Natural Resources

Oil, Gas and Mining; Non-Coal

Rule 2: Exploration

Effective Date:

Admin. Code Reference: R647-2

Rule Type: Proposed Rule

NOTICE OF SUBSTANTIVE CHANGE

TYPE OF FILING: Amendment

Filing ID: 58292

Rule or section number:

R647-2

1. Agency Information

Title catchline:

Natural Resources; Oil, Gas and Mining; Non-Coal

Building:

Department of Natural Resources

Street address:

1594 W North Temple

City, state:

Salt Lake City, UT

Mailing address:

1594 W North Temple, Suite 1210

City, state and zip:

Salt Lake City, UT 84116

2. Contact Persons

Name:

Phone:

Email:

Natasha Ballif

801-589-5486

natashaballif@utah.gov

Please address questions regarding information on this notice to the persons listed above.

3. General Information

A. Rule or section catchline:

R647-2. Exploration

B. Purpose of the new rule or reason for the change:

The Division of Oil, Gas and Mining (division) is removing expiration dates for exploration mine operations and clarifying Authorized Company Representatives.

C. Summary of the new rule or change:

These rule amendments remove the expiration date for exploration mine operations and addresses events that result in withdrawals of notice of intentions.

These amendments also add requirements around Authorized Company Representatives to give the operator and the division more clarity on who can sign and submit documents.

Lastly, these amendments include general clarifications throughout, including updating "permittee" to "operator" and "post-mining" to "post-exploration".

5. Fiscal Information

Provide an estimate and written explanation of the aggregate anticipated cost or savings to:

A. State budget:

There is a total of one state agency, the division, that will be associated with this proposed rule change.

There will be no additional cost to the state as these changes are administrative.

There will be a savings to the state for time spent approving exploration mine operations permit extensions, however, the savings cannot be determined as those reviews are tracked as general permitting work.

B. Local governments:

This rule amendment will not affect local governments as it only applies to the division and mine operators.

C. Small businesses ("small business" means a business employing 1-49 persons):

There are a total of 559 small business mining operators (for a complete listing of NAICS codes used in this analysis, please contact the agency) in the state of Utah.

There will be no additional cost to mine operators as these changes are purely administrative.

D. Non-small businesses ("non-small business" means a business employing 50 or more persons):

There are a total of 36 non-small business mining operators (for a complete listing of NAICS codes used in this analysis, please contact the agency) in the state of Utah.

There will be no additional cost to mine operators as these changes are purely administrative.

E. Persons other than small businesses, non-small businesses, state, or local government entities ("person" means any individual, partnership, corporation, association, governmental entity, or public or private organization of any character other than an agency):

This rule amendment will not affect persons other than small businesses, non-small businesses, or local government entities as it only applies to the division and exploration mine operators.

F. Compliance costs for affected persons:

There will be no compliance costs for exploration mine operators.

6. Regulatory Impact Summary Table

Enter the cost or savings in the relevant cell. If there is no cost or savings, enter, "$0." If a cost or savings is inestimable, enter, "inestimable."

Fiscal Cost

FY2027

FY2028

FY2029

FY2030

FY2031

State Budget

Local Governments

Small Businesses

Non-Small Businesses

Other Persons

Total Fiscal Cost

Fiscal Benefits

FY2027

FY2028

FY2029

FY2030

FY2031

State Budget

inestimable

Local Governments

Small Businesses

Non-Small Businesses

$00

Other Persons

Total Fiscal Benefits

inestimable

Net Fiscal Benefits

inestimable

7. Regulatory Impact Analysis Approval

The Commissioner of the Department of Natural Resources, Jamie Barnes, has reviewed and approved this regulatory impact analysis.

8. Family Impact Information

A. The agency has considered this rule's impact on family health, stability, and formation:

☒

9. Citation Information

Provide citations to the statutory authority for the rule. If there is also a federal requirement for the rule, provide a citation to that requirement:

Section 40-8-1 et seq.

11. Public Notice Information

The public may submit written or oral comments to the agency identified in box 1.

A. Comments will be accepted until:

11/16/2026

12. Effective Date Information

This rule change MAY become effective on:

(NOTE: This is the date the agency anticipates making the filing effective. It is NOT the effective date)

12/02/2026

13. Agency Authorization Information

Agency head or

designee and title:

Dana Dean, Deputy Director

Date:

09/30/2026

R647. Natural Resources; Oil, Gas and Mining; Non-Coal.

