HOUSE BILL No. 5246 October 8, 1997, Introduced by Reps. Prusi, Gagliardi, Anthony, Tesanovich, Alley, Middaugh, Kelly, Rhead and Agee and referred to the Committee on Conservation, Environment and Recreation. A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," by amending section 63101 (MCL 324.63101), as added by 1995 PA 57, and by adding sections 63103a, 63103b, 63103c, and 63103d. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 63101. As used in this part: 2 (A) "ADMINISTRATIVELY COMPLETE" MEANS AN APPLICATION FOR A 3 MINING PERMIT UNDER THIS PART THAT IS DETERMINED BY THE DEPART- 4 MENT TO SATISFY ALL OF THE CONDITIONS OF THIS PART AND RULES 5 PROMULGATED UNDER THIS PART. 6 (B) "DEPARTMENT" MEANS THE DEPARTMENT OF ENVIRONMENTAL 7 QUALITY. 8 (C) "LIFE OF THE MINE" MEANS THE PERIOD OF TIME FROM 9 ISSUANCE OF A PERMIT UNDER THIS PART THROUGH THE COMPLETION OF 10 RECLAMATION AS REQUIRED BY THIS PART. 02311'97 * JCB 2 1 (D) "METALLIC MINERAL" MEANS METALLIC ORE OR MATERIAL MINED 2 FOR ITS METALLIC CONTENT. 3 (E) "METALLIC MINERAL OPERATOR" MEANS A PERSON WHO OWNS OR 4 LEASES THE PLANT AND EQUIPMENT UTILIZED IN A METALLIC MINERAL 5 MINING AREA AND IS ENGAGED IN THE BUSINESS OF MINING METALLIC 6 MINERALS OR PREPARING TO ENGAGE IN MINING OPERATIONS FOR METALLIC 7 MINERALS. 8 (F) "METALLIC PRODUCT" MEANS A COMMERCIALLY SALABLE METALLIC 9 MINERAL IN ITS FINAL MARKETABLE FORM OR STATE. 10 (G)(a)"Mineral" meanscoal, gypsum, stone, metallic11ore, or material mined for its metallic content and other similar12solid material orANY substance to be excavated from THE natural 13 deposits on or in the earth for commercial, industrial, or con- 14 structionusesPURPOSES, INCLUDING LIMESTONE, DOLOSTONE, SAND- 15 STONE, SHALE, METALLIC MINERAL, OR OTHER SOLID MATERIALS. Mineral 16 does not include clay, gravel, marl, peat,orINLAND sand OR 17 SAND MINED FOR COMMERCIAL OR INDUSTRIAL PURPOSES, FROM SAND DUNE 18 AREAS REGULATED UNDER PART 637, OR COAL REGULATED UNDER PART 635. 19 (H)(b)"Mining area" or "area subjected to mining" means 20 an area of land from which material is removed in connection with 21 the production or extraction of minerals by SURFACE OR open pit 22 mining methods, the lands on which material from that mining is 23 deposited, the lands on which beneficiating or treatment plants 24 and auxiliary facilities are located, the lands on which the 25 water reservoirs used in the mining process are located, and aux- 26 iliary lands which are used. 02311'97 * 3 1(c) "Open pit mining" means the mining of a mineral in the2regular operation of a business by removing the overburden lying3above natural deposits of the mineral and mining directly from4the natural deposits thus exposed