02-11 18:05 2nd Sub. (Salmon) 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: Kay J. Christofferson 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 ▸ describes information about eminent domain and mineral rights that must be provided on 10 the Office of the Property Rights Ombudsman's website; 11 ▸ requires separate payment of just compensation for a mineral estate taken through 12 eminent domain; 13 ▸ clarifies that fee simple title to land may not be taken by eminent domain unless the 14 taking is for a certain purpose; and 15 ▸ makes technical and conforming changes. 16 Money Appropriated in this Bill: 17 None 18 Other Special Clauses: 19 None 20 Utah Code Sections Affected: 21 AMENDS: 22 13-43-203, as last amended by Laws of Utah 2018, Chapter 215 23 78B-6-501, as last amended by Laws of Utah 2024, Chapters 25, 350 24 78B-6-502, as last amended by Laws of Utah 2024, Chapters 25, 350 25 26 Be it enacted by the Legislature of the state of Utah: 27 Section 1. Section 13-43-203 is amended to read: 28 13-43-203 . Office of the Property Rights Ombudsman -- Duties. 2nd Sub. S.B. 139 2nd Sub. (Salmon) S.B. 139 02-11 18:05 29 (1) The Office of the Property Rights Ombudsman shall: 30 (a) develop and maintain expertise in and understanding of takings, eminent domain, and 31 land use law; 32 (b) clearly identify the specific information that is prepared for distribution to property 33 owners whose land is being acquired under the provisions of Section 78B-6-505; 34 (c) assist state agencies and local governments in developing the guidelines required by 35 Title 63L, Chapter 4, Constitutional Takings Issues Act; 36 (d) at the request of a state agency or local government, assist the state agency or local 37 government, in analyzing actions with potential takings implications or other land use 38 issues; 39 (e) advise real property owners who: 40 (i) have a legitimate potential or actual takings claim against a state or local 41 government entity or have questions about takings, eminent domain, and land use 42 law; or 43 (ii) own a parcel of property that is landlocked, as to the owner's rights and options 44 with respect to obtaining access to a public street; 45 (f) identify state or local government actions that have potential takings implications 46 and, if appropriate, advise those state or local government entities about those 47 implications; 48 (g) provide information to private citizens, civic groups, government entities, and other 49 interested parties about takings, eminent domain, and land use law and their rights, 50 including a right to just compensation, and responsibilities under the takings, eminent 51 domain, or land use laws through seminars and publications, and by other appropriate 52 means; 53 (h)(i) [provide the information described in Section 78B-6-505 on the Office of the 54 Property Rights Ombudsman's website in a form that is easily accessible; and] 55 provide, in a form that is easily accessible, the following information on the 56 Office of the Property Rights Ombudsman's website: 57 (A) the information described in Section 78B-6-505; 58 (B) a definition and explanation of the term, "fee simple title"; 59 (C) an explanation of the implications for a property owner when fee simple title 60 is taken through eminent domain; 61 (D) a notification that eminent domain may include taking a recorded interest held 62 in real property, including a mineral right; - 2 - 02-11 18:05 2nd Sub. (Salmon) S.B. 139 63 (E) a notification that a property owner may be compensated for a recorded 64 interest in real property, including a mineral right; and 65 (F) a notification that a property owner can request a separate valuation for a 66 recorded interest in real property; and 67 (ii) ensure that the information described in Subsection (1)(h)(i) is current; and 68 (i)(i) provide education and training regarding: 69 (A) the drafting and application of land use laws and regulations; and 70 (B) land use dispute resolution; and 71 (ii) use any money transmitted in accordance with Subsection 15A-1-209(5) to pay 72 for any expenses required to provide the education and training described in 73 Subsection (1)(i)(i), including grants to a land use training organization that: 74 (A) the Land Use and Eminent Domain Advisory Board, created in Section 75 13-43-202, selects and proposes; and 76 (B) the property rights ombudsman and the executive director of the Department 77 of Commerce jointly approve. 78 (2)(a) Neither the Office of the Property Rights Ombudsman nor its individual attorneys 79 may represent private parties, state agencies, local governments, or any other 80 individual or entity in a legal action that arises from or relates to a matter addressed 81 in this chapter. 82 (b) An action by an attorney employed by the Office of the Property Rights 83 Ombudsman, by a neutral third party acting as mediator or arbitrator under Section 84 13-43-204, or by a neutral third party rendering an advisory opinion under Section 85 13-43-205 or 13-43-206, taken within the scope of the duties set forth in this chapter, 86 does not create an attorney-client relationship between the Office of the Property 87 Rights Ombudsman, or the office's attorneys or appointees, and an individual or 88 entity. 