State Earth Materials Leases on Permanent School Trust Lands

This slideshow requires the latest version of Adobe Flash Player.

 Program Information

The Department of Natural Resources offers commercial leases on Permanent School Trust lands and other State owned land types for the purpose of the commercial production of construction aggregates This is a PDF file.
You will need Adobe Acrobat Reader to download it. (sand and gravel, crushed stone) or landscape stone by private entities.  DNR also offers commercial leases of stockpiles from former iron mining operations.

If your business would like to learn more about these opportunities, please contact:

Glenn Melchert, Geologist
glenn.melchert@state.mn.us
MN DNR - Division of Lands and Minerals
Tel. 218-231-8464

 State Earth Materials Lease Information

The transaction is conducted via a state lease called an Earth Materials lease that has many requirements, including special conditions, environmental protections and controls, and reclamation requirements. The lessee must follow all applicable environmental laws and rules, and there typically are special conditions for each site.  The lessee must carry the specified insurance.  Minimum annual production quantities typically apply.  The index map of Earth Material Leases and Potential Sites on Permanent School Trust Lands displays the locations of the four classifications (1-4) seen below.  Each location has a map ID number linked to a table at the bottom of the map. These IDs are also referenced below under Bid Offerings for 2011.

1. Active Earth Materials Leases

These sites are currently under lease.  Aggregate is available from the current lessee.  As of April 2011, the MN DNR manages 48 active earth materials leases across the state.

2. Historic Earth Materials Leases

These sites have a history of leasing and mining of construction aggregates.  As of April 2011, there were 102 historical sites where earth material mining occurred.  Please inquire regarding availability for lease.  MN DNR's objective is to generate revenue for the Permanent School Trust Fund by leasing these historical sites subject to site specific land management priorities. 

3. Three Bid Offerings Planned for 2011

The MN DNR anticipates offering three sites for lease during 2011.  The DNR Plans to award these leases by sealed competitive bid (lease awarded after sealed bid auction to highest qualified bidder).  Reference the index map for general locations of these sites using their Map ID

  • BALL CLUB ROAD SITE (Cook County):  Index Map ID #157.  Site is located eleven miles north of Grand Marais, MN and two miles to County Road 8.  The legal description is SW SE Section 15, Township 62N, Range 1W.  Site is currently a green field that has been logged off.  There is estimated 500,000 cubic yards of aggregate.  Test hole and sample data available.  Some of the aggregate is below water table. 
  • MINNEWAS (St. Louis County):  Index Map ID #158.  Site is located between Virginia and Eveleth, MN, about one mile to MN Highway 135 and US Highway 53.  The legal description is part of West 1/2 Section 16, Township 58N, Range 17W.  Site is currently a brown field that has been impacted by past iron mining activities.  There is limited data, aggregate is in place. 
  • INDUSTRIAL TOWNSHIP (St. Louis County): Index Map ID #161.  Site is 1.5 miles east of Burnett, MN and one mile west of MN Highway 33 via County Road 7 (Northwest of Duluth, MN).  The legal description is SE SE Section 16, Township 51N, Range 17W.  Site is a green field that has been logged.  There is an estimated 500,000 cubic yards of aggregate.  Test hole and sample data available.  Deep water table. 

4. Sites Being Considered for Future Earth Materials Leases

These sites are being considered for future lease offerings.  Some sites may be available now with a short-term lease such as one to provide aggregate for a road project.  Interested parties are encouraged to inquire regarding availability for lease. 

Please note that the DNR does not operate a retail business to sell stone products or construction aggregates.  However, if you have a question regarding a request to purchase commercial quantities of materials from our lessees, we will provide contact information to you for our lessees.  Please send an email inquiry to Glenn Melchert.

 Reclamation of Earth Materials Leases

The DNR continues to develop a new management plan for each new site.  The plan strives to conserve the aggregate resources, minimize environmental impacts, and includes a plan for timely reclamation to create a post-mining land use.   The DNR’s goal of reclamation is to create a natural-appearing and functioning landscape that is safe, stable and non-eroding, nonpolluting, and has value for timber production, recreation, and possible alternative future revenue options. 

 Permanent School Trust Fund Lands Information

1. GOAL OF THE PERMANENT SCHOOL TRUST FUND LANDS

Minnesota Statutes127A.31 Goal of the Permanent School Fund

"The legislature intends that it is the goal of the permanent school fund to secure the maximum long-term economic return from the school trust lands consistent with the fiduciary responsibilities imposed by the trust relationship established in the Minnesota Constitution, with sound natural resource conservation and management principles, and with other specific policy provided in state law."

2. PERMANENT SCHOOL FUND ADVISORY COMMITTEE

Minnesota Statutes:  127A.30 Permanent School Advisory Committee

The Minnesota Legislature established the Permanent School Fund Advisory Committee (PSFAC) to review DNR land management policies, advise DNR on the management of trust land, and recommend necessary changes in statute, policy, and implementation in order to insure provident utilization of the permanent school fund lands.

Detailed information about the PSFAC can be found on the MN DNR's PSFAC web page

3. MN DNR BIENNIAL REPORT ON THE PERMANENT SCHOOL TRUST FUND LANDS

Minnesota School Lands Biennial Report: Fiscal Years 2008-2009 (7/1/2007-6/30/2009)

The Minnesota School Trust Lands Biennial Report documents the management of and income from school trust lands, done by the Minnesota DNR Division of Lands and Minerals at the request of the Legislature.