Minerals, Mining, & Superfund
IN SOUTH DAKOTA

The Minerals, Mining, and Superfund Program regulates statewide mineral exploration, mining, and oil & gas development; and conducts statewide Superfund assessments and regulatory oversight at Superfund sites in South Dakota.

Minerals and Mining: The program ensures mineral exploration and development are conducted in a manner that minimizes environmental impact, and that affected lands are reclaimed and useable after the resources have been extracted. Prior to initiating most forms of mineral exploration or development, operators must file a formal notice or obtain a permit from the state; depending on the type of activity, operators generally work under the regulatory umbrella of an exploration notice of intent (EXNI), a mine permit, a mine license, or an oil & gas permit. The Minerals, Mining, and Superfund Program coordinates issuance or filing of required permits and notices, ensures required surety is posted by operators, inspects and monitors mineral development sites, determines when sites have been adequately reclaimed, and works with operators to ensure mineral exploration and development complies with all applicable environmental statutes, rules, and regulatory conditions.

Superfund: Environmental assessments are done at sites with hazardous substance releases to determine the nature and extent of contamination, assess risk, and determine the appropriate cleanup action. State regulatory oversight is conducted at sites being assessed and cleaned up under the Superfund process and at sites on the National Priorities List (Superfund Sites).

NEW - Proposed Mine Permit Surety Rules

Senate Bill 111, which was approved during the 2024 legislative session and became effective July 1, 2024, authorizes the SD Board of Minerals and Environment to promulgate rules for posting and monitoring surety for permitted mining operations. The reasons for adopting the proposed rules are to provide clear financial assurance requirements for permitted mine operators, and to adjust cumbersome mine permit application timing requirements. A public hearing on the proposed rules will be held at the Matthew Environmental Education and Training Center, Joe Foss Building in Pierre, SD on July 17, 2025. Data, opinions and arguments for or against the proposed rules can be submitted to DANR no later than July 11, 2025.

Copy of Proposed Rules

Reclamation Surety and Limestone Mining Changes Effective July 1, 2024

Senate Bill 111, which was approved during the 2024 legislative session and became effective July 1, 2024, changed bonding requirements for mine licenses, mine permits, and exploration notices of intent. It also placed the mining of any use of limestone under the mine license statutes (SDCL 45-6). The changes are outlined below:

SDCL 45-6, Sand, Gravel and Construction Aggregate Mining under a Mine License:

Allows operators to mine limestone for all uses under a mine license.
Increases the required surety for new commercial operators from $500/acre to $3,850/acre. The statewide blanket surety also increases from $20,000 to $300,000.
Increases the required surety for existing commercial operators over the following five-year staggered period:
-July 1, 2026: Increases from $500/acre to $1,500/acre. The statewide blanket increases from $20,000 to $100,000.
-July 1, 2027: Increases from $1,500/acre to $2,750/acre. The statewide blanket increases from $100,000 to $200,000.
-July 1, 2029: Increases from $2,750/acre to $3,850/acre. The statewide blanket increases from $200,000 to $300,000.
Makes provision for a joint powers agreement between the state and other political entities to avoid duplication of surety requirements.

SDCL 45-6B, Mining under a Mine Permit

Increases the maximum required surety for small scale permitted mining operations from $2,500 to $38,500.

SDCL 45-6C, Mineral Exploration under an Exploration Notice of Intent

Clarifies that exploration may not commence until the operator posts reclamation surety.
Increases the amount of a statewide mineral exploration blanket surety from $20,000 to $100,000.

Mining Permit

Mine permits are required for the extraction and processing of minerals such as gold, silver, uranium, precious metals, coal, bentonite, dimension stone, and decorative stone.

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Construction Aggregate License

A mine license is required to mine sand; gravel; rock to be crushed and used in construction; pegmatite minerals; limestone; iron ore, gypsum, shale, pozzolan, and other materials used to make cement or lime; or when dredging for commercial resale.

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Oil & Gas

Oil and gas applications for permit to drill (APD) are required for all petroleum production wells. Underground Injection Control (UIC) Class II permits are required for all disposal and enhanced recovery wells associated with oil and gas activities.

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EXNI

Exploration Notices of Intent are required for exploration of all minerals such as gold and silver, precious metals, coal, dimension stone, decorative stone, precious metals, aggregates, and oil and gas seismic shot-holes.

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Uranium Exploration

Uranium exploration permits are required for the exploration of uranium.

