Nonmetallic Minerals

State ownership of nonmetallic mineral rights signifies that the state owns nonmetallic minerals that exist, along with the right to explore, mine, and produce them.  It does not mean that nonmetallic minerals are present.  A qualified party can apply to lease state-owned mineral rights.  An application does not mean the mineral rights will be offered for lease.

In Michigan, solution mining, to produce commodities such as salt and potash, is regulated by the Department of Environment, Great Lakes, and Energy (EGLE).  Other nonmetallic mineral commodities mined in Michigan, such as gypsum, dimension stone, limestone, and natural aggregates (sand and gravel), do not require a mining permit from EGLE, but may be subject to the federal, state, or local regulations and air, water, or land use permits.  This may include separate written permission from the DNR or applicable federal agencies.  A DNR approved Mining and Reclamation Plan is required if the surface is not owned by the lessee.

In the DNR's leasing processing, there are several means of identifying and addressing potential environmental concerns associated with nonmetallic development.  For example:

• Parcels nominated for leasing go through a classification review by resource specialists to determine the appropriate level of surface use that could be allowed (see related information regarding lease classifications and stipulations for further information).
• The lease is subject to all applicable existing or subsequent federal and state laws and rules.
• The lease within itself is not an authorization to mine.  Separate application(s) and approval(s) by federal, state, and local authorities may be required prior to mining activity.

Leasing of state-owned mineral rights for exploration and development generates revenue in three ways:

• Lessees pay a "bonus" to acquire the lease rights.
• Lessees pay rent on acreage leased.
• Lessees pay royalties based on the gross sales value of all nonmetallic minerals or mineral products sold from the leased premises.