89 (3) No member of the Office of the Property Rights Ombudsman nor a neutral third party 90 rendering an advisory opinion under Section 13-43-205 or 13-43-206, may be compelled 91 to testify in a civil action filed concerning the subject matter of any review, mediation, 92 or arbitration by, or arranged through, the office. 93 (4)(a) Except as provided in Subsection (4)(b), evidence of a review by the Office of the 94 Property Rights Ombudsman and the opinions, writings, findings, and determinations 95 of the Office of the Property Rights Ombudsman are not admissible as evidence in a 96 judicial action. - 3 - 2nd Sub. (Salmon) S.B. 139 02-11 18:05 97 (b) Subsection (4)(a) does not apply to: 98 (i) actions brought under authority of Title 78A, Chapter 8, Small Claims Courts; 99 (ii) a judicial confirmation or review of the arbitration itself as authorized in Title 100 78B, Chapter 11, Utah Uniform Arbitration Act; 101 (iii) actions for de novo review of an arbitration award or issue brought under the 102 authority of Subsection 13-43-204(3)(a)(i); or 103 (iv) advisory opinions provided for in Sections 13-43-205 and 13-43-206. 104 Section 2. Section 78B-6-501 is amended to read: 105 78B-6-501 . Eminent domain -- Uses for which right may be exercised -- 106 Limitations on eminent domain. 107 (1) As used in this section: 108 (a) "Century farm" means real property that is: 109 (i) assessed under Title 59, Chapter 2, Part 5, Farmland Assessment Act; and 110 (ii) owned or held by the same family for a continuous period of 100 years or more. 111 (b) "Mineral or element" means the same as that term is defined in Section 65A-17-101. 112 (c)(i) "Mining use" means: 113 (A) the full range of permitted or active activities, from prospecting and 114 exploration to reclamation and closure, associated with the exploitation of a 115 mineral deposit; and 116 (B) the use of the surface, subsurface, groundwater, and surface water of an area 117 in connection with the activities described in Subsection (1)(c)(i)(A) that have 118 been, are being, or will be conducted. 119 (ii) "Mining use" includes, whether conducted on-site or off-site: 120 (A) sampling, staking, surveying, exploration, or development activity; 121 (B) drilling, blasting, excavating, or tunneling; 122 (C) the removal, transport, treatment, deposition, and reclamation of overburden, 123 development rock, tailings, and other waste material; 124 (D) the recovery of sand and gravel; 125 (E) removal, transportation, extraction, beneficiation, or processing of ore; 126 (F) use of solar evaporation ponds and other facilities for the recovery of minerals 127 in solution; 128 (G) smelting, refining, autoclaving, or other primary or secondary processing 129 operation; 130 (H) the recovery of any mineral left in residue from a previous extraction or - 4 - 02-11 18:05 2nd Sub. (Salmon) S.B. 139 131 processing operation; 132 (I) a mining activity that is identified in a work plan or permitting document; 133 (J) the use, operation, maintenance, repair, replacement, construction, or alteration 134 of a building, structure, facility, equipment, machine, tool, or other material or 135 property that results from or is used in a surface or subsurface mining operation 136 or activity; 137 (K) an accessory, incidental, or ancillary activity or use, both active and passive, 138 including a utility, private way or road, pipeline, land excavation, working, 139 embankment, pond, gravel excavation, mining waste, conveyor, power line, 140 trackage, storage, reserve, passive use area, buffer zone, and power production 141 facility; 142 (L) the construction of a storage, factory, processing, or maintenance facility; and 143 (M) an activity described in Subsection 40-8-4(17)(a). 144 (2) Except as provided in Subsections (3), (4), and (5) and subject to the provisions of this 145 part, the right of eminent domain may be exercised on behalf of the following public 146 uses: 147 (a) all public uses authorized by the federal government; 148 (b) public buildings and grounds for the use of the state, and all other public uses 149 authorized by the Legislature; 150 (c)(i) public buildings and grounds for the use of any county, city, town, or board of 151 education; 152 (ii) reservoirs, canals, aqueducts, flumes, ditches, or pipes for conducting water or 153 sewage, including to or from a development, for the use of the inhabitants of any 154 county, city, or town, or for the draining of any county, city, or town; 155 (iii) the raising of the banks of streams, removing obstructions from streams, and 156 widening, deepening, or straightening their channels; 157 (iv) bicycle paths and sidewalks adjacent to paved roads; 158 (v) roads, byroads, streets, and alleys for public vehicular use, including for access to 