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7 LONG TITLE
8 General Description:
9 This bill addresses actions affecting the Great Salt Lake.
10 Highlighted Provisions:
11 This bill:
12 ▸ modifies provisions related to severance taxes;
13 ▸ exempts challenges to a distribution management plan from the Administrative
14 Procedures Act;
15 ▸ addresses mineral lease and royalty agreement provisions, including:
16 • providing for the loss of certain rights for failure to use;
17 • providing for royalty discounts under certain circumstances; and
18 • providing for small projects;
19 ▸ enacts the Great Salt Lake Preservation Act, including:
20 • defining terms;
21 • addressing management responsibilities;
22 • requiring certain provisions within royalty agreements;
23 • providing for acquisition of property interests or mineral estates, including
24 through eminent domain;
25 • requiring payment of royalties;
26 • permitting the division to acquire certain interests;
27 • addressing the Great Salt Lake as a multiple mineral development area; and
28 • addressing concurrent operations on the Great Salt Lake;
29 ▸ enacts the Great Salt Lake Distribution Management chapter, including:
30 • defining terms;
31 • directing the state engineer to develop a Great Salt Lake distribution
32 management plan related to water rights;
33 • providing for challenges to a distribution management plan;
34 • addressing the measurement of the volume and quality of water; and
35 • addressing the scope of the chapter;
36 ▸ amends provision regarding approval of a water right related application related to
37 the extraction of minerals or elements;
38 ▸ addresses rulemaking;
39 ▸ addresses eminent domain; and
40 ▸ makes technical and conforming changes.
41 Money Appropriated in this Bill:
42 This bill appropriates in fiscal year 2025:
43 ▸ to Department of Natural Resources - Forestry, Fire, and State Lands - Project
44 Management as a one-time appropriation:
45 • from the General Fund Restricted - Sovereign Lands Management, One-time,
46 $500,000
47 ▸ to Department of Natural Resources - DNR Pass Through - DNR Pass Through as a
48 one-time appropriation:
49 • from the General Fund Restricted - Sovereign Lands Management, One-time,
50 $300,000
51 Other Special Clauses:
52 This bill provides a special effective date.
53 Utah Code Sections Affected:
54 AMENDS:
55 59-5-202, as last amended by Laws of Utah 2023, Chapter 208
56 59-5-203, as last amended by Laws of Utah 2019, Chapter 466
57 63G-4-102, as last amended by Laws of Utah 2023, Chapter 329
58 65A-5-1, as last amended by Laws of Utah 2023, Chapters 205, 208 and 358
59 65A-6-4, as last amended by Laws of Utah 2023, Chapter 208
60 73-3-8, as last amended by Laws of Utah 2023, Chapter 253
61 73-32-204, as enacted by Laws of Utah 2023, Chapter 205
62 73-32-303, as last amended by Laws of Utah 2023, Chapter 208 and renumbered and
63 amended by Laws of Utah 2023, Chapter 205
64 78B-6-501, as last amended by Laws of Utah 2023, Chapter 34
65 78B-6-502, as renumbered and amended by Laws of Utah 2008, Chapter 3
66 ENACTS:
67 65A-17-101, Utah Code Annotated 1953
68 65A-17-103, Utah Code Annotated 1953
69 65A-17-301, Utah Code Annotated 1953
70 65A-17-302, Utah Code Annotated 1953
71 65A-17-303, Utah Code Annotated 1953
72 65A-17-304, Utah Code Annotated 1953
73 73-33-101, Utah Code Annotated 1953
74 73-33-102, Utah Code Annotated 1953
75 73-33-201, Utah Code Annotated 1953
76 73-33-202, Utah Code Annotated 1953
77 73-33-203, Utah Code Annotated 1953
78 RENUMBERS AND AMENDS:
79 65A-17-102, (Renumbered from 65A-10-202, as enacted by Laws of Utah 2023,
80 Chapter 208)
81 65A-17-201, (Renumbered from 65A-10-203, as last amended by Laws of Utah 2023,
82 Chapter 205 and renumbered and amended by Laws of Utah 2023, Chapter 208)
83 65A-17-202, (Renumbered from 65A-10-204, as enacted by Laws of Utah 2023,
84 Chapter 208)
85 65A-17-203, (Renumbered from 65A-10-205, as enacted by Laws of Utah 2023,
86 Chapter 208)
87 REPEALS:
88 65A-10-201, as enacted by Laws of Utah 2023, Chapter 208
89
90 Be it enacted by the Legislature of the state of Utah:
91 Section 1. Section 59-5-202 is amended to read:
92 59-5-202. Severance tax -- Rate -- Computation -- Annual exemption.
93 (1) A person engaged in the business of mining or extracting metalliferous minerals in
94 this state shall pay to the state a severance tax equal to 2.6% of the taxable value of all metals
95 or metalliferous minerals sold or otherwise disposed of.
96 (2) If the metals or metalliferous minerals are shipped outside the state, this constitutes
97 a sale, and the finished metals or the recoverable units of finished metals from the metalliferous
98 minerals shipped are subject to the severance tax. If the metals or metalliferous minerals are
99 stockpiled, the tax is not applicable until they are sold or shipped out of state. For purposes of
100 the tax imposed by this chapter, uranium concentrates shall be considered to be finished metals.
101 The owner of the metals or metalliferous minerals that are stockpiled shall report to the
102 commission annually, in a form acceptable to the commission, the amount of metalliferous
103 minerals so stockpiled. Metals or metalliferous minerals that are stockpiled for more than two
104 years, however, are subject to the severance tax.
105 (3) An annual exemption from the payment of the tax imposed by this chapter upon the
106 first $50,000 in gross value of the metalliferous mineral is allowed to each mine.
107 (4) These taxes are in addition to all other taxes provided by law and are delinquent,
108 unless otherwise deferred, on June 1 next succeeding the calendar year when the metalliferous
109 mineral is produced and sold or delivered.
110 (5) (a) As used in this Subsection (5):
111 (i) "Great Salt Lake extraction operator" means a person who:
112 (A) is engaged in the business of mining or extracting metalliferous minerals from the
113 brine of the Great Salt Lake; and
114 (B) enters into a mineral lease with the Division of Forestry, Fire, and State Lands on
115 or after May 3, 2023, or as of July 1, 2020, had a mineral lease with the Division of Forestry,
116 Fire, and State Lands, but not a royalty agreement for a metalliferous mineral, chloride
117 compound, or salt.
118 (ii) "Metalliferous compound" means a metalliferous mineral or a chloride compound
119 or salt containing a metalliferous mineral.
120 (b) Notwithstanding the exclusion for chloride compounds or salts from the definition
121 of metalliferous minerals under Section 59-5-201, beginning with calendar year 2024, a Great
122 Salt Lake extraction operator shall pay to the state a severance tax in accordance with this part
123 for the mining of a metalliferous compound.
124 (c) A Great Salt Lake extraction operator shall pay to the state a severance tax equal to
125 7.8% of the taxable value of the metalliferous compounds in a calendar year in which the
126 Division of Forestry, Fire, and State Lands submits to the commission an order under Section
127 65A-17-302 indicating that the Great Salt Lake extraction operator has failed to pay a royalty
128 rate in violation of Section 65A-17-302.
129 [
130 (i) excuse a person from paying a severance tax in accordance with the other provisions
131 of this part; or
132 (ii) void a mineral lease or royalty agreement.
133 [
134 compound, from the brine of the Great Salt Lake is subject to the payment of a royalty
135 agreement under Section 65A-6-4 and the payment of a severance tax under this part.
136 Section 2. Section 59-5-203 is amended to read:
137 59-5-203. Determining taxable value.
138 (1) Except as provided in Subsection (3), the basis for computing the gross proceeds,
139 prior to those deductions or adjustments specified in this chapter, in determining the taxable
140 value of the metals or metalliferous minerals sold or otherwise disposed of, in the order of
141 priority, is as follows:
142 (a) If the metals or metalliferous mineral products are actually sold, the value of those
143 metals or metalliferous mineral products shall be the gross amount the producer receives from
144 that sale, provided that the metals or metalliferous mineral products are sold under a bona fide
145 contract of sale between unaffiliated parties. In the case of a sale of uranium concentrates,
146 gross proceeds shall be the gross amount the producer receives from the sale of processed
147 uranium concentrate or "yellowcake," provided that the uranium concentrate is sold under a
148 bona fide contract of sale between unaffiliated parties.
149 (b) (i) For purposes of a Great Salt Lake extraction operator, as defined in Section
150 59-5-202, if metals, metalliferous minerals, or metalliferous compounds are not sold, but are
151 otherwise disposed of, the gross proceeds shall be the multiple of the recoverable units of
152 finished or unfinished metals, or of the finished or unfinished metals contained in the
153 metalliferous minerals or metalliferous compounds shipped, and the average daily price per
154 unit of contained metals as quoted by an established authority for market prices of metals for
155 the period during which the tax imposed by this chapter is due.
156 (ii) The established authority or authorities under this Subsection (1)(b) shall be
157 designated by the commission by rule adopted in accordance with Title 63G, Chapter 3, Utah
158 Administrative Rulemaking Act.
159 [
160 shipped, transported, or delivered out of state, the gross proceeds shall be the multiple of the
161 recoverable units of finished metals, or of the finished metals contained in the metalliferous
162 minerals shipped, and the average daily price per unit of contained metals as quoted by an
163 established authority for market prices of metals for the period during which the tax imposed
164 by this chapter is due. The established authority or authorities shall be designated by the
165 commission by rule adopted in accordance with Title 63G, Chapter 3, Utah Administrative
166 Rulemaking Act.
167 [
168 disposed of, for which there is no established authority for market prices of metals for the
169 period during which the tax imposed by this chapter is due, gross proceeds is determined by
170 allocating to the state the same proportion of the producer's total sales of metals or
171 metalliferous minerals sold or otherwise disposed of as the producer's total Utah costs bear to
172 the total costs associated with sale or disposal of the metal or metalliferous mineral.
173 [
174 companies which is not a bona fide sale because the value received is not proportionate to the
175 fair market value of the metals or metalliferous minerals or in the event that Subsection [
176
177 such metals or metalliferous minerals in an equitable manner by reference to an objective
178 standard as specified in a rule adopted in accordance with the provisions of Title 63G, Chapter
179 3, Utah Administrative Rulemaking Act.
180 (2) For all metals except beryllium, the taxable value of the metalliferous mineral sold
181 or otherwise disposed of is 30% of the gross proceeds received for the metals sold or otherwise
182 disposed of by the producer of the metal.
183 (3) Notwithstanding Subsection (1) or (4), the taxable value of beryllium sold or
184 otherwise disposed of by the producer of the beryllium is equal to 125% of the direct mining
185 costs incurred in mining the beryllium.
186 (4) Except as provided in Subsection (3), if the metalliferous mineral sold or otherwise
187 disposed of is sold or shipped out of state in the form of ore, then the taxable value is 80% of
188 the gross proceeds.
189 Section 3. Section 63G-4-102 is amended to read:
190 63G-4-102. Scope and applicability of chapter.