R647-2. Exploration.

R647-2-101. Filing Requirements and Review Procedures.

(1)[.] Prior to the commencement of exploration, a Notice of Intention to Conduct Exploration (FORM MR-EXP) containing all the

required information must be filed with and determined complete by the Division and the Division shall have approved the form and amount of

reclamation surety. It is recommended that the notice of intention be filed with the Division at least 30 days prior to the planned commencement of exploration.

(2)[.] Within 30 days after receipt of a Notice of Intention to Conduct Exploration (FORM MR-EXP), the Division will review the

proposal and notify the operator in writing that the notice of intention is:

(a) Complete and all required information has been submitted; or

(b) Incomplete, and additional information as identified by the Division will be required.

(3)[.] If the Notice of Intention to Conduct Exploration involves more acreage than that allowed for small mining operations, a detailed

exploration development and reclamation plan must be included in the notice of intention and approved by the Division.

(4)[.] The Division will review and approve or disapprove:

(a) The form and amount of reclamation surety, and;

(b) Any variances requested under Section R647-2-107, Section R647-2-108, or Section R647-2-109, regardless of the number of surface acres of disturbance planned.

(5)[.] Developmental drilling conducted within an already approved disturbed area with approved surety does not require submittal of a

Notice of Intention to Conduct Exploration (FORM MR-EXP).

(6)[.] An operator[ permittee']s retention of a notice of intention shall require the paying of permit fees as authorized by the Utah

Legislature. The procedures for paying the permit fees are as follows:

(a) The Division shall notify the operators of record annually of the amount of permit fees authorized by the Utah Legislature for Exploration.

(b) Fees are due annually by the deadline in Section R647-2-115 for reports.

(i) An operator[ permittee's] will notify the Division of a desire to close out a notice of intention by checking the appropriate box of the

permit fees billing form.

(ii) The operator[permittee] will then arrange with the Division for an onsite inspection of the site to assure that all required reclamation

has been performed. If an inspection reveals that an area is not yet suitably reclaimed, then a new billing notice will be issued and the operator[permittee] will be given 30 days from the date of the onsite inspection to pay the fee.

R647-2-102. Duration of the Notice of Intention.

[1. A Notice of Intention to Conduct Exploration that has been determined complete or approved, shall be valid until December 31st of the

year following submission. Exploration and reclamation activities should be completed within this time frame. An operator desiring to extend the

duration of a notice of intention, must notify the Division in writing, prior to expiration of the notice of intention, specifying the reasons an extension

is required, and the anticipated length of time necessary to complete exploration and reclamation.

2. The Division will review and approve the extension and adjust if necessary, the amount of reclamation surety.

3. Authorization to operate under a Notice of Intention to Conduct Exploration may be withdrawn in the event of failure by the operator to

pay permit fees required by Section R647-2-101(6), or to maintain and update reclamation surety as required, after notice and opportunity for Board

hearing.](1) The completed notice of intention, including any subsequent amendments, shall remain in effect for the life of the exploration operation.

The Division may review the permit and require updated information and modifications when warranted.

(2) A completed notice of intention may be withdrawn, after notice and opportunity for Board hearing, in the event the operator:

(a) fails to pay permit fees required by Subsection R647-2-101(6) ;

(b) fails to maintain and update adequate reclamation surety as required in Section R647-2-111;

(c) substantially fails to perform reclamation or conduct exploration operations so that reclamation can be accomplished in accordance

with the reclamation practices in Section R647-2-109;

(d) shuts down or suspends exploration operations for a period in excess of five years, unless an extended period of suspension is approved

upon application; or

(e) fails, after notice, to timely request a hearing before the Board, the Division may, in accordance with Subsection (2), withdraw an

approved notice of intention.

(3) If the operator requests a hearing before the board, the Board shall conduct the hearing de novo, and the Division may not withdraw an

approved notice of intention until conclusion of the hearing, and the Board issues an order to withdraw the notice of intention.

(4) If a notice of intention is withdrawn, the Division will notify the operator in writing that it must commence complete reclamation work

within 90 days and diligently proceed with such work as directed by the Division.

