01-28 12:32 1st Sub. (Green) S.B. 139 Ronald M. Winterton proposes the following substitute bill: 1 Mineral Rights Amendments 2025 GENERAL SESSION STATE OF UTAH Chief Sponsor: Ronald M. Winterton House Sponsor: 2 3 LONG TITLE 4 General Description: 5 This bill modifies provisions relating to eminent domain used to take a mineral estate in 6 land. 7 Highlighted Provisions: 8 This bill: 9 ▸ prohibits the taking of a fee simple interest in land if an easement interest suffices; 10 ▸ requires that the taking of a fee simple interest explicitly exclude mineral estate interests 11 unless necessary; 12 ▸ requires for separate payment of just compensation for a mineral estate taken by eminent 13 domain; and 14 ▸ makes technical and conforming changes. 15 Money Appropriated in this Bill: 16 None 17 Other Special Clauses: 18 None 19 Utah Code Sections Affected: 20 AMENDS: 21 78B-6-501, as last amended by Laws of Utah 2024, Chapters 25, 350 22 78B-6-502, as last amended by Laws of Utah 2024, Chapters 25, 350 23 24 Be it enacted by the Legislature of the state of Utah: 25 Section 1. Section 78B-6-501 is amended to read: 26 78B-6-501 . Eminent domain -- Uses for which right may be exercised -- 27 Limitations on eminent domain. 28 (1) As used in this section: 1st Sub. S.B. 139 1st Sub. (Green) S.B. 139 01-28 12:32 29 (a) "Century farm" means real property that is: 30 (i) assessed under Title 59, Chapter 2, Part 5, Farmland Assessment Act; and 31 (ii) owned or held by the same family for a continuous period of 100 years or more. 32 (b) "Mineral or element" means the same as that term is defined in Section 65A-17-101. 33 (c)(i) "Mining use" means: 34 (A) the full range of permitted or active activities, from prospecting and 35 exploration to reclamation and closure, associated with the exploitation of a 36 mineral deposit; and 37 (B) the use of the surface, subsurface, groundwater, and surface water of an area 38 in connection with the activities described in Subsection (1)(c)(i)(A) that have 39 been, are being, or will be conducted. 40 (ii) "Mining use" includes, whether conducted on-site or off-site: 41 (A) sampling, staking, surveying, exploration, or development activity; 42 (B) drilling, blasting, excavating, or tunneling; 43 (C) the removal, transport, treatment, deposition, and reclamation of overburden, 44 development rock, tailings, and other waste material; 45 (D) the recovery of sand and gravel; 46 (E) removal, transportation, extraction, beneficiation, or processing of ore; 47 (F) use of solar evaporation ponds and other facilities for the recovery of minerals 48 in solution; 49 (G) smelting, refining, autoclaving, or other primary or secondary processing 50 operation; 51 (H) the recovery of any mineral left in residue from a previous extraction or 52 processing operation; 53 (I) a mining activity that is identified in a work plan or permitting document; 54 (J) the use, operation, maintenance, repair, replacement, construction, or alteration 55 of a building, structure, facility, equipment, machine, tool, or other material or 56 property that results from or is used in a surface or subsurface mining operation 57 or activity; 58 (K) an accessory, incidental, or ancillary activity or use, both active and passive, 59 including a utility, private way or road, pipeline, land excavation, working, 60 embankment, pond, gravel excavation, mining waste, conveyor, power line, 61 trackage, storage, reserve, passive use area, buffer zone, and power production 62 facility; - 2 - 01-28 12:32 1st Sub. (Green) S.B. 139 63 (L) the construction of a storage, factory, processing, or maintenance facility; and 64 (M) an activity described in Subsection 40-8-4(17)(a). 65 (2) Except as provided in Subsections (3), (4), and (5) and subject to the provisions of this 66 part, the right of eminent domain may be exercised on behalf of the following public 67 uses: 68 (a) all public uses authorized by the federal government; 69 (b) public buildings and grounds for the use of the state, and all other public uses 70 authorized by the Legislature; 71 (c)(i) public buildings and grounds for the use of any county, city, town, or board of 72 education; 73 (ii) reservoirs, canals, aqueducts, flumes, ditches, or pipes for conducting water or 74 sewage, including to or from a development, for the use of the inhabitants of any 75 county, city, or town, or for the draining of any county, city, or town; 76 (iii) the raising of the banks of streams, removing obstructions from streams, and 77 widening, deepening, or straightening their channels; 78 (iv) bicycle paths and sidewalks adjacent to paved roads; 79 (v) roads, byroads, streets, and alleys for public vehicular use, including for access to 80 a development; and 81 (vi) all other public uses for the benefit of any county, city, or town, or its inhabitants; 82 (d) wharves, docks, piers, chutes, booms, ferries, bridges, toll roads, byroads, plank and 83 turnpike roads, roads for transportation by traction