or by mining directly from5deposits lying exposed in their natural state. Open pit mining6does not include excavation or grading preliminary to a construc-7tion project or borrow operations for highway constructions.8 (I)(d)"Operator" meansan owner or lessee of mineral9rightsA METALLIC MINERAL OPERATOR OR OTHER PERSONS engaged in 10 or preparing to engage in mining operationswith respect11theretofor the production of mineral products. 12(e) "Person" means an individual, corporation, company,13association, joint venture, partnership, receiver, trustee,14guardian, executor, administrator, personal representative, or15private organization.16 (J)(f)"Stockpile" means material, including, but not 17 limited to, surface overburden, rock, or lean ore, which in the 18 process of mining and beneficiation or treatment has been removed 19 from the earth and stored on the surface, but excluding materials 20 that are being treated in the production of mineral products and 21 the mineral product that has been produced by that operation. 22 (K)(g)"Supervisor of reclamation" means the state 23 geologist. 24 (l) "SURFACE OR OPEN PIT MINING" MEANS THE MINING OF MORE 25 THAN 10,000 TONS OF A MINERAL OR DISTURBING MORE THAN 1 ACRE OF 26 LAND A YEAR IN THE REGULAR OPERATION OF A BUSINESS BY REMOVING 27 THE OVERBURDEN LYING ABOVE A NATURAL DEPOSIT OF A MINERAL AND 02311'97 * 4 1 MINING DIRECTLY FROM THE NATURAL DEPOSIT EXPOSED OR BY MINING 2 DIRECTLY FROM A DEPOSIT LYING EXPOSED IN THE MINERAL'S NATURAL 3 STATE. SURFACE OR OPEN PIT MINING INCLUDES ALL MINING BELOW THE 4 WATER TABLE OR WHICH WILL UPON CESSATION OF MINING RESULT IN CRE- 5 ATING A BODY OF WATER OF ANY SIZE. SURFACE OR OPEN PIT MINING 6 DOES NOT INCLUDE EXCAVATION OR GRADING PRELIMINARY TO A CONSTRUC- 7 TION PROJECT. 8 (M)(h)"Tailings basin" means land on which is deposited, 9 by hydraulic OR OTHER means, the material that is separated from 10 the mineral product in the beneficiation or treatment of minerals 11 including any surrounding dikes constructed to contain the 12 material. 13 SEC. 63103A. (1) AFTER OCTOBER 1, 1997, A METALLIC MINERAL 14 OPERATOR SHALL NOT ENGAGE IN THE MINING OF METALLIC MINERALS 15 WITHOUT FIRST OBTAINING A PERMIT FOR THAT PURPOSE FROM THE 16 DEPARTMENT. A METALLIC MINERAL OPERATOR ENGAGED IN OR CARRYING 17 OUT A METALLIC MINING OPERATION AS OF THE EFFECTIVE DATE OF THIS 18 SECTION SHALL APPLY FOR A PERMIT TO MINE 1 YEAR AFTER THE EFFEC- 19 TIVE DATE OF THIS SECTION. ANY SUCH EXISTING METALLIC MINING 20 OPERATION MAY CONTINUE MINING UNTIL THE DEPARTMENT ISSUES OR 21 DENIES A PERMIT FOR THE METALLIC MINING OPERATION. 22 (2) PRIOR TO RECEIVING A PERMIT FROM THE DEPARTMENT, A 23 METALLIC MINERAL OPERATOR SHALL SUBMIT THE FOLLOWING: 24 (A) A PERMIT APPLICATION ON A FORM PROVIDED BY THE 25 DEPARTMENT. 