R647-2-103. Notice of Intention to Conduct Exploration.

The notice of intention shall address the requirements of the following section:

TABLE

RULE #

SUBJECT

R647-2-104

Operator, Surface and Mineral Owner

R647-2-105

Maps and Drawings

R647-2-106

Project Description

R647-2-107

Operation Practices

R647-2-108

Hole Plugging Requirements

R647-2-109

Reclamation Practices

R647-2-110

Variance

R647-2-104. Operators, Surface and Mineral Owners.

The notice of intention shall include the following general information:

(1) The name, permanent mailing address, telephone number, and email address of the operator responsible for exploration.

(2) The name, permanent mailing address, and telephone number of the surface landowner and mineral owner of any land to be affected by the operations.

(3) Information regarding the operator's organizational structure pertinent to the [mining]exploration operation:

(a) Registered Agent: The name, permanent mailing address, telephone number, and email address of the registered agent for the operator.

(b) Signatory Authority: The names, titles, permanent mailing addresses, telephone numbers, and email addresses of individuals who have signatory authority on behalf of the operator for official documents.

(c) Authorized Contact Persons: The names, titles, permanent mailing addresses, telephone numbers, and email addresses of persons authorized by the operator to communicate with the Division, including consultants or legal representatives.

(i) All business entities must register and maintain registration with the State of Utah Division of Corporations. The only exception is for

sole proprietors, who are not required to be registered.

(ii) Operators must be registered as an operator with the Division. An operator registration form must be completed and signed by a sole

proprietor or an officer of the company current with the Division of Corporations. The operator registration form will dictate who has authority to file

applications, reports and execute all forms required by the division pertaining to the operation of mines, wells or facilities in Utah for that entity.

(A) Those names shown in the "Authorized Company Representatives" section of the operator registration form are the only individuals

recognized by the Utah Division of Oil, Gas and Mining as having permission to file and execute all forms or reports required by the division on

behalf of the company.

(B) It is the responsibility of the registering company to immediately inform the Utah Division of Oil, Gas and Mining in writing of any

changes, such as additions or removals to the "Authorized Company Representatives". Only corporate officers currently listed on the company's

Division of Corporations registration can authorize company representatives.

(C) A registered agent listed on the Division of Corporations for an entity can receive notices or other correspondence from the division

for that entity.

(4) The federal project numbers, mining claim number, lease number, or permit number of any mining claims, or federal or state leases or permits included in the lands affected.

(5) A signed statement that the operator will conduct reclamation as required by Rule R647-2.

(6) The Notice of Intent must be signed by the operator's owner or an individual with signatory authority.

R647-2-105. Maps and Drawings.

The notice of intention shall include a location map and an operations map. Each map shall be plotted at a scale to accurately identify locational landmarks and operation details.

(1)[.] The general location map shall be the scale of a USGS 7.5-minute series map or equivalent, 1 inch equals 2000 feet, and identify

new or existing access roads.

(2)[.] The operations map, 1 inch equals 200 feet, or other scale as determined necessary by the Division, shall identify:

(a) The area to be disturbed;

(b) The location of any existing or proposed operations including access roads, drill holes, trenches, pits, shafts, cuts, or other planned exploration activities; and

R647-2-106. Project Description.

The notice of intention should include the following information:

(1) A statement giving general details of the type or method of exploration proposed, including the proposed dates during which exploration will be conducted;

(2) The type of minerals to be explored for;

(3) The general dimensions of each drill hole, including total depth and diameter;

(4) The general dimensions of each trench, pit, shaft, cut, or other type of disturbance;

(5) The width and length of any new roads constructed, and a description of improvements to existing roads;

(6) An estimate of the total number of surface acres to be disturbed.

(7) The amount of material, including mineral deposit, topsoil, subsoil, overburden, waste rock, or core hole material, extracted, moved, or proposed to be moved during the exploration operation.

R647-2-107. Operation Practices.

The operator shall conform to the following practices while conducting exploration unless the Division grants a variance in writing:

(1) Public Safety and Welfare - The operator shall minimize hazards to the public safety and welfare during operations. Methods to minimize hazards shall, at a minimum, include:

(a) The closing or guarding of shafts and tunnels to prevent unauthorized or accidental entry in accordance with MSHA regulations;

(b) The disposal of trash, scrap metal and wood, and extraneous debris;

(d) The posting of appropriate warning signs in locations where public access to operations is readily available;

(e) The construction of berms, fences and barriers above highwalls or other excavations, when required by the division.