engines or road locomotives, 84 roads for logging or lumbering purposes, and railroads and street railways for public 85 transportation; 86 (e) reservoirs, dams, watergates, canals, ditches, flumes, tunnels, aqueducts and pipes for 87 the supplying of persons, mines, mills, smelters or other works for the reduction of 88 ores, with water for domestic or other uses, or for irrigation purposes, or for the 89 draining and reclaiming of lands, or for solar evaporation ponds and other facilities 90 for the recovery of minerals or elements in solution; 91 (f)(i) roads, railroads, tramways, tunnels, ditches, flumes, pipes, and dumping places 92 to access or facilitate the milling, smelting, or other reduction of ores, or the 93 working of mines, quarries, coal mines, or mineral deposits including oil, gas, and 94 minerals or elements in solution; 95 (ii) outlets, natural or otherwise, for the deposit or conduct of tailings, refuse or water 96 from mills, smelters or other works for the reduction of ores, or from mines, - 3 - 1st Sub. (Green) S.B. 139 01-28 12:32 97 quarries, coal mines or mineral deposits including minerals or elements in solution; 98 (iii) mill dams; 99 (iv) gas, oil or coal pipelines, tanks or reservoirs, including any subsurface stratum or 100 formation in any land for the underground storage of natural gas, and in 101 connection with that, any other interests in property which may be required to 102 adequately examine, prepare, maintain, and operate underground natural gas 103 storage facilities; 104 (v) subject to Subsection (6), solar evaporation ponds and other facilities for the 105 recovery of minerals in solution; and 106 (vi) any occupancy in common by the owners or possessors of different mines, 107 quarries, coal mines, mineral deposits, mills, smelters, or other places for the 108 reduction of ores, or any place for the flow, deposit or conduct of tailings or refuse 109 matter; 110 (g) byroads leading from a highway to: 111 (i) a residence; or 112 (ii) a farm; 113 (h) telecommunications, electric light and electric power lines, sites for electric light and 114 power plants, or sites for the transmission of broadcast signals from a station licensed 115 by the Federal Communications Commission in accordance with 47 C.F.R. Part 73 116 and that provides emergency broadcast services; 117 (i) sewage service for: 118 (i) a city, a town, or any settlement of not fewer than 10 families; 119 (ii) a public building belonging to the state; or 120 (iii) a college or university; 121 (j) canals, reservoirs, dams, ditches, flumes, aqueducts, and pipes for supplying and 122 storing water for the operation of machinery for the purpose of generating and 123 transmitting electricity for power, light or heat; 124 (k) cemeteries and public parks; and 125 (l) sites for mills, smelters or other works for the reduction of ores and necessary to their 126 successful operation, including the right to take lands for the discharge and natural 127 distribution of smoke, fumes, and dust, produced by the operation of works, provided 128 that the powers granted by this section may not be exercised in any county where the 129 population exceeds 20,000, or within one mile of the limits of any city or 130 incorporated town nor unless the proposed condemner has the right to operate by - 4 - 01-28 12:32 1st Sub. (Green) S.B. 139 131 purchase, option to purchase or easement, at least 75% in value of land acreage 132 owned by persons or corporations situated within a radius of four miles from the mill, 133 smelter or other works for the reduction of ores; nor beyond the limits of the 134 four-mile radius; nor as to lands covered by contracts, easements, or agreements 135 existing between the condemner and the owner of land within the limit and providing 136 for the operation of such mill, smelter, or other works for the reduction of ores; nor 137 until an action shall have been commenced to restrain the operation of such mill, 138 smelter, or other works for the reduction of ores. 139 (3) The right of eminent domain may not be exercised on behalf of the following uses: 140 (a) except as provided in Subsection (2)(c)(iv), trails, paths, or other ways for walking, 141 hiking, bicycling, equestrian use, or other recreational uses, or whose primary 142 purpose is as a foot path, equestrian trail, bicycle path, or walkway; or 143 (b)(i) a public park whose primary purpose is: 144 (A) as a trail, path, or other way for walking, hiking, bicycling, or equestrian use; 145 or 146 (B) to connect other trails, paths, or other ways for walking, hiking, bicycling, or 147 equestrian use; or 148 (ii) a public park established on real property that is: 149 (A) a century farm; and 150 (B) located in a county of the first class. 