of its reasonable costs of reclamation, including a
-2- Authorized Print Version – ****
****
69th Legislature 2025 LC0538.1
1 reasonable charge for services performed by state personnel and for state materials and equipment used. If the
2 small miner posts a surety bond, the surety is liable to the state to the extent of the bond amount and the small
3 miner is liable for the remainder of the reasonable costs to the state of reclaiming the operation.
4 (5) If a small miner who conducts a placer or dredge mining operation fails to commence
5 reclamation of the operation within 6 months after cessation of mining or within an extended period allowed by
6 the department for good cause shown or if the small miner fails to diligently complete reclamation, the
7 department shall notify the small miner by certified mail that it intends to reclaim the operation unless the small
8 miner commences reclamation within 30 days and diligently completes the reclamation. The notice must be
9 mailed to the address stated on the small miner exclusion statement or, if the small miner has notified the
10 department of a different address by letter or in the annual certification form, to the most recent address given
11 to the department. If the small miner fails to commence reclamation within 30 days or to diligently complete
12 reclamation, the department may revoke the small miner exclusion statement, forfeit any bond that has been
13 posted with the department, and enter and reclaim the operation. If the small miner has not posted a bond with
14 the department or if the reasonable costs of reclamation exceed the amount of the bond, the department may
15 also collect additional reclamation costs, as set forth in subsection (6), before or after it incurs those costs.
16 (6) To collect additional reclamation costs, the department shall notify the small miner by certified
17 mail, at the address determined under subsection (5), of the additional reasonable reclamation costs and
18 request payment within 30 days. If the small miner does not pay the additional reclamation costs within 30
19 days, the department may bring an action in district court for payment of the estimated future costs and, if the
20 department has performed any reclamation, of its reasonable actual costs. The court shall order payment of
21 costs that it determines to be reasonable and shall retain jurisdiction until reclamation of the operation is
22 completed. Upon completion of reclamation, the court shall order payment of any additional costs that it
23 considers reasonable or the refund of any portion of any payment for estimated costs that exceeds the actual
24 reasonable costs incurred by the department.
25 (7) A small miner who intends to use a cyanide ore-processing reagent or other metal leaching
26 solvents or reagents shall obtain an operating permit for that part of the small miner's operation in which the
27 cyanide ore-processing reagent or other metal leaching solvents or reagents will be used or disposed of. The
28 acreage disturbed by the operation using cyanide ore-processing reagents or other metal leaching solvents or
-3- Authorized Print Version – ****
****
69th Legislature 2025 LC0538.1
1 reagents and covered by the operating permit is excluded from the 5-acre limit specified in 82-4-303(30)(a)(i)
2 and (30)(a)(ii).
3 (8) (a) Except for a small miner proposing to conduct a placer or dredge mining operation, a small
4 miner who intends to use an impoundment to store waste from ore processing shall obtain approval for the
5 design, construction, operation, and reclamation of that impoundment and post a performance bond for that
6 part of the small miner's operation before constructing an impoundment. The small miner shall post a
7 performance bond equal to the state's documented cost estimate of reclaiming the disturbed land. If the small
8 miner has posted a bond for reclamation of that site with a federal government agency, the small miner is
9 exempt from the requirements of this subsection (8)(a).
10 (b) The department shall conduct a review of the adequacy of the bond posted by a small miner
11 using an impoundment pursuant to this section at least once every 5 years and adjust the bond if necessary to
12 ensure reclamation of the impoundment. The acreage disturbed by the portion of the operation that uses an
13 impoundment to store waste from ore processing is included in the 5-acre limit specified in 82-4-303(30)(a)(i)
14 and (30)(a)(ii) and is subject to the provisions of this subsection (8).
15 (c) If a small miner under this subsection (8) fails to reclaim the operation, the small miner is liable
16 to the department for all of its reasonable costs of reclamation, including a reasonable charge for services
17 performed by state personnel and for state materials and equipment used. If the small miner posts a surety
18 bond, the surety is liable to the state to the extent of the bond amount and the small miner is liable for the
19 remainder of the reasonable costs to the state of reclaiming the operation.
20 (d) If a small miner under this subsection (8) fails to commence reclamation of the operation within
21 6 months after cessation of mining or within an extended period allowed by the department for good cause
22 shown or if the small miner fails to diligently complete reclamation, the department shall notify the small miner
23 by certified mail that it intends to reclaim the operation unless the small miner commences reclamation within
24 30 days and diligently completes the reclamation. The notice must be mailed to the address stated on the small
25 miner exclusion statement or, if the small miner has notified the department of a different address by letter or in
26 the annual certification form, to the most recent address given to the department. If the small miner fails to
27 commence reclamation within 30 days or to diligently complete reclamation, the department may revoke the
28 small miner exclusion statement, forfeit any bond that has been posted with the department, and enter and
-4- Authorized Print Version – ****
****
69th Legislature 2025 LC0538.1
1 reclaim the operation. If the small miner has not posted a bond with the department or if the reasonable costs of
2 reclamation exceed the amount of the bond, the department may also collect additional reclamation costs, as
3 set forth in subsection (8)(e), before or after it incurs those costs.
