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. The Minerals, Mining, and Superfund Program coordinates issuance or
filing of required permits and notices, ensures required surety is posted by operators, inspects
and monitors mineral development sites, determines when sites have been adequately reclaimed,
and works with operators to ensure mineral exploration and development complies with all
applicable environmental statutes, rules, and regulatory conditions.
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).
NEW - Reclamation Surety and Limestone Mining Changes Coming July 1,
2024
Senate Bill 111, which was approved during the 2024 legislative session and becomes effective
July 1, 2024, changes 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. A mine permit was
formerly required to mine limestone for agricultural uses.
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.
Makes provision for the SD Board of Minerals and Environment to promulgate rules
establishing the procedure for posting and monitoring surety for permitting mining
operations.
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.
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.
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.
Exploration Notices of Intent are required for exploration of all
minerals such as gold and silver, precious metals, coal, dimension stone, decorative
stone, precious metals, aggregates, and oil and gas seismic shot-holes.
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.
What laws govern the filing of mining
claims?
In addition to federal requirements, anyone filing a mining
claim in South Dakota must comply with SDCL 45-4.
Can you tell me if my stock certificate has
any value?
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.
Where can I get a list of South Dakota
mining operators?
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.
Where can I find leasing or mineral rights
information?
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.
How do I maintain my severed mineral
interests? How do I acquire the severed mineral rights underlying my
property?
SDCL 43-30A is
the South Dakota law pertaining to severed mineral estates and
abandoned mineral interests.
Does the state of South Dakota have an
abandoned mined land program?
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
How do I gain approval to undertake oil and
gas operations?
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.
Orders- Spacing, Pooling, or Unitization
Requests: Spacing, unitization, and pooling
requests are initiated by the submission of a petition
in accordance with ARSD
74:09:01. Spacing, pooling, and unitization
requirements are found in SDCL 45-9 and ARSD
74:12. As of July 1, 2012, applications for
orders only go to hearing if they are contested after
publication of a Notice of Opportunity for Hearing. If
there is no contest, orders are issued administratively
by the department Secretary.
Potential Contested Case Hearings (Notice of
Recommendation Procedure): The Department
Secretary or designee may grant administrative approval
after publishing a Notice of Recommendation for
applications involving the following: drilling at
exception locations, drilling a directional or
horizontal well in an area not already spaced by the
board, exception to gas to oil ratios, underground
commingling of oil from separate pools, new underground
injection permits, major modifications of injection
permits, exemption of a portion of an aquifer, and
multiple zone completions of oil well. If the
recommendation is not contested, approval is granted by
the Secretary in accordance with the recommendation. If
the recommendation is contested, then the issue is
subject to board approval under a contested case
hearing. The Notice of Recommendation process is
initiated by the submission of a petition in accordance
with ARSD
74:09:01.
Application for Permit to Drill (APD)- Drilling,
Deepening, or Reentering Requests: Permits
for drilling new wells, or deepening or reentering
existing wells require department approval and possibly
the submission of a pit liner variance application. This
is initiated by the submission of an application for a
permit to drill. Forms and procedures required for
obtaining a permit to drill, deepen, or reenter an oil
or gas well are available at Oil & Gas Forms.
Underground Injection Control Class II Permits
to Inject: In conjunction with submitting a
petition to initiate the Notice of Recommendation
procedure (see "Potential Contested Case Hearings",
above), a permit to inject is required for any injection
of fluid associated with oil and gas production into,
above, or through underground sources of drinking water.
For more information on permits to inject contact Mike Lees
at 605-773-4201. The permit to injection application
form is available on the Oil & Gas forms page.
Sundry Notice Requests for Approval:
The Department Secretary or designee may grant
administrative approval of the following: proposed well
cementing procedures, proposed plugging procedures,
temporary abandonment of a well, proposed mechanical
integrity test procedures, drilling without a blowout
preventer, extending the term of an APD beyond 12
months, proposed soil remediation techniques, using
produced water on roads for dust suppression,
atmospherically discharging water produced from a gas
well, surface restoration, construction of produced
water handling facilities, conversion of a mud pit to an
evaporation pit, dissolving abandoned oil or gas fields,
the method of annual gas well test to determine daily
open flow, the method of determining production from
separate pools prior to commingling, confidentiality of
technical data, and the method of and interval for
checking tank metering equipment against actual tank
measurements. The Sundry Notice form used to approve the
requests is available at Oil & Gas forms. (Signed copies
of Sundry Notices submitted to request approval for one
of these actions will be returned upon approval.
However, Sundry Notices submitted to report information
will not be signed or returned.)
How do I transfer a permit or well to
another operator?
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.
Do I need a permit to conduct seismic
exploration?
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.
Are there any recent changes to South
Dakota's Oil and Gas Laws?
The following legislation became effective July 1, 2013.
45-5A-5.1
- An Act to require mineral developers to give notice to
surface owners. Operators must now notify affected
surface owners at least seven days before conducting
non-ground disturbing mineral exploration activities.
This means operators must notify surface owners at least
seven days before conducting preliminary site work such
as surveying and well staking.
43-30B-1
- An Act to provide for the creation of a trust account
for unlocatable mineral interest owners. Mineral owners
or leaseholders who only own or control part of the
mineral interest in a given tract of land may petition
the appropriate circuit court to set up a trust for
other owners of minerals in the tract who cannot be
located.
