Minerals, Mining, & Superfund
IN SOUTH DAKOTA

The Minerals, Mining, and Superfund Program regulates statewide mineral exploration, mining, and oil & gas development; and conducts statewide Superfund assessments and regulatory oversight at Superfund sites in South Dakota.

Minerals and Mining: The program ensures mineral exploration and development are conducted in a manner that minimizes environmental impact, and that affected lands are reclaimed and useable after the resources have been extracted. Prior to initiating most forms of mineral exploration or development, operators must file a formal notice or obtain a permit from the state; depending on the type of activity, operators generally work under the regulatory umbrella of an exploration notice of intent (EXNI), a mine permit, a mine license, or an oil & gas permit.

Superfund: Environmental assessments are done at sites with hazardous substance releases to determine the nature and extent of contamination, assess risk, and determine the appropriate cleanup action. State regulatory oversight is conducted at sites being assessed and cleaned up under the Superfund process and at sites on the National Priorities List (Superfund Sites).

Reclamation Surety and Limestone Mining Changes Effective July 1, 2024

Senate Bill 111, which was approved during the 2024 legislative session and became effective July 1, 2024, changed bonding requirements for mine licenses, mine permits, and exploration notices of intent. It also placed the mining of any use of limestone under the mine license statutes (SDCL 45-6). The changes are outlined below:

SDCL 45-6, Sand, Gravel and Construction Aggregate Mining under a Mine License:

  • Allows operators to mine limestone for all uses under a mine license.
  • Increases the required surety for new commercial operators from $500/acre to $3,850/acre. The statewide blanket surety also increases from $20,000 to $300,000.
  • Increases the required surety for existing commercial operators over the following five-year staggered period:
    - July 1, 2026: Increases from $500/acre to $1,500/acre. The statewide blanket increases from $20,000 to $100,000.
    - July 1, 2027: Increases from $1,500/acre to $2,750/acre. The statewide blanket increases from $100,000 to $200,000.
    - July 1, 2029: Increases from $2,750/acre to $3,850/acre. The statewide blanket increases from $200,000 to $300,000.
  • Makes provision for a joint powers agreement between the state and other political entities to avoid duplication of surety requirements.

SDCL 45-6B, Mining under a Mine Permit

  • Increases the maximum required surety for small scale permitted mining operations from $2,500 to $38,500.

SDCL 45-6C, Mineral Exploration under an Exploration Notice of Intent

  • Clarifies that exploration may not commence until the operator posts reclamation surety.
  • Increases the amount of a statewide mineral exploration blanket surety from $20,000 to $100,000.

Mining Permit

Mine permits are required for the extraction and processing of minerals such as gold, silver, uranium, precious metals, coal, bentonite, dimension stone, and decorative stone.

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Construction Aggregate License

A mine license is required to mine sand; gravel; rock to be crushed and used in construction; pegmatite minerals; limestone; iron ore, gypsum, shale, pozzolan, and other materials used to make cement or lime; or when dredging for commercial resale.

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Oil & Gas

Oil and gas applications for permit to drill (APD) are required for all petroleum production wells. Underground Injection Control (UIC) Class II permits are required for all disposal and enhanced recovery wells associated with oil and gas activities.

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EXNI

Exploration Notices of Intent are required for exploration of all minerals such as gold and silver, precious metals, coal, dimension stone, decorative stone, aggregates, and oil and gas seismic shot-holes.

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Uranium Exploration

Uranium exploration permits are required for the exploration of uranium.

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Superfund

Superfund is the trust fund set up by US Congress to handle emergency and hazardous waste sites needing long-term cleanup.

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Mine Regulation History

MINING

To operate any type of dredge in South Dakota to extract minerals such as gold, even for recreational purposes, an operator is required to obtain a mining permit. Mine permits are also required for other mechanized equipment such as highbankers and heavy equipment. To find out more about mine permits, click here.

If you use hand held equipment such as a pick, shovel, pan, metal detector, or sluice box for placer mining, no mine permit is required. However, you are required to comply with South Dakota Water Quality Standards.

You should be aware that a water right permit is required for placer mining activities. However, some of the streams in the Black Hills have been fully appropriated. Therefore, obtaining a water rights permit may not be possible.

In addition to federal requirements, anyone filing a mining claim in South Dakota must comply with SDCL 45-4.

Our office can review the history of the mining company on the certificate. However, we cannot determine whether the stock certificate has any value. You can contact the South Dakota Secretary of State office under "Corporations" to see if they have any information on the company. It is possible that the company either went out of business or was absorbed by another mining company. Even though the company may no longer exist, the stock certificate may have value as a collector's item. Many coin stores buy stock certificates with unique art work.

To find out information on the stock certificate, contact Eric Holm.

You can either e-mail your name and address to Eric Holm or call (605) 773-4201 to request a list of mine operators in South Dakota.

Although a valid lease is generally required before an oil or gas well permit, mine permit, mine license, or mineral or uranium exploration permit is issued, the Department of Agriculture and Natural Resources does not regulate or have any data pertaining to mineral rights, lease availability, or requirements for leasing state, federal, or private lands. The Register of Deeds office in the county where the property is located should have all the documents that have been filed in regard to the mineral rights on the land. You may also contact the following agencies for more information.

SDCL 43-30A is the South Dakota law pertaining to severed mineral estates and abandoned mineral interests.

The DANR regulates the active mining industry, but does not have an abandoned mine reclamation program or funds to reclaim abandoned mine sites that warrant further cleanup attention.

OIL AND GAS

There are five different approval processes that apply to oil and gas operations: 1.) Orders for spacing, pooling or unitization requests; 2.) The Notice of Recommendation procedure; 3.) Applications for Permit to Drill (APD) for drilling, deepening, or reentering requests; 4.) Underground Injection Control Class II Permits to Inject; and 5.) Sundry Notice Requests for administrative approvals.

The current operator of any oil, gas, or Class II injection well shall submit to the department a completed notice of transfer of ownership or operation (Form 12) by certified mail within ten days of the closing date of the transfer. If not already on file with the department, the transfer form must be accompanied by an organization report, a plugging and performance bond, a certification of applicant form, and a permission to inspect form. The transfer is effective upon approval by the secretary.

If the ground surface is not penetrated during seismic exploration, no permit is required. However, if seismic shot holes are drilled, an exploration permit must be obtained from the department. Before any seismic exploration is conducted, 7 days written notice should be provided to the landowner.

The following legislation became effective July 1, 2013. (Full list of acts as in original document)

Annual Reports on South Dakota Mining and Reclamation

Beginning in 2012, the South Dakota Legislature repealed requirements for publishing these reports.

2011 Summary of the Mining Industry in South Dakota

Annual Reports on Mineral Production in South Dakota

Beginning in 2009, Mineral Production summaries were combined with the Mining Industry summaries.

2008 Mineral Summary for South Dakota