State raises fees paid by mines

Tuesday, July 27, 1999 | 9:24 a.m.

The Commission on Mineral Resources voted unanimously Monday to raise the fees for mining claims, land in mineral production and oil, gas and geothermal production.

The fee increases are expected to raise about $290,000 in additional income, money the agency needs to maintain a reserve and continue with its programs that include abandoned mine security and mineral education.

Most industry representatives who testified at five public workshops reluctantly supported the increases, said Alan Coyner, administrator of the Minerals Division.

Without the increases, the agency expected budget deficits in the coming two years. The budget crunch comes at a time the division has reduced its work force and kept annual expenditures to between $700,000 and $800,000 a year for the past few years.

Coyner said a number of factors have led to a decline in revenues from a high point two years ago, including the dramatic decline in gold prices and less oil and gas exploration.

Mining claim fees, the biggest source of revenue to the agency, will increase from $2.50 per claim to $4.50, an increase of 80 percent. The federal government assesses a $100 fee per claim, and the $2 increase added by the state brings the total fee to $105.50, less than a 2 percent overall increase, Coyner said.

The state fee has not increased since 1994, when it was doubled from $1.25 a claim to $2.50. The increase will generate an additional $220,000.

The Nevada Miners and Prospectors Association supported the increase.

Another fee increase will raise by $10 the amount changed to mining companies for land under mineral production, bringing the total fee to $30 per acre for a 50 percent increase. This fee, directed at large open pit mine operators, has not changed since its inception in 1989 and will raise an additional $20,000.

Oil producers will have to pay an increase of 5 cents a barrel to 10 cents for a 100 percent increase. The same increase will apply to natural gas producers for each 50,000 cubic feet. The fee has not changed since its inception in 1983. The increase will generate $34,000 in additional revenue.