632-033-0025 Exploration Permit Requirements (1) Applicants seeking Exploration Permits from the department should be aware that other state, federal and local agencies may require the applicant to obtain approval prior to operation. For example, the United States Forest Service (USFS) requires a notice of intent or plan of operations. Where feasible, the department shall coordinate with other agencies to avoid duplication on the part of applicants. An Exploration Permit from the department does not constitute authorization to proceed without approval of other agencies if required. It is the applicant’s responsibility to obtain other necessary permits. (2) Information Requirements. The department may require any information reasonably necessary to assess impacts of the proposed exploration and determine the status of any exploration. Any production records, mineral assessments or trade secrets submitted as part of an application shall be confidential. (3) Exploration or drilling an exploration drill hole greater than 50' is subject to these rules. (4) Exploration must be conducted to prevent a decrease in quality or loss of quantity to an existing or potential water supply to the greatest practicable extent. (5) Exploration shall be conducted so as to minimize adverse effect upon wildlife. (6) An applicant for an exploration permit is encouraged to contact the department at the Albany office at least 90 days prior to initiation of the proposed drilling activities. (7) Information required in written form shall include but not be limited to: (a) Contact Information: (A) Name, address and telephone number of the applicant; (B) Name, address, telephone number and verification of consent of the surface owner(s); (C) Name, address, and telephone number of the project contact person; (D) Name and address of the drilling contractor(s); (E) Name, address, and telephone number of the mineral estate owner(s) and lessor if applicable; (F) Name and address of any designated agent. (b) Project Description: (A) Legal description of the project area; (B) Permit area map(s) of a suitable scale including but not limited to the following information: (i) Proposed permit area boundary; (ii) Locations of surface disturbance resulting from exploration activities; (iii) Proposed location and identification of drill sites, trenches and bulk sampling sites; and (iv) Proposed location and identification of stockpiles and wasterock dumps. (C) Type of Drilling (air, mud, diamond, rotary, etc.); (D) Maximum proposed depth and diameter of drill holes; (E) Drill pad and mud pit dimensions; (F) Bulk sample volume; (G) Extent and location of all underground workings to be constructed; (H) Length and width of roads constructed or upgraded within the project area. Existing road should be identified and documented on an aerial photo or on map(s) of suitable scale; (I) General description of past land use. In addition, the applicant must comply with federal and state statutes and rules regarding threatened, endangered, or sensitive species; (J) Proposed starting date and expected duration; (K) Agreement to notify the department within 48 hours of commencement of exploration activities; (L) Geologic setting of the project, if available; (M) Groundwater information, if available. (c) Reclamation Plan: (A) These rules recognize that specific field conditions may require alternative reclamation, drill hole abandonment or plugging/sealing requirements other than those listed in these rules to accomplish the purpose of these rules. Alternative reclamation, drill hole abandonment or plugging/sealing procedures shall be approved by the department when they meet the purposes of these rules; (B) The purpose of the reclamation is to reclaim land disturbed by surface or underground exploration activities; (C) Land disturbed by exploration activities must be reclaimed to a beneficial use approved by the department and consistent with county comprehensive plans or the appropriate federal agency; (D) If there is no exploration conducted at the site for two years, reclamation of the site must commence or a written justification provided to the department as to why reclamation has not commenced; (E) Unless alternative reclamation provisions are approved by the department reclamation of land disturbed by exploration shall include but not be limited to: (i) Removal of all materials and supplies used in the exploration activity not approved to remain at the permit area. (ii) Vegetation cleared from the site shall be properly disposed of or dispersed; (iii) Drill cuttings must be spread to a depth no greater than one inch or buried in an approved location; (iv) Roads, drill pads, mud pits, trenches, and other disturbances shall be backfilled to the approximate original contour and graded to blend with the surrounding land surface; (v) Roads not to be reclaimed require written approval from the landowner and shall be left in a stable condition acceptable to the department; (vi) If vegetative cover was destroyed, a department approved revegetation plan shall