1.1                          A bill for an act 
  1.2             relating to economic development; creating a grant 
  1.3             program to research new technology for the taconite 
  1.4             industry; appropriating money; proposing coding for 
  1.5             new law in Minnesota Statutes, chapter 116J. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [116J.992] [TACONITE MINING GRANTS.] 
  1.8      (a) The commissioner shall establish a program to make 
  1.9   grants to taconite mining companies to enable them to research 
  1.10  technologies that: 
  1.11     (1) reduce energy consumption; 
  1.12     (2) reduce environmental emissions; 
  1.13     (3) improve productivity; or 
  1.14     (4) improve pellet quality. 
  1.15     (b) To receive a grant a recipient must convey to the state 
  1.16  permanent ownership of both mineral reserves and corresponding 
  1.17  surface lands that: 
  1.18     (1) contain unmined taconite with a 23 percent minimum 
  1.19  magnetic iron content; 
  1.20     (2) have an open pit stripping ratio of less than 1.5 to 1; 
  1.21     (3) are unencumbered by current or planned surface 
  1.22  development; 
  1.23     (4) are substantially unencumbered by past mining activity; 
  1.24     (5) have marketable title for both surface and mineral 
  1.25  interests; and 
  2.1      (6) are in an area that could reasonably be expected to be 
  2.2   mined within 50 years. 
  2.3      (c) A grant may not exceed the value of the mineral 
  2.4   reserves and surface land as assessed by the commissioner of 
  2.5   natural resources.  When assessing value, the commissioner must, 
  2.6   at a minimum, take into account the future value of any royalty 
  2.7   stream, the state's cost of capital, the costs of removing any 
  2.8   encumbrances, and the probability that the reserves will be 
  2.9   mined in the future.  Any revenue generated by ownership or sale 
  2.10  of the property must be deposited in the general fund. 
  2.11     Sec. 2.  [APPROPRIATION.] 
  2.12     $1,000,000 is appropriated from the general fund to the 
  2.13  commissioner of trade and economic development for the purposes 
  2.14  of section 1.  The appropriation is available for the biennium 
  2.15  ending June 30, 1999.