159 a development; and 160 (vi) all other public uses for the benefit of any county, city, or town, or its inhabitants; 161 (d) wharves, docks, piers, chutes, booms, ferries, bridges, toll roads, byroads, plank and 162 turnpike roads, roads for transportation by traction engines or road locomotives, 163 roads for logging or lumbering purposes, and railroads and street railways for public 164 transportation; - 5 - 2nd Sub. (Salmon) S.B. 139 02-11 18:05 165 (e) reservoirs, dams, watergates, canals, ditches, flumes, tunnels, aqueducts and pipes for 166 the supplying of persons, mines, mills, smelters or other works for the reduction of 167 ores, with water for domestic or other uses, or for irrigation purposes, or for the 168 draining and reclaiming of lands, or for solar evaporation ponds and other facilities 169 for the recovery of minerals or elements in solution; 170 (f)(i) roads, railroads, tramways, tunnels, ditches, flumes, pipes, and dumping places 171 to access or facilitate the milling, smelting, or other reduction of ores, or the 172 working of mines, quarries, coal mines, or mineral deposits including oil, gas, and 173 minerals or elements in solution; 174 (ii) outlets, natural or otherwise, for the deposit or conduct of tailings, refuse or water 175 from mills, smelters or other works for the reduction of ores, or from mines, 176 quarries, coal mines or mineral deposits including minerals or elements in solution; 177 (iii) mill dams; 178 (iv) gas, oil or coal pipelines, tanks or reservoirs, including any subsurface stratum or 179 formation in any land for the underground storage of natural gas, and in 180 connection with that, any other interests in property which may be required to 181 adequately examine, prepare, maintain, and operate underground natural gas 182 storage facilities; 183 (v) subject to Subsection (6), solar evaporation ponds and other facilities for the 184 recovery of minerals in solution; and 185 (vi) any occupancy in common by the owners or possessors of different mines, 186 quarries, coal mines, mineral deposits, mills, smelters, or other places for the 187 reduction of ores, or any place for the flow, deposit or conduct of tailings or refuse 188 matter; 189 (g) byroads leading from a highway to: 190 (i) a residence; or 191 (ii) a farm; 192 (h) telecommunications, electric light and electric power lines, sites for electric light and 193 power plants, or sites for the transmission of broadcast signals from a station licensed 194 by the Federal Communications Commission in accordance with 47 C.F.R. Part 73 195 and that provides emergency broadcast services; 196 (i) sewage service for: 197 (i) a city, a town, or any settlement of not fewer than 10 families; 198 (ii) a public building belonging to the state; or - 6 - 02-11 18:05 2nd Sub. (Salmon) S.B. 139 199 (iii) a college or university; 200 (j) canals, reservoirs, dams, ditches, flumes, aqueducts, and pipes for supplying and 201 storing water for the operation of machinery for the purpose of generating and 202 transmitting electricity for power, light or heat; 203 (k) cemeteries and public parks; and 204 (l) sites for mills, smelters or other works for the reduction of ores and necessary to their 205 successful operation, including the right to take lands for the discharge and natural 206 distribution of smoke, fumes, and dust, produced by the operation of works, provided 207 that the powers granted by this section may not be exercised in any county where the 208 population exceeds 20,000, or within one mile of the limits of any city or 209 incorporated town nor unless the proposed condemner has the right to operate by 210 purchase, option to purchase or easement, at least 75% in value of land acreage 211 owned by persons or corporations situated within a radius of four miles from the mill, 212 smelter or other works for the reduction of ores; nor beyond the limits of the 213 four-mile radius; nor as to lands covered by contracts, easements, or agreements 214 existing between the condemner and the owner of land within the limit and providing 215 for the operation of such mill, smelter, or other works for the reduction of ores; nor 216 until an action shall have been commenced to restrain the operation of such mill, 217 smelter, or other works for the reduction of ores. 218 (3) The right of eminent domain may not be exercised on behalf of the following uses: 219 (a) except as provided in Subsection (2)(c)(iv), trails, paths, or other ways for walking, 220 hiking, bicycling, equestrian use, or other recreational uses, or whose primary 221 purpose is as a foot path, equestrian trail, bicycle path, or walkway; or 222 (b)(i) a public park whose primary purpose is: 223 (A) as a trail, path, or other way for walking, hiking, bicycling, or equestrian use; 224 or 225 (B) to connect other trails, paths, or other ways for walking, hiking, bicycling, or 226 equestrian use; or 227 (ii) a public park established on real property that is: 228 (A) a century farm; and 229 (B) located in a county of the first class. 