be used in the first period favorable for planting; (vii) If necessary to assure successful revegetation, the disturbed areas shall be scarified, fertilized, and mulched to approved specifications; (d) Exploration Drill Holes Completed As Wells: An exploration drill hole converted to a monitoring well or to a water well shall be completed in accordance with Department of Environmental Quality or Water Resources Department statutes and rules prior to release of the financial security. (e) Drill Hole Abandonment Provisions: (A) The purpose of the abandonment plan is to: (i) Prevent loss of quality and minimize to the greatest extent practicable, loss of quantity to all surface and groundwaters and prevent interaquifer mixing; (ii) Prevent aquifer contamination from surface drainage. (B) Unless alternative abandonment procedures are approved by the department all exploration drill holes shall be abandoned as follows; (C) Any drill hole which produces a natural flow of water to the surface must be filled with neat cement slurry from the bottom of the hole to two feet below either the reclaimed land surface or the collar of the hole, whichever is the lowest elevation. Neat cement slurry should be American Petroleum Institute (API) class A or B, or ASTM C-150 Type I or II neat cement with no additives, mixed in the proportion of 5.2 gallons of water per standard 94 pound sack and having a mud weight of 15.6 pounds per gallon; (D) Any exploration drill hole that encounters groundwater that does not flow to the surface shall be sealed with a hole volume of: (i) A high quality sodium bentonite product specifically formulated for drill hole abandonment; (ii) Cement grout; (iii) Other appropriate drill hole abandonment material. (E) Whenever a cased drill hole is not completed as a water well, if reasonably possible the surface casing shall be pulled. If the casing cannot be pulled the casing shall be cut off and capped at a minimum depth compatible with local cultivation practices or at the surface in rangeland; (F) All drill holes shall be surface capped to reduce the potential of downhole contamination from the surface and to prevent injury to wildlife and domestic stock. The surface cap shall consist of a non-slip hole cap placed at a point five feet below the upper surface of bedrock or seven feet below the land surface whichever is the lower elevation. A minimum five foot column of Portland cement or concrete cap shall be placed above the non-slip plug. The top of the Portland cement or concrete cap shall be a minimum of two feet below either the original land surface or the top of the casing whichever is the lower elevation. The remainder of the hole shall be backfilled with native materials and reclaimed consistent with the reclamation provision of the rules. Drill hole abandonment material may constitute a surface cap where abandonment materials remain at or close to the surface and is compatible with local cultivation practices. Void space between the top of the cap and the land surface shall be backfilled with native materials and reclaimed consistent with the reclamation provision of these rules. (8) Reporting Procedures: SMLR form 33 and appropriate map(s) shall be submitted on or before January 31 of each year. All information in SMLR 33 identified by the permittee as trade secrets and consistent with ORS 192 shall be exempt from public disclosure. Any production records, mineral assessments or trade secrets submitted as part of an application shall be confidential. SMLR-33 and appropriate map(s) shall include but not be limited to the following information: (a) Map(s) showing completed bore and core hole locations to a degree of accuracy reasonably obtainable with a Brunton type instrument; (b) The date each hole was completed, and abandoned; (c) Total depth and diameter of each hole drilled; (d) Trade name and amount of abandonment material used on each drilled hole; (e) Viscosity (in seconds/quart) of drilling medium before and after abandonment material was added; (f) Viscosity of abandonment material; (g) Depth of water bearing zones as determined through use of equipment and technique normally available to exploration personnel for each hole drilled including a statement describing any flow to the surface encountered; and (h) Location of any shaft or adits constructed during exploration. (9) Financial Security: (a) The applicant shall submit adequate financial security for the purpose of assuring performance of the requirements of the Exploration Permit. All land must have department approved and accepted financial security prior to disturbance. The department shall determine the amount of the financial security required by estimating the cost of reclamation if the department were to perform the reclamation. The department may accept a blanket financial security covering two or more exploration projects. The total financial security amount of the individual projects shall not exceed the amount of the blanket financial security; (b) Factors the department will consider in determining the