Senator Scott D. Sandall proposes the following substitute bill:


1     
GREAT SALT LAKE AMENDMENTS

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Casey Snider

5     
Senate Sponsor: Michael K. McKell

6     

7     LONG TITLE
8     General Description:
9          This bill addresses management of the Great Salt Lake and related activities.
10     Highlighted Provisions:
11          This bill:
12          ▸     modifies provisions related to severance taxes;
13          ▸     clarifies minerals with royalties going to the Great Salt Lake Account;
14          ▸     addresses mineral leases or royalty agreements related to the Great Salt Lake;
15          ▸     provides for royalties for certain elements and minerals;
16          ▸     requires a study and reporting;
17          ▸     defines terms;
18          ▸     codifies legislative findings;
19          ▸     modifies the Division of Forestry, Fire, and State Lands' management
20     responsibilities for the Great Salt Lake, including addressing rulemaking;
21          ▸     establishes emergency management responsibilities and powers;
22          ▸     addresses force majeure; and
23          ▸     makes technical and conforming changes.
24     Money Appropriated in this Bill:
25          None

26     Other Special Clauses:
27          This bill provides a special effective date.
28     Utah Code Sections Affected:
29     AMENDS:
30          59-5-202, as last amended by Laws of Utah 1990, Chapter 295
31          65A-5-1, as last amended by Laws of Utah 2022, Chapter 54
32          65A-5-1.5, as enacted by Laws of Utah 2022, Chapter 54
33          65A-6-2, as last amended by Laws of Utah 1994, Chapter 294
34          65A-6-4, as last amended by Laws of Utah 1994, Chapter 294
35          73-30-202, as last amended by Laws of Utah 2012, Chapter 242
36     ENACTS:
37          65A-10-201, Utah Code Annotated 1953
38          65A-10-202, Utah Code Annotated 1953
39          65A-10-204, Utah Code Annotated 1953
40          65A-10-205, Utah Code Annotated 1953
41     RENUMBERS AND AMENDS:
42          65A-10-203, (Renumbered from 65A-10-8, as last amended by Laws of Utah 2022,
43     Chapter 78)
44     

45     Be it enacted by the Legislature of the state of Utah:
46          Section 1. Section 59-5-202 is amended to read:
47          59-5-202. Severance tax -- Rate -- Computation -- Annual exemption.
48          (1) [Every] A person engaged in the business of mining or extracting metalliferous
49     minerals in this state shall pay to the state a severance tax equal to 2.6% of the taxable value of
50     all metals or metalliferous minerals sold or otherwise disposed of.
51          (2) If the metals or metalliferous minerals are shipped outside the state, this constitutes
52     a sale, and the finished metals or the recoverable units of finished metals from the metalliferous
53     minerals shipped are subject to the severance tax. If the metals or metalliferous minerals are
54     stockpiled, the tax is not applicable until they are sold or shipped out of state. For purposes of
55     the tax imposed by this chapter, uranium concentrates shall be considered to be finished metals.
56     The owner of the metals or metalliferous minerals that are stockpiled shall report to the

57     commission annually, in a form acceptable to the commission, the amount of metalliferous
58     minerals so stockpiled. Metals or metalliferous minerals that are stockpiled for more than two
59     years, however, are subject to the severance tax.
60          (3) An annual exemption from the payment of the tax imposed by this chapter upon the
61     first $50,000 in gross value of the metalliferous mineral is allowed to each mine.
62          (4) These taxes are in addition to all other taxes provided by law and are delinquent,
63     unless otherwise deferred, on June 1 next succeeding the calendar year when the metalliferous
64     mineral is produced and sold or delivered.
65          (5) (a) As used in this Subsection (5):
66          (i) "Great Salt Lake extraction operator" means a person who:
67          (A) is engaged in the business of mining or extracting metalliferous minerals from the
68     brine of the Great Salt Lake; and
69          (B) enters into a mineral lease with the Division of Forestry, Fire, and State Lands on
70     or after May 3, 2023, or as of July 1, 2020, had a mineral lease with the Division of Forestry,
71     Fire, and State Lands, but not a royalty agreement for a metalliferous mineral, chloride
72     compound, or salt.
73          (ii) "Metalliferous compound" means a metalliferous mineral or a chloride compound
74     or salt containing a metalliferous mineral.
75          (b) Notwithstanding the exclusion for chloride compounds or salts from the definition
76     of metalliferous minerals under Section 59-5-201, beginning with calendar year 2024, a Great
77     Salt Lake extraction operator shall pay to the state a severance tax in accordance with this part
78     for the mining of a metalliferous compound.
79          (c) This Subsection (5) may not be interpreted to:
80          (i) excuse a person from paying a severance tax in accordance with the other provisions
81     of this part; or
82          (ii) void a mineral lease or royalty agreement.
83          (d) A person extracting metalliferous minerals, including a metalliferous compound,
84     from the brine of the Great Salt Lake is subject to the payment of a royalty agreement under
85     Section 65A-6-4 and the payment of a severance tax under this part.
86          Section 2. Section 65A-5-1 is amended to read:
87          65A-5-1. Sovereign Lands Management Account.