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Superfund

Superfund is the trust fund set up by US Congress to handle emergency and hazardous waste sites needing long-term cleanup.

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FAQ Publications Mine Regulation History

MINING

Do I need a mine permit to operate a dredge?

To operate any type of dredge in South Dakota to extract minerals such as gold, even for recreational purposes, an operator is required to obtain a mining permit. Mine permits are also required for other mechanized equipment such as highbankers and heavy equipment. To find out more about mine permits, click here.

If you use hand held equipment such as a pick, shovel, pan, metal detector, or sluice box for placer mining, no mine permit is required. However, you are required to comply with South Dakota Water Quality Standards.

You should be aware that a water right permit is required for placer mining activities. However, some of the streams in the Black Hills have been fully appropriated. Therefore, obtaining a water rights permit may not be possible.

What laws govern the filing of mining claims?

In addition to federal requirements, anyone filing a mining claim in South Dakota must comply with SDCL 45-4.

Can you tell me if my stock certificate has any value?

Our office can review the history of the mining company on the certificate. However, we cannot determine whether the stock certificate has any value. You can contact the South Dakota Secretary of State office under "Corporations" to see if they have any information on the company. It is possible that the company either went out of business or was absorbed by another mining company. Even though the company may no longer exist, the stock certificate may have value as a collector's item. Many coin stores buy stock certificates with unique art work.

To find out information on the stock certificate, contact Eric Holm.

Where can I get a list of South Dakota mining operators?

You can either e-mail your name and address to Eric Holm or call (605) 773-4201 to request a list of mine operators in South Dakota.

Where can I find leasing or mineral rights information?

Although a valid lease is generally required before an oil or gas well permit, mine permit, mine license, or mineral or uranium exploration permit is issued, the Department of Agriculture and Natural Resources does not regulate or have any data pertaining to mineral rights, lease availability, or requirements for leasing state, federal, or private lands. The Register of Deeds office in the county where the property is located should have all the documents that have been filed in regard to the mineral rights on the land. You may also contact the following agencies for more information.

Federal Lands: United States Bureau of Land Management, Phone: 605-723-8714 (SD Office) or 406-896-5091 (MT Office)
Private Lands: Information available at each County Courthouse, Register of Deeds Office
State Lands: South Dakota Office of School and Public Lands, Phone: 605-773-3303

How do I maintain my severed mineral interests? How do I acquire the severed mineral rights underlying my property?

SDCL 43-30A is the South Dakota law pertaining to severed mineral estates and abandoned mineral interests.

Does the state of South Dakota have an abandoned mined land program?

The DANR regulates the active mining industry, but does not have an abandoned mine reclamation program or funds to reclaim abandoned mine sites that warrant further cleanup attention.

OIL AND GAS

How do I gain approval to undertake oil and gas operations?

There are five different approval processes that apply to oil and gas operations: 1.) Orders for spacing, pooling or unitization requests; 2.) The Notice of Recommendation procedure; 3.) Applications for Permit to Drill (APD) for drilling, deepening, or reentering requests; 4.) Underground Injection Control Class II Permits to Inject; and 5.) Sundry Notice Requests for administrative approvals.

