1. Before any person receives a permit to conduct processing facility operations for critical minerals, the person shall submit to the commission and obtain its approval of a surety bond executed by a responsible surety company authorized to transact business in North Dakota or a cash bond. An alternate form of security may be approved by the commission after notice and hearing, as provided by law. The operator of a processing facility must be the principal on the bond covering the activity. The amount of the bond must be specified by the commission and based upon the estimated reclamation costs.

2. Bonds must be conditioned upon full compliance with North Dakota Century Code chapter 38-12, and all administrative rules and orders of the commission, and continues until any of the following occurs: a. The lands disturbed by any method of processing of critical minerals have been restored and approved by the director. b. The liability on the bond has been transferred to another bond and such transfer has been approved by the commission.

3. Transfer of property does not release the bond. In case of transfer of property or other interest in a processing facility and the principal desires to be released from the bond covering the facility: a. The principal shall notify the director in writing of all proposed transfers of property at least thirty days before the closing date of the transfer. The director may waive this requirement for good cause. b. The principal shall submit to the commission on a transfer form reciting that a certain property or properties, describing each by quarter-quarter, section, township, and range, is to be transferred to a certain transferee, naming the transferee, for the purpose of ownership or operation. The date of assignment or transfer must be stated and the form signed by a party duly authorized to sign on behalf of the principal.

c. On the transfer form the transferee shall recite the following: "The transferee has read the foregoing statement and accepts such transfer and the responsibility of such property under the transferee's processing facility bond." Such acceptance must be signed by a party authorized to sign on behalf of the transferee and the transferee's surety.

d. If the commission approves the transfer and acceptance and accepts it under the transferee's bond, the transferor is released from the responsibility of site reclamation.

e. The transferee (new operator) of any processing facility is responsible for the site reclamation of any such property. For that purpose, the transferee shall submit a new bond or, in the case of a surety bond, produce the written consent of the surety of the original or prior bond that the surety's responsibility shall continue. The original or prior bond may not be released as to the reclamation responsibility of any such transferor until the transferee submits to the commission an acceptable bond to cover the facility. All liability on bonds shall continue until all structures are removed and the reclamation of the property is completed and approved.

4. The director periodically shall review the amount of bond and, with the commission's approval, may require adjustments to the amount of bond to reflect inflationary increases or increases in the anticipated costs of reclamation. An operator may request a hearing to dispute an adjustment.

5. The commission shall advise, in writing, the principal and any sureties on any bond as to whether the reclamation is approved. If approved, liability under the bond may be formally terminated upon receipt of a written request by the principal. The request must be signed by an officer of the principal or a person authorized to sign for the principal.

6. The director may act for the commission as to all matters within this section, except requests for alternative forms of security, which may only be approved by the commission.

7. The commission may refuse to accept a bond if the operator or surety company has failed in the past to comply with statutes, rules, or orders; if a civil or administrative action brought by the commission is pending against the operator or surety company; or for other good cause.

History: Effective July 1, 2026.

General Authority: NDCC 38-12-02

Law Implemented: NDCC 38-12-02