88          (1) There is created within the General Fund a restricted account known as the
89     "Sovereign Lands Management Account."
90          (2) The Sovereign Lands Management Account shall consist of the following:
91          (a) the revenues derived from sovereign lands, except for revenues deposited into the
92     Great Salt Lake Account under Section 65A-5-1.5;
93          (b) that portion of the revenues derived from mineral leases on other lands managed by
94     the division necessary to recover management costs;
95          (c) fees deposited by the division; and
96          (d) amounts deposited into the account in accordance with Section 59-23-4.
97          (3) (a) The expenditures of the division relating directly to the management of
98     sovereign lands shall be funded by appropriation by the Legislature from the Sovereign Lands
99     Management Account or other sources.
100          (b) Money in the Sovereign Lands Management Account may be used only for the
101     direct benefit of sovereign lands, including the management of sovereign lands.
102          (c) In appropriating money from the Sovereign Lands Management Account, the
103     Legislature shall prefer appropriations that benefit the sovereign land from which the money is
104     derived unless compelling circumstances require that money be appropriated for sovereign land
105     other than the sovereign land from which the money is derived.
106          (4) The division shall use the amount deposited into the account under Subsection
107     (2)(d) for the Great Salt Lake as described in Section [65A-10-8] 65A-10-203 as directed by
108     the Great Salt Lake Advisory Council created in Section 73-30-201.
109          Section 3. Section 65A-5-1.5 is amended to read:
110          65A-5-1.5. Great Salt Lake Account.
111          (1) As used in this section:
112          (a) "Account" means the Great Salt Lake Account created in this section.
113          (b) "Mineral" includes a chemical compound that includes an element or mineral.
114          [(b)] (c) "Mining" means the process of producing, extracting, leaching, evaporating, or
115     otherwise removing a mineral from a natural deposit of the mineral.
116          (2) (a) There is created within the General Fund a restricted account known as the
117     "Great Salt Lake Account" consisting of:
118          (i) revenues deposited into the account under Subsection (3);

119          (ii) appropriations from the Legislature; and
120          (iii) interest and other earnings described in Subsection (2)(b).
121          (b) The Office of the Treasurer shall deposit interest and other earnings derived from
122     investment of money in the account into the account.
123          (3) The division shall deposit into the account the royalty income received by the state
124     from mining that occurs on or after July 1, 2022, of a mineral from the sovereign lands of the
125     Great Salt Lake if during the fiscal year beginning July 1, 2020, the state did not receive royalty
126     income from the mining of that same mineral from the sovereign lands of the Great Salt Lake.
127          (4) Upon appropriation by the Legislature, money in the account may be used to
128     manage the water levels of the Great Salt Lake.
129          Section 4. Section 65A-6-2 is amended to read:
130          65A-6-2. Mineral leases -- Division to prescribe rules.
131          The division shall by rule prescribe:
132          (1) the term of the lease;
133          (2) the annual rental;
134          (3) subject to Section 65A-6-4, the amount of royalty in addition to or in lieu of rental;
135     and
136          (4) the basis upon which the royalty shall be computed.
137          Section 5. Section 65A-6-4 is amended to read:
138          65A-6-4. Mineral leases -- Multiple leases on same land -- Rentals and royalties --
139     Lease terms -- Great Salt Lake.
140          (1) As used in this section:
141          (a) "Great Salt Lake element or mineral" means:
142          (i) a rare earth element;
143          (ii) a trace element or mineral; or
144          (iii) a chemical compound that includes a rare earth element or trace element or
145     mineral.
146          (b) "Rare earth element" is one of the following ores, minerals, or elements located in
147     the brines or the sovereign lands of the Great Salt Lake:
148          (i) lanthanum;
149          (ii) cerium;