(2) Drainages - If natural channels are to be affected by exploration, then the operator shall take appropriate measures to avoid or minimize environmental damage.

(3) Erosion Control - Operations shall be conducted in a manner such that sediment from disturbed areas is adequately controlled. The degree of erosion control shall be appropriate for the site-specific and regional conditions of topography, soil, drainage, water quality or other characteristics.

(4) Deleterious Materials - Any deleterious or potentially deleterious material shall be safely removed from the site or kept in an isolated or neutralized condition such that adverse environmental effects are eliminated or controlled.

(5) Soils - Suitable soil material shall be removed and stored in a stable condition where practical so as to be available for reclamation.

(6) Boundary Markers. Unless otherwise approved in writing by the division, the operation will clearly mark on the ground any areas, including access roads to be improved or constructed, that are covered by the reclamation surety. The operator will maintain the markings as required by this rule. Boundary and road markers must be placed so that no less than two consecutive markers are readily visible in any direction from any point on a line. The following requirements apply to marking boundaries of areas covered by the reclamation surety:

(a) markers must be in place prior to any surface or subsurface disturbance in the area covered by the reclamation surety;

(b) markers must be durable stout steel, wood, or similar quality posts and painted or flagged to be readily visible, except that a prominent, permanent feature such as a pole, tree, or large rock, flagged or painted, may serve as a marker;

(c) each boundary marker must be maintained in place and readily visible until the area covered by the reclamation surety is fully reclaimed and the reclamation surety for that area is released;

(d) the following areas and features must be marked according to this rule:

(i) the area shown on the map that depicts the area to be covered by the reclamation surety of the proposed notice of intention or [revision]amendment;

(ii) prior to submission of an application for bond release, areas that are the subject of an application for partial bond release or full bond release; and

(iii) proposed permitted access roads to be improved or constructed.

(7) Concurrent Reclamation - During operations, disturbed areas shall be reclaimed when no longer needed, except to the extent necessary to preserve evidence of mineralization for proof of discovery. Areas which have been disturbed but are not routinely or currently utilized shall be kept in a safe, environmentally stable condition.

R647-2-108. Hole Plugging Requirements.

Drill holes shall be properly plugged as soon as practical and may not be left unplugged for more than 30 days without approval of the Division. The procedures outlined in this section are required for the surface and subsurface plugging of drill holes. The Division may approve an alternate plan, if the operator can prove to the satisfaction of the Division that another method will provide adequate protection to the groundwater resources and long term stability of the land. Dry holes and nonartesian holes which do not produce significant amounts of water may be temporarily plugged with a surface cap to permit the operator to re-enter the hole for the duration of operations.

(1) Surface plugging of drill holes shall be accomplished by:

(a) Setting a nonmetallic permaplug at a minimum of five feet below the surface, or returning the cuttings to the hole and tamping the returned cuttings to within five feet of ground level. The hole above the permaplug or tamped cuttings will be filled with a cement plug. If cemented casing is to be left in place, a concrete surface plug is not required provided that a permanent cap is secured on top of the casing.

(b) If the area is tilled farmland, a five foot cement plug must be placed above a permaplug or tamped cuttings so that the top of the cement plug is a minimum of three feet below the ground surface. The hole above the cement plug is to be filled with soil. If cemented casing is to be left in place, a concrete surface plug is not required provided that a permanent cap is secured on top of the casing. The top of the casing and cap must be a minimum of three feet below the ground surface.

(2) Drill holes that encounter water, oil, gas or other potential migratory substances and are 2-1/2 inches or greater in surface diameter shall be plugged in the subsurface to prevent the migration of fluid from one strata to another. If water is encountered, plugging shall be accomplished as outlined in Subsections (2)(a) and (b):

(a) If artesian flow - water flowing to the surface from the hole - is encountered during or upon cessation of drilling, a cement plug shall be placed to prevent water from flowing between geologic formations and at the surface. The cement mix should consist of API Class A or H cement with additives as needed. It should weigh at least 13.5 lbs./gal., and be placed under the supervision of a person qualified in proper drill hole cementing of artesian flow. Artesian bore holes must be plugged in the described manner, prior to removal of the drilling equipment from the well site. If the surface owner of the land affected desires to convert an artesian drill hole to a water well, the owner must notify the Division in writing accepting responsibility for the ultimate plugging of the drill hole.