26 (B) A MINING AND RECLAMATION PLAN FOR THE PROPOSED METALLIC 27 MINING ACTIVITY AS PRESCRIBED BY SECTION 63103B. 02311'97 * 5 1 SEC. 63103B. THE MINING AND RECLAMATION PLAN SUBMITTED 2 UNDER SECTION 63103A, FOR THE TOTAL PROJECT, SHALL INCLUDE ALL OF 3 THE FOLLOWING: 4 (A) THE METHOD AND DIRECTION OF MINING. 5 (B) SURFACE OVERBURDEN STRIPPING PLANS. 6 (C) THE DEPTH OF GRADE LEVEL OVER THE ENTIRE SITE FROM WHICH 7 THE METALLIC MINERAL WILL BE REMOVED. 8 (D) PROVISIONS FOR GRADING, REVEGETATION, AND STABILIZATION 9 THAT WILL MINIMIZE SOIL EROSION, SEDIMENTATION, AND PUBLIC SAFETY 10 CONCERNS. 11 (E) THE LOCATION OF BUILDINGS, EQUIPMENT, STOCKPILES, ROADS, 12 OR OTHER FEATURES NECESSARY TO THE MINING ACTIVITY AND PROVISIONS 13 FOR THEIR REMOVAL AND RESTORATION OF THE AREA AT THE PROJECT 14 TERMINATION. 15 (F) THE INTERIM USE OR USES OF RECLAIMED AREAS BEFORE THE 16 CESSATION OF THE ENTIRE MINING OPERATION. 17 (G) MAPS AND OTHER SUPPORTING DOCUMENTS REQUIRED BY THE 18 DEPARTMENT. 19 (H) FENCING OR OTHER TECHNIQUES TO MINIMIZE TRESPASS OR 20 UNAUTHORIZED ACCESS TO THE MINING ACTIVITY. 21 (I) IF REQUIRED BY THE DEPARTMENT WHEN MINING ACTIVITY BELOW 22 THE WATER TABLE IS PROPOSED, A HYDROGEOLOGICAL SURVEY OF THE SUR- 23 ROUNDING AREA. 24 (J) IF THREATENED OR ENDANGERED SPECIES ARE IDENTIFIED, AN 25 INDICATION OF HOW THE THREATENED OR ENDANGERED SPECIES WILL BE 26 PROTECTED OR, IF NOT PROTECTED, WHAT MITIGATION MEASURES WILL BE 27 PERFORMED. 02311'97 * 6 1 (K) IF THE PROPOSED MINING ACTIVITY INCLUDES BENEFICIATION 2 OR TREATMENT OF THE METALLIC ORE OR MATERIAL MINED FOR ITS METAL- 3 LIC CONTENT, THE APPLICATION DOCUMENTS SHALL INCLUDE SPECIFIC 4 PLANS DEPICTING THE BENEFICIATION AND TREATMENT METHODS AND TECH- 5 NIQUES, AND MANUFACTURER'S MATERIAL SAFETY DATA SHEETS ON ALL 6 CHEMICALS OR OTHER ADDITIVES THAT ARE NOT NATURAL TO THE SITE, 7 THAT WILL BE UTILIZED IN THE PROCESS. THE OPERATOR SHALL OBTAIN 8 ALL APPLICABLE STATE AND FEDERAL PERMITS BEFORE BEGINNING THE 9 BENEFICIATION PROCESS. 10 SEC. 63103C. (1) A METALLIC MINERAL MINING PERMIT ISSUED BY 11 THE DEPARTMENT IS VALID FOR THE LIFE OF THE MINE. HOWEVER, THE 12 DEPARTMENT MAY REVOKE A METALLIC MINERAL MINING PERMIT UNDER THE 13 FOLLOWING CONDITIONS: 14 (A) THE PERSON HOLDING THE PERMIT HAS NOT COMMENCED CON- 15 STRUCTION OF PLANT FACILITIES OR CONDUCTED ACTUAL MINING AND REC- 16 LAMATION ACTIVITIES COVERED BY THE PERMIT WITHIN 3 YEARS AFTER 17 THE DATE OF ISSUANCE OF THE PERMIT. 18 (B) THE PERMITTEE REQUESTS THE REVOCATION OF THE METALLIC 19 MINERAL MINING PERMIT AND THE DEPARTMENT DETERMINES THE MINING 20 ACTIVITY HAS NOT POLLUTED, IMPAIRED, OR DESTROYED THE AIR, WATER, 21 OR OTHER NATURAL RESOURCES OR THE PUBLIC TRUST IN THOSE 22 RESOURCES, AS PROVIDED IN PART 17. 