191 (1) Except as set forth in Subsection (2), and except as otherwise provided by a statute
192 superseding provisions of this chapter by explicit reference to this chapter, the provisions of
193 this chapter apply to every agency of the state and govern:
194 (a) state agency action that determines the legal rights, duties, privileges, immunities,
195 or other legal interests of an identifiable person, including agency action to grant, deny, revoke,
196 suspend, modify, annul, withdraw, or amend an authority, right, or license; and
197 (b) judicial review of the action.
198 (2) This chapter does not govern:
199 (a) the procedure for making agency rules, or judicial review of the procedure or rules;
200 (b) the issuance of a notice of a deficiency in the payment of a tax, the decision to
201 waive a penalty or interest on taxes, the imposition of and penalty or interest on taxes, or the
202 issuance of a tax assessment, except that this chapter governs an agency action commenced by
203 a taxpayer or by another person authorized by law to contest the validity or correctness of the
204 action;
205 (c) state agency action relating to extradition, to the granting of a pardon or parole, a
206 commutation or termination of a sentence, or to the rescission, termination, or revocation of
207 parole or probation, to the discipline of, resolution of a grievance of, supervision of,
208 confinement of, or the treatment of an inmate or resident of a correctional facility, the Utah
209 State Hospital, the Utah State Developmental Center, or a person in the custody or jurisdiction
210 of the Office of Substance Use and Mental Health, or a person on probation or parole, or
211 judicial review of the action;
212 (d) state agency action to evaluate, discipline, employ, transfer, reassign, or promote a
213 student or teacher in a school or educational institution, or judicial review of the action;
214 (e) an application for employment and internal personnel action within an agency
215 concerning its own employees, or judicial review of the action;
216 (f) the issuance of a citation or assessment under Title 34A, Chapter 6, Utah
217 Occupational Safety and Health Act, and Title 58, Occupations and Professions, except that
218 this chapter governs an agency action commenced by the employer, licensee, or other person
219 authorized by law to contest the validity or correctness of the citation or assessment;
220 (g) state agency action relating to management of state funds, the management and
221 disposal of school and institutional trust land assets, and contracts for the purchase or sale of
222 products, real property, supplies, goods, or services by or for the state, or by or for an agency of
223 the state, except as provided in those contracts, or judicial review of the action;
224 (h) state agency action under Title 7, Chapter 1, Part 3, Powers and Duties of
225 Commissioner of Financial Institutions, Title 7, Chapter 2, Possession of Depository Institution
226 by Commissioner, Title 7, Chapter 19, Acquisition of Failing Depository Institutions or
227 Holding Companies, and Chapter 7, Governmental Immunity Act of Utah, or judicial review of
228 the action;
229 (i) the initial determination of a person's eligibility for unemployment benefits, the
230 initial determination of a person's eligibility for benefits under Title 34A, Chapter 2, Workers'
231 Compensation Act, and Title 34A, Chapter 3, Utah Occupational Disease Act, or the initial
232 determination of a person's unemployment tax liability;
233 (j) state agency action relating to the distribution or award of a monetary grant to or
234 between governmental units, or for research, development, or the arts, or judicial review of the
235 action;
236 (k) the issuance of a notice of violation or order under Title 26B, Chapter 4, Part 1,
237 Utah Emergency Medical Services System, Title 19, Chapter 2, Air Conservation Act, Title 19,
238 Chapter 3, Radiation Control Act, Title 19, Chapter 4, Safe Drinking Water Act, Title 19,
239 Chapter 5, Water Quality Act, Title 19, Chapter 6, Part 1, Solid and Hazardous Waste Act,
240 Title 19, Chapter 6, Part 4, Underground Storage Tank Act, or Title 19, Chapter 6, Part 7, Used
241 Oil Management Act, or Title 19, Chapter 6, Part 10, Mercury Switch Removal Act, except
242 that this chapter governs an agency action commenced by a person authorized by law to contest
243 the validity or correctness of the notice or order;
244 (l) state agency action, to the extent required by federal statute or regulation, to be
245 conducted according to federal procedures;
246 (m) the initial determination of a person's eligibility for government or public
247 assistance benefits;
248 (n) state agency action relating to wildlife licenses, permits, tags, and certificates of
249 registration;
250 (o) a license for use of state recreational facilities;
251 (p) state agency action under Chapter 2, Government Records Access and Management
252 Act, except as provided in Section 63G-2-603;
253 (q) state agency action relating to the collection of water commissioner fees and
254 delinquency penalties, or judicial review of the action;
255 (r) state agency action relating to the installation, maintenance, and repair of headgates,
256 caps, values, or other water controlling works and weirs, flumes, meters, or other water
257 measuring devices, or judicial review of the action;
258 (s) the issuance and enforcement of an initial order under Section 73-2-25;
259 (t) (i) a hearing conducted by the Division of Securities under Section 61-1-11.1; and
260 (ii) an action taken by the Division of Securities under a hearing conducted under
261 Section 61-1-11.1, including a determination regarding the fairness of an issuance or exchange
262 of securities described in Subsection 61-1-11.1(1);
263 (u) state agency action relating to water well driller licenses, water well drilling
264 permits, water well driller registration, or water well drilling construction standards, or judicial
265 review of the action;
266 (v) the issuance of a determination and order under Title 34A, Chapter 5, Utah
267 Antidiscrimination Act;
268 (w) state environmental studies and related decisions by the Department of
269 Transportation approving state or locally funded projects, or judicial review of the action;
270 (x) the suspension of operations under Subsection 32B-1-304(3); [
271 (y) the issuance of a determination of violation by the Governor's Office of Economic
272 Opportunity under Section 11-41-104[
273 (z) a challenge to an aspect of a distribution management plan under Section
274 73-33-202.
275 (3) This chapter does not affect a legal remedy otherwise available to:
276 (a) compel an agency to take action; or
277 (b) challenge an agency's rule.
278 (4) This chapter does not preclude an agency, prior to the beginning of an adjudicative
279 proceeding, or the presiding officer during an adjudicative proceeding from:
280 (a) requesting or ordering a conference with parties and interested persons to:
281 (i) encourage settlement;
282 (ii) clarify the issues;
283 (iii) simplify the evidence;
284 (iv) facilitate discovery; or
285 (v) expedite the proceeding; or
286 (b) granting a timely motion to dismiss or for summary judgment if the requirements of
287 Rule 12(b) or Rule 56 of the Utah Rules of Civil Procedure are met by the moving party,
288 except to the extent that the requirements of those rules are modified by this chapter.
289 (5) (a) A declaratory proceeding authorized by Section 63G-4-503 is not governed by
290 this chapter, except as explicitly provided in that section.
291 (b) Judicial review of a declaratory proceeding authorized by Section 63G-4-503 is
292 governed by this chapter.
293 (6) This chapter does not preclude an agency from enacting a rule affecting or
294 governing an adjudicative proceeding or from following the rule, if the rule is enacted
295 according to the procedures outlined in Chapter 3, Utah Administrative Rulemaking Act, and if
296 the rule conforms to the requirements of this chapter.
297 (7) (a) If the attorney general issues a written determination that a provision of this
298 chapter would result in the denial of funds or services to an agency of the state from the federal
299 government, the applicability of the provision to that agency shall be suspended to the extent
300 necessary to prevent the denial.
301 (b) The attorney general shall report the suspension to the Legislature at its next
302 session.
303 (8) Nothing in this chapter may be interpreted to provide an independent basis for
304 jurisdiction to review final agency action.
305 (9) Nothing in this chapter may be interpreted to restrict a presiding officer, for good
306 cause shown, from lengthening or shortening a time period prescribed in this chapter, except
307 the time period established for judicial review.
308 (10) Notwithstanding any other provision of this section, this chapter does not apply to
309 a special adjudicative proceeding, as defined in Section 19-1-301.5, except to the extent
310 expressly provided in Section 19-1-301.5.
311 (11) Subsection (2)(w), regarding action taken based on state environmental studies
312 and policies of the Department of Transportation, applies to any claim for which a court of
313 competent jurisdiction has not issued a final unappealable judgment or order before May 14,
314 2019.
315 Section 4. Section 65A-5-1 is amended to read:
316 65A-5-1. Sovereign Lands Management Account.
317 (1) There is created within the General Fund a restricted account known as the
318 "Sovereign Lands Management Account."
319 (2) The Sovereign Lands Management Account shall consist of the following:
320 (a) the revenues derived from sovereign lands, except for revenues deposited into the
321 Great Salt Lake Account under Section 73-32-304;
322 (b) that portion of the revenues derived from mineral leases on other lands managed by
323 the division necessary to recover management costs;
324 (c) revenues derived from the Great Salt Lake Preservation support special group
325 license plate described in Sections 41-1a-418 and 41-1a-422;
326 (d) fees deposited by the division; and
327 (e) amounts deposited into the account in accordance with Section 59-23-4.
328 (3) (a) The expenditures of the division relating directly to the management of
329 sovereign lands shall be funded by appropriation by the Legislature from the Sovereign Lands
330 Management Account or other sources.
331 (b) Money in the Sovereign Lands Management Account may be used only for the
332 direct benefit of sovereign lands, including the management of sovereign lands.
333 (c) In appropriating money from the Sovereign Lands Management Account, the
334 Legislature shall prefer appropriations that benefit the sovereign land from which the money is
335 derived unless compelling circumstances require that money be appropriated for sovereign land
336 other than the sovereign land from which the money is derived.
337 (4) The division shall use the amount deposited into the account under Subsection
338 (2)(d) for the Great Salt Lake as described in Section [
339 the Great Salt Lake Advisory Council created in Section 73-32-302.
340 Section 5. Section 65A-6-4 is amended to read:
341 65A-6-4. Mineral leases -- Multiple leases on same land -- Rentals and royalties --
342 Lease terms -- Great Salt Lake.
343 (1) As used in this section:
344 (a) "Great Salt Lake element or mineral" means:
345 (i) a rare earth element;
346 (ii) a trace element or mineral; or
347 (iii) a chemical compound that includes a rare earth element or trace element or
348 mineral.
349 (b) "Operator" means, for purposes of provisions applicable to the extraction of a Great
350 Salt Lake element or mineral, a person qualified to do business in the state who is pursuing the
351 extraction of a Great Salt Lake element or mineral.
352 [
353 located in the brines or the sovereign lands of the Great Salt Lake:
354 (i) lanthanum;
355 (ii) cerium;
356 (iii) praseodymium;
357 (iv) neodymium;
358 (v) samarium;
359 (vi) europium;
360 (vii) gadolinium;
361 (viii) terbium;
362 (ix) dysprosium;
363 (x) holmium;
364 (xi) erbium;
365 (xii) thulium;
366 (xiii) ytterbium;
367 (xiv) lutetium; and
368 (xv) yttrium.
369 [
370 brines or the sovereign lands of the Great Salt Lake that is not in production by July 1, 2020,
371 and for which the state has not received a royalty payment by July 1, 2020.
372 (2) (a) Mineral leases, including oil, gas, and hydrocarbon leases, may be issued for
373 prospecting, exploring, developing, and producing minerals covering any portion of state lands
374 or the reserved mineral interests of the state.