(b) Holes that encounter significant amounts of nonartesian water shall be plugged by:

(i) Placing a 50 foot cement plug immediately above and below any aquifers; or

(ii) Filling from the bottom up, through the drill stem, with a high grade bentonite and water slurry mixture. The slurry shall have a Marsh funnel viscosity of at least 50 seconds per quart prior to the adding of any cuttings.

R647-2-109. Reclamation Practices.

The operator shall conform to the following practices while conducting reclamation unless the Division grants a variance in writing:

(1) Public Safety and Welfare - The operator shall minimize hazards to the public safety and welfare following completion of operations. Methods to minimize hazards shall, at a minimum, include:

(a) The permanent sealing of shafts and tunnels;

(b) Appropriate disposal of trash, scrap metal and wood, buildings, extraneous debris, and other materials incident to [mining]exploration;

(d) The posting of appropriate warning signs in locations where public access to operations is readily available;

(e) The construction of berms, fences and barriers above highwalls or other excavations when required by the division.

(2) Drainages - If natural channels have been affected by exploration, then reclamation must be performed such that the channels will be left in a stable condition with respect to actual and reasonably expected water flow so as to avoid or minimize future damage to the hydrologic system.

(3) Erosion Control - Reclamation shall be conducted in a manner such that sediment from disturbed areas is adequately controlled. The degree of erosion control shall be appropriate for the site-specific and regional conditions of topography, soil, drainage, water quality or other characteristics.

(4) Deleterious Materials - Any deleterious or potentially deleterious material shall be safely removed from the site or left in an isolated or neutralized condition such that adverse environmental effects are eliminated or controlled.

(5) Land Use - The operator shall leave the on-site area in a condition which is capable of supporting the post-exploration[mining] land

use.

(6) Slopes - Waste piles, spoil piles and fills shall be regraded to a stable configuration and shall be sloped to minimize safety hazards and erosion while providing for successful revegetation.

(7) Highwalls - In surface [mining]exploration and in open cuts for pads or roadways, highwalls shall be reclaimed and stabilized by

backfilling against them or by cutting the wall back to achieve a slope angle of 45 degrees or less.

(8) Roads and Pads - On-site roads and pads shall be reclaimed when they are no longer needed for operations. When a road or pad is to be turned over to the property owner or managing agency for continuing use, the operator shall turn over the property with adequate surface drainage structures and in a condition suitable for continued use.

(9) Dams and Impoundments - Water impounding structures shall be reclaimed so as to be self-draining and mechanically stable unless shown to have sound hydrologic design and to be beneficial to the post-exploration[mining] land use.

(10) Trenches and Pits - Trenches and small pits shall be reclaimed.

(11) Structures and Equipment - Structures, rail lines, utility connections, equipment, and debris shall be buried or removed.

(12) Topsoil Redistribution - After final grading, soil materials shall be redistributed on a stable surface so as to minimize erosion, prevent undue compaction and promote revegetation.

(13) Revegetation - The operator shall seed the disturbed area with adaptable species that will grow on the site, provide basic soil and watershed protection, and support the post-exploration[mining] land use.

(a) Revegetation shall be considered accomplished when:

(i) The revegetation with species acceptable to the division has achieved 70% of the pre-exploration[mining] vegetative ground cover. If

the pre-exploration[mining] vegetative ground cover of the disturbed area is unknown, ground cover of an adjacent undisturbed area that is

representative of the pre-exploration[mining] ground cover will be used as a standard. Also, the vegetation has survived three growing seasons

following the last seeding, fertilization or irrigation, unless such practices are to continue as part of the post-exploration[mining] land use; or

(ii) the Division determines that the revegetation work has been satisfactorily completed within practical limits.

R647-2-110. Variance.