150          (iii) praseodymium;
151          (iv) neodymium;
152          (v) samarium;
153          (vi) europium;
154          (vii) gadolinium;
155          (viii) terbium;
156          (ix) dysprosium;
157          (x) holmium;
158          (xi) erbium;
159          (xii) thulium;
160          (xiii) ytterbium;
161          (xiv) lutetium; and
162          (xv) yttrium.
163          (c) "Trace element or mineral" means an element or mineral that is located in the brines
164     or the sovereign lands of the Great Salt Lake that is not in production by July 1, 2020, and for
165     which the state has not received a royalty payment by July 1, 2020.
166          (2) (a) Mineral leases, including oil, gas, and hydrocarbon leases, may be issued for
167     prospecting, exploring, developing, and producing minerals covering any portion of state lands
168     or the reserved mineral interests of the state.
169          (b) (i) Leases may be issued for different types of minerals on the same land.
170          (ii) If leases are issued for different types of minerals on the same land, the leases shall
171     include stipulations for simultaneous operations, except that for leases related to the Great Salt
172     Lake the leases shall include stipulations for simultaneous operations that will not interfere
173     with, impede, limit, or require changes to pre-existing rights.
174          (c) No more than one lease may be issued for the same resource on the same land.
175          (d) The division shall require a separate royalty agreement for extraction of minerals
176     from brines of the Great Salt Lake when:
177          (i) a mineral lease, a royalty agreement, or both that are in effect before the operator
178     seeks to extract a particular mineral or mineral compound do not expressly include the right to
179     extract the particular mineral or mineral compound; or
180          (ii) the proposed operation will use brines from the Great Salt Lake, but will not

181     occupy sovereign lands for the direct production of minerals other than for incidental structures
182     such as pumps and intake and outflow pipelines.
183          [(2)] (3) (a) Each mineral lease issued by the division shall provide for an annual rental
184     of not less than $1 per acre per year, except that a mineral lease issued by the division
185     involving the extraction of mineral from brines in the Great Salt Lake shall provide for an
186     annual rental of not less than $100 per acre per year.
187          (b) However, a lease may provide for a rental credit, minimum rental, or minimum
188     royalty upon commencement of production, as prescribed by rule.
189          [(3)] (4) The primary term of a mineral lease may not exceed:
190          (a) 20 years for oil shale and tar sands; and
191          (b) 10 years for oil and gas and any other mineral.
192          (5) (a) Subject to the other provisions of this Subsection (5), for a mineral lease or
193     royalty agreement involving the extraction of minerals from brines in the Great Salt Lake, the
194     division shall ensure that following terms are included:
195          (i) an extraction operation or extraction method shall adhere to commercially viable
196     technologies that minimize water depletion;
197          (ii) an extraction operation or extraction method shall mitigate for the total amount of
198     water depleted by providing water back into the Great Salt Lake that approximates the total
199     volume of water depleted;
200          (iii) a provision authorizing the division to curtail or limit mineral production at any
201     time the condition of the Great Salt Lake reaches the emergency trigger, as defined in Section
202     65A-10-201;
203          (iv) a provision authorizing the division to withdraw lands, operations, extraction
204     methods, or technologies from mineral production or mineral operations; and
205          (v) a provision allowing the division to require an existing operator to use
206     commercially viable, innovative technologies to minimize water depletions caused by the
207     planned mineral extraction as a condition of continued operations.
208          (b) If as of May 3, 2023, an operator has a mineral lease but not a royalty agreement
209     involving the extraction of minerals from brines in the Great Salt Lake, the extraction operation
210     or extraction method shall mitigate the total water depleted as provided in Subsection (5)(a)(ii)
211     only to the extent that the extraction operation or extraction method increases total depletions