375 (b) (i) Leases may be issued for different types of minerals on the same land.
376 (ii) If leases are issued for different types of minerals on the same land, the leases shall
377 include stipulations for simultaneous operations, except that for leases related to the Great Salt
378 Lake the leases shall include stipulations for simultaneous operations that will not interfere
379 with, impede, limit, or require changes to pre-existing rights.
380 (c) No more than one lease may be issued for the same resource on the same land.
381 (d) The division shall require a separate royalty agreement for extraction of Great Salt
382 Lake elements or minerals from brines of the Great Salt Lake when:
383 (i) a mineral lease, a royalty agreement, or both that are in effect before the operator
384 seeks to extract a particular [
385 do not expressly include the right to extract the particular [
386 Salt Lake element or mineral; or
387 (ii) the proposed operation will use brines from the Great Salt Lake, but will not
388 occupy sovereign lands for the direct production of [
389 minerals other than for incidental structures such as pumps and intake and outflow pipelines.
390 (3) (a) Each mineral lease issued by the division shall provide for an annual rental of
391 not less than $1 per acre per year, except that a mineral lease issued by the division involving
392 the extraction of [
393 Lake shall provide for an annual rental of not less than $100 per acre per year.
394 (b) However, a lease may provide for a rental credit, minimum rental, or minimum
395 royalty upon commencement of production, as prescribed by rule.
396 (4) The primary term of a mineral lease may not exceed:
397 (a) 20 years for oil shale and tar sands; and
398 (b) 10 years for oil and gas and any other mineral.
399 (5) (a) [
400 Element Extraction, and subject to the other provisions of this Subsection (5), for a mineral
401 lease or royalty agreement involving the extraction of [
402 minerals from brines in the Great Salt Lake, the division shall ensure that the following terms,
403 as applicable, are included:
404 (i) an extraction operation or extraction method shall adhere to commercially viable
405 technologies that minimize water depletion;
406 [
407
408
409 [
410 element or mineral production at any time the condition of the Great Salt Lake reaches the
411 emergency trigger, as defined in Section [
412 [
413 methods, or technologies from Great Salt Lake element or mineral production or Great Salt
414 Lake element or mineral operations; [
415 [
416 commercially viable, innovative technologies to minimize water depletions caused by the
417 planned mineral extraction as a condition of continued operations[
418 (v) a provision that provides for the reductions of the following after the primary term
419 of a mineral lease or royalty agreement:
420 (A) the acreage subject to the mineral lease by the acreage the operator does not use to
421 extract a Great Salt Lake element or mineral during the primary term of the mineral lease under
422 conditions that do not constitute waste; and
423 (B) the volume of water that the operator may divert from the Great Salt Lake, by the
424 volume of water that the operator does not use during the longer of the primary term of the
425 mineral lease or seven years if the operator fails to use the volume of water for a beneficial use,
426 except if the failure to use the volume of water is as a result of a reduction of water usage under
427 Section 73-33-201.
428 [
429
430
431
432
433
434
435 [
436 operator to use a commercially viable, innovative technology, the division may not require use
437 of a technology not yet proven to be commercially viable on the Great Salt Lake and may not
438 require implementation of the technology to begin until after a reasonable period determined by
439 the division not to exceed [
440 (c) (i) If the volume of water that the operator may divert from the Great Salt Lake is
441 reduced under Subsection (5)(a)(v), the division shall pursue a judicial action to declare all or a
442 portion of the water right forfeited under Subsection 73-1-4(2).
443 (ii) If the division secures the reduction under this Subsection (5)(c), the division shall
444 petition the state engineer to order a reversal of the application approval in accordance with the
445 terms of the reduction or forfeiture of the water right.
446 (d) The division may issue a royalty agreement for scientific, demonstration, or a
447 small-scale pilot production facility using technology determined by the division to be
448 commercially viable without compliance of Subsection (5)(a) if the agreement:
449 (i) has a term of nine months or less; and
450 (ii) limits use of brines from the Great Salt Lake to a maximum of five acre-feet during
451 the term of the agreement.
452 (6) (a) Upon nomination from a prospective operator, the division shall by rule, made
453 in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establish a
454 royalty rate and calculation methodology for a Great Salt Lake element or mineral that:
455 (i) provides for a full and fair return to the state from the production of the Great Salt
456 Lake element or mineral;
457 (ii) is consistent with market royalty rates applicable to the production of the Great Salt
458 Lake element or mineral or of the production of oil and gas;
459 (iii) provides a base royalty rate;
460 (iv) provides a reduced royalty rate from the royalty rate under Subsection (6)(a)(iii) if
461 the royalty agreement:
462 (A) relates to a non-evaporative method of producing the Great Salt Lake element or
463 mineral; or
464 (B) provides an incentive to use commercially viable, innovative technology to
465 minimize water depletion and evaporation as determined by the division; [
466 (v) provides a reduced royalty rate from the royalty rate under Subsection (6)(a)(iii) if
467 the prospective operator for the extraction of lithium demonstrates to the satisfaction of the
468 division that the prospective operator has an agreement with a person who will process or
469 manufacture an end product in this state using the lithium extracted by the prospective
470 operator; and
471 [
472 highest market value prevailing at the time of the sale or disposal of the following:
473 (A) the Great Salt Lake element or mineral; or
474 (B) a product the lessee produces from the Great Salt Lake element or mineral.
475 (b) Before entering into a royalty agreement permitting the extraction of Great Salt
476 Lake elements or minerals, the operator shall:
477 (i) demonstrate commercial viability;
478 (ii) certify before operation begins that the operator is not negatively impacting the
479 biota or chemistry of the Great Salt Lake; and
480 (iii) obtain the approval of the division and the Department of Environmental Quality
481 that the certification supports a finding that the operation will not negatively impact the biota or
482 chemistry of the Great Salt Lake.
483 (c) A new mineral lease for a Great Salt Lake element or mineral in production in the
484 Great Salt Lake as of May 3, 2023, is subject to new royalty rates due to emergent
485 technologies.
486 (d) An operator who as of July 1, 2020, had a mineral lease with the division but not a
487 royalty agreement and who is subject to a severance tax under Subsection 59-5-202(5) shall pay
488 a royalty under this section in addition to the severance tax.
489 (e) The royalty rate described in Subsection (6)(a)(vi) may not be reassessed during the
490 primary term of an initial royalty agreement issued under this section, but may be reassessed
491 upon the conclusion of the primary term.
492 (7) (a) [
493 Salt Lake element or mineral from tailings from the production of Great Salt Lake elements or
494 minerals from brines in the Great Salt Lake is subject to this section to the same extent as an
495 operator producing a Great Salt Lake element or mineral from brines in the Great Salt Lake.
496 (b) An operator that, as of May 3, 2023, has an agreement to recover a Great Salt Lake
497 element or mineral from existing tailings, discarded material, end-use products, or waste
498 products produced from the evaporation and processing of Great Salt Lake brines is not subject
499 to this section, except as to the payment of royalties set by the division under Subsection (6)(a).
500 The division shall make rules, in accordance with Title 63G, Chapter 3, Utah Administrative
501 Rulemaking Act, regarding the issuance and termination of a royalty agreement for mineral
502 extraction from tailings, discarded material, end-use products, or waste products produced from
503 the evaporation and processing of Great Salt Lake brines.
504 (c) An operator that, as of May 3, 2023, has an underlying agreement to recover a Great
505 Salt Lake element or mineral shall obtain an additional agreement for any additional Great Salt
506 Lake element or mineral produced from the tailings, discarded material, end-use products, or
507 waste products newly produced under the underlying agreement. The additional agreement is
508 subject to this section.
509 (8) The division shall annually report to the Natural Resources, Agriculture, and
510 Environmental Quality Appropriations Subcommittee regarding the amount of money collected
511 under this section from royalties provided for in Subsection (6).
512 (9) (a) In the issuance of royalty agreements for the extraction of lithium from the
513 Great Salt Lake, the division shall prioritize applicants that:
514 [
515 the extractive process; and
516 [
517 (b) The division may make rules, in accordance with Title 63G, Chapter 3, Utah
518 Administrative Rulemaking Act, creating a process for implementing this Subsection (9).
519 (10) Except in relationship to mineral leases related to the Great Salt Lake, the division
520 shall make rules regarding the continuation of a mineral lease after the primary term has
521 expired, which shall provide that a mineral lease shall continue so long as:
522 (a) the mineral covered by the lease is being produced in paying quantities, as defined
523 in Section 65A-17-101, from:
524 (i) the leased premises;
525 (ii) lands pooled, communitized, or unitized with the leased premises; or
526 (iii) lands constituting an approved mining or drilling unit with respect to the leased
527 premises; or
528 (b) (i) the lessee is engaged in diligent operations, exploration, research, or
529 development which is reasonably calculated to advance development or production of the
530 mineral covered by the lease from:
531 (A) the leased premises;
532 (B) lands pooled, communitized, or unitized with the leased premises; or
533 (C) lands constituting an approved mining or drilling unit with respect to the leased
534 premises; and
535 (ii) the lessee pays a minimum royalty.
536 (11) For the purposes of Subsection (10), diligent operations with respect to oil, gas,
537 and other hydrocarbon leases may include cessation of operations not in excess of 90 days in
538 duration.
539 (12) (a) The division shall study and analyze each mineral lease and mineral royalty
540 agreement issued on the Great Salt Lake and compare and evaluate whether the mineral leases
541 and royalty agreements are representative of current market conditions. As part of this study,
542 the division shall:
543 (i) make the following determinations for mineral leases:
544 (A) whether the entire surface area described within the mineral lease is being used;
545 and
546 (B) whether the annual lease payments are representative of current market conditions;
547 and
548 (ii) for royalty agreements, perform studies and comparative analyses to determine
549 whether the state is receiving royalty rates consistent with current market conditions.
550 (b) By no later than the 2023 November interim meeting, the division shall report the
551 division's findings of the study required by this Subsection (12) to the Natural Resources,
552 Agriculture, and Environment Interim Committee.
553 (13) The provisions in this section related to extraction of a Great Salt Lake element or
554 mineral under a mineral lease or royalty agreement apply to a mineral lease or royalty
555 agreement in effect on May 1, 2024, and any mineral lease or royalty agreement entered into
556 after May 1, 2024.
557 Section 6. Section 65A-17-101 is enacted to read:
558
559
560 65A-17-101. Definitions.
561 As used in this chapter:
562 (1) "Adaptive management berm" means a berm installed in the UP causeway breach
563 to manage salinity to protect the ecosystem of Gilbert Bay.
564 (2) "Common source of supply" means the mineral or element estate contained within
565 the Great Salt Lake meander line.
566 (3) "Correlative right" means the opportunity of each commercially viable owner to
567 extract a portion of a common source of supply, subject to the state's sovereign lands
568 management responsibilities, without the occurrence of waste.
569 (4) "Emergency trigger" means the salinity levels of the Gilbert Bay of the Great Salt
570 Lake do not satisfy the ecological conditions required for healthy brine shrimp and brine fly
571 reproduction.