(1) The operator may request a variance from Section R647-2-107, Section R647-2-108, or Section R647-2-109, by submitting the following information, which shall be considered by the Division on a site-specific basis:

(a) The rules from which a variance are requested;

(b) The variance requested and description of the area that would be affected by the variances;

(d) Alternate methods or measures to be utilized.

(2) A variance shall be granted if the alternative method or measure proposed will be consistent with the Act.

(3) Any variance must be specifically approved by the Division in writing.

R647-2-111. Surety.

(1) After receiving notification that the notice of intention is approved or complete, but prior to commencement of operations, the operator shall provide a reclamation surety with the Division.

(a) Failure to furnish and maintain reclamation surety may, after notice and opportunity for a Board hearing, result in a withdrawal of the notice of intention as provided for in Section 40-8-16.

(2) The Division will not require a separate surety where a reclamation surety in a form and amount acceptable to the division is held by other governmental entities, provided that the cost estimate is accurate and the Division is named as co-beneficiary. Cooperative Agreements shall be developed and entered into according to Section 40-8-22.

(3) As part of the review of the notice of intention, the Division shall determine the required surety amount based on:

(a) Site-specific calculations or estimates by the Division reflecting the cost the Division or a third party would incur to reclaim the site;

(b) Site-specific calculations or estimates by the operator reflecting the cost the Division or a third party would incur to reclaim the site, if accurate and verifiable by the Division; or

(c) The average dollars per acre costs for reclamation of similar operations, as determined by the Division, based upon approved surety amounts for current large mining operations.

(d) In determining or verifying the amount of surety under Subsection (3)(a) or (3)(b), the Division shall use cost data from current sureties for large mining operations, adjusted as necessary to reflect the nature and scope of operations and reclamation under the notice of intention.

(e) For the average dollars per acre in Subsection (3)(c), the Board will annually approve the figure after a formal presentation from the Division and an opportunity for public comment.

(4) The operator shall submit a completed Reclamation Contract (FORM MR-RC) with the required surety. The form and amount of the reclamation surety must be approved by the Division, except as provided in Subsection (4)(f). Acceptable forms may include:

(a) A corporate surety bond from a surety company that is licensed to do business in Utah, that is listed in "A.M. Best's Key Rating Guide" at a rating of A- or better or a Financial Performance Rating (FPR) of 8 or better, according to the "A.M. Best's Guide". Each surety companies also will be continuously listed in the current issue of the U.S. Department of the Treasury Circular 570. When the Division in the course of examining surety bonds, notifies an operator that a surety company guaranteeing its performance does not meet the standards of this subsection, the operator has 120 days after notice from the Division by mail to correct the deficiency, or face enforcement action;

(b) Federally-insured certificate of deposit payable to the State of Utah, Division of Oil, Gas and Mining;

(d) An irrevocable letter of credit issued by a bank organized to do business in the United States;

(e) Escrow accounts;

(f) United States Treasury bonds or notes, pledged and assigned to the State of Utah, Division of Oil, Gas and Mining; and

(g) The Board may approve a written self-bonding agreement in the case of operators showing sufficient financial strength.

(5) Surety shall be required until[ such time as] the division deems reclamation complete. The Division shall promptly conduct an

inspection when notified by the operator that reclamation is complete. The full release of surety shall be evidence that the operator has reclaimed as required by the Act.

(a) A partial release of surety can be made by the Division if it determines that a substantial phase or segment of reclamation such as demolition, backfilling, regrading, or vegetation establishment has been successfully performed and the residual amount of retained surety is determined to be adequate to [i]ensure completion of reclamation.

(6) The amount of reclamation surety may be adjusted:

(a) if required to address changes in the reclamation plan due to an amendment to the notice of intention under Section R647-3-115;

(b) as the result of a periodic review by the division conducted no more frequently[ than annually,] than at three or five year intervals,

unless agreed to by[e] the operator, which shall take into account inflation and deflation based upon an acceptable costs index; or

R647-2-112. Failure to Reclaim.

If the operator fails or refuses to conduct reclamation as required by the complete or approved notice of intention, or fails or refuses to comply with Section R647-2-107, R647-2-108, or R647-2-109 the Board may, after notice and hearing, order that:

(1) Reclamation be conducted by the Division; and

(2) The costs and expenses of reclamation, together with costs of collection including attorney's fees, be recovered in a civil action brought by the attorney general against the operator in any appropriate court; and

(3) Any surety filed for this purpose be forfeited. With respect to the surety filed with the Division, the Board shall request the Attorney General to take the necessary legal action to enforce and collect the amount of liability. Where a reclamation surety has been filed with other governmental agencies, the Board shall notify such agency of the hearing findings and seek forfeiture concurrence as necessary.

