North Dakota Allows Land as Collateral for Coal Mining Bonds Now
Published Date: 2/13/2026
Rule
Summary
North Dakota updated its rules for surface coal mining to include new ways to use real property as collateral bonds. These changes, approved by the federal government, affect mining companies and landowners by adding clearer rules on pledging property for mining guarantees. The new rules kick in on March 16, 2026, helping keep mining safe and responsible without extra costs.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Rules and conditions for pledged property
North Dakota added three conditions for real property pledged as collateral under NDAC 69-05.2-12-04(3)(a)-(c): (1) the applicant must grant the commission a first mortgage, first deed of trust, or perfected first-lien security interest with the right to sell or dispose of the property on foreclosure; (2) the applicant must submit a schedule listing the property description, fair market value determined by an independent appraisal by a certified appraiser, and proof of possession and title; and (3) land within a permit area may be pledged but may not be disturbed under any permit while serving as security. These conditions take effect March 16, 2026.
Real property can serve as collateral
North Dakota now allows a perfected, first-lien security interest in real property to be used as a form of collateral bond (added to NDAC 69-05.2-01-02). This change was approved by the Office of Surface Mining and takes effect on March 16, 2026.
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