# Title 15 — Education

## Chapter 15-72 — Coal Mine Reclamation Trust

### § 15-72-01. Trust establishment.

The coal mine reclamation trust is established to reclaim coal mines at the direction of the
public service commission by utilizing private assets pledged as collateral which may be used to
fulfill the performance bond obligations under section 38-14.1-16 and North Dakota
Administrative Code chapter 69-05.2-12. The coal mine reclamation trust may be used to fulfill
the requirement of a qualified third party and the requirements of a collateral bond.
### § 15-72-02. Powers and duties of the board - Transfer.

The board of university and school lands shall set up a coal mine reclamation trust. The coal
mine reclamation trust may receive and accept assets as directed by the public service
commission which are held in the public service commission's custody under North Dakota
Administrative Code section 69-05.2-12-04 as collateral in a security agreement with any person
as defined in section 38-14.1-02. The commissioner of university and school lands shall consult
with the public service commission in carrying out the powers and duties of administering the
coal mine reclamation trust. Any expenses incurred by the board of university and school lands
or the public service commission under this section must be reimbursed by the permit applicant
or qualified third party.
### § 15-72-03. Assets and custody.

1. Any person proposing to pledge assets to the public service commission's custody
under North Dakota Administrative Code chapter 69-05.2-12 shall certify to the public
service commission:
a. The trust will have first priority security interest in the pledged assets in
accordance with North Dakota Administrative Code chapter 69-05.2-12.
b. The person has authority to place the assets in custody under all applicable
federal and state law.
c. All other requirements of North Dakota Administrative Code chapter 69-05.2-12
have been satisfied.
2. Real property posted as a collateral bond by the person must:
a. Grant the regulatory authority a first mortgage, first deed of trust, or perfected
first-lien security interest in the real property with a right to sell or dispose of the
real property in the event of forfeiture; and
b. Include a schedule, submitted by the applicant, of the real property mortgaged or
pledged to secure the obligations under the indemnity agreement. The schedule
of the real property must allow the regulatory authority to evaluate the adequacy
of the real property offered to satisfy collateral requirements. The schedule must
include:
(1) A description of the property;
(2) The fair market value of the property, as determined by an independent
appraisal conducted by a certified appraiser; and
(3) Proof of possession and title to the real property.
### § 15-72-04. Trust management.

The board of university and school lands must be reimbursed from trust proceeds for all
reasonable costs and expenses incurred in the management of trust assets and the investment
of trust proceeds. Reimbursements to the board must be deposited in the trust fund account
from which the expenses were incurred. The net income derived from the assets held in trust
must be used for trust purposes. Any assets placed in the trust may be sold, leased, invested,
managed, or otherwise disposed of by the board to fulfill the reclamation activities and
obligations related to the performance bond. If any of the trust assets include real property, net
income from the trust assets must be used in part to pay to the county where the real property is
located the same amount that would have been assessed against the real property for real

property taxes if the real property was privately owned. The board may maintain separate
accounts in the trust if necessary. The board shall manage all assets in the trust in the same
manner that the board manages the board's other trust assets or as otherwise may be required
to satisfy the purposes of this chapter.
### § 15-72-05. Continuing appropriation for trust management.

There is appropriated annually the amounts necessary to pay expenses for assets held in
trust under this chapter and managed by the board of university and school lands, including
expenses for survey costs, surface lease refunds, weed and insect control, cleanup costs,
capital improvement rent credits, in lieu of tax payments, or other expenses necessary to
manage, preserve, and enhance the value of trust assets, as determined by the board.
Payments under this section must be made from the trust fund account for which the asset is
held. Upon completion of all reclamation activities and obligations, all remaining assets held by
the coal mine reclamation trust must be transferred to the common schools trust fund.