(a) The forfeited surety shall be used only for the reclamation of land to which it relates, and any residual amount returned to the rightful claimant pursuant to controlling law.

R647-2-113. Confidential Information.

Information provided in the notice of intention and in the Mineral Exploration Progress Report (FORM MR-EPR) that relates to the location, size, and nature of the mineral deposit, shall be protected as confidential information by the Board and the Division. The information will not be a matter of public record until a written release is received from the operator.

R647-2-114. Amended[Revised] Notice.

(1) Minor additions or changes in the location of exploration operations do not require the submittal of a revised notice of intention. A new or amended[revised] Notice of Intention to Conduct Exploration (FORM MR-SMO[EXP]) letter must be submitted when:

(a) The proposed additions or changes will occur outside the originally designated legal subdivision; or

(b) For exploration operations involving less acreage than that allowed for small mining operations, the proposed additions will cause the total unreclaimed surface disturbance to increase by more than 1 acre; or

(c) For exploration operations over 5 acres, the proposed additions or changes will cause an increase in the area of disturbance previously approved.

(2) In the event the Division or the operator determine [at the time]when an amendment[ revision] is submitted that the amount of the

current surety does not accurately reflect the potential cost to complete reclamation at any particular point in time during the revised exploration operations, the Division may undertake a recalculation of the surety amount as provided in Subsection R647-2-111(3). If the recalculated amount is greater than the amount of the existing surety, the amended[revised] operations may not be implemented until a revised surety is filed with the

Division.

R647-2-115. Reports.

On or before January[December] 31st of each year, the operator conducting exploration must submit an Exploration Progress Report

(FORM MR-EPR), which describes any unusual drilling conditions, water encountered, hole plugging measures, and reclamation activities conducted.

R647-2-116. Practices and Procedures; Appeals.

The Administrative Procedures, as outlined in Rule R647-5, shall be applicable to minerals regulatory proceedings.

R647-2-117. Mineral Exploration Tax Credit.

(1) In accordance with Section 40-6-24, each operator desiring to claim a tax credit for mineral exploration must submit by March 1 for the previous calendar year, to the division, the Mineral Exploration Tax Credit form, which:

(a) Lists the eligible claimant's name;

(b) Lists the eligible claimant's contact information, including address, phone number, and email address;

(d) Lists the amount of the eligible claimant's tax credit;

(e) Includes proof of satisfying the certified expenditure definition;

(f) A description of the mine where exploration occurred; and

(g) Proof of each expenditure.

(2) The eligible claimant shall include in the application for a tax credit certificate the following information for the taxable year in which the person seeks a tax credit certification:

(a) Proof of engaging in business of mining or extracting minerals;

(b) Proof of being subject to a severance tax under Title 59, Chapter 5, Part 2, Mining Severance Tax; and

(3) After the division receives an application for a tax credit certificate, for each expenditure in the application, the division shall approve the expenditure as a certified expenditure or deny the expenditure as an expenditure that is not certified expenditure. If the division denies an expenditure, the division shall provide the person a written explanation that states each reason the division denied the expenditure and give the person an opportunity to correct deficiencies or provide additional information.

(4) The tax credit certificate shall state the amount of the tax credit, which is equal to the amount of the eligible claimant's certified expenditures as approved by the division. The division may not issue a tax credit certificate for certified expenditures related to exploration activities at a mine if the aggregate value of tax credit certificates issued for certified expenditures related to exploration activities at the same mine exceeds $20,000,000.

(5) An eligible claimant may assign a tax credit certificate to another person if the eligible claimant provides written notice to the division in a Mineral Tax Credit Reassignment form that includes:

(a) The eligible claimant's written certification that they irrevocably elect not to claim the tax credit authorized on the tax credit certificate; and

(b) The contact information for the person to whom the eligible credit is assigning the tax credit certificate.

