1. A person engaged in critical mineral exploration and evaluation, or who proposes to do so, shall submit to the commission and obtain its approval of a surety bond or cash bond. An alternate form of security may be approved by the commission after notice and hearing, as provided by law. A bond is required for each permit area. The bond must be in the amount of one hundred dollars for each testhole drilled in the permit area. Each surety bond must be executed by a responsible surety company authorized to transact business in the state of North Dakota. A blanket bond in the amount of ten thousand dollars, conditioned as above provided, may be submitted to cover any number of testholes drilled in one or more permit areas. The blanket bond shall cover all permits issued in one year commencing on the date the first permit covered by the bond is issued.

2. A person providing a blanket bond in lieu of several individual bonds is required to comply with the rules, regulations, and orders of the commission in the same manner as if the person had provided several individual bonds. Violation shall result in forfeiture of the blanket bond in its entirety, if the violation would have resulted in forfeiture had the action in question been covered by an individual bond.

3. For the purposes of the commission the bond required is a performance bond and a plugging bond and is to endure up to and including receipt by the state geologist of all basic exploration data required by law and approved plugging of all holes drilled.

4. The commission shall advise in writing the principal and sureties on a surety bond as to whether the provisions of statutes and rules have been satisfied and liability under the bond may be formally terminated.

5. The state geologist may act for the commission as to all matters within this section.

6. A state or federal agency engaged in critical mineral exploration or evaluation is exempt from providing the bond.

History: Effective July 1, 2026.

General Authority: NDCC 38-12-02

Law Implemented: NDCC 38-12-02