Orders- Spacing, Pooling, or Unitization Requests: Spacing, unitization, and pooling requests are initiated by the submission of a petition in accordance with ARSD 74:09:01. Spacing, pooling, and unitization requirements are found in SDCL 45-9 and ARSD 74:12. As of July 1, 2012, applications for orders only go to hearing if they are contested after publication of a Notice of Opportunity for Hearing. If there is no contest, orders are issued administratively by the department Secretary.
Potential Contested Case Hearings (Notice of Recommendation Procedure): The Department Secretary or designee may grant administrative approval after publishing a Notice of Recommendation for applications involving the following: drilling at exception locations, drilling a directional or horizontal well in an area not already spaced by the board, exception to gas to oil ratios, underground commingling of oil from separate pools, new underground injection permits, major modifications of injection permits, exemption of a portion of an aquifer, and multiple zone completions of oil well. If the recommendation is not contested, approval is granted by the Secretary in accordance with the recommendation. If the recommendation is contested, then the issue is subject to board approval under a contested case hearing. The Notice of Recommendation process is initiated by the submission of a petition in accordance with ARSD 74:09:01.
Application for Permit to Drill (APD)- Drilling, Deepening, or Reentering Requests: Permits for drilling new wells, or deepening or reentering existing wells require department approval and possibly the submission of a pit liner variance application. This is initiated by the submission of an application for a permit to drill. Forms and procedures required for obtaining a permit to drill, deepen, or reenter an oil or gas well are available at Oil & Gas Forms.
Underground Injection Control Class II Permits to Inject: In conjunction with submitting a petition to initiate the Notice of Recommendation procedure (see "Potential Contested Case Hearings", above), a permit to inject is required for any injection of fluid associated with oil and gas production into, above, or through underground sources of drinking water. For more information on permits to inject contact Mike Lees at 605-773-4201. The permit to injection application form is available on the Oil & Gas forms page.
Sundry Notice Requests for Approval: The Department Secretary or designee may grant administrative approval of the following: proposed well cementing procedures, proposed plugging procedures, temporary abandonment of a well, proposed mechanical integrity test procedures, drilling without a blowout preventer, extending the term of an APD beyond 12 months, proposed soil remediation techniques, using produced water on roads for dust suppression, atmospherically discharging water produced from a gas well, surface restoration, construction of produced water handling facilities, conversion of a mud pit to an evaporation pit, dissolving abandoned oil or gas fields, the method of annual gas well test to determine daily open flow, the method of determining production from separate pools prior to commingling, confidentiality of technical data, and the method of and interval for checking tank metering equipment against actual tank measurements. The Sundry Notice form used to approve the requests is available at Oil & Gas forms. (Signed copies of Sundry Notices submitted to request approval for one of these actions will be returned upon approval. However, Sundry Notices submitted to report information will not be signed or returned.)

How do I transfer a permit or well to another operator?

The current operator of any oil, gas, or Class II injection well shall submit to the department a completed notice of transfer of ownership or operation (Form 12) by certified mail within ten days of the closing date of the transfer. If not already on file with the department, the transfer form must be accompanied by an organization report, a plugging and performance bond, a certification of applicant form, and a permission to inspect form. The transfer is effective upon approval by the secretary.

Do I need a permit to conduct seismic exploration?

If the ground surface is not penetrated during seismic exploration, no permit is required. However, if seismic shot holes are drilled, an exploration permit must be obtained from the department. Before any seismic exploration is conducted, 7 days written notice should be provided to the landowner.

Are there any recent changes to South Dakota's Oil and Gas Laws?

The following legislation became effective July 1, 2013.

45-5A-5.1 - An Act to require mineral developers to give notice to surface owners. Operators must now notify affected surface owners at least seven days before conducting non-ground disturbing mineral exploration activities. This means operators must notify surface owners at least seven days before conducting preliminary site work such as surveying and well staking.
43-30B-1 - An Act to provide for the creation of a trust account for unlocatable mineral interest owners. Mineral owners or leaseholders who only own or control part of the mineral interest in a given tract of land may petition the appropriate circuit court to set up a trust for other owners of minerals in the tract who cannot be located.
54-13-1 | 54-13-2 - An Act to revise the purpose of the agriculture mediation program. This Act makes provision for the South Dakota Department of Agriculture to mediate disputes between mineral developers and surface owners over damages to or loss of use of the owner's property resulting from mineral development activities. The Act does not require use of the mediation service, rather, it gives the Department of Agriculture the authority to make this service available to oil and gas operators and affected surface owners.
45-5A-4.1 - An Act to provide for the award of treble damages in certain surface depredation cases. This Act adds a section to the existing damage compensation statutes under SDCL 45-5A. The new section provides courts authority to award treble damages in cases where oil and gas developers fail to perform good faith negotiations with split-estate surface owners.
43-30A - An Act to revise certain provisions relating to the termination of certain mineral interests. The Act prescribes the specific process whereby surface estate owners may succeed to the ownership of lapsed mineral interests underlying their surface property. The provision under this Act mirrors the lapsed mineral succession process outlined in North Dakota law.
45-9-15 - An Act to revise the provisions regarding plugging and performance bonds for oil and gas wells and to repeal the supplemental restoration bond requirement. This Act increases the plugging and performance bond requirement and eliminates the surface restoration bond requirement. The Act introduces a tiered bonding system, with higher bond amounts for wells deeper than 5,500 feet. The new bond requirement for deep wells is $50,000 per well, or $100,000 for a statewide blanket bond. The new bond requirement for shallow wells (less than 5,500 feet in depth) is $10,000 per well, or $30,000 for a statewide blanket bond. Existing bonds will remain in place until an operator drills a new well, or transfers an existing well.
34A-6-113 | 34A-6-114 - An Act to prohibit the disposal of certain oil and gas field waste. This legislation prohibits storage or disposal of liquid oil and gas field wastes in earthen pits or open receptacles unless the facility is directly associated with the development of a specific well or producing property. This Act also prohibits disposal of oil and gas field wastes if the waste's radioactivity level of Radium-226 plus Radium-228 is greater than 5 picocuries/gram above the background radioactivity level at the solid waste facility. Operators still have the option of storing liquid wastes in open receptacles provided the receptacle services a specific well, field, or unit. In terms of disposal of radioactive oil and gas field wastes generated in South Dakota, the limited amount of waste with radioactivity levels above the established threshold must be transported out of state and disposed of in an appropriate facility. Questions regarding this legislation should be addressed to DENR's Waste Management Program at 605-773-3153.