(6) If the eligible claimant meets the requirements of Subsections R647-2-117(1) and (2), the division shall issue an assigned tax credit certificate to the person identified by the eligible claimant in an amount equal to the eligible claimant's tax credit certificate. A person to whom an

eligible claimant assigns a tax credit certificate may claim the tax credit under Section 59-5-216 as if the person met the requirements, if the person files a return under Title 59, Chapter 5, Part 2, Mining Severance Tax.

(7) An eligible claimant who received a tax credit certificate in accordance with this section shall retain the tax credit certificate for the same time period that a person shall keep books and records under Section 59-1-1406.

(8) The division shall annually submit by June 30 to the State Tax Commission an electronic list that includes:

(a) The name and identifying information for:

(i) Each eligible claimant to whom the division issues a tax credit certificate; and

(ii) Each person to whom an eligible claimant assigns a tax credit certificate in accordance with Subsections R647-2-117(5) and (6);

(b) For each person described in Subsection R647-2-117(8)(a), the amount of the tax credit stated on the tax credit certificate; and

(c) For each person described in Subsection R647-2-117(8)(a)(ii), information necessary to identify the tax credit certification that the eligible claimant assigned to the person.

R647-2-118. Cultural and Historic Resources Information.

(1) The notice of intent, including amendments[ and revisions], shall include a Cultural Resource Inventory Report (Report) from an

archaeologist or consultant, who is properly permitted by the Public Lands Policy Coordinating Office (PLPCO), concerning cultural resources. The report shall meet the standards of the Utah State Historic Preservation Office (UTSHPO).

(a) The Report shall include a Class III inventory, otherwise known as an intensive survey, of the proposed bonded area, including a 100-foot or more buffer around the proposed disturbance area. The Report shall include areas of possible disturbance, including new roads, road improvements, staging areas, drilling, and any other disturbances. Drill pads and roads 15-feet wide or less may have a 50-foot inventory buffer.

(b) Slopes steeper than 30 degrees may be evaluated by a Class II Inventory, otherwise known as a less than intensive or reconnaissance survey, for the safety of the archaeologist or consultant.

(c) Ground that has already been disturbed by Mining operations within the last 50 years may be evaluated by a Class I Report, otherwise known as a literature review. The operator must receive permission from the division before a Class I is accepted in lieu of a Class III or II Report.

(d) The operator is not required to survey property to which the operator does not have legal access. If any portion of the bonded area is on land managed by a separate government agency, the operator will be required to comply with that agency's cultural and historic resources requirements.

(e) If the bonded area includes future expansion or phases within the next ten years, the operator shall include these phases in the Report.

(f) The operator shall include a discovery clause in the notice of intent, including amendments and revisions, indicating the operator will stop work and contact the division if subsurface cultural deposits are discovered.

(2) The Report required under Subsection (1) shall describe coordination efforts with and present evidence of clearances by UTSHPO. For any property eligible for or listed on the National Register of Historic Places that may be adversely affected by the proposed exploration[mining] and

reclamation operations, each notice of intent, including amendments and revisions, will describe the measures to be used to avoid or minimize adverse effects

(3) The Division may require the operator to protect historic or archeological properties listed on or eligible for listing on the National Register of Historic Places through appropriate mitigation and treatment measures. Appropriate mitigation and treatment measures may be required after permit approval provided that the required measures are completed before the properties are affected by any exploration[mining] operation.

(4) The notice of intent, including amendments[ and revisions], shall include proof that cultural consultation with UTSHPO has been

completed. Proof may be provided in the form of a UTSHPO consultation letter, a memo completed as part of a formal agreement with UTSHPO, or as a copy of an email from a cultural resource professional from a relevant agency.

R647-2-119. Transfer of a Notice of Intention.

If an operator wishes to transfer an exploration[ mining] operation to another party, an application form entitled, Transfer of Notice of

Intention - Exploration Mining Operations (FORM MR-TRE) must be completed and filed with the division. The new exploration[mine] operator

must post adequate reclamation surety and assume full responsibility for any disturbances of the permitted operation. The form and amount of surety must be approved by the division for the transfer to be complete.

KEY: minerals reclamation

Date of Last Change: 2026[August 27, 2025]

Notice of Continuation: April 27, 2023

Authorizing, and Implemented or Interpreted Law: 40-8-1 et seq.

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