572 (5) "Great Salt Lake elevation" means the elevation of the Great Salt Lake as measured
573 by the United States Geological Survey gauging station 10010000 located at Saltair Boat
574 Harbor, Utah.
575 (6) "Great Salt Lake meander line" means the official meander line, completed in 1966,
576 of the Great Salt Lake unless otherwise established by court order or negotiated boundary
577 settlement.
578 (7) "Great Salt Lake salinity" means the salinity of the Great Salt Lake as measured by
579 the United States Geological Survey in Gilbert Bay.
580 (8) "Healthy physical and ecological condition" means that Gilbert Bay of the Great
581 Salt Lake has sustained salinity levels that satisfy the ecological conditions required for healthy
582 brine shrimp and brine fly reproduction.
583 (9) "Mineral or element" means:
584 (a) a rare earth element;
585 (b) a trace element or mineral;
586 (c) a chemical compound that includes a rare earth element or trace element or mineral;
587 or
588 (d) a mineral or element that is attached, embedded to, or is a by-product of another
589 mineral or element.
590 (10) "Mitigation plan" means an agreement entered into on or after May 1, 2024,
591 among the operators and the division for resolving issues arising from concurrent operations.
592 (11) "Multiple mineral development area" means an area involving the management of
593 various surface and sub-surface resources so that they are used in the combination that will best
594 meet present and future needs.
595 (12) "Natural resources of the Great Salt Lake" means the biota, water resources, water
596 quality, the fishery and recreational resources, the wetlands and wildlife resources, and any
597 other naturally occurring resource on the Great Salt Lake.
598 (13) "Operator" means a person qualified to do business in the state pursuing the
599 extraction of minerals or elements from the Great Salt Lake.
600 (14) "Paying quantities" means the revenue generated from the sale of the mineral or
601 element being produced exceeds the costs associated with obtaining the mineral or element,
602 including any royalty obligation.
603 (15) "Public trust assets" means the same as that term is defined in Section 65A-1-1.
604 (16) "UP causeway breach" means a breach in the 21-mile Union Pacific Railroad
605 causeway across the Great Salt Lake that separates the Great Salt Lake into Gunnison Bay and
606 Gilbert Bay.
607 (17) (a) Except as provided in Subsection (17)(b), "waste" means:
608 (i) the failure of an operation to provide the state with a full and fair return on each
609 separately identified mineral or element;
610 (ii) an unnecessary depletion, diminishment, or reduction of the quantity or quality of a
611 mineral or element; or
612 (iii) imprudent and uneconomical operations.
613 (b) "Waste" does not include a mineral or element that cannot be extracted in paying
614 quantities through commercially viable technology available at the time of extraction and:
615 (i) that has not been nominated under Subsection 65A-6-4(6)(a); or
616 (ii) for which the division has not established a royalty rate in rule.
617 Section 7. Section 65A-17-102, which is renumbered from Section 65A-10-202 is
618 renumbered and amended to read:
619 [
620 The Legislature finds that:
621 (1) under Section 65A-10-1 the division, as the manager of sovereign lands, has a duty
622 to serve the public interest in managing the Great Salt Lake;
623 (2) the Great Salt Lake is a critical resource owned and managed by the state;
624 (3) the lake levels of the Great Salt Lake have reached historic lows, requiring action
625 by the state to address significant risks and minimize dangers to protect the ecological integrity
626 of the Great Salt Lake, the state's environment in general, and the welfare of the state's citizens;
627 and
628 (4) the management of the Great Salt Lake under this [
629 emergency trigger is reached, is reasonable and necessary to serve important public purposes
630 and no reasonable alternative meets the interests described in Subsection (3).
631 Section 8. Section 65A-17-103 is enacted to read:
632 65A-17-103. Application of chapter.
633 This chapter applies to a mineral lease or royalty agreement in effect on May 1, 2024, or
634 the mineral or element extraction process engaged in on May 1, 2024, and any mineral lease or
635 royalty agreement entered into after May 1, 2024, or mineral or element extraction process
636 engaged in after May 1, 2024.
637 Section 9. Section 65A-17-201, which is renumbered from Section 65A-10-203 is
638 renumbered and amended to read:
639
640 [
641 of the division.
642 The division has the following powers and duties:
643 (1) The division shall make rules, in accordance with Title 63G, Chapter 3, Utah
644 Administrative Rulemaking Act, for the management of the Great Salt Lake that recognize the
645 division's duty to manage public trust assets and balance the following [
646 public interest benefits and policies:
647 (a) strategies to effectively and efficiently manage the Great Salt Lake based on the
648 Great Salt Lake's fluctuating lake levels;
649 (b) development of the Great Salt Lake that balances, in a manner that promotes a
650 healthy physical and ecological condition:
651 (i) migratory and shorebirds habitats;
652 (ii) wetlands;
653 (iii) brines, minerals or elements, chemicals, and petro-chemicals;
654 (iv) brine shrimp;
655 (v) the protection of wildlife and wildlife habitat;
656 (vi) the protection of recreational access and facilities; and
657 (vii) search and rescue efforts;
658 (c) promote water quality management for the Great Salt Lake and the Great Salt
659 Lake's tributary streams;
660 (d) public access to the Great Salt Lake for recreation, hunting, and fishing;
661 (e) temperature moderation, a stable role in the water cycle, and dust mitigation;
662 (f) maintain the Great Salt Lake's flood plain as a hazard zone;
663 (g) maintain the Great Salt Lake and the marshes as important shorebirds, waterfowl,
664 and other waterbird flyway system;
665 (h) promote and maintain recreation areas on and surrounding the Great Salt Lake; and
666 (i) maintain and protect state, federal, and private marshlands, rookeries, and wildlife
667 refuges.
668 (2) (a) The division shall prepare and maintain a comprehensive management plan for
669 the Great Salt Lake that is consistent with:
670 (i) the [
671 Subsection (1) [
672 (ii) policies established by rule made under Subsection (1)[
673 (iii) the Great Salt Lake strategic plan adopted under Section 73-32-204.
674 (b) The comprehensive management plan described in this section shall integrate the
675 land within the Great Salt Lake meander line regardless of whether the land has been excluded
676 from water within the Great Salt Lake because of a berm or other infrastructure on sovereign
677 land associated with the Great Salt Lake.
678 (c) The division shall prepare the comprehensive management plan in consultation
679 with the Great Salt Lake commissioner.
680 (3) The division may employ personnel and purchase equipment and supplies that the
681 Legislature authorizes through appropriations for the purposes of this chapter and Chapter 10,
682 Management of Sovereign Lands.
683 (4) The division may initiate studies of the Great Salt Lake and the Great Salt Lake's
684 related resources.
685 (5) The division may publish scientific and technical information concerning the Great
686 Salt Lake.
687 (6) The division shall define the Great Salt Lake's flood plain.
688 (7) The division may qualify for, accept, and administer grants, gifts, or other funds
689 from the federal government and other sources, for carrying out any functions under this
690 chapter and Chapter 10, Management of Sovereign Lands.
691 (8) The division shall determine the need for public works and utilities for the lake
692 area.
693 (9) The division may implement the comprehensive plan described in Subsection (2)
694 through state and local entities or agencies.
695 (10) The division shall coordinate the activities of the various divisions within the
696 Department of Natural Resources with respect to the Great Salt Lake.
697 (11) The division shall retain and encourage the continued activity of the Great Salt
698 Lake technical team.
699 (12) The division shall administer Chapter 16, Great Salt Lake Watershed
700 Enhancement Program.
701 (13) The division shall administer Section [
702 Salt Lake emergency trigger is reached.
703 (14) (a) The division shall manage the adaptive management berm in the UP causeway
704 breach to [
705
706
707
708 adaptive management berm as needed to achieve that goal.
709 (b) In pursuing the goal described in Subsection (14)(a), the division shall:
710 (i) consider and weigh the other management objectives enumerated in this section,
711 including the preservation of Gunnison Bay;
712 (ii) raise the adaptive management berm if the Great Salt Lake elevation is 4,190 feet
713 or lower; and
714 (iii) comply with a plan and schedule required by Subsection (14)(c).
715 (c) Before raising the adaptive management berm, the division shall have a plan and
716 schedule to lower the adaptive management berm by no later than nine months after raising the
717 adaptive management berm, with an objective of equalizing the elevations of Gilbert Bay and
718 Gunnison Bay to be within six feet of each other.
719 (d) The division will consult with the Great Salt Lake commissioner:
720 (i) before modifying the adaptive management berm; and
721 (ii) concerning the adoption of the plan and schedule described in Subsection (14)(c).
722 (15) Notwithstanding a statute to the contrary and except for activities that interfere
723 with the authority granted the state engineer under Title 73, Water and Irrigation, the division
724 may construct, operate, modify, or maintain infrastructure related to protecting the Great Salt
725 Lake and may engage in planning and provide staff to manage the infrastructure.
726 [
727 through [
728 Management of Sovereign Lands.
729 (17) The division shall complete an analysis to determine the infrastructure and
730 engineering needs related to salinity management and the improvement of hydrology within
731 the Great Salt Lake meander line.
732 (18) The division shall consult with the Division of Wildlife Resources to identify
733 projects on sovereign lands that benefit wildlife habitat through the improved flow of water and
734 management of both native and invasive plant species.
735 [
736 any water right within the state, or the role and authority of the state engineer.
737 Section 10. Section 65A-17-202, which is renumbered from Section 65A-10-204 is
738 renumbered and amended to read:
739 [
740 division.
741 (1) When the Great Salt Lake reaches the emergency trigger, the division:
742 (a) may construct, operate, modify, and maintain the adaptive management berm;
743 (b) may construct, operate, modify, and maintain one or more additional berms, dikes,
744 structures, or management systems consistent with the authority granted in this title;
745 (c) may enter into agreements as necessary to provide for all or a portion of a berm,
746 dike, system, or structure;
747 (d) is exempt from Title 63G, Chapter 6a, Utah Procurement Code, when acting to
748 manage the Great Salt Lake under this section;
749 (e) is not liable for a third-party claim resulting from the division's actions to manage
750 the Great Salt Lake under this section;
751 (f) may decline to issue a new permit, authorization, or agreement and may curtail
752 mineral or element production for leases that contain provisions contemplating curtailment or
753 similar contractual remedies;
754 (g) may implement mineral lease withdrawal over one or more of the following:
755 (i) portions of the Great Salt Lake;
756 (ii) specific methods of extraction; or
757 (iii) specific Great Salt Lake elements or minerals as defined in Section 65A-6-4; and
758 (h) may require the implementation of one or more of the following:
759 (i) extraction methods that are non-depletive in nature;
760 (ii) mitigation to offset depletion; or
761 (iii) innovative extraction technologies.
762 (2) The division shall make rules in accordance with Title 63G, Chapter 3, Utah
763 Administrative Rulemaking Act, providing for the procedures the division shall follow in
764 taking an action described in Subsection (1).
765 Section 11. Section 65A-17-203, which is renumbered from Section 65A-10-205 is
766 renumbered and amended to read:
767 [
768 (1) For purposes of managing the Great Salt Lake, the division may treat the fact that
769 the Great Salt Lake has reached the emergency trigger as a triggering event for the purposes of
770 invoking a force majeure provision in a contract, mineral lease, or royalty agreement.