212     as compared to an estimated 10-year average of depletions as estimated by the Division of
213     Water Resources' water budget model beginning on January 1, 2013, and ending on December
214     31, 2022.
215          (c) If under Subsection (5)(a)(v) the division requires an existing operator to use a
216     commercially viable, innovative technology, the division may not require use of the technology
217     to begin until after a reasonable period determined by the division not to exceed five years.
218          (6) (a) Upon nomination from a prospective operator, the division shall by rule, made
219     in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establish a
220     royalty rate and calculation methodology for a Great Salt Lake element or mineral that:
221          (i) provides for a full and fair return to the state from the production of the Great Salt
222     Lake element or mineral;
223          (ii) is consistent with market royalty rates applicable to the production of the Great Salt
224     Lake element or mineral or of the production of oil and gas;
225          (iii) provides a base royalty rate;
226          (iv) provides a reduced royalty rate from the royalty rate under Subsection (6)(a)(iii) if
227     the royalty agreement:
228          (A) relates to a non-evaporative method of producing the Great Salt Lake element or
229     mineral; or
230          (B) provides an incentive to use commercially viable, innovative technology to
231     minimize water depletion and evaporation as determined by the division; and
232          (v) provides for a royalty rate that is based on the highest market value prevailing at the
233     time of the sale or disposal of the following:
234          (A) the Great Salt Lake element or mineral; or
235          (B) a product the lessee produces from the Great Salt Lake element or mineral.
236          (b) Before entering into a royalty agreement permitting the extraction of Great Salt
237     Lake elements or minerals, the operator shall:
238          (i) demonstrate commercial viability;
239          (ii) certify before operation begins that the operator is not negatively impacting the
240     biota or chemistry of the Great Salt Lake; and
241          (iii) obtain the approval of the division and the Department of Environmental Quality
242     that the certification supports a finding that the operation will not negatively impact the biota or

243     chemistry of the Great Salt Lake.
244          (c) A new mineral lease for a mineral in production in the Great Salt Lake as of May 3,
245     2023, is subject to new royalty rates due to emergent technologies.
246          (d) An operator who as of July 1, 2020, had a mineral lease with the division but not a
247     royalty agreement and who is subject to a severance tax under Subsection 59-5-202(5) shall pay
248     a royalty under this section in addition to the severance tax.
249          (7) An operator who extracts a Great Salt Lake element or mineral from tailings from
250     the production of minerals from brines in the Great Salt Lake is subject to this section to the
251     same extent as an operator producing a Great Salt Lake element or mineral from brines in the
252     Great Salt Lake.
253          (8) The division shall annually report to the Natural Resources, Agriculture, and
254     Environmental Quality Appropriations Subcommittee regarding the amount of money collected
255     under this section from royalties provided for in Subsection (6).
256          (9) In the issuance of royalty agreements for the extraction of lithium from the Great
257     Salt Lake, the division shall prioritize applicants that:
258          (a) do not use evaporative concentration of Great Salt Lake brines in any stage of the
259     extractive process; and
260          (b) use commercially viable extractive processes.
261          [(4)] (10) [The] Except in relationship to mineral leases related to the Great Salt Lake,
262     the division shall make rules regarding the continuation of a mineral lease after the primary
263     term has expired, which shall provide that a mineral lease shall continue so long as:
264          (a) the mineral covered by the lease is being produced in paying quantities from:
265          (i) the leased premises;
266          (ii) lands pooled, communitized, or unitized with the leased premises; or
267          (iii) lands constituting an approved mining or drilling unit with respect to the leased
268     premises; or
269          (b) (i) the lessee is engaged in diligent operations, exploration, research, or
270     development which is reasonably calculated to advance development or production of the
271     mineral covered by the lease from:
272          (A) the leased premises;
273          (B) lands pooled, communitized, or unitized with the leased premises; or

