Owners and operators of mines, aggregate mines and exploration sites may now meet their required cleanup (reclamation) financial guarantee with a cash deposit in a third-party escrow or trust account, and the interest earned, minus the account's fees, belongs to them.
Official title: financial assurance; reclamation; escrow; trusts
- September 12, 2026
What changes
BeforeAllowed financial assurance for mining and aggregate mining cleanup included surety bonds, certificates of deposit, letters of credit, cash deposits with the state treasurer and other listed options, plus others acceptable to the inspector.
NowA cash deposit with a third-party escrow or trust account is added to the list of allowed financial assurance options for both mining units and aggregate mining units.
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NowInterest and earnings on a third-party escrow or trust deposit, minus any administrative fees and costs charged by that account, are the property of the owner or operator and may be applied toward final reclamation costs.
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NowWhen money in a third-party escrow or trust account is partly released or swapped for another form of assurance, the inspector shall release the proportional share of any interest earned.
BeforeWhen approving an application to release all or part of the financial assurance, the inspector released the assurance except amounts needed to finish the reclamation plan.
NowSame rule, but if the assurance is a third-party escrow or trust account, the inspector shall also release the proportional share of any interest earned.
Who it affects
- Owners and operators of exploration operations and mining units that create surface disturbances
- Owners and operators of exploration operations and aggregate mining units that create surface disturbances
- Third-party escrow and trust account providers
- The state mine inspector
What you need to do
Nothing. Mine and aggregate mine owners or operators may choose to use a third-party escrow or trust account but are not required to.
What the law doesn't answer
- What qualifies as an acceptable third-party escrow or trust account provider, and whether the inspector must approve the provider.
- How the proportional share of interest is calculated.
- Whether existing operators can switch their current financial assurance to an escrow or trust account, and how.
- Who pays the escrow or trust account's administrative fees beyond deducting them from earnings.
- In the aggregate mining law, the interest rule refers to paragraph 10 of the list, which is bonding pools, while the escrow option is listed as paragraph 11; the text does not explain this.
This summary describes the law as enacted. Later laws, court rulings or referendum petitions can change the picture. Check the official text for the current wording.