MontanaHB 71769th Legislature, Regular Session (2025)House

Revise transfer of mining operator to successor

Sponsored By: John Fitzpatrick (Republican)

Became Law

Mining and MineralsRule Making

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 0 costs, 4 mixed.

Eminent domain to finish mine cleanup

The department can ask a court to condemn surface, mineral, and access rights within or next to the permit area when a transfer serves taxpayers, the environment, and reclamation. The court must grant immediate possession before it sets compensation, and a qualified successor may post the court bond. The court sets payment and must weigh cleanup shortfalls or the amount needed to finish reclamation, tax liens, mineral value, and state costs. This tool applies only if the operator has been barred from mining for at least one year with no timely appeal, a violation letter was issued, the bond is too small, and a capable successor is available. After taking the property, the department may agree to transfer it to the successor.

Permit transfers to new mine operators

The department transfers a mining permit to a new operator when that operator takes over an unfinished site. The successor must assume all reclamation duties, and the department must approve the successor’s bond and property transfer. The original operator is then released from its duties. Valid liens and other claims stay in place, except those held by the original operator or its affiliates. The department can still change the permit or reclamation plan after the transfer.

Stronger reclamation checks and bond enforcement

The department inspects each permit area at least once a year. After written notice, a permittee must start fixes within 30 days and keep working; deadlines may be extended for delays beyond the permittee’s control. After the department confirms a unit is reclaimed, it gives public notice within 30 days and then releases or reduces the bond as soon as practicable. If fixes are not started in 30 days or reclamation is not finished within 2 years (unless more time is allowed), the bond is forfeited, and permits can be canceled; if bond payment is not made within 30 days after certified notice, the attorney general sues to collect. The department can perform or contract for reclamation, charge the surety up to the bond, and require the operator to pay any shortfall; if a forfeited bond is too small, the operator must pay the difference. At bond review, if no mining or processing happened for 5 years and harm would result, the department can order abatement or reclamation; a hearing may be requested within 30 days unless there is an imminent threat.

Suspended permits and bond money rules

The department may suspend a permit for up to 5 years and place forfeited cash bond money in an interest‑bearing account. During suspension, it may spend the money on maintenance, monitoring, stopping immediate dangers, or fixing violations. The department may transfer the suspended permit and property to a successor, and any remaining balance stays as a cash bond for the successor. A successor must assume reclamation, operate under the permit or an approved change, submit any extra bond, and pay a one‑time $2,000 transfer fee. If a transfer is not done in 5 years, the department may revoke the permit; it may extend a suspension up to 6 months for diligent transfer work, and litigation pauses the deadline.

Sponsors & Cosponsors

Sponsor

John Fitzpatrick
Republican • House

Cosponsors

Mark Reinschmidt
Republican • House
Wylie Galt
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 287 • No: 10

House vote • 4/17/2025

Do Concur

Yes: 45 • No: 5

House vote • 4/16/2025

Do Concur

Yes: 50 • No: 0

House vote • 3/7/2025

Do Pass

Yes: 97 • No: 2

House vote • 3/6/2025