274          (C) lands constituting an approved mining or drilling unit with respect to the leased
275     premises; and
276          (ii) the lessee pays a minimum royalty.
277          [(5)] (11) For the purposes of Subsection [(4)] (10), diligent operations with respect to
278     oil, gas, and other hydrocarbon leases may include cessation of operations not in excess of 90
279     days in duration.
280          (12) (a) The division shall study and analyze each mineral lease and mineral royalty
281     agreement issued on the Great Salt Lake and compare and evaluate whether the mineral leases
282     and royalty agreements are representative of current market conditions. As part of this study,
283     the division shall:
284          (i) make the following determinations for mineral leases:
285          (A) whether the entire surface area described within the mineral lease is being used;
286     and
287          (B) whether the annual lease payments are representative of current market conditions;
288     and
289          (ii) for royalty agreements, perform studies and comparative analyses to determine
290     whether the state is receiving royalty rates consistent with current market conditions.
291          (b) By no later than the 2023 November interim meeting, the division shall report the
292     division's findings of the study required by this Subsection (12) to the Natural Resources,
293     Agriculture, and Environment Interim Committee.
294          Section 6. Section 65A-10-201 is enacted to read:
295     
Part 2. Great Salt Lake Management

296          65A-10-201. Definitions.
297          As used in this part:
298          (1) "Adaptive management berm" means a berm installed in the UP causeway breach
299     to manage salinity to protect the ecosystem of Gilbert Bay.
300          (2) "Emergency trigger" means that the salinity levels of the Gilbert Bay of the Great
301     Salt Lake do not satisfy the ecological conditions required for healthy brine shrimp and brine
302     fly reproduction.
303          (3) "Healthy physical and ecological condition" means that the Gilbert Bay of the Great
304     Salt Lake has sustained salinity levels that satisfy the ecological conditions required for healthy

305     brine shrimp and brine fly reproduction.
306          (4) "UP causeway breach" means a breach in the 21-mile Union Pacific Railroad
307     causeway across the Great Salt Lake that separates the Great Salt Lake into Gunnison Bay and
308     Gilbert Bay.
309          Section 7. Section 65A-10-202 is enacted to read:
310          65A-10-202. Legislative findings.
311          The Legislature finds that:
312          (1) under Section 65A-10-1 the division, as the manager of sovereign lands, has a duty
313     to serve the public interest in managing the Great Salt Lake;
314          (2) the Great Salt Lake is a critical resource owned and managed by the state;
315          (3) the lake levels of the Great Salt Lake have reached historic lows, requiring action
316     by the state to address significant risks and minimize dangers to protect the ecological integrity
317     of the Great Salt Lake, the state's environment in general, and the welfare of the state's citizens;
318     and
319          (4) the management of the Great Salt Lake under this part, especially if the emergency
320     trigger is reached, is reasonable and necessary to serve important public purposes and no
321     reasonable alternative meets the interests described in Subsection (3).
322          Section 8. Section 65A-10-203, which is renumbered from Section 65A-10-8 is
323     renumbered and amended to read:
324          [65A-10-8].      65A-10-203. Great Salt Lake -- Management responsibilities of the
325     division.
326          The division has the following powers and duties:
327          (1) The division shall [prepare and maintain a comprehensive plan for the Great Salt
328     Lake that recognizes the following policies] make rules, in accordance with Title 63G, Chapter
329     3, Utah Administrative Rulemaking Act, for the management of the Great Salt Lake that
330     recognize and balance the following public trust values and public interest benefits and
331     policies:
332          [(a) develop strategies to deal with a fluctuating lake level;]
333          [(b) encourage development of the Great Salt Lake in a manner that will preserve the
334     Great Salt Lake, encourage availability of brines to lake extraction industries, protect wildlife,
335     and protect recreational facilities;]

