(1) DEFINITIONS. In this section: (a) “Driller” means a person who performs core, rotary, percussion or other drilling involved in exploration for nonferrous metallic minerals. (b) “Parcel” means an identified section, fractional section or government lot. (c) “Termination” means filling of drillholes and reclamation and revegetation of drilling sites. (2) LICENSE. All persons intending to engage in exploration, or who contract for the services of drillers for purposes of exploration, shall be licensed by the department. Exploration licenses shall be issued annually by the department, and shall be applied for on forms provided by the department. The department shall provide copies of the application form for an exploration license to the state geologist upon issuance of the license. The department shall, by rule, establish an annual license fee plus a schedule of additional fees based on the number of holes drilled. The level of fees shall reflect the department’s actual cost in administering this section. The fees set under this subsection may be adjusted for persons to reflect the payment of fees for the same services to meet other requirements. (3) BOND. (a) Applications for licenses shall be accompanied by a bond in the amount of $5,000 conditioned on faithful performance of the requirements of the department relating to termination. (b) The department may require that the amount of the bond be increased at any time, if the department determines that a licensee’s current level of activity makes it likely that the bond would be inadequate to fund the termination of all holes drilled for which the licensee is responsible. (c) The department shall, by rule, establish a procedure for release of exploration sites from bond coverage. (4) NOTICE PROCEDURE. (a) Commencement of drilling on a parcel shall be preceded by notice from the licensee to the department of intent to drill, given at least 10 days in advance of the commencement of drilling, and identifying the particular parcel. The department shall transmit a copy of the notice of intent to drill to the state geologist. (b) The department shall, by rule, establish notification and inspection procedures applicable to the various stages of drilling and termination and procedures for the proper termination of drillholes. (5) LICENSE REVOCATION. The department may revoke or suspend an exploration license issued under this section if it determines, after hearing, that: (a) Statutes or rules of the department have not been complied with; or (b) There has been a failure to increase bond amounts to adequate levels as specified by the department. (6) EXEMPTION. This section does not apply to operators engaged in exploration activities on lands included in a mining and reclamation plan, if the plan contains provisions relating to termination of the exploration activities.
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