What types of information can be held as confidential, and for how long?

In accordance with ARSD 74:12:02:17, the DENR will hold electrical, geophysical, and sample descriptive logs, drill-stem test reports, core analyses and reports, water analyses, production data, and any other important geologic and engineering data as confidential for six months if requested by the operator in writing. Confidentiality is maintained according to the following schedule:

Production Data: Six-month confidentiality period begins on the date of the first monthly production report.
All Other Technical Reports, Logs, and Data: Each report is held as confidential for a six month period beginning on the date the report is submitted.

How do I request confidentiality for technical data?

Operators must submit a written request in the form of a letter or a Sundry Notice and Report on Wells (Form 6).

What taxes apply to oil and gas production in South Dakota?

Severance Tax (SDCL 10-39A): For the privilege of severing energy minerals in this state, there is imposed on the owner or operator of any energy mineral an excise tax, to be termed a "severance tax," equal to four and one-half percent of the taxable value of any energy minerals severed and saved by or for the owner or operator.
Conservation Tax (SDCL 10-39B): There is imposed on the severance of energy minerals in this state an excise tax, to be known as a conservation tax, equal to two and four- tenths mills of the taxable value of any energy minerals severed and saved. The tax shall be paid by the operator as defined in subdivision 10-39A-1.1(3).

More information on taxation can be found through the Department of Revenue's Special Taxes Division (Phone: 605-773-3311).

How do I find out if oil and gas exploration or development is occurring in the vicinity of my property?

Find your property of the Map-Based Data Source. The map will display any recently permitted drill sites and existing oil and gas test holes located near your property. The map provides links to a wide variety of information about each drill site.

Another useful source of information is the Drilling Permits page. This page includes a list of all the drilling permits issued in South Dakota since 2009, which can be used to locate general areas of recent oil and gas activity.

Where can I find leasing or mineral rights information?

Although a valid lease is generally required before an oil or gas well permit, mine permit, mine license, or mineral or uranium exploration permit is issued, the Department of Environment and Natural Resources does not regulate or have any data pertaining to mineral rights, lease availability, or requirements for leasing state, federal, or private lands. The Register of Deeds office in the county where the property is located should have all the documents that have been filed in regard to the mineral rights on the land. You may also contact the following agencies for more information.

Federal Lands: United States Bureau of Land Management, Phone: 605-723-8714 (SD Office) or 406-896-5091 (MT Office)
Private Lands: Information available at each County Courthouse, Register of Deeds Office
State Lands: South Dakota Office of School and Public Lands, Phone: 605-773-3303

How do I maintain my severed mineral interests? How do I acquire the severed mineral rights underlying my property?

South Dakota Codified Law 43-30A is the South Dakota law pertaining to severed mineral estates and abandoned mineral interests.

Who should I call to have my property tested for oil and gas reserves?

While the Department of Environment and Natural Resources' Geological Survey Program conducts research and publishes information to promote development of oil and gas resources in South Dakota, the department does not test or explore for oil and gas. Oil and gas exploration is an ongoing process undertaken by private oil and gas production and exploration companies. The Oil & Gas Operators page contains a list of the oil and gas companies currently active in the state that you could consider contacting to see if they have an interest in your property.

Where can I find production or injection information?

Production and injection information on a well, field, enhanced recovery unit, county, operator, and/or year basis can be found on the Production/Information page. Data can also be obtained on an individual well basis through the online database function and map-based data source.