336          [(c) maintain the Great Salt Lake's flood plain as a hazard zone;]
337          [(d)] (a) strategies to effectively and efficiently manage the Great Salt Lake based on
338     the Great Salt Lake's fluctuating lake levels;
339          (b) development of the Great Salt Lake that balances, in a manner that promotes a
340     healthy physical and ecological condition:
341          (i) migratory and shorebirds habitats;
342          (ii) wetlands;
343          (iii) brines, minerals, chemicals, and petro-chemicals;
344          (iv) brine shrimp;
345          (v) the protection of wildlife and wildlife habitat;
346          (vi) the protection of recreational access and facilities; and
347          (vii) search and rescue efforts;
348          (c) promote water quality management for the Great Salt Lake and the Great Salt
349     Lake's tributary streams;
350          [(e) promote the development of lake brines, minerals, chemicals, and petro-chemicals
351     to aid the state's economy;]
352          [(f) encourage the use of appropriate areas for extraction of brine, minerals, chemicals,
353     and petro-chemicals;]
354          [(g) maintain the Great Salt Lake and the marshes as important to shorebirds,
355     waterfowl, and other waterbird flyway system;]
356          [(h) encourage the development of an integrated industrial complex;]
357          [(i) promote and maintain recreation areas on and surrounding the Great Salt Lake;]
358          [(j) encourage safe boating use of the Great Salt Lake;]
359          [(k) maintain and protect state, federal, and private marshlands, rookeries, and wildlife
360     refuges; and]
361          [(l)] (d) [provide] public access to the Great Salt Lake for recreation, hunting, and
362     fishing[.];
363          (e) temperature moderation, a stable role in the water cycle, and dust mitigation;
364          (f) maintain the Great Salt Lake's flood plain as a hazard zone;
365          (g) maintain the Great Salt Lake and the marshes as important shorebirds, waterfowl,
366     and other waterbird flyway system;

367          (h) promote and maintain recreation areas on and surrounding the Great Salt Lake; and
368          (i) maintain and protect state, federal, and private marshlands, rookeries, and wildlife
369     refuges.
370          (2) The division shall prepare and maintain a comprehensive management plan for the
371     Great Salt Lake that is consistent with the public trust values and public interest benefits
372     described in Subsection (1) and policies established by rule made under Subsection (1).
373          [(2)] (3) The division may employ personnel and purchase equipment and supplies that
374     the Legislature authorizes through appropriations for the purposes of this chapter.
375          [(3)] (4) The division may initiate studies of the Great Salt Lake and the Great Salt
376     Lake's related resources.
377          [(4)] (5) The division may publish scientific and technical information concerning the
378     Great Salt Lake.
379          [(5)] (6) The division shall define the Great Salt Lake's flood plain.
380          [(6)] (7) The division may qualify for, accept, and administer grants, gifts, or other
381     funds from the federal government and other sources, for carrying out any functions under this
382     chapter.
383          [(7)] (8) The division shall determine the need for public works and utilities for the
384     lake area.
385          [(8)] (9) The division may implement the comprehensive plan described in Subsection
386     [(1)] (2) through state and local entities or agencies.
387          [(9)] (10) The division shall coordinate the activities of the various divisions within the
388     Department of Natural Resources with respect to the Great Salt Lake.
389          [(10) The division may perform all other acts reasonably necessary to carry out the
390     purposes and provisions of this chapter.]
391          (11) The division shall retain and encourage the continued activity of the Great Salt
392     Lake technical team.
393          (12) The division shall administer Chapter 16, Great Salt Lake Watershed
394     Enhancement Program.
395          (13) The division shall administer Section 65A-10-204 when the Great Salt Lake
396     emergency trigger is reached.
397          (14) The division shall manage the adaptive management berm in the UP causeway