771 (2) In addition to the standard mechanisms whereby performance is excused by
772 invocation of a force majeure provision, the division shall include language in a contract,
773 mineral lease, or royalty agreement whereby the division may curtail or prohibit mineral or
774 element production that results in a net depletion of water.
775 (3) The division shall allow an operator to continue processing brines that have already
776 been extracted from the Great Salt Lake that are residing in the operator's process, and selling
777 products derived from brines that have already been extracted at the time the force majeure is
778 invoked.
779 (4) The division shall include standard mechanisms to promptly waive force majeure
780 once salinity conditions improve by declining below the emergency trigger threshold.
781 (5) If the division invokes a force majeure provision in a contract, mineral lease, or
782 royalty agreement, the effected operator is relieved from performance of any contractual
783 provision requiring production to hold the contract, mineral lease, or royalty agreement for a
784 maximum of two years. If the conditions creating the emergency trigger persist beyond a
785 two-year period, the division shall terminate the contract, mineral lease, or royalty agreement
786 and require the operator to engage in new contractual agreements whereby the operator
787 represents and warrants that future operations will not amount to a net depletion of water.
788 Section 12. Section 65A-17-301 is enacted to read:
789
790 65A-17-301. General royalty agreement provisions -- State action regarding
791 evaporation ponds and leaseholds.
792 (1) In addition to the requirements of Section 65A-6-4, the division shall ensure that a
793 royalty agreement:
794 (a) obligates the lessee to prevent waste to the common source of supply;
795 (b) obligates the lessee to extract minerals or elements in a manner that avoids waste to
796 any natural resources of the Great Salt Lake;
797 (c) contains terms and conditions wherein the lessee agrees to preserve and conserve
798 ecological integrity and healthy salinity levels; and
799 (d) contains terms and conditions wherein the lessee represents and warrants full
800 compliance, at the lessee's sole expense, with the management decisions and instructions of the
801 division and director for preservation of minerals or elements and natural resources of the
802 Great Salt Lake.
803 (2) The division may acquire the property interest in land or a mineral estate for a solar
804 evaporation pond on sovereign lands and an improvement, property, easement, or right-of-way
805 appurtenant to the solar evaporation pond by any lawful means, including eminent domain, as
806 described in Sections 78B-6-501 and 78B-6-502.
807 Section 13. Section 65A-17-302 is enacted to read:
808 65A-17-302. Minerals or elements extracted from the Great Salt Lake subject to
809 royalty rate.
810 (1) An operator who removes or extracts a mineral or element from the Great Salt Lake
811 and does not return the mineral or element to the Great Salt Lake shall compensate the division
812 for the value of the mineral or element at the royalty rate established by the division by rule
813 made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if a
814 royalty rate has been established, except that this Subsection (1) only applies to the extent that
815 the mineral or element:
816 (a) has been nominated under Subsection 65A-6-4(6)(a) or for which the division has
817 established a royalty rate in rule; and
818 (b) can be extracted in paying quantities through a commercially viable technology
819 available at the time of extraction.
820 (2) (a) The division shall require an operator that removes or extracts a mineral or
821 element from the Great Salt Lake to annually certify to the division by no later than May 1
822 whether the operator is in compliance with Subsection (1). The certification by the operator
823 shall:
824 (i) state the operator's name and taxpayer identification number;
825 (ii) list the amount of each mineral or element that the operator has removed or
826 extracted from the Great Salt Lake in the previous calendar year; and
827 (iii) include other information as determined by the division by rule made in
828 accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
829 (b) The operator shall submit the certificate on a form provided by the division and
830 approved by the State Tax Commission.
831 (3) (a) If the division finds that an operator has violated Subsection (1), the division
832 shall issue the operator an order that:
833 (i) finds that the operator is in violation of Subsection (1);
834 (ii) states the mineral or element for which the operator has failed to pay the royalty
835 rate;
836 (iii) states the amount of the mineral or element that was removed or extracted but for
837 which the operator failed to pay the royalty rate;
838 (iv) orders the payment of the applicable royalty; and
839 (v) provides the taxable value of the mineral or element, as described in Subsection
840 59-5-203(1)(b).
841 (b) The operator may appeal an order issued under this Subsection (3) in accordance
842 with Title 63G, Chapter 4, Administrative Procedures Act.
843 (4) By no later than August 1 the division shall submit a copy of an order issued under
844 Subsection (3) to the State Tax Commission, which applies to the calendar year in which the
845 order is issued.
846 (5) The division may take an enforcement action against an operator in violation of this
847 section.
848 Section 14. Section 65A-17-303 is enacted to read:
849 65A-17-303. Multiple mineral development area -- Cooperative agreements --
850 Correlative right protection -- Withdrawn from or incapable of mineral development.
851 (1) (a) The division shall manage the Great Salt Lake below the Great Salt Lake
852 meander line as a multiple mineral development area to:
853 (i) prevent waste;
854 (ii) ensure the greatest ultimate recovery of minerals or elements;
855 (iii) protect correlative rights of owners having rights to a common source of supply
856 and the division's duty to manage public trust assets; and
857 (iv) encourage new and emergent technologies to protect the Great Salt Lake's overall
858 ecological integrity while ensuring the greatest possible recovery for operators and the state.
859 (b) An operator shall conduct operations to comply with rules made in accordance with
860 Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
861 (i) governing individual operations; and
862 (ii) made for the multiple mineral development area.
863 (2) (a) As a condition of the division issuing a lease or royalty agreement and of
864 continued operations, the division shall require an operator to enter into and maintain a
865 cooperative agreement with the persons with correlative rights in a common source of supply
866 for a mineral or element in the Great Salt Lake.
867 (b) After submitting an application with the division to obtain a lease or royalty
868 agreement, a person shall:
869 (i) obtain a list from the division of all operators existing at the time of application; and
870 (ii) notify each operator on the list of the person's intention to enter into a cooperative
871 agreement.
872 (c) A cooperative agreement shall meet the requirements of Subsection 65A-17-304(1),
873 shall provide that the rights and obligations contained in the cooperative agreement are subject
874 to the division's duty to manage public trust assets, and shall address:
875 (i) how the operators can conduct concurrent or simultaneous operations without
876 unreasonably interfering with existing and separate operations while also preventing undue
877 waste;
878 (ii) recognition of other operator's vested mineral or element interests so that
879 operations may be conducted in a manner that will result in the maximum recovery of minerals
880 or elements with the minimum adverse effect on the ultimate maximum recovery of other
881 minerals or elements;
882 (iii) terms and conditions for establishing a mitigation plan for when one operator,
883 either intentionally or unintentionally, interferes with or damages the mineral or element rights
884 or mineral or element interests of another operator;
885 (iv) terms and conditions for establishing a mitigation plan with the division that would
886 limit unreasonable mineral estate interference, waste, or negative impacts to natural resources
887 of the Great Salt Lake;
888 (v) the protection of natural resources of the Great Salt Lake without unnecessary cost
889 to the operations of another operator, unless there is compensation for increased operational
890 costs;
891 (vi) the extent and limits of liability when one operator interferes with or damages the
892 mineral or element rights or mineral or element interests of another operator;
893 (vii) the coordination and locations of access to operations;
894 (viii) any assessment of costs resulting from concurrent operations within the Great
895 Salt Lake;
896 (ix) the mitigation of surface impacts, including:
897 (A) the location of a mineral or element extraction intake or discharge facility;
898 (B) phased or coordinated surface occupancy to each operator to access and develop
899 the operator's respective mineral or element estate or mineral or element interest with the least
900 disruption of operations and damage to minerals or elements or natural resources directly,
901 indirectly, or through waste; and
902 (C) limitations of mineral or element operations in areas where impacts to correlative
903 rights or to natural resources of the Great Salt Lake are significant or most acute, as determined
904 by the operators or the division;
905 (x) the mitigation of impacts to a subsurface or hydrologically connected aquifer
906 including, use of any underground well or aquifer in any portion of extraction or processing;
907 (xi) the scope and extent of how geological, engineering, product, and water use data is
908 disclosed or exchanged;
909 (xii) how any joint reclamation obligation or plan is to be achieved or coordinated;
910 (xiii) how bonding will be obtained and coordinated on any lands impacted, disturbed,
911 or developed in relation to mineral or element extraction and processing activities;
912 (xiv) terms and conditions indemnifying the state, the division, and any of the state's or
913 division's directors, officers, agents, or employees from any and all damage or liability of any
914 kind resulting from any stage or mineral or element extraction operations or any stage of
915 mineral or element processing;
916 (xv) terms and conditions for the full compliance with a royalty rate reduction to which
917 an operator is entitled;
918 (xvi) a schedule of how the operators plan to collectively curtail production if the
919 emergency trigger is reached and a curtailment of production is required; and
920 (xvii) any other term or condition outlining cooperative efforts consistent with the
921 multiple mineral development area and plans or rules of the division, made in accordance with
922 Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
923 (d) The parties to a cooperative agreement described in Subsection (2)(a) shall present
924 the cooperative agreement to the division and the director may approve the agreement if the
925 cooperative agreement:
926 (i) is in the public interest;
927 (ii) increases ultimate recovery of minerals or elements and prevention of waste of
928 minerals or elements;
929 (iii) protects the correlative rights of each owner; and
930 (iv) meets the requirements of Subsection 65A-17-304(1).
931 (e) On the director's approval of the cooperative agreement, the division becomes a
932 signator to the cooperative agreement.
933 (f) A cooperative agreement described in this Subsection (2) may not be held or
934 construed to violate a statute relating to trusts, monopolies, or contracts and combinations in
935 restraint of trade, if the agreement is approved by the director.
936 (g) The failure to submit an agreement to the division for approval may not for that
937 reason imply or constitute evidence that the agreement or operations conducted pursuant to the
938 agreement are in violation of laws relating to trusts, monopolies, or restraint of trade.
939 (h) An operator may not obstruct the ability of another operator to enter into a
940 cooperative agreement.
941 (i) A mitigation plan with the division shall be implemented in conjunction with the
942 Division of Water Rights.
943 (3) The division may at any time determine that certain areas within the multiple
944 mineral development area are withdrawn from mineral development or incapable of mineral
945 development.
946 Section 15. Section 65A-17-304 is enacted to read:
947 65A-17-304. Concurrent operations -- Breach, disagreement, or conflict --
948 Disputes.
949 (1) Two or more operators may conduct concurrent operations on the Great Salt Lake
950 under a cooperative agreement upon stipulation and agreement that the operations can be:
951 (a) conducted simultaneously without unreasonably interfering with the value of the
952 resources being produced;
953 (b) conducted simultaneously without unreasonably interfering with natural resources
954 of the Great Salt Lake; and
955 (c) conducted without unreasonably interfering with, or unnecessarily raising the cost
956 of operations of another operator, unless the other affected operator is compensated for
957 increased costs or diminished returns.