23 (C) THE PERMITTEE FAILS TO SUBMIT THE ANNUAL REPORT OF RES- 24 TORATION AND RECLAMATION ACTIVITIES OF THE METALLIC MINERAL OPER- 25 ATOR AS REQUIRED BY SECTION 63103D(2). 26 (D) THE DEPARTMENT FINDS THAT THE PERMITTEE IS NOT IN 27 COMPLIANCE WITH THIS PART, THE RULES PROMULGATED UNDER THIS PART, 02311'97 * 7 1 OR THE METALLIC MINERAL PERMIT AND THERE EXISTS AN IMMINENT 2 THREAT TO THE HEALTH AND SAFETY OF THE PUBLIC. 3 (2) THE DEPARTMENT MAY ORDER IMMEDIATE SUSPENSION OF ANY OR 4 ALL ACTIVITIES AT A METALLIC MINERAL MINING OPERATION, INCLUDING 5 THE REMOVAL OF METALLIC PRODUCT FROM THE SITE, IF THE DEPARTMENT 6 FINDS THERE EXISTS AN EMERGENCY ENDANGERING THE PUBLIC HEALTH AND 7 SAFETY OR AN IMMINENT THREAT TO THE NATURAL RESOURCES OF THE 8 STATE. 9 (3) AN ORDER SUSPENDING OPERATIONS SHALL BE IN EFFECT FOR 10 THE SHORTER OF THE FOLLOWING TIME PERIODS: NOT MORE THAN 10 11 DAYS, OR UNTIL THE OPERATION IS IN COMPLIANCE AND PROTECTION OF 12 THE PUBLIC HEALTH AND SAFETY IS ENSURED OR THE THREAT TO THE NAT- 13 URAL RESOURCES HAS BEEN ELIMINATED. TO EXTEND THE SUSPENSION 14 BEYOND 10 DAYS, THE DEPARTMENT SHALL ISSUE AN EMERGENCY ORDER TO 15 CONTINUE THE SUSPENSION OF OPERATIONS AND SHALL SCHEDULE A HEAR- 16 ING AS PROVIDED BY THE ADMINISTRATIVE PROCEDURES ACT OF 1969, 17 1969 PA 306, MCL 24.201 T0 24.328. THE TOTAL DURATION OF THE 18 SUSPENSION OF OPERATIONS SHALL NOT BE MORE THAN 30 DAYS. 19 (4) A METALLIC MINERAL MINING PERMIT MAY BE TRANSFERRED TO A 20 NEW PERSON WITH APPROVAL OF THE DEPARTMENT. THE PERSON ACQUIRING 21 THE PERMIT SHALL SUBMIT A REQUEST FOR TRANSFER OF THE PERMIT TO 22 THE DEPARTMENT ON FORMS PROVIDED BY THE DEPARTMENT. THE PERSON 23 ACQUIRING THE PERMIT SHALL ACCEPT THE CONDITIONS OF THE EXISTING 24 PERMIT AND ADHERE TO THE REQUIREMENTS SET FORTH ON THE APPROVED 25 MINING AND RECLAMATION PLAN. PENDING THE TRANSFER OF THE EXIST- 26 ING PERMIT, THE PERSON ACQUIRING THE PERMIT SHALL NOT OPERATE THE 27 MINE. 02311'97 * 8 1 (5) A METALLIC MINERAL MINING PERMIT SHALL NOT BE 2 TRANSFERRED TO A PERSON WHO HAS BEEN DETERMINED TO BE IN VIOLA- 3 TION OF ANY OF THE FOLLOWING, UNTIL THE PERSON ACQUIRING THE 4 PERMIT HAS CORRECTED THE VIOLATION OR THE DEPARTMENT HAS ACCEPTED 5 A COMPLIANCE SCHEDULE AND A WRITTEN AGREEMENT HAS BEEN REACHED TO 6 CORRECT THE VIOLATIONS: 7 (A) THIS PART. 8 (B) THE RULES PROMULGATED UNDER THIS PART. 9 (C) PERMIT CONDITIONS. 10 (D) AN ORDER OF THE DEPARTMENT OF ENVIRONMENTAL QUALITY. 