398     breach to manage salinity to protect the ecosystem of Gilbert Bay. Unless salinity conditions in
399     Gilbert Bay warrant raising the adaptive management berm, the policy of the state is to keep
400     the UP causeway breach open so as to allow the exchange of water between Gilbert and
401     Gunnison Bays.
402          (15) The division may perform acts other than those described in Subsections (1)
403     through (14) that are reasonably necessary to carry out this chapter.
404          (16) This part may not be interpreted to override, supersede, or modify any water right
405     within the state, or the role and authority of the state engineer.
406          Section 9. Section 65A-10-204 is enacted to read:
407          65A-10-204. Emergency management responsibilities of the division.
408          (1) When the Great Salt Lake reaches the emergency trigger, the division:
409          (a) may construct, operate, modify, and maintain the adaptive management berm;
410          (b) may construct, operate, modify, and maintain one or more additional berms, dikes,
411     structures, or management systems consistent with the authority granted in this title;
412          (c) may enter into agreements as necessary to provide for all or a portion of a berm,
413     dike, system, or structure;
414          (d) is exempt from Title 63G, Chapter 6a, Utah Procurement Code, when acting to
415     manage the Great Salt Lake under this section;
416          (e) is not liable for a third-party claim resulting from the division's actions to manage
417     the Great Salt Lake under this section;
418          (f) may decline to issue a new permit, authorization, or agreement and may curtail
419     mineral production for leases that contain provisions contemplating curtailment or similar
420     contractual remedies;
421          (g) may implement mineral lease withdrawal over one or more of the following:
422          (i) portions of the Great Salt Lake;
423          (ii) specific methods of extraction; or
424          (iii) specific minerals; and
425          (h) may require the implementation of one or more of the following:
426          (i) extraction methods that are non-depletive in nature;
427          (ii) mitigation to offset depletion; or
428          (iii) innovative extraction technologies.

429          (2) The division shall make rules in accordance with Title 63G, Chapter 3, Utah
430     Administrative Rulemaking Act, providing for the procedures the division shall follow in
431     taking an action described in Subsection (1).
432          Section 10. Section 65A-10-205 is enacted to read:
433          65A-10-205. Force majeure.
434          (1) For purposes of managing the Great Salt Lake, the division may treat the fact that
435     the Great Salt Lake has reached the emergency trigger as a triggering event for the purposes of
436     invoking a force majeure provision in a contract, mineral lease, or royalty agreement.
437          (2) In addition to the standard mechanisms whereby performance is excused by
438     invocation of a force majeure provision, the division shall include language in a contract,
439     mineral lease, or royalty agreement whereby the division may curtail or prohibit mineral
440     production that results in a net depletion of water.
441          (3) The division shall allow an operator to continue processing brines that have already
442     been extracted from the Great Salt Lake that are residing in the operator's process, and selling
443     products derived from brines that have already been extracted at the time the force majeure is
444     invoked.
445          (4) The division shall include standard mechanisms to promptly waive force majeure
446     once salinity conditions improve by declining below the emergency trigger threshold.
447          (5) If the division invokes a force majeure provision in a contract, mineral lease, or
448     royalty agreement, the effected operator is relieved from performance of any contractual
449     provision requiring production to hold the contract, mineral lease, or royalty agreement for a
450     maximum of two years. If the conditions creating the emergency trigger persists beyond a
451     two-year period, the division shall terminate the contract, mineral lease, or royalty agreement
452     and require the operator to engage in new contractual agreements whereby the operator
453     represents and warrants that future operations will not amount to a net depletion of water.
454          Section 11. Section 73-30-202 is amended to read:
455          73-30-202. Duties of the council.
456          (1) (a) The council shall advise the persons listed in Subsection (1)(b) on the
457     sustainable use, protection, and development of the Great Salt Lake in terms of balancing:
458          (i) sustainable use;
459          (ii) environmental health; and

460          (iii) reasonable access for existing and future development.
461          (b) The council shall advise, as provided in Subsection (1)(a):
462          (i) the governor;
463          (ii) the Department of Natural Resources; and
464          (iii) the Department of Environmental Quality.
465          (2) The council shall assist the Division of Forestry, Fire, and State Lands in its
466     responsibilities for the Great Salt Lake described in [Section 65A-10-8] Sections 65A-10-203
467     and 65A-10-204.
468          (3) The council:
469          (a) may recommend appointments to the Great Salt Lake technical team created by the
470     Division of Forestry, Fire, and State Lands; and
471          (b) shall receive and utilize technical support from the Great Salt Lake technical team.
472          (4) The council shall assist the Department of Natural Resources, the Department of
473     Environmental Quality, and their applicable boards in accomplishing their responsibilities for
474     the Great Salt Lake.
475          (5) The council shall report annually to the Natural Resources, Agriculture, and
476     Environmental Quality Appropriations Subcommittee on the council's activities.
477          Section 12. Effective date.
478          (1) Except as provided in Subsection (2), this bill takes effect on May 3, 2023.
479          (2) The amendments to Section 59-5-202 take effect on January 1, 2024.