54-13-1 | 54-13-2 -
An Act to revise the purpose of the agriculture
mediation program. This Act makes provision for the
South Dakota Department of Agriculture to mediate
disputes between mineral developers and surface owners
over damages to or loss of use of the owner's property
resulting from mineral development activities. The Act
does not require use of the mediation service, rather,
it gives the Department of Agriculture the authority to
make this service available to oil and gas operators and
affected surface owners.
45-5A-4.1
- An Act to provide for the award of treble damages in
certain surface depredation cases. This Act adds a
section to the existing damage compensation statutes
under SDCL 45-5A. The new section provides courts
authority to award treble damages in cases where oil and
gas developers fail to perform good faith negotiations
with split-estate surface owners.
43-30A -
An Act to revise certain provisions relating to the
termination of certain mineral interests. The Act
prescribes the specific process whereby surface estate
owners may succeed to the ownership of lapsed mineral
interests underlying their surface property. The
provision under this Act mirrors the lapsed mineral
succession process outlined in North Dakota law.
45-9-15 -
An Act to revise the provisions regarding plugging and
performance bonds for oil and gas wells and to repeal
the supplemental restoration bond requirement. This Act
increases the plugging and performance bond requirement
and eliminates the surface restoration bond requirement.
The Act introduces a tiered bonding system, with higher
bond amounts for wells deeper than 5,500 feet. The new
bond requirement for deep wells is $50,000 per well, or
$100,000 for a statewide blanket bond. The new bond
requirement for shallow wells (less than 5,500 feet in
depth) is $10,000 per well, or $30,000 for a statewide
blanket bond. Existing bonds will remain in place until
an operator drills a new well, or transfers an existing
well.
34A-6-113 | 34A-6-114
- An Act to prohibit the disposal of certain oil and gas
field waste. This legislation prohibits storage or
disposal of liquid oil and gas field wastes in earthen
pits or open receptacles unless the facility is directly
associated with the development of a specific well or
producing property. This Act also prohibits disposal of
oil and gas field wastes if the waste's radioactivity
level of Radium-226 plus Radium-228 is greater than 5
picocuries/gram above the background radioactivity level
at the solid waste facility. Operators still have the
option of storing liquid wastes in open receptacles
provided the receptacle services a specific well, field,
or unit. In terms of disposal of radioactive oil and gas
field wastes generated in South Dakota, the limited
amount of waste with radioactivity levels above the
established threshold must be transported out of state
and disposed of in an appropriate facility. Questions
regarding this legislation should be addressed to DENR's
Waste Management Program at 605-773-3153.
What types of information can be held as
confidential, and for how long?
In accordance with ARSD 74:12:02:17, the DENR will hold
electrical, geophysical, and sample descriptive logs, drill-stem
test reports, core analyses and reports, water analyses,
production data, and any other important geologic and
engineering data as confidential for six months if
requested by the operator in writing.
Confidentiality is maintained according to the following
schedule:
Production Data: Six-month
confidentiality period begins on the date of the first
monthly production report.
All Other Technical Reports, Logs, and
Data: Each report is held as confidential
for a six month period beginning on the date the report
is submitted.
How do I request confidentiality for
technical data?
Operators must submit a written request in the form of a letter
or a Sundry Notice and Report on Wells (Form 6).
What taxes apply to oil and gas production
in South Dakota?
Severance Tax (SDCL
10-39A): For the privilege of
severing energy minerals in this state, there is imposed
on the owner or operator of any energy mineral an excise
tax, to be termed a "severance tax," equal to four and
one-half percent of the taxable value of any energy
minerals severed and saved by or for the owner or
operator.
Conservation Tax (SDCL
10-39B): There is imposed on the
severance of energy minerals in this state an excise
tax, to be known as a conservation tax, equal to two and
four- tenths mills of the taxable value of any energy
minerals severed and saved. The tax shall be paid by the
operator as defined in subdivision 10-39A-1.1(3).
More information on taxation can be found through the Department
of Revenue's Special Taxes Division (Phone: 605-773-3311).
How do I find out if oil and gas exploration
or development is occurring in the vicinity of my property?
Find your property of the Map-Based Data
Source. The map will display any recently permitted
drill sites and existing oil and gas test holes located near
your property. The map provides links to a wide variety of
information about each drill site.
Another useful source of information is the Drilling Permits
page. This page includes a list of all the drilling permits
issued in South Dakota since 2009, which can be used to
locate general areas of recent oil and gas activity.
Where can I find leasing or mineral rights
information?
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
Environment 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.
How do I maintain my severed mineral
interests? How do I acquire the severed mineral rights underlying my
property?
South Dakota Codified Law 43-30A is the
South Dakota law pertaining to severed mineral estates and
abandoned mineral interests.
Who should I call to have my property tested
for oil and gas reserves?
While the Department of Environment and Natural Resources'
Geological Survey Program conducts research and publishes
information to promote development of oil and gas resources in
South Dakota, the department does not test or explore for oil
and gas. Oil and gas exploration is an ongoing process
undertaken by private oil and gas production and exploration
companies. The Oil & Gas Operators page contains a list of the
oil and gas companies currently active in the state that you
could consider contacting to see if they have an interest in
your property.
Where can I find production or injection
information?
Production and injection information on a well, field, enhanced
recovery unit, county, operator, and/or year basis can be found
on the Production/Information page. Data can also be obtained on
an individual well basis through the online database function
and map-based data source.
Annual Reports on South Dakota Mining and Reclamation
Beginning in 2012, the South Dakota Legislature repealed requirements
for publishing these reports.