958 (2) The division shall make rules, in accordance with Title 63G, Chapter 3, Utah
959 Administrative Rulemaking Act, providing for the procedures the division and operators shall
960 follow to:
961 (a) assist in the resolution of disputes that may arise during the formation of a
962 cooperative agreement;
963 (b) cure a breach of a mitigation plan; or
964 (c) resolve a continued disagreement or conflict regarding continued negative impacts
965 to biota or chemistry due to continuing concurrent operations.
966 Section 16. Section 73-3-8 is amended to read:
967 73-3-8. Approval or rejection of application -- Requirements for approval --
968 Application for specified period of time -- Filing of royalty contract for removal of salt or
969 minerals -- Request for agency action.
970 (1) (a) It shall be the duty of the state engineer to approve an application if there is
971 reason to believe that:
972 (i) for an application to appropriate, there is unappropriated water in the proposed
973 source;
974 (ii) the proposed use will not impair existing rights or interfere with the more
975 beneficial use of the water;
976 (iii) the proposed plan:
977 (A) is physically and economically feasible, unless the application is filed by the
978 United States Bureau of Reclamation; and
979 (B) would not prove detrimental to the public welfare;
980 (iv) the applicant has the financial ability to complete the proposed works;
981 (v) the application was filed in good faith and not for purposes of speculation or
982 monopoly; and
983 (vi) if applicable, the application complies with a groundwater management plan
984 adopted under Section 73-5-15.
985 (b) If the state engineer, because of information in the state engineer's possession
986 obtained either by the state engineer's own investigation or otherwise, has reason to believe that
987 an application will interfere with the water's more beneficial use for irrigation, municipal and
988 industrial, domestic or culinary, stock watering, power or mining development, or
989 manufacturing, or will unreasonably affect public recreation or the natural stream environment,
990 or will prove detrimental to the public welfare, the state engineer shall withhold approval or
991 rejection of the application until the state engineer has investigated the matter.
992 (c) If an application does not meet the requirements of this section, it shall be rejected.
993 (2) (a) An application to appropriate water for industrial, power, mining development,
994 manufacturing purposes, agriculture, or municipal purposes may be approved for a specific and
995 certain period from the time the water is placed to beneficial use under the application, but in
996 no event may an application be granted for a period of time less than that ordinarily needed to
997 satisfy the essential and primary purpose of the application or until the water is no longer
998 available as determined by the state engineer.
999 (b) At the expiration of the period fixed by the state engineer the water shall revert to
1000 the public and is subject to appropriation as provided by this title.
1001 (c) No later than 60 calendar days before the expiration date of the fixed time period,
1002 the state engineer shall send notice by mail or by any form of electronic communication
1003 through which receipt is verifiable, to the applicant of record.
1004 (d) Except as provided by Subsection (2)(e), the state engineer may extend any limited
1005 water right upon a showing that:
1006 (i) the essential purpose of the original application has not been satisfied;
1007 (ii) the need for an extension is not the result of any default or neglect by the applicant;
1008 and
1009 (iii) the water is still available.
1010 (e) An extension may not exceed the time necessary to satisfy the primary purpose of
1011 the original application.
1012 (f) A request for extension of the fixed time period must be filed in writing in the
1013 office of the state engineer on or before the expiration date of the application.
1014 (3) (a) Before the approval of any application [
1015 from navigable lakes or streams of the state that contemplates the recovery of salts and other
1016 minerals or elements, as defined in Section 65A-17-101, therefrom by precipitation or
1017 otherwise, the applicant shall file with the state engineer a copy of:
1018 (i) a contract for the payment of royalties to the state[
1019 (ii) any mineral lease.
1020 (b) The approval of an application shall be [
1021 comply with terms of the royalty contract or mineral lease.
1022 (4) (a) The state engineer shall investigate all temporary change applications.
1023 (b) The state engineer shall:
1024 (i) approve the temporary change if the state engineer finds there is reason to believe
1025 that the temporary change will not impair an existing right; and
1026 (ii) deny the temporary change if the state engineer finds there is reason to believe the
1027 temporary change would impair an existing right.
1028 (5) (a) With respect to a change application for a permanent or fixed time change:
1029 (i) the state engineer shall follow the same procedures provided in this title for
1030 approving an application to appropriate water; and
1031 (ii) the rights and duties of a change applicant are the same as the rights and duties of a
1032 person who applies to appropriate water under this title.
1033 (b) The state engineer may waive notice for a permanent or fixed time change
1034 application if the application only involves a change in point of diversion of 660 feet or less.
1035 (c) The state engineer may condition approval of a change application to prevent an
1036 enlargement of the quantity of water depleted by the nature of the proposed use when compared
1037 with the nature of the currently approved use of water proposed to be changed.
1038 (d) A condition described in Subsection (5)(c) may not include a reduction in the
1039 currently approved diversion rate of water under the water right identified in the change
1040 application solely to account for the difference in depletion under the nature of the proposed
1041 use when compared with the nature of the currently approved use.
1042 (6) (a) Except as provided in Subsection (6)(b), the state engineer shall reject a
1043 permanent or fixed time change application if the person proposing to make the change is
1044 unable to meet the burden described in Subsection 73-3-3(5).
1045 (b) If otherwise proper, the state engineer may approve a change application upon one
1046 or more of the following conditions:
1047 (i) for part of the water involved;
1048 (ii) that the applicant acquire a conflicting right; or
1049 (iii) that the applicant provide and implement a plan approved by the state engineer to
1050 mitigate impairment of an existing right.
1051 (c) (i) There is a rebuttable presumption of quantity impairment, as defined in Section
1052 73-3-3, to the extent that, for a period of at least seven consecutive years, a portion of the right
1053 identified in a change application has not been:
1054 (A) diverted from the approved point of diversion; or
1055 (B) beneficially used at the approved place of use.
1056 (ii) The rebuttable presumption described in Subsection (6)(c)(i) does not apply if the
1057 beneficial use requirement is excused by:
1058 (A) Subsection 73-1-4(2)(e);
1059 (B) an approved nonuse application under Subsection 73-1-4(2)(b);
1060 (C) Subsection 73-3-30(7); or
1061 (D) the passage of time under Subsection 73-1-4(2)(c)(i).
1062 (d) The state engineer may not consider quantity impairment based on the conditions
1063 described in Subsection (6)(c) unless the issue is raised in a:
1064 (i) timely protest that identifies which of the protestant's existing rights the protestant
1065 reasonably believes will experience quantity impairment; or
1066 (ii) written notice provided by the state engineer to the applicant within 90 days after
1067 the change application is filed.
1068 (e) The written notice described in Subsection (6)(d)(ii) shall:
1069 (i) specifically identify an existing right the state engineer reasonably believes may
1070 experience quantity impairment; and
1071 (ii) be mailed to the owner of an identified right, as shown by the state engineer's
1072 records, if the owner has not protested the change application.
1073 (f) The state engineer is not required to include all rights the state engineer believes
1074 may be impaired by the proposed change in the written notice described in Subsection
1075 (6)(d)(ii).
1076 (g) The owner of a right who receives the written notice described in Subsection
1077 (6)(d)(ii) may not become a party to the administrative proceeding if the owner has not filed a
1078 timely protest.
1079 (h) If a change applicant, the protestants, and the persons identified by the state
1080 engineer under Subsection (6)(d)(ii) come to a written agreement regarding how the issue of
1081 quantity impairment shall be mitigated, the state engineer may incorporate the terms of the
1082 agreement into a change application approval.
1083 Section 17. Section 73-32-204 is amended to read:
1084 73-32-204. Strategic plan.
1085 (1) (a) In accordance with this section, the commissioner shall prepare a strategic plan
1086 and obtain the approval of the governor of that strategic plan.
1087 (b) A strategic plan prepared by the commissioner may not be implemented until the
1088 governor approves the strategic plan, except as provided in Subsection (5).
1089 (2) The commissioner shall base the strategic plan on a holistic approach that balances
1090 the diverse interests related to the health of the Great Salt Lake, and includes provisions
1091 concerning:
1092 (a) coordination of efforts related to the Great Salt Lake;
1093 (b) a sustainable water supply for the Great Salt Lake, while balancing competing
1094 needs;
1095 (c) human health and quality of life;
1096 (d) a healthy ecosystem;
1097 (e) economic development;
1098 (f) water conservation, including municipal and industrial uses and agricultural uses;
1099 (g) water and land use planning;
1100 (h) regional water sharing; and
1101 (i) other provisions that the commissioner determines would be for the benefit of the
1102 Great Salt Lake.
1103 (3) (a) The commissioner shall obtain the approval of the governor of an initial
1104 strategic plan by no later than December 31, 2023.
1105 (b) On or before November 30, 2023, the commissioner shall submit an initial strategic
1106 plan to the governor, speaker of the House of Representatives, and the president of the Senate.
1107 (c) The governor shall approve the strategic plan by no later than December 31, 2023,
1108 if the governor determines that the initial strategic plan satisfies this chapter.
1109 (d) By no later than January 15, 2024, the commissioner shall provide the following a
1110 copy of the initial strategic plan approved by the governor under Subsection (3)(c):
1111 (i) the Natural Resources, Agriculture, and Environment Interim Committee;
1112 (ii) the department;
1113 (iii) the Department of Environmental Quality; and
1114 (iv) the Department of Agriculture and Food.
1115 (4) The governor may approve a strategic plan only after consulting with the speaker of
1116 the House of Representatives and the president of the Senate.
1117 (5) Once a strategic plan is approved by the governor, the commissioner may make
1118 substantive changes to the strategic plan without the approval of the governor, except that the
1119 commissioner shall:
1120 (a) inform the governor, the speaker of the House of Representatives, and the president
1121 of the Senate of a substantive change to the strategic plan; and
1122 (b) submit the strategic plan every five years for the approval of the governor in a
1123 process that is consistent with Subsection (3).
1124 (6) The commissioner may work with the Division of Forestry, Fire, and State Lands in
1125 coordinating the comprehensive management plan created under Section [
1126 65A-17-201 with the strategic plan.
1127 Section 18. Section 73-32-303 is amended to read:
1128 73-32-303. Duties of the council.
1129 (1) (a) The council shall advise the persons listed in Subsection (1)(b) on the
1130 sustainable use, protection, and development of the Great Salt Lake in terms of balancing:
1131 (i) sustainable use;
1132 (ii) environmental health; and
1133 (iii) reasonable access for existing and future development.
1134 (b) The council shall advise, as provided in Subsection (1)(a):
1135 (i) the governor;
1136 (ii) the Department of Natural Resources;
1137 (iii) the Department of Environmental Quality; and
1138 (iv) the commissioner.
1139 (2) The council shall assist the Division of Forestry, Fire, and State Lands in the
1140 Division of Forestry, Fire, and State Land's responsibilities for the Great Salt Lake described in
1141 Sections [
1142 (3) The council:
1143 (a) may recommend appointments to the Great Salt Lake technical team created by the
1144 Division of Forestry, Fire, and State Lands; and
1145 (b) shall receive and use technical support from the Great Salt Lake technical team.
1146 (4) The council shall assist the department, the Department of Environmental Quality,
1147 and their applicable boards in accomplishing their responsibilities for the Great Salt Lake.
