Aggregate Leasing & Prospecting

Medium

Sand, gravel, scoria, clay, and other surface minerals can be prospected and leased from the North Dakota Department of Trust Lands (NDDTL). The rules and lease terms and conditions set by NDDTL are used to sustainably regulate construction aggregate mining on School Trust Lands. To ensure timely processing of proposed prospecting and leasing, please submit an application and email dtlsurface@nd.gov early in the planning process.  All applications will require supplemental information and an onsite review prior to a project being approved, denied, or modified.

Medium
Prospecting Information
  • NDDTL encourages companies to apply for a NDDTL prospecting permit prior to lease application and approval.
  • An Entity can prospect a maximum of 4 contiguous tracts of land per county per year. 
  • An Entity can prospect a maximum of 16 contiguous tracts of land statewide per year.
  • Prospecting results must be shared with the Department.
Aggregate Leasing for Private Entities
  • Lease terms may not exceed five years.
  • Leases for a term greater than one year must be offered at pubic auction.
  • When the lease applicant requests less than five thousand cubic yards of construction aggregate, the term of the lease shall be for one year or less.
  • Leases are subject to a $5,000.00 annual advance royalty payment.
  • All leases shall have a minimum royalty rate of not less than fair market value and a minimum of a $1.00 per cubic yard as measured in the stockpile for sand and gravel, scoria, road material, and building stone or as measured in place for borrow material and colloidal or other clays. 
  • Entities must obtain and retain in force a bond, in an amount and in the form required by the commissioner to assure payment of royalties and reclamation
  • A private entity and their subsidiaries may not hold more than two leases that have not produced and sold at least 10,000 cubic yards of construction aggregate in the previous calendar year.
  • Requests for emergency leases can receive a waiver so they do not have to be offered at public auction. When the construction aggregate is requested for an emergency, the term of the lease shall not exceed one year.
Aggregate Leasing for Political Subdivisions
  • Leases for a one-year term or less shall have a fixed royalty rate based on fair market value.
  • For a lease term greater than one year, the royalty rate shall be based on fair market value with an annual adjustment based on the current fair market value.
  • A $2,000.00 annual advance royalty payment for leases having greater than a 1year lease term.
  • All leases shall have a minimum royalty rate of not less than fair market value and a minimum of a $1.00 per cubic yard as measured in the stockpile for sand and gravel, scoria, road material, and building stone or as measured in place for borrow material and colloidal or other clays. 
  • Political Subdivisions must obtain and retain in force a bond, in an amount and in the form required by the commissioner to assure payment of royalties and reclamation.
  • Upon written request, the Commissioner may waive the bonding requirement for a political subdivision.
Medium

To ensure timely processing of the application, please email dtlsurface@nd.gov early in the planning process.  All applications will require supplemental information and an onsite review prior to a project being approved, denied, or modified. Please review the sample prospecting permit.

Medium