amount of security may include, but are not limited to, the following: (A) Supervision; (B) Mobilization; (C) Costs of equipment; (D) Equipment capability; (E) Costs of labor; (F) Removal or appropriate disposition of debris, junk, equipment, structures, and unwanted chemicals; (G) Backfilling, contouring, or regarding and topsoil replacement; (H) Draining, establishment of drainage, and erosion control; (I) Soil tests; (J) Seedbed preparation, seeding, mulching, fertilizing, netting, tackifiers or other stabilizing agents; (K) Tree and shrub planting; (L) Fencing; (M) Liability insurance; (N) Long-term stabilization, control, containment or disposal of waste solids and liquids; (O) Drill hole abandonment provisions; and (P) Adit or shaft sealing or plugging requirements. (c) Cost estimate information shall be derived from sources such as: (A) Comparable costs from similar projects; (B) Catalog prices; (C) Guides and cost estimates obtained from appropriate government and private sources; (D) Applicant estimates; (E) Equipment handbooks; and (F) Qualified local contractors. (d) Seed mixes, fertilizer rates, and other requirements will be derived from departmental experience combined with advice from appropriate sources; (e) The security amount shall be based on the cost of reclamation. Security amounts shall not include conversion of drill holes to water wells. (10) Fees. Maximum fees are established by statute and specific fees are set by rule. (a) Each application for an Exploration Permit shall be accompanied by an initial application fee of $400. Additional processing and inspection fees are anticipated only when the permittee seeks to transition the exploration activity to a mining facility or if a non-compliance is identified. For sites requiring special review or monitoring the department shall assess a processing fee sufficient to cover costs of the department in processing the application and regulating the site. The application fee must accompany the application; any balance due may be requested by the department in writing and must be submitted prior to issuance of the permit; (b) To renew an exploration permit each permit holder shall pay an annual fee on or before the last day of the month shown on the permit as the expiration month. The annual renewal fee shall be $300, plus the balance of any additional actual cost the department incurs from inspections or review in accordance with ORS 517.920. The annual report SMLR-33 shall be submitted to the department by January 31 of each year. As a courtesy, the Department may notify the permittee with a notice of these requirements at least 45 days prior to the due date. Failure of the permittee to pay the fee may result in the issuance of a Closure Order by the department; (c) Application fees are not refundable. Unspent balances of processing fees are refundable; (d) Fees may be prorated at the applicant’s request. The prorated fee will be on the basis of 1/12th the annual fee per month; (e) For sites on which a processing fee is assessed the operator shall be provided with periodic cost summaries; (f) The department may require a lesser fee, upon completion of all reclamation, exploration, all reclamation with the exception vegetation establishment. (11) Closure Orders and Invalidation. (a) The department may issue a Closure Order when it finds that a permittee is conducting exploration: (A) For which a permit is required but has not been obtained; (B) Outside the approved permit area; (C) That is in violation of these rules, the reclamation plan, or permit conditions; or (D) Without having submitted the appropriate fee. (b) The Department may refer violations of Closure Orders to the Attorney General for legal proceedings under the provisions of ORS 517.880 or to the District Attorney for prosecution according to the provisions of ORS 517.990(3) and (4); (c) An Exploration Permit becomes invalid after the expiration date if the annual renewal fee and annual report form have not been received by the Department or at any time, if the financial security has expired or has been canceled without replacement. Reclamation obligations incurred prior to the date of cancellation of any bond or other security continue until the site is reclaimed. (12) Reclamation by the department. (a) Upon a finding of abandonment, the department may perform the reclamation outlined in the reclamation plan to the extent possible, given the condition of the site when abandoned; (b) The department may perform alternative reclamation depending on site conditions; (c) The department may reclaim the site to: (A) Eliminate or minimize hazards to the health and safety of the public; (B) Eliminate or minimize any pollution or erosion; (C) Rectify adverse affects to surface and subsurface resources; or (D) Reach a condition compatible with local comprehensive plan and with federal and state laws. Statutory/Other Authority: ORS 517 Statutes/Other Implemented: ORS 517.705, 517.710, 517.730 & 517.810 History: DGMI 1-2000, f. & cert. ef. 7-20-00 GE 1-1990, f. & cert. ef. 8-3-90