1148 (5) The council shall report annually to the Natural Resources, Agriculture, and
1149 Environmental Quality Appropriations Subcommittee on the council's activities.
1150 Section 19. Section 73-33-101 is enacted to read:
1151
1152
1153 73-33-101. Definitions.
1154 As used in this chapter:
1155 (1) "Distribution management plan" means a plan adopted by the state engineer in
1156 accordance with Section 73-33-201.
1157 (2) "Great Salt Lake Comprehensive Management Plan" means the plan adopted by a
1158 record of decision by the Division of Forestry, Fire, and State Lands for the management of the
1159 Great Salt Lake.
1160 (3) "Great Salt Lake meander line" means the same as that term is defined in Section
1161 65A-17-101.
1162 (4) "Great Salt Lake water right" means a water right that allows for the diversion of
1163 surface water or groundwater from a point below the Great Salt Lake meander line and that
1164 contemplates the recovery of salts or another mineral or element, as defined in Section
1165 65A-17-101, from the water resource by precipitation or otherwise.
1166 (5) "Great Salt Lake watershed" means the drainage area for the Great Salt Lake, the
1167 Bear River watershed, the Jordan River watershed, the Utah Lake watershed, the Weber River
1168 watershed, and the West Desert watershed.
1169 Section 20. Section 73-33-102 is enacted to read:
1170 73-33-102. Scope of chapter.
1171 (1) A person may not interpret this chapter as requiring the development,
1172 implementation, or consideration of a distribution management plan as a prerequisite or
1173 condition to the exercise of the state engineer's enforcement powers under other law, including
1174 powers granted under Section 73-2-25.
1175 (2) This chapter applies to Great Salt Lake water rights that were approved or perfected
1176 on or before May 1, 2024, and Great Salt Lake water rights approved or perfected after May 1,
1177 2024, including use under a Great Salt Lake water right of water for the mineral or element
1178 extraction process.
1179 Section 21. Section 73-33-201 is enacted to read:
1180
1181 73-33-201. Great Salt Lake distribution management plan.
1182 (1) The state engineer shall regulate the measurement, appropriation, apportionment,
1183 and distribution of water within the Great Salt Lake meander line by adopting a distribution
1184 management plan by no later than October 1, 2025, that establishes:
1185 (a) consistent with Section 73-33-203, requirements for the measurement,
1186 quantification, and reporting of diversions, depletions, and return flows associated with Great
1187 Salt Lake water rights; and
1188 (b) procedures for the apportionment and distribution of Great Salt Lake water rights.
1189 (2) (a) In developing a distribution management plan under this section, the state
1190 engineer may consider:
1191 (i) the hydrology of the Great Salt Lake watershed as it affects Great Salt Lake water
1192 rights;
1193 (ii) the physical characteristics of the Great Salt Lake;
1194 (iii) the Great Salt Lake elevation;
1195 (iv) the Great Salt Lake salinity;
1196 (v) the strategic plan prepared by the Great Salt Lake commissioner and approved by
1197 the governor under Section 73-32-204;
1198 (vi) the measurement, appropriation, apportionment, and distribution of Great Salt
1199 Lake water rights;
1200 (vii) the quantity of water approved for beneficial use within the Great Salt Lake
1201 meander line by a division as defined in Section 73-3-30;
1202 (viii) the quantity of water within the Great Salt Lake;
1203 (ix) the Great Salt Lake Comprehensive Management Plan;
1204 (x) the different types of beneficial uses of Great Salt Lake water rights; and
1205 (xi) other relevant factors such as the economic viability impacts.
1206 (b) The state engineer shall base the distribution management plan on the principles of
1207 prior appropriation and multiple use sustained yield, with multiple use defined in Section
1208 65A-1-1, as the principles relate to the reasonable preservation or enhancement of the Great
1209 Salt Lake's natural aquatic environment.
1210 (c) The state engineer shall use the best available information to administer Great Salt
1211 Lake water rights to achieve the objectives of the distribution management plan.
1212 (d) As hydrologic conditions change or additional information becomes available, the
1213 state engineer may revise the distribution management plan by following the procedures of
1214 Subsection (3).
1215 (3) (a) To adopt or amend a distribution management plan for the Great Salt Lake, the
1216 state engineer shall:
1217 (i) give notice pursuant to Subsection (3)(b) at least 30 days before the first public
1218 meeting held in accordance with Subsection (3)(a)(ii):
1219 (A) that the state engineer proposes to adopt or amend a distribution management plan;
1220 and
1221 (B) stating the location, date, and time of each public meeting to be held in accordance
1222 with Subsection (3)(a)(ii);
1223 (ii) hold one or more public meetings to:
1224 (A) present data, studies, or reports that the state engineer intends to consider in
1225 preparing the distribution management plan;
1226 (B) address items that may be included in the distribution management plan; and
1227 (C) receive public comments and other information presented at the public meeting;
1228 (iii) receive and consider written comments concerning the proposed distribution
1229 management plan from any person for a period determined by the state engineer of not less
1230 than 60 days after the day on which the notice required by Subsection (3)(a)(i) is given;
1231 (iv) at least 60 days before final adoption of the distribution management plan, publish
1232 notice:
1233 (A) that a draft of the distribution management plan has been proposed; and
1234 (B) specifying where a copy of the draft distribution management plan may be
1235 reviewed;
1236 (v) promptly provide a copy of the draft distribution management plan in printed or
1237 electronic form to each entity listed in Subsection (3)(b)(iii) that requests a copy in writing; and
1238 (vi) provide notice of the adoption of the distribution management plan.
1239 (b) The state engineer shall ensure that a notice required by this section:
1240 (i) is published:
1241 (A) once a week for two consecutive weeks in a newspaper of general circulation in
1242 each county that includes any land below the Great Salt Lake meander line; and
1243 (B) for two weeks in accordance with Section 45-1-101;
1244 (ii) is published conspicuously on the state engineer's website; and
1245 (iii) is mailed to water right owners of record in the state engineer's office of Great Salt
1246 Lake water rights.
1247 (c) A notice required by this section is effective upon substantial compliance with
1248 Subsection (3)(b).
1249 (d) A distribution management plan takes effect on the date notice of adoption is
1250 completed under Subsection (3)(b) or on a later date when specified in the distribution
1251 management plan.
1252 (4) (a) In accordance with the distribution management plan, the state engineer shall
1253 establish a priority schedule that apportions Great Salt Lake water rights based on relative
1254 priority among Great Salt Lake water rights and:
1255 (i) develop an apportionment schedule and distribution accounting tool that accounts
1256 for:
1257 (A) Great Salt Lake elevations;
1258 (B) Great Salt Lake salinity;
1259 (C) Great Salt Lake water rights;
1260 (D) the quantity of water in the Great Salt Lake; and
1261 (E) the quantity of water delivered to the Great Salt Lake under water rights approved
1262 for beneficial use by a division as defined in Section 73-3-30;
1263 (ii) prohibit Great Salt Lake water rights from diverting the quantity of water accounted
1264 for under Subsection (4)(a)(i)(C); and
1265 (iii) require physical measurement and annual reporting of diversion, depletion, and
1266 return flow quantities of Great Salt Lake water rights.
1267 (b) Under a distribution management plan the state engineer may reduce the quantity of
1268 water that an owner of a Great Salt Lake water right may divert from the Great Salt Lake in
1269 accordance with the principles of prior appropriation.
1270 (5) (a) When adopting a distribution management plan, the state engineer may allow
1271 water users to participate in a voluntary arrangement that compensates or otherwise mitigates
1272 for the use of Great Salt Lake water rights.
1273 (b) The participants in a voluntary arrangement under this Subsection (5) shall
1274 implement the voluntary arrangement consistent with other law.
1275 (c) The adoption of a voluntary arrangement under this Subsection (5) by less than all
1276 of the owners of Great Salt Lake water rights does not affect the rights of those owners of Great
1277 Salt Lake water rights who do not agree to the voluntary arrangement.
1278 (6) The existence of a distribution management plan does not preclude an otherwise
1279 eligible person from filing an application or challenging a decision made by the state engineer
1280 within the Great Salt Lake meander line, except that a person may challenge the components of
1281 a distribution management plan only in a manner provided in Section 73-33-202.
1282 (7) A distribution management plan adopted or amended in accordance with this
1283 section is exempt from Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
1284 Section 22. Section 73-33-202 is enacted to read:
1285 73-33-202. Challenges to a distribution management plan.
1286 (1) A person aggrieved by a distribution management plan may challenge any aspect of
1287 the distribution management plan by filing a complaint within 60 days after the distribution
1288 management plan takes effect in a court with jurisdiction:
1289 (a) under Title 78A, Judiciary and Judicial Administration; and
1290 (b) notwithstanding Title 78B, Chapter 3a, Venue for Civil Actions, over a geographic
1291 area bordering the Great Salt Lake.
1292 (2) In an action filed under this section, a court shall review de novo the distribution
1293 management plan.
1294 (3) A person challenging a distribution management plan under this section shall join
1295 the state engineer as a defendant in that action.
1296 (4) (a) No later than 30 days after the day on which a person files an action challenging
1297 any aspect of a distribution management plan, the person filing the action shall publish notice
1298 of the action:
1299 (i) once a week for two consecutive weeks in a newspaper of general circulation in the
1300 county in which the court is located; and
1301 (ii) for two weeks in accordance with Section 45-1-101.
1302 (b) The notice required by Subsection (4)(a) shall:
1303 (i) identify the distribution management plan that the person is challenging;
1304 (ii) identify the case number assigned by the court;
1305 (iii) state that a person affected by the distribution management plan may petition the
1306 court to intervene in the action challenging the distribution management plan; and
1307 (iv) list the address of the clerk of the court in which the action is filed.
1308 (c) A person affected by a distribution management plan that is being challenged under
1309 this section may petition to intervene in the action in accordance with Utah Rules of Civil
1310 Procedure, Rule 24.
1311 Section 23. Section 73-33-203 is enacted to read:
1312 73-33-203. Measuring volume and quality of water.
1313 (1) (a) A person diverting water under a Great Salt Lake water right shall:
1314 (i) measure through the use of a physical measurement and not estimate or calculate the
1315 water or brine diverted from the Great Salt Lake as part of the mineral or element extraction
1316 process;
1317 (ii) keep a record of the measurements described in Subsection (1)(a)(i); and
1318 (iii) report the measurements described in Subsection (1)(a)(i) to the Division of Water
1319 Rights in accordance with rules made by the Division of Water Rights under Title 63G,
1320 Chapter 3, Utah Administrative Rulemaking Act.
1321 (b) A duty described in Subsection (1)(a) does not replace or modify any other duty to
1322 measure water under this title or rules made under this title.
