Introduction
The Land Board directed IDL to seek amendments to Idaho Code § 47-13, Dredge Mining. The recommended changes include:
- Increasing application fees to cover administrative costs. Fees are currently $50 for every ten acres with a maximum of $1,000. This legislation increases the fee to $500 for every ten acres with a maximum of $2,000.
- Changing the reclamation bond limit from $1,800 per acre to actual costs aligns the bonding with the requirements of the Mined Land Reclamation Act.
- Updating the Dredge and Placer Mining Account to allow expenditures for administrative costs and technical corrections.
Purpose
Application fees have not kept pace with the actual cost of reviewing and approving placer permits. In addition, bonding limitations passed in 1993 do not reflect the actual cost of reclamation. This creates a shortfall in reclamation funding when a permittee defaults on his or her reclamation obligations. Funds in the Dredge and Placer Mining Account currently can only be used for restoration of lands and watercourses damaged by placer or dredge mining operations. The legislation allows direct administrative costs to be recouped and also makes several technical corrections.
Future placer mining permittees may be affected and may be concerned about the increased fees and increased bonding requirements. An average of only one permit per year has been issued over the last five years because most dredge and placer mining in Idaho is small scale exploration or recreational activity that does not require a permit under this statute.
Mining operations permitted under the Mined Land Reclamation Act and associated rules currently pay similar application fees and must provide actual cost reclamation bonding. This does not appear to have affected the competitiveness of those mine operators. The cost of reclamation is generally quite high, so the application fee is not a significant expense by comparison.
Fiscal Impact
While the Dredge and Placer Mining Account will only realize an annual increase of approximately $400, this change allows users to cover the costs of program administration.