Assembly Bill No. 516-Assemblywoman Freeman (by request)
May 21, 1997
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Referred to Committee on Natural Resources, Agriculture, and Mining
SUMMARY--Requires operators of exploration projects or mining operations to pay fee for ground water used for exploration project or mining operation under certain circumstances. (BDR 46-1320)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to mining; requiring an operator of an exploration project or mining operation to pay a fee to the director of the state department of conservation and natural resources for ground water used for that exploration project or mining operation under certain circumstances; creating the fund for the study of the use of ground water in exploration projects and mining operations; authorizing the director of the state department of conservation and natural resources to use the money in the fund for certain projects; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1 Chapter 519A of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.
Sec. 2 "Director" means the director of the state department of conservation and natural resources.
Sec. 3 1. If an operator pumps or otherwise removes ground water from any basin in this state at an average rate of more than 500 gallons per minute for 7 consecutive days during any quarter of a year for use in an exploration project or mining operation, the operator shall pay a fee of $10 for each acre-foot of water pumped or otherwise removed by the operator for the project or operation during that quarter. The operator shall pay the fee to the director not later than 30 days after the end of that quarter.
2. If an operator specified in subsection 1:
(a) Is authorized to appropriate water pursuant to a permit issued by the state engineer pursuant to chapter 533 of NRS; and
(b) In lieu of appropriating water pursuant to that permit, pumps or otherwise removes ground water for use in the project or operation,
the operator may deduct the amount of that ground water from the average rate of ground water used by the project or operation as calculated pursuant to subsection 1.
Sec. 4 1. The fund for the study of the use of ground water in exploration projects and mining operations is hereby created in the state general fund. The director shall administer the fund.
2. Any money paid to the director pursuant to section 3 of this act must be deposited in the fund. The interest and income earned on the money in the fund must, after deducting any applicable charges, be credited to the fund.
3. The director may use:
(a) Not more than 50 percent of the money deposited in the fund during a fiscal year for projects to study the long-term effects of exploration projects and mining operations on the water resources of this state.
(b) Not more than 50 percent of the money deposited in the fund during a fiscal year for:
(1) Projects to mitigate the long-term effects of the depletion of ground water used for an exploration project or mining operation on a person, county or incorporated city that uses the ground water of the basin from which the water is pumped or otherwise removed for the exploration project or mining operation; or
(2) Any other project approved by the commission to mitigate those effects.
4. Any person, county or incorporated city may apply in writing to the director for a disbursement of money from the fund for a project specified in subsection 3.
Sec. 5 NRS 519A.020 is hereby amended to read as follows:
519A.020 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 519A.030 to 519A.130, inclusive, and section 2 of this act, have the meanings ascribed to them in those sections.
Sec. 6 NRS 519A.130 is hereby amended to read as follows:
519A.130"Surety" [means,] includes, but is not limited to, a trust fund, surety bonds that guarantee performance or payment into a trust fund, letters of credit, insurance, corporate or other guarantees of performance, or any combination of these or other forms of security [approved] that are:
1. Approved by the director [of the state department of conservation and natural resources and used] ; and
2. Used to ensure that reclamation [will be] is completed.
Sec. 7 This act becomes effective on July 1, 1997.