2024 South Dakota Legislature

Senate Bill 111

ENROLLED

An Act

ENTITLED An Act to revise requirements for mining and mineral exploration.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That   45-6-65 be AMENDED:

45-6-65. An operator shall obtain a license to mine:

(1) Sand;

(2) Gravel;

(3) Rock to be crushed and used in construction;

(4) Pegmatite minerals;

(5) Limestone; and

(6) Iron ore, gypsum, shale, pozzolan, and other materials used in the process of making cement or lime.

The operator shall comply with the requirements of    45-6-68, 45-6-69, 45-6-71, and 45-6-72, for each site to be mined. Failure to comply with these requirements for each site mined constitutes mining without a license.

The fee for the license is one hundred dollars annually, for each mine site authorized under the license. The department shall forward any fees collected under this section to the state treasurer for deposit in the environment and natural resources fee fund established in   1-41-23.

Section 2. That   45-6-71 be AMENDED:

45-6-71. Prior to the commencement of mining, an operator shall submit a surety to the department, to be held under the authority of the board.

If a mining operation was licensed prior to July 1, 2024, the surety required by this section must, through June 30, 2026, be in the amount of five hundred dollars per acre of affected land or twenty thousand dollars for the statewide mining of any material listed in   45-6-65.

Beginning July 1, 2026, and continuing through June 30, 2027, the surety for a mining operation that was licensed prior to July 1, 2024, must be in the amount of one thousand five hundred dollars per acre of affected land or one hundred thousand dollars for the statewide mining of any material listed in   45-6-65.

Beginning July 1, 2027, and continuing through June 30, 2029, the surety for a mining operation that was licensed prior to July 1, 2024, must be in the amount of two thousand seven hundred and fifty dollars per acre of affected land or two hundred thousand dollars for the statewide mining of any material listed in   45-6-65.

Beginning July 1, 2029, the surety for a mining operation that was licensed prior to July 1, 2024, must be in the amount of three thousand eight hundred and fifty dollars per acre of affected land or three hundred thousand dollars for the statewide mining of any material listed in   45-6-65.

If a mining operation is licensed on or after July 1, 2024, the surety required by this section must be in the amount of three thousand eight hundred and fifty dollars per acre of affected land or three hundred thousand dollars for the statewide mining of any material listed in   45-6-65.

If a corporate surety bond is required, the bond must be signed by the operator, as principal, and by a surety insurer certified under chapter 58-21.

In lieu of the required surety, the operator may provide to the department, to be held under the authority of the board:

(1) An irrevocable letter of credit;

(2) A cash deposit;

(3) A certificate of deposit made payable to the board; or

(4) Government securities.

The surety must remain in effect until the affected land has been reclaimed, the reclamation is approved by the board, and the surety is released by the board.

Section 3. That chapter 45-6 be amended with a NEW SECTION:

A political subdivision may, in order to avoid the imposition of duplicate surety requirements, enter into a joint powers agreement with the board, provided the political subdivision has established requirements pertaining to reclamation after the mining of any material listed in   45-6-65.

Section 4. That   45-6B-55 be AMENDED:

45-6B-55. The application must be accompanied by:

(1) A nonrefundable fee of one hundred dollars; and

(2) A surety, in an amount determined sufficient by the board to cover the cost of reclamation, but not exceeding thirty-eight thousand five hundred dollars.

Section 5. That   45-6B-81 be AMENDED:

45-6B-81. The board may promulgate rules, pursuant to chapter 1-26, to:

(1) Establish the procedure for filing and departmental review of mining permit applications;

(2) Establish the procedure for amending mining permits;

(3) Establish the procedure for transfer of permits;

(4) Provide for the reclamation of mills proposed to be operated in conjunction with a mining operation;

(5) Establish the prehearing procedure for determining the type of reclamation to be performed on affected land;

(6) Establish the minimum requirements for each type of reclamation;

(7) Establish the reclamation activities required to be performed concurrent with mining activity;

(8) Establish the procedure to address reclamation before or during a temporary cessation of mining activity, pursuant to subdivision 45-6B-3(6);

(9) Establish the procedure for determining special, exceptional, critical, or unique land, in accordance with   45-6B-33;

(10) Establish the requirements for construction, operation, monitoring, and closure of uranium and other mineral mines using in situ leach processes; and

(11) Establish the procedure for posting and monitoring financial assurance.

Section 6. That   45-6C-13 be AMENDED:

45-6C-13. The operator may commence the exploration operation upon receipt of the written restrictions provided for in    45-6C-10 to 45-6C-12, inclusive. The department may not issue written restrictions until the operator posts surety pursuant to   45-6C-19.

Section 7. That   45-6C-19 be AMENDED:

45-6C-19. The department may inspect the area proposed to be explored. Based upon this inspection, the criteria established in   45-6C-20, and the submitted reclamation plan, the department shall set the level of the surety necessary to guarantee the costs of plugging all the proposed test holes and reclamation of affected public and private lands.

The operator shall file or deposit the surety with the department, in a form required by the department, before commencing the exploration operation.

In lieu of filing or depositing a surety for each exploration operation, the operator may post a surety in the amount of one hundred thousand dollars for statewide exploration. If a statewide surety is posted, the person posting the surety must otherwise comply with the provisions of this chapter for every area to be explored.

An Act to revise requirements for mining and mineral exploration.

I certify that the attached Act originated in the:

Senate as Bill No. 111