Natural Resources, Oil, Gas and Mining; Non-Coal

Rule R647-2

Exploration

Notice of Proposed Rule

(Amendment)

DAR File No.: 34473
Filed: 02/28/2011 05:06:38 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this rule is to establish requirements for companies who conduct exploration for minerals in Utah, in accordance with the Utah Mined Land Reclamation Act. The rule change would consolidate the annual report and annual fee deadlines to one consistent date in the fiscal year.

Summary of the rule or change:

Rule R647-2 establishes requirements for companies who conduct exploration for minerals in Utah. This change delays the filing of the annual permit fee from the last Friday of July to the deadline for annual reports. Also, this change delays the annual report due date from December 31 to January 31. As a result, annual reports for exploration, small mine operation and large mine operation will all be due on January 31.

State statutory or constitutional authorization for this rule:

• Subsection 40-8-15(2)
• Subsection 40-8-7(1)

Anticipated cost or savings to:

the state budget:

The Minerals Program is expected to encounter small savings in staff time from less follow-up to operators who are late in filing the annual report and annual fee. One consistent due date will enable the staff to contact the operator once for both items if late, rather than August and January.

local governments:

No local government costs or savings are anticipated. Local government is not impacted by this rule.

small businesses:

Small business who conduct exploration for minerals would not be negatively impacted by consolidating the annual report and fee deadlines, and may see small reduced cost from one mailing rather than two.

persons other than small businesses, businesses, or local governmental entities:

Persons other than small businesses, businesses, or local government entities would not be impacted by this rule since it pertains to companies who conduct exploration for minerals in Utah.

Compliance costs for affected persons:

There will not be added compliance costs for companies who conduct exploration for minerals since they will continue to submit annual reports and annual fees, and the due date will now be the same.

Comments by the department head on the fiscal impact the rule may have on businesses:

Businesses will not encounter increased costs from this rule change, and mineral mining companies should see reduced mailing costs.

Michael Styler, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Natural Resources
Oil, Gas and Mining; Non-Coal
1594 W NORTH TEMPLE
SALT LAKE CITY, UT 84116-3154

Direct questions regarding this rule to:

• Steve Schneider at the above address, by phone at 801-538-5328, by FAX at 801-359-3940, or by Internet E-mail at steveschneider@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

04/14/2011

Interested persons may attend a public hearing regarding this rule:

• 03/23/2011 09:00 AM, DNR, 1594 W North Temple, #1040, Salt Lake City, UT

This rule may become effective on:

04/27/2011

Authorized by:

John Baza, Director

R647. Natural Resources; Oil, Gas and Mining; Non-Coal.

R647-2. Exploration.

R647-2-101. Filing Requirements and Review Procedures.

1. Prior to the commencement of exploration, a Notice of Intention to Conduct Exploration (FORM MR-EXP) containing all the required information must be filed with and determined complete by the Division and the Division shall have approved the form and amount of reclamation surety. It is recommended that the notice of intention be filed with the Division at least 30 days prior to the planned commencement of exploration.

2. Within 15 days after receipt of a Notice of Intention to Conduct Exploration (FORM MR-EXP), the Division will review the proposal and notify the operator in writing that the notice of intention is:

2.11. Complete and all required information has been submitted; or

2.12. Incomplete, and additional information as identified by the Division will be required.

The Division will review and respond to any subsequent filings of information within 10 working days of receipt.

3. If more than five acres of disturbance are planned, a detailed exploration development and reclamation plan must be included in the notice of intention and approved by the Division.

4. The Division will review and approve or disapprove:

4.11. The form and amount of reclamation surety, and;

4.12. Any variances requested under R647-2-107, 108, or 109, regardless of the number of surface acres of disturbance planned.

5. Developmental drilling conducted within an already approved disturbed area with approved surety does not require submittal of a Notice of Intention to Conduct Exploration (FORM MR-EXP).

6. A permittee's retention of a notice of intention shall require the paying of permit fees as authorized by the Utah Legislature. The procedures for paying the permit fees are as follows:

6.11. The Division shall notify the operators of record annually of the amount of permit fees authorized by the Utah Legislature for Exploration.

6.12. Fees are due [beginning July 31, 1998 and thereafter annually, by the last Friday of July as authorized by the Utah Legislature]annually by the deadline in R647-2-115 for reports.

6.13. A permittee may avoid payment of the fee by complying with the following requirements:

6.13.11. A permittee will notify the Division of a desire to close out a notice of intention by checking the appropriate box of the permit fees billing form.

6.13.12. The permittee will then arrange with the Division for an onsite inspection of the site to assure that all required reclamation has been performed. If an inspection reveals that an area is not yet suitably reclaimed, then a new billing notice will be issued and the permittee will be given 30 days from the date of the onsite inspection to pay the fee.

 

R647-2-115. Reports.

On or before [December]January 31st of [the year of filing of a Notice of Intention to Conduct Exploration (FORM MR-EXP)]each year, the operator conducting exploration must submit a Mineral Exploration Progress Report (FORM MR-EPR), which describes any unusual drilling conditions, water encountered, hole plugging measures, and reclamation activities conducted.

 

KEY: minerals reclamation

Date of Enactment or Last Substantive Amendment: [February 23, 2006]2011

Notice of Continuation: June 2, 2008

Authorizing, and Implemented or Interpreted Law: 40-8-1 et seq.