11 (6) IF THE PERMITTEE OF A METALLIC MINERAL MINING OPERATION 12 IS UNDER NOTICE BECAUSE OF UNSATISFACTORY CONDITIONS AT THE 13 MINING SITE INVOLVED IN THE TRANSFER, THEN THE PERMIT FOR THE 14 MINING OPERATION SHALL NOT BE TRANSFERRED TO A PERSON UNTIL THE 15 PERMITTEE HAS COMPLETED THE NECESSARY CORRECTIVE ACTIONS OR THE 16 PERSON ACQUIRING THE PERMIT HAS ENTERED INTO A WRITTEN AGREEMENT 17 TO CORRECT ALL OF THE UNSATISFACTORY CONDITIONS. 18 (7) UPON RECEIPT OF AN APPLICATION FOR A PERMIT, THE DEPART- 19 MENT SHALL HAVE UP TO 60 DAYS TO REVIEW THE APPLICATION TO DETER- 20 MINE IF THE APPLICATION IS ACCURATE AND COMPLETE. IF THE APPLI- 21 CATION IS DETERMINED TO BE INACCURATE OR INCOMPLETE, THEN THE 22 DEPARTMENT SHALL PROVIDE THE PERSON MAKING THE APPLICATION FOR A 23 PERMIT, WITHIN THE 60-DAY PERIOD, WITH A NOTICE THAT THE APPLICA- 24 TION IS INACCURATE OR INCOMPLETE AND WHAT CHANGES OR ADDITIONAL 25 INFORMATION SHALL BE SUBMITTED. UPON RECEIPT OF THE REQUESTED 26 INFORMATION, THE DEPARTMENT SHALL HAVE UP TO AN ADDITIONAL 30 27 DAYS TO REVIEW THE INFORMATION TO DETERMINE IF THE APPLICATION IS 02311'97 * 9 1 ACCURATE AND COMPLETE. UPON COMPLETION OF THE REVIEW PROCESS, 2 THE DEPARTMENT SHALL APPROVE OR DENY A METALLIC MINERAL MINING 3 PERMIT APPLICATION IN WRITING WITHIN 60 DAYS AFTER THE APPLICA- 4 TION IS DETERMINED BY THE DEPARTMENT TO BE ADMINISTRATIVELY 5 COMPLETE. A DETERMINATION OF ADMINISTRATIVE COMPLETENESS SHALL 6 NOT BE CONSTRUED TO MEAN THAT ADDITIONAL INFORMATION MAY NOT BE 7 REQUIRED FROM THE APPLICANT AS A RESULT OF NEW CIRCUMSTANCES THAT 8 COME TO THE ATTENTION OF THE DEPARTMENT. IF A METALLIC MINERAL 9 PERMIT IS DENIED, THE REASONS SHALL BE STATED IN A WRITTEN REPORT 10 TO THE APPLICANT. 11 (8) A METALLIC MINERAL MINING PERMIT MAY BE AMENDED UPON 12 SUBMISSION TO THE DEPARTMENT OF A REQUEST BY THE PERMITTEE. UPON 13 RECEIPT OF THE REQUEST TO AMEND AN EXISTING METALLIC MINERAL 14 PERMIT, THE DEPARTMENT SHALL DETERMINE IF THE REQUEST CONSTITUTES 15 A SIGNIFICANT CHANGE FROM THE CONDITIONS OF THE APPROVED PERMIT. 16 IF THE DEPARTMENT DETERMINES THE REQUEST IS A SIGNIFICANT CHANGE 17 FROM THE CONDITIONS OF THE APPROVED PERMIT, THE DEPARTMENT MAY 18 SUBMIT THE REQUEST FOR AMENDMENT TO THE SAME REVIEW PROCESS AS 19 PROVIDED IN SECTION 63103C(7). IF A REQUEST TO AMEND THE PERMIT 20 IS DENIED, THE REASONS FOR DENIAL SHALL BE STATED IN A WRITTEN 21 REPORT TO THE PERMITTEE. IF THE DEPARTMENT DETERMINES THE 22 REQUEST FOR AMENDMENT DOES NOT CONSTITUTE A SIGNIFICANT CHANGE 23 FROM THE CONDITIONS OF THE APPROVED PERMIT, THE DEPARTMENT SHALL 24 APPROVE THE AMENDMENT AND NOTIFY THE PERMITTEE. 