Michigan Potash Mining Boom

Potash could mean big business for Michigan.
SuretyGroup.com writes surety bonds for potash drilling in Michigan.

North-central Michigan is potentially sitting on 65 billion dollars.

About 1 ½ miles underground is a potash reserve developed from an ancient sea, with possibly the best potash available in the world.

Potash is a salt that contains potassium, an important ingredient for crops, which farmers use for fertilizer.  U.S. farmers use around 10 million tons of potash a year, but currently, the U.S. only mines around 300,000 tons yearly. Once mined, this would be a huge boon to Michigan’s economy.

Michigan Mining Regulations

The Oil, Gas and Minerals Division of Michigan’s Department of Environmental Quality regulates several mining industries in the state to ensure the protection of the environment, property, and public health and safety.

The Natural Resources and Environmental Protection Act requires financial assurance from those who are operating mineral wells, which includes potash mining. This ensures compliance with the Act, along with compliance with state laws and regulations.

Financial assurance can include a cash bond, certificate of deposit, letter of credit, surety bond, or statement of financial responsibility.

Surety Bond amounts for Michigan mineral wells

Blanket permit for test wells

  • $05,500.00 for 1 to 24 wells
  • $11,000.00 for 25 to 49 wells
  • $16,500.00 for 50 to 75 wells
  • $22,000.00 for 76 to 200 wells

Individual test well permit

  • $05,500.00 for a depth of 0 to 1000′
  • $11,000.00 for a depth greater than 1000′ to 2000′
  • $22,000.00 for a depth greater than 2000′ to 4000′
  • $33,000.00 for a depth greater than 4000′

Individual Disposal, storage, or brine well

  • $33,000.00

Blanket coverage for Disposal, storage, brine, and individual test wells

  • $440,000.00

Surety bonds are to be submitted to:

Michigan Department of Environmental Quality
Office of Oil, Gas, and Minerals
Permits and Bonding Unit
PO Box 30256
Lansing, MI 48909-7756

How Do I Get a Surety Bond?

Contact the Surety Bond Specialists at SuretyGroup.com for a free quote that fits your specific needs. Call 844-432-6637, or email info@suretygroup.com to get started.

 

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