151 (4)(a) The right of eminent domain may not be exercised within a migratory bird 152 production area created on or before December 31, 2020, under Title 23A, Chapter 153 13, Migratory Bird Production Area, except as follows: 154 (i) subject to Subsection (4)(b), an electric utility may condemn land within a 155 migratory bird production area located in a county of the first class only for the 156 purpose of installing buried power lines; 157 (ii) an electric utility may condemn land within a migratory bird production area in a 158 county other than a county of the first class to install: 159 (A) buried power lines; or 160 (B) a new overhead transmission line that is parallel to and abutting an existing 161 overhead transmission line or collocated within an existing overhead 162 transmission line right of way; or 163 (iii) the Department of Transportation may exercise eminent domain for the purpose 164 of the construction of the West Davis Highway. - 5 - 1st Sub. (Green) S.B. 139 01-28 12:32 165 (b) Before exercising the right of eminent domain under Subsection (4)(a)(i), the electric 166 utility shall demonstrate that: 167 (i) the proposed condemnation would not have an unreasonable adverse effect on the 168 preservation, use, and enhancement of the migratory bird production area; and 169 (ii) there is no reasonable alternative to constructing the power line within the 170 boundaries of a migratory bird production area. 171 (5) If the intended public purpose is for a mining use, a private person may not exercise the 172 power of eminent domain over property, or an interest in property, that is already used 173 for a mining use within the boundary of: 174 (a) a permit area, as defined in Section 40-8-4; 175 (b) an area for which a permit has been issued by the Division of Water Quality, as part 176 of the underground injection control program, under rules made by the Water Quality 177 Board in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; 178 (c) private property; or 179 (d) an area under a state or federal lease. 180 (6)(a) For the purpose of solar evaporation ponds and other facilities for the recovery of 181 minerals in solution on or from the Great Salt Lake, a public use includes removal or 182 extinguishment, by a state entity, in whole or in part, on Great Salt Lake Sovereign 183 lands of: 184 (i) a solar evaporation pond; 185 (ii) improvements, property, easements, or rights-of-way appurtenant to a solar 186 evaporation pond, including a lease hold; or 187 (iii) other facilities for the recovery of minerals or elements in solution. 188 (b) The public use under this Subsection (6) is in the furtherance of the benefits to public 189 trust assets attributable to the Great Salt Lake under Section 65A-1-1. 190 (7)(a) Fee simple title to land may not be taken by eminent domain, unless: 191 (i) the taking is for a purpose described in Subsection 78B-6-502(1); and 192 (ii) the purpose for which the taking is proposed cannot be accomplished by taking an 193 easement rather than taking fee simple title. 194 (b) If fee simple title to land is taken through eminent domain, the taking and the 195 resulting title shall explicitly exclude and reserve to each current owner the owner's 196 interest in the mineral estate associated with the land, unless taking the mineral estate 197 is necessary for the purpose of the taking. 198 (c) If, in accordance with Subsection (7)(b), it is necessary to acquire the mineral estate - 6 - 01-28 12:32 1st Sub. (Green) S.B. 139 199 associated with the land: 200 (i) each interest in the mineral estate shall be identified and valued separately from all 201 other estates, rights, and interests in the land; and 202 (ii) each owner with an interest in the mineral estate is entitled to separately receive 203 just compensation for the owner's interest in the mineral estate. 204 Section 2. Section 78B-6-502 is amended to read: 205 78B-6-502 . Estates and rights that may be taken. 206 Except as provided in Subsection 78B-6-501(3), (4), or (5), and subject to Subsection 207 78B-6-501(7), the following estates and rights in lands are subject to being taken for public 208 use: 209 (1) a fee simple, when taken for: 210 (a) public buildings or grounds; 211 (b) permanent buildings; 212 (c) reservoirs and dams, and permanent flooding occasioned by them; 213 (d) any permanent flood control structure affixed to the land; 214 (e) an outlet for a flow, a place for the deposit of debris or tailings of a mine, mill, 215 smelter, or other place for the reduction of ores; and 216 (f) subject to Subsection 78B-6-501(6), solar evaporation ponds and other facilities for 217 the recovery of minerals in solution, except when the surface ground is underlaid 218 with minerals, coal, or other deposits sufficiently valuable to justify extraction, only a 219 perpetual easement may be taken over the surface ground over the deposits; 220 (2) an easement, when taken for any other use; and 221 (3) the right of entry upon and occupation of lands, with the right to take from those lands 222 earth, gravel, stones, trees, and timber as necessary for a public use. 223 Section 3. Effective Date. 224 This bill takes effect on May 7, 2025. - 7 -