25 SEC. 63103D. (1) FOR PURPOSES OF SURVEILLANCE, MONITORING, 26 ADMINISTRATION, AND ENFORCEMENT OF THIS PART, A METALLIC MINERAL 27 OPERATOR SHALL BE ASSESSED A METALLIC MINERAL SURVEILLANCE FEE ON 02311'97 * 10 1 THE METALLIC PRODUCT PRODUCED FOR THE CALENDAR YEAR REPORTED AS 2 DESCRIBED IN SUBSECTION (2). THE FEE SHALL BE ASSESSED UPON EACH 3 METALLIC PRODUCT AT THE FOLLOWING RATES: GOLD SHALL BE NOT MORE 4 THAN 9.4 CENTS PER TROY OUNCE, SILVER SHALL NOT BE MORE THAN 0.13 5 CENTS PER TROY OUNCE, COPPER SHALL NOT BE MORE THAN 0.03 CENTS 6 PER POUND, AND IRON SHALL NOT BE MORE THAN 1 CENT PER METRIC 7 TON. FUNDS COLLECTED BY THE ASSESSMENT OF THE METALLIC MINERAL 8 SURVEILLANCE FEE SHALL NOT EXCEED THE ACTUAL COSTS TO THE DEPART- 9 MENT OF IMPLEMENTING THE SECTIONS OF THIS PART THAT PERTAIN TO 10 METALLIC MINERAL MINING. ANY FEES COLLECTED UNDER THIS SUBSEC- 11 TION THAT ARE UNEXPENDED AT THE END OF A FISCAL YEAR SHALL BE 12 CREDITED TO A SEPARATE FUND OF THE DEPARTMENT, CARRIED OVER TO 13 THE SUCCEEDING FISCAL YEAR, AND DEDUCTED FROM THE AMOUNT APPRO- 14 PRIATED FOR THAT YEAR FOR SURVEILLANCE, MONITORING, ADMINISTRA- 15 TION, AND ENFORCEMENT OF THIS PART FOR PURPOSES OF COMPUTING THE 16 FEE TO BE ASSESSED FOR THAT YEAR. 17 (2) A METALLIC MINERAL OPERATOR SHALL FILE AN ANNUAL REPORT 18 ON OR BEFORE FEBRUARY 15 OF EACH YEAR. THE REPORT SHALL SHOW THE 19 AREAS MINED AND DESCRIBE THE PROGRESS OF RESTORATION AND RECLAMA- 20 TION ACTIVITIES OF THE METALLIC MINERAL OPERATOR FOR THE PRECED- 21 ING CALENDAR YEAR. THE REPORT SHALL CONTAIN BOTH OF THE 22 FOLLOWING: 23 (A) THE ANNUAL PRODUCTION OF METALLIC PRODUCT FROM EACH 24 METALLIC MINERAL MINING AREA. 25 (B) LOCATION OF THE METALLIC MINERAL MINING AREA. 26 (3) THE METALLIC MINERAL SURVEILLANCE FEE DESCRIBED IN 27 SUBSECTION (1) SHALL BE DUE NOT MORE THAN 30 DAYS AFTER THE 02311'97 * 11 1 DEPARTMENT SENDS WRITTEN NOTICE TO THE METALLIC MINERAL OPERATOR 2 OF THE AMOUNT DUE. 3 (4) THE METALLIC MINERAL SURVEILLANCE FEE AND ANNUAL REPORT 4 REQUIRED BY THIS SECTION IS CONFIDENTIAL AND SHALL NOT BE AVAIL- 5 ABLE FOR PUBLIC INSPECTION WITHOUT THE WRITTEN CONSENT OF THE 6 PERSON FILING THE FEE AND REPORT, EXCEPT IN ACCORDANCE WITH JUDI- 7 CIAL ORDER. 8 (5) FAILURE TO SUBMIT AN ANNUAL REPORT IN COMPLIANCE WITH 9 RULES PROMULGATED BY THE DEPARTMENT CONSTITUTES GROUNDS FOR REVO- 10 CATION OF A PERMIT. 11 (6) A PENALTY EQUAL TO 10% OF THE AMOUNT DUE, OR $1,000.00, 12 WHICHEVER IS GREATER, SHALL BE ASSESSED AGAINST THE METALLIC MIN- 13 ERAL OPERATOR FOR A FEE THAT IS NOT PAID WHEN DUE. AN UNPAID FEE 14 AND PENALTY SHALL CONSTITUTE A DEBT AND BECOME THE BASIS OF A 15 JUDGMENT AGAINST THE OPERATOR. PENALTIES PAID PURSUANT TO THIS 16 SECTION SHALL BE USED FOR THE IMPLEMENTATION, ADMINISTRATION, AND 17 ENFORCEMENT OF THIS PART. 18 (7) RECORDS UPON WHICH THE ANNUAL REPORT IS BASED SHALL BE 19 PRESERVED FOR 3 YEARS AND ARE SUBJECT TO AUDIT BY THE DEPARTMENT. 02311'97 * Final page. JCB