• Nonmetallic Minerals
Part 5, Section 502, Act 451, Public Acts of 1994, as amended, authorizes the Michigan Department of Natural Resources to enter into contracts for the Nonmetallic Minerals Leasing Program. The following forms and documents provide information regarding nonmetallic mineral leasing requirements:

• Assignment Of Nonmetallic Minerals (PR 4335) 

• Nonmetallic Minerals Lease (PR 4331) 

• Nonmetallic Minerals Lease for Construction Sand, Gravel, Cobbles, Boulders and Clay (PR 4332 

• Nonmetallic Minerals Lease To County Road Commissions for Construction Sand, Gravel, Cobbles, Boulders and Clay (PR 4333) 

• Nonmetallic Mineral Lease Rental Remittance (PR 4228-2) 

• Nonmetallic Mineral Royalty & Production Remittance (PR 4228-3) 

• Release of Nonmetallic Mineral Lease No. (PR 4336) 

• Procedure for Nonmetallic Minerals Leasing on State-Owned Lands (Procedure Number: 2309.09)

• Rules for Nonmetallic Minerals Leases on State Lands 

• There are two types of leasing terms pertinent to nonmetallic mineral leasing. These are:
General Lease:  Terms of the lease include a 10-year primary term, a $1.00 per acre minimum bid, and a rental rate commencing at $3.00 per acre per year for the first five years.  In the absence of mining operations, a minimum royalty is due for years six through ten.  The rate begins at $10.00 per acre for the sixth year and escalates $5.00 per acre per year until the tenth year when the rate is $30.00 per acre.  A production royalty of between two percent and seven percent, which varies by product and amount sold, is required when production occurs.

Special Leases:  These new type leases have a minimum production royalty rate instead of rentals and minimum bid rates.  Bidding for the leases is based upon the highest royalty rate per ton of material removed.  The basic term of the lease is 7 years with the possibility of extending it to 10 years if it is in the best interest of the State to do so.  Special Leases were developed for Construction Sand, Gravel, Cobbles, Boulders and Clay as well as one for Limestone/Dolomite.  These apply to locations ready to mine; no exploration period is involved.

Under both types of leases, the maximum lease size is 640 acres.  There are 710 acres under 7 State Nonmetallic Minerals Leases.

The production of nonmetallic minerals continues to have an important role in Michigan's statewide mineral production activity.  Michigan ranks near the top in the U.S. for the value of the nonmetallic minerals produced.  The production of nonmetallic minerals from State-owned land continues to be an important source of locally utilized materials for road and other construction purposes.