SB 181: Ohio Mineral Mining Regulation Act

Senate Bill 181 proposes significant changes to Ohio’s Revised Code concerning mineral mining, specifically focusing on establishing a regulatory framework for the underground mining of limestone and dolomite and increasing certain severance tax rates. The bill amends numerous existing sections and enacts several new sections within Chapter 1514, which governs surface mining, and also touches upon sections related to coal mining and severance taxes.

Main Themes:

1. Regulation of Underground Limestone and Dolomite Mining: The most prominent theme is the creation of a comprehensive regulatory scheme for the underground mining of limestone and dolomite, defined as “underground minerals mining.” This includes defining key terms, establishing permitting requirements, outlining performance standards, and addressing issues such as subsidence and mine development.
2. Integration with Existing Surface and In-Stream Mining Regulations: The bill integrates the new underground mining regulations within the existing framework of Chapter 1514, which currently primarily addresses surface and in-stream mining. This is achieved by adding “underground minerals mining” to various sections concerning permits, inspections, enforcement, and appeals.
3. Increased Severance Tax Rates: The bill proposes increases to certain severance tax rates, although the specific new rates are not fully detailed in the provided excerpts. The intention to increase these rates is explicitly stated in the bill’s summary.
4. Clarification of Local Authority and Zoning: The bill clarifies the relationship between state mineral mining regulations and local zoning authority, explicitly stating limitations on local governmental agencies requiring additional financial assurance and regulating underground mining on land permitted for surface mining.
5. Reclamation and Environmental Protection: The bill maintains and expands upon existing requirements for reclamation and environmental protection, applying them to underground mining operations. This includes preventing damage to adjoining property, minimizing the effect of groundwater reduction, and ensuring the stability of surface impacts.
6. Study of Centralized Location for Division of Mineral Resources Management: The bill mandates a study to determine a centralized location for the Division of Mineral Resources Management.

Most Important Ideas and Facts:

• New Regulatory Framework (Sections 1514.60-1514.72): A significant portion of the bill is dedicated to enacting new sections to specifically govern underground minerals mining. This establishes definitions, permitting processes, performance standards, and enforcement mechanisms for this type of mining, which was not previously explicitly regulated under Chapter 1514.
• Key Definitions (Section 1514.60): Important new definitions are introduced, including “Underground minerals” (defined as limestone or dolomite), “Underground minerals mining,” “Mine property,” “Subsidence,” and “Mine development.” The definition of “Operation” is expanded to include “underground minerals mining operation.”
• Permitting (Sections 1514.62 and 1514.63): Underground minerals mining will require a permit issued by the chief of the division of mineral resources management. The application process will require details about the operation, insurance, correspondence with the county engineer, and a comprehensive mining plan. Permits can be suspended or revoked for violations.
• Automatic Permitting for Existing Operations (Section 1514.63(C)): Operators of existing underground minerals mining operations or those who have begun development prior to the effective date of the section will be granted a permit or amendment upon request within 24 months. This order is generally not appealable by others.
• Performance Standards (Section 1514.61): The chief will adopt rules establishing performance standards for underground minerals mining, including periodic compliance review and standards for the use of explosives to prevent damage. The mining plan (Section 1514.62(G)) must demonstrate how the operator will achieve these standards.
• Subsidence (Section 1514.60(G)): The bill defines “subsidence” specifically as surface caving or sinking due to underground mining excavations that directly damages land or structures, while excluding other causes of ground movement.
• Mine Maps (Section 1514.65): Operators must maintain accurate maps of their underground mines and provide copies to relevant authorities.
• Roof and Rib Support (Section 1514.68): Underground operators must maintain a plan for the adequate support of roofs and ribs, subject to the chief’s approval and periodic review.
• Increased Severance Taxes (Section 5749.02): While the specific new rates are not detailed in the excerpts, the intent to increase severance taxes on certain minerals is a core component of the bill as indicated in the summary and the amendment of this section. The provided text shows existing rates for various minerals.
• Local Zoning and Financial Assurance (Sections 1514.023 and 1514.024, 1514.04(D)): The bill clarifies that while local authorities can enact zoning, the state chief will not enforce local zoning. Importantly, local zoning authorities cannot require mine operators to obtain a permit prior to applying for zoning approval or regulate underground mining on land permitted for surface mining (Section 1514.023). Furthermore, governmental agencies are prohibited from requiring financial assurance (bonds) from surface, underground minerals, or in-stream mining operators (Section 1514.04(D)).
• Permitting and Application Requirements (Section 1514.02): The application process for surface and in-stream mining permits is detailed, including requirements for maps, descriptions of the operation, ownership information, and a mining and reclamation plan. The general performance standards for reclamation (Section 1514.02(A)(10)) are also outlined. The bill also includes underground minerals mining in these general permitting sections where applicable (e.g., transfer of permits in Section 1514.02(F)(E)).
• Performance Bonds (Section 1514.04): The requirement for performance bonds remains, although the specifics of how they apply to underground mining where surface land is not directly affected are not fully detailed in the excerpt, except for a note that if the land surface is affected, a bond may be required for that area (Section 1514.04(E)).
• Enforcement and Penalties (Sections 1514.071 and 1514.99): The chief has the authority to assess civil penalties for violations (Section 1514.071). Criminal penalties are outlined for violations such as mining without a permit or exceeding permit limits (Section 1514.99). The chief can issue orders to cease violations and revoke permits for non-compliance (Section 1514.07). The bill clarifies that the chief cannot order compensation for property damage allegedly caused by underground mining operations (Section 1514.07(C)(2)).
• Study of Division Location (Section 3): The bill requires a study to determine a centralized location for the Division of Mineral Resources Management.

