SB 2377 Summary

• Defines "commercial leonardite" as a dark-colored, soft, earthy rock formed from the oxidation of lignite coal, produced from a mine whose only function is supply for purposes other than gasification or combustion to generate electricity.

• Excludes commercial leonardite from the definition of "subsurface minerals" and applies coal mining regulations to commercial leonardite exploration and surface mining operations.

• Imposes a severance tax on commercial leonardite at the same rate as coal (37.5 cents per ton) plus an additional 2-cent per ton tax for the lignite research fund.

• Applies all surface mining permit, reclamation, bonding, and environmental protection requirements to commercial leonardite operations under the same standards as coal mining.

• Establishes that commercial leonardite is subject to reduced severance taxes (30% of standard rate) when shipped out of state, with counties retaining option for additional taxation up to 70% of the standard rate.