230 (4)(a) The right of eminent domain may not be exercised within a migratory bird 231 production area created on or before December 31, 2020, under Title 23A, Chapter 232 13, Migratory Bird Production Area, except as follows: - 7 - 2nd Sub. (Salmon) S.B. 139 02-11 18:05 233 (i) subject to Subsection (4)(b), an electric utility may condemn land within a 234 migratory bird production area located in a county of the first class only for the 235 purpose of installing buried power lines; 236 (ii) an electric utility may condemn land within a migratory bird production area in a 237 county other than a county of the first class to install: 238 (A) buried power lines; or 239 (B) a new overhead transmission line that is parallel to and abutting an existing 240 overhead transmission line or collocated within an existing overhead 241 transmission line right of way; or 242 (iii) the Department of Transportation may exercise eminent domain for the purpose 243 of the construction of the West Davis Highway. 244 (b) Before exercising the right of eminent domain under Subsection (4)(a)(i), the electric 245 utility shall demonstrate that: 246 (i) the proposed condemnation would not have an unreasonable adverse effect on the 247 preservation, use, and enhancement of the migratory bird production area; and 248 (ii) there is no reasonable alternative to constructing the power line within the 249 boundaries of a migratory bird production area. 250 (5) If the intended public purpose is for a mining use, a private person may not exercise the 251 power of eminent domain over property, or an interest in property, that is already used 252 for a mining use within the boundary of: 253 (a) a permit area, as defined in Section 40-8-4; 254 (b) an area for which a permit has been issued by the Division of Water Quality, as part 255 of the underground injection control program, under rules made by the Water Quality 256 Board in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; 257 (c) private property; or 258 (d) an area under a state or federal lease. 259 (6)(a) For the purpose of solar evaporation ponds and other facilities for the recovery of 260 minerals in solution on or from the Great Salt Lake, a public use includes removal or 261 extinguishment, by a state entity, in whole or in part, on Great Salt Lake Sovereign 262 lands of: 263 (i) a solar evaporation pond; 264 (ii) improvements, property, easements, or rights-of-way appurtenant to a solar 265 evaporation pond, including a lease hold; or 266 (iii) other facilities for the recovery of minerals or elements in solution. - 8 - 02-11 18:05 2nd Sub. (Salmon) S.B. 139 267 (b) The public use under this Subsection (6) is in the furtherance of the benefits to public 268 trust assets attributable to the Great Salt Lake under Section 65A-1-1. 269 (7)(a) If fee simple title to land is taken through eminent domain, in accordance with 270 Section 78B-6-502, the taking and the resulting title shall explicitly identify the 271 owner's interest in the mineral estate associated with the land, in accordance with 272 Subsection (7)(b). 273 (b) If the mineral estate associated with the land is acquired by eminent domain: 274 (i) each interest in the mineral estate shall be identified and valued separately from all 275 other estates, rights, and interests in the land; and 276 (ii) each owner with an interest in the mineral estate is entitled to separately receive 277 just compensation for the owner's interest in the mineral estate. 278 Section 3. Section 78B-6-502 is amended to read: 279 78B-6-502 . Estates and rights that may be taken. 280 (1) Except as provided in Subsection 78B-6-501(3), (4), or (5), the following estates 281 and rights in lands are subject to being taken for public use: 282 [(1)] (a) a fee simple, when taken for: 283 [(a)] (i) public buildings or grounds; 284 [(b)] (ii) permanent buildings; 285 [(c)] (iii) reservoirs and dams, and permanent flooding occasioned by them; 286 [(d)] (iv) any permanent flood control structure affixed to the land; 287 [(e)] (v) an outlet for a flow, a place for the deposit of debris or tailings of a mine, 288 mill, smelter, or other place for the reduction of ores; and 289 [(f)] (vi) subject to Subsection 78B-6-501(6), solar evaporation ponds and other 290 facilities for the recovery of minerals in solution, except when the surface ground 291 is underlaid with minerals, coal, or other deposits sufficiently valuable to justify 292 extraction, only a perpetual easement may be taken over the surface ground over 293 the deposits; 294 [(2)] (b) an easement, when taken for any other use; and 295 [(3)] (c) the right of entry upon and occupation of lands, with the right to take from those 296 lands earth, gravel, stones, trees, and timber as necessary for a public use. 297 (2) Fee simple title to land may not be taken by eminent domain unless the taking is for a 298 purpose described in Subsection (1)(a). 299 Section 4. Effective Date. 300 This bill takes effect on May 7, 2025. - 9 -