Quotes from the Original Sources:

• “To amend sections … and to enact sections … of the Revised Code to establish regulations for the underground mining of limestone and dolomite and to increase certain severance tax rates.” (Page 1, Lines 4-10) – This quote directly states the two primary goals of the bill.
• “”Underground minerals” means limestone or dolomite.” (Page 70, Line 2039) – This provides the key definition for the minerals targeted by the new regulations.
• “”Underground minerals mining” means the underground mining of limestone or dolomite, including all or any part of the process followed in the production of limestone or dolomite carried out beneath the surface by means of shafts, tunnels, room and pillar, or similar mine openings or workings.” (Page 70, Lines 2040-2045) – Defines the activity being regulated.
• “Except as provided in division (C) of section 1514.63 of the Revised Code, engage in underground minerals mining without an underground minerals mining permit or amendment to a surface mining permit issued by the chief of the division of mineral resources management;” (Page 75, Lines 2179-2183) – Highlights the new permitting requirement.
• “Notwithstanding any other provision of law to the contrary, such an order granting a permit or such an amendment is not appealable by any person other than the operator or the person undertaking development of an underground minerals mining operation.” (Page 74, Lines 2169-2173) – Details the non-appealable nature of permits granted to existing operations.
• “Sections 519.02 to 519.25 and sections 303.01 to 303.25 of the Revised Code and any other applicable provision of law governing township or county zoning authority confer no power on any township zoning commission…to do either of the following: (1) Require a mine operator to obtain a permit or amendment to a permit issued under this chapter prior to applying for zoning approval; (2) Regulate underground minerals mining activity on any land permitted for surface mining under this chapter and rules adopted under it.” (Page 33, Lines 935-945) – Clearly defines the limits of local zoning authority.
• “A governmental agency…shall not require a surface, underground minerals, or in-stream mining operator to file a surety bond, performance bond, closure bond, or any other form of financial assurance for the operation or closure of a mine or reclamation of land to be affected by a surface, underground minerals, or in-stream mining operation authorized under this chapter.” (Page 41, Lines 1172-1178) – Restricts local authorities from requiring financial assurance.
• “The Division of Mineral Resources Management shall conduct a study to determine a centralized location for…” (Page 83, Lines 2560-2561) – Outlines the requirement for a study.

Potential Impacts/Considerations:

• Impact on the Limestone and Dolomite Mining Industry: The new regulations will impose additional administrative and operational requirements on underground limestone and dolomite miners.
• Revenue Generation: The increased severance tax rates aim to generate more revenue for the state.
• Environmental Protection: The bill seeks to ensure environmental protection and proper reclamation in underground mining operations, including addressing potential subsidence issues.
• Jurisdictional Clarity: The bill aims to clarify the roles and authorities of state and local government regarding mineral mining.
• Existing Operations: The automatic permitting process for existing operations aims to ease the transition to the new regulatory framework.

This briefing document provides a summary of the key aspects of SB 181 based on the provided excerpts. A full understanding of the bill’s implications would require reviewing the complete text, including the specific language of the proposed severance tax increases and detailed performance standards to be established by rule.