4 (e) To collect additional reclamation costs, the department shall notify the small miner by certified
5 mail, at the address determined under subsection (8)(d), of the additional reasonable reclamation costs and
6 request payment within 30 days. If the small miner does not pay the additional reclamation costs within 30
7 days, the department may bring an action in district court for payment of the estimated future costs and, if the
8 department has performed any reclamation, of its reasonable actual costs. The court shall order payment of
9 costs that it determines to be reasonable and shall retain jurisdiction until reclamation of the operation is
10 completed. Upon completion of reclamation, the court shall order payment of any additional costs that it
11 considers reasonable or the refund of any portion of any payment for estimated costs that exceeds the actual
12 reasonable costs incurred by the department.
13 (f) Except for a small miner who conducts a placer or dredge mining operation, a small miner
14 utilizing an impoundment to store waste from ore processing on or after April 28, 2005, shall obtain approval of
15 the design, construction, operation, and reclamation of that impoundment and post a performance bond within 6
16 months of April 28, 2005. If the small miner has posted a bond for reclamation of that site with a federal
17 government agency, the small miner is exempt from the requirements of this subsection (8)(f).
18 (9) The exemption provided in this section does not apply to a person:
19 (a) whose failure to comply with the provisions of this part, the rules adopted under this part, or a
20 permit or license issued under this part has resulted in the forfeiture of a bond, unless that person meets the
21 conditions described under 82-4-360;
22 (b) who has not paid a penalty for which the department has obtained a judgment pursuant to 82-
23 4-361;
24 (c) who has failed to post a reclamation bond required by this section, unless the department has
25 certified that the area for which the bond should have been posted has been reclaimed by that person or
26 reclaimed by the department and the person has reimbursed the department for the cost of the reclamation; or
27 (d) who has failed to comply with an abatement order issued pursuant to 82-4-362, unless the
28 department has completed the abatement and the person has reimbursed the department for the cost of
-5- Authorized Print Version – ****
****
69th Legislature 2025 LC0538.1
1 abatement.
2 (10) The exemption provided in this section does not apply to an area:
3 (a) under permit pursuant to 82-4-335;
4 (b) that has been permitted pursuant to 82-4-335 and reclaimed by the permittee, the department,
5 or any other state or federal agency; or
6 (c) that has been reclaimed by or has been subject to remediation of contamination or pollution by
7 a public agency, under supervision of a public agency, or using public funds.
8 (11) A small miner may not use mercury except in a contained facility that prevents the escape of
9 any mercury into the environment.
10 (12) If a small miner fails to meet the annual reporting requirement in this section on or before
11 March 1 of each year, the small miner shall pay a late fee of $100 in addition to the $100 administrative fee."
12
13 Section 3. Section 82-4-311, MCA, is amended to read:
14 "82-4-311. Disposition of fees, fines, penalties, and other uncleared money. (1) (a) All fees, fines
15 Fines, penalties, and other uncleared money that has been or will be paid to the department under the
16 provisions of this part must be placed in the environmental rehabilitation and response account in the state
17 special revenue fund provided for established in 75-1-110.
18 (b) Funds held by the department as bond or as a result of bond forfeiture that are no longer
19 needed for reclamation and for which the department is not able to locate a surety or other person who owns
20 the funds after diligent search must be deposited in the environmental rehabilitation and response account in
21 the state special revenue fund established in 75-1-110.
22 (2) Fees paid to the department under this part must be placed in the hard-rock mining permitting
23 program account established in [section 1]."
24
25 Section 4. Section 82-4-331, MCA, is amended to read:
26 "82-4-331. Exploration license required -- employees included -- limitation. (1) (a) A person may
27 not engage in exploration in the state without first obtaining an exploration license from the department. A
28 license must be issued for a period of 1 year from the date of issue and is renewable from year to year on
-6- Authorized Print Version – ****
****
69th Legislature 2025 LC0538.1
1 application. An application for renewal must be filed within 30 days preceding the expiration of the current
2 license and be accompanied by payment of a $25 renewal fee the fee specified in 82-4-342(2)(c), if applicable,
3 and the following renewal fee:
4 (i) for an exploration license approved for activities beneath the surface of the land, $400; or
5 (ii) for an exploration license approved for activities only on the surface of the land, $100.
6 (b) A license may not be renewed if the applicant for renewal is in violation of any provision of this
7 part. A license is subject to suspension and revocation as provided by this part.
8 (2) Employees of persons holding a valid l