1323 (2) A person diverting water under a Great Salt Lake water right shall:
1324 (a) measure the salinity of any discharge of water or brine from the person's operations
1325 into the Great Salt Lake in accordance with rules made by the Division of Forestry, Fire, and
1326 State Lands in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
1327 (b) keep a record of the measurements described in Subsection (2)(a); and
1328 (c) report the measurements described in Subsection (2)(a) to the Division of Forestry,
1329 Fire, and State Lands in accordance with rules made by the Division of Forestry, Fire, and State
1330 Lands under Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
1331 (3) (a) After consulting with the Division of Water Quality, the Division of Forestry,
1332 Fire, and State Lands shall make a rule, in accordance with Title 63G, Chapter 3, Utah
1333 Administrative Rulemaking Act, setting a standard for the salinity of water or brine that a
1334 person may discharge into the Great Salt Lake as part of the mineral or element extraction
1335 process.
1336 (b) If a person discharges water or brine that exceeds the standard imposed under
1337 Subsection (3)(a), the Division of Water Quality may revoke any permit issued by the Division
1338 of Water Quality related to the discharge.
1339 (4) A person shall keep a record required under this section for a period of at least five
1340 years from the day on which the record is made.
1341 Section 24. Section 78B-6-501 is amended to read:
1342 78B-6-501. Eminent domain -- Uses for which right may be exercised --
1343 Limitations on eminent domain.
1344 (1) As used in this section[
1345 (a) [
1346 [
1347 [
1348 more.
1349 (b) "Mineral or element" means the same as that term is defined in Section
1350 65A-17-101.
1351 (2) Except as provided in Subsections (3) and (4) and subject to the provisions of this
1352 part, the right of eminent domain may be exercised on behalf of the following public uses:
1353 (a) all public uses authorized by the federal government;
1354 (b) public buildings and grounds for the use of the state, and all other public uses
1355 authorized by the Legislature;
1356 (c) (i) public buildings and grounds for the use of any county, city, town, or board of
1357 education;
1358 (ii) reservoirs, canals, aqueducts, flumes, ditches, or pipes for conducting water or
1359 sewage, including to or from a development, for the use of the inhabitants of any county, city,
1360 or town, or for the draining of any county, city, or town;
1361 (iii) the raising of the banks of streams, removing obstructions from streams, and
1362 widening, deepening, or straightening their channels;
1363 (iv) bicycle paths and sidewalks adjacent to paved roads;
1364 (v) roads, byroads, streets, and alleys for public vehicular use, including for access to a
1365 development; and
1366 (vi) all other public uses for the benefit of any county, city, or town, or its inhabitants;
1367 (d) wharves, docks, piers, chutes, booms, ferries, bridges, toll roads, byroads, plank
1368 and turnpike roads, roads for transportation by traction engines or road locomotives, roads for
1369 logging or lumbering purposes, and railroads and street railways for public transportation;
1370 (e) reservoirs, dams, watergates, canals, ditches, flumes, tunnels, aqueducts and pipes
1371 for the supplying of persons, mines, mills, smelters or other works for the reduction of ores,
1372 with water for domestic or other uses, or for irrigation purposes, or for the draining and
1373 reclaiming of lands, or for solar evaporation ponds and other facilities for the recovery of
1374 minerals or elements in solution;
1375 (f) (i) roads, railroads, tramways, tunnels, ditches, flumes, pipes, and dumping places
1376 to access or facilitate the milling, smelting, or other reduction of ores, or the working of mines,
1377 quarries, coal mines, or mineral deposits including oil, gas, and minerals or elements in
1378 solution;
1379 (ii) outlets, natural or otherwise, for the deposit or conduct of tailings, refuse or water
1380 from mills, smelters or other works for the reduction of ores, or from mines, quarries, coal
1381 mines or mineral deposits including minerals or elements in solution;
1382 (iii) mill dams;
1383 (iv) gas, oil or coal pipelines, tanks or reservoirs, including any subsurface stratum or
1384 formation in any land for the underground storage of natural gas, and in connection with that,
1385 any other interests in property which may be required to adequately examine, prepare,
1386 maintain, and operate underground natural gas storage facilities;
1387 (v) solar evaporation ponds and other facilities for the recovery of minerals in solution,
1388 which for the Great Salt Lake includes construction, removal, or extinguishment, in whole or in
1389 part, by a state entity of:
1390 (A) a solar evaporation pond;
1391 (B) improvements, property, easements, or rights-of-way appurtenant to a solar
1392 evaporation pond, including a lease hold; or
1393 (C) other facilities for the recovery of minerals or elements in solution; and
1394 (vi) any occupancy in common by the owners or possessors of different mines,
1395 quarries, coal mines, mineral deposits, mills, smelters, or other places for the reduction of ores,
1396 or any place for the flow, deposit or conduct of tailings or refuse matter;
1397 (g) byroads leading from a highway to:
1398 (i) a residence; or
1399 (ii) a farm;
1400 (h) telecommunications, electric light and electric power lines, sites for electric light
1401 and power plants, or sites for the transmission of broadcast signals from a station licensed by
1402 the Federal Communications Commission in accordance with 47 C.F.R. Part 73 and that
1403 provides emergency broadcast services;
1404 (i) sewage service for:
1405 (i) a city, a town, or any settlement of not fewer than 10 families;
1406 (ii) a public building belonging to the state; or
1407 (iii) a college or university;
1408 (j) canals, reservoirs, dams, ditches, flumes, aqueducts, and pipes for supplying and
1409 storing water for the operation of machinery for the purpose of generating and transmitting
1410 electricity for power, light or heat;
1411 (k) cemeteries and public parks; and
1412 (l) sites for mills, smelters or other works for the reduction of ores and necessary to
1413 their successful operation, including the right to take lands for the discharge and natural
1414 distribution of smoke, fumes, and dust, produced by the operation of works, provided that the
1415 powers granted by this section may not be exercised in any county where the population
1416 exceeds 20,000, or within one mile of the limits of any city or incorporated town nor unless the
1417 proposed condemner has the right to operate by purchase, option to purchase or easement, at
1418 least 75% in value of land acreage owned by persons or corporations situated within a radius of
1419 four miles from the mill, smelter or other works for the reduction of ores; nor beyond the limits
1420 of the four-mile radius; nor as to lands covered by contracts, easements, or agreements existing
1421 between the condemner and the owner of land within the limit and providing for the operation
1422 of such mill, smelter, or other works for the reduction of ores; nor until an action shall have
1423 been commenced to restrain the operation of such mill, smelter, or other works for the
1424 reduction of ores.
1425 (3) The right of eminent domain may not be exercised on behalf of the following uses:
1426 (a) except as provided in Subsection (2)(c)(iv), trails, paths, or other ways for walking,
1427 hiking, bicycling, equestrian use, or other recreational uses, or whose primary purpose is as a
1428 foot path, equestrian trail, bicycle path, or walkway;
1429 (b) (i) a public park whose primary purpose is:
1430 (A) as a trail, path, or other way for walking, hiking, bicycling, or equestrian use; or
1431 (B) to connect other trails, paths, or other ways for walking, hiking, bicycling, or
1432 equestrian use; or
1433 (ii) a public park established on real property that is:
1434 (A) a century farm; and
1435 (B) located in a county of the first class.
1436 (4) (a) The right of eminent domain may not be exercised within a migratory bird
1437 production area created on or before December 31, 2020, under Title 23A, Chapter 13,
1438 Migratory Bird Production Area, except as follows:
1439 (i) subject to Subsection (4)(b), an electric utility may condemn land within a migratory
1440 bird production area located in a county of the first class only for the purpose of installing
1441 buried power lines;
1442 (ii) an electric utility may condemn land within a migratory bird production area in a
1443 county other than a county of the first class to install:
1444 (A) buried power lines; or
1445 (B) a new overhead transmission line that is parallel to and abutting an existing
1446 overhead transmission line or collocated within an existing overhead transmission line right of
1447 way; or
1448 (iii) the Department of Transportation may exercise eminent domain for the purpose of
1449 the construction of the West Davis Highway.
1450 (b) Before exercising the right of eminent domain under Subsection (4)(a)(i), the
1451 electric utility shall demonstrate that:
1452 (i) the proposed condemnation would not have an unreasonable adverse effect on the
1453 preservation, use, and enhancement of the migratory bird production area; and
1454 (ii) there is no reasonable alternative to constructing the power line within the
1455 boundaries of a migratory bird production area.
1456 Section 25. Section 78B-6-502 is amended to read:
1457 78B-6-502. Estates and rights that may be taken.
1458 The following estates and rights in lands are subject to being taken for public use:
1459 (1) a fee simple, when taken for:
1460 (a) public buildings or grounds;
1461 (b) permanent buildings;
1462 (c) reservoirs and dams, and permanent flooding occasioned by them;
1463 (d) any permanent flood control structure affixed to the land;
1464 (e) an outlet for a flow, a place for the deposit of debris or tailings of a mine, mill,
1465 smelter, or other place for the reduction of ores; and
1466 (f) solar evaporation ponds and other facilities for the recovery of minerals in
1467 solution[
1468 (i) except when the surface ground is underlaid with minerals, coal, or other deposits
1469 sufficiently valuable to justify extraction, only a perpetual easement may be taken over the
1470 surface ground over the deposits; and
1471 (ii) which for the Great Salt Lake includes construction, removal, or extinguishment, in
1472 whole or in part, by a state entity of:
1473 (A) a solar evaporation pond;
1474 (B) improvements, property, easements, or rights-of-way appurtenant to a solar
1475 evaporation pond, including a lease hold; or
1476 (C) other facilities for the recovery of minerals or elements in solution;
1477 (2) an easement, when taken for any other use; and
1478 (3) the right of entry upon and occupation of lands, with the right to take from those
1479 lands earth, gravel, stones, trees, and timber as necessary for a public use.
1480 Section 26. Repealer.
1481 This bill repeals:
1482 Section 65A-10-201, Definitions.
1483 Section 27. FY 2025 Appropriation.
1484 The following sums of money are appropriated for the fiscal year beginning July 1,
1485 2024, and ending June 30, 2025. These are additions to amounts previously appropriated for
1486 fiscal year 2025.
1487 Subsection 27(a). Operating and Capital Budgets.
1488 Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
1489 Legislature appropriates the following sums of money from the funds or accounts indicated for
1490 the use and support of the government of the state of Utah.
1491
ITEM 1
To Department of Natural Resources - DNR Pass Through| 1492 | From General Fund Restricted - Sovereign Lands Management, One-time | $300,000 | |||
| 1493 | Schedule of Programs: | ||||
| 1494 | DNR Pass Through | $300,000 | |||
1496 Water Rights to pay for initial costs of developing a distribution management plan. The
1497 Legislature intends that the appropriation be nonlapsing.
ITEM 2
To Department of Natural1498 Resources - Forestry, Fire, and State Lands
| 1499 | From General Fund Restricted - Sovereign Lands Management, One-time | $500,000 | |||
| 1500 | Schedule of Programs: | ||||
| 1501 | Project Management | $500,000 | |||
1503 analysis required by Subsection 65A-17-201(17), renumbered and amended by this bill. The
1504 Legislature intends that the appropriation be nonlapsing.
1505 Section 28. Effective date.
1506 (1) Except as provided in Subsection (2), this bill takes effect on May 1, 2024.
1507 (2) The actions affecting Sections 59-5-202 (Effective 01/01/25), and 59-5-203
1508 (Effective 01/01/25), take effect on January 1, 2025.