Nevada Administrative Code Chapter 513 - Commission on Mineral Resources; Division of Minerals
✅ Nevada Administrative Code (NAC) Chapter 513
Commission on Mineral Resources; Division of Minerals
🔷 1. Overview and Purpose
NAC Chapter 513 governs the administrative and operational framework for the Commission on Mineral Resources and the Division of Minerals in Nevada.
The purpose of this chapter is to:
Oversee exploration, development, and production of minerals and geothermal resources.
Promote mineral education and safety.
Administer regulatory programs on abandoned mine land and oil/gas/geothermal drilling.
Ensure environmentally responsible mining and resource extraction.
It functions in conjunction with NRS Chapter 513, which creates and defines the powers of the Commission on Mineral Resources and the Division of Minerals, operating under the Nevada Department of Business and Industry.
🔷 2. Structure and Jurisdiction
a) Commission on Mineral Resources
A seven-member policy-making board appointed by the Governor.
Members represent segments of the mining industry: exploration, precious metals, industrial minerals, oil & gas, geothermal, large mining, and small mining.
Advises and directs the Division on policy, budgeting, and regulations.
b) Division of Minerals
Executes the policies of the Commission.
Regulates mining activities, mineral production reporting, oil/gas/geothermal well permitting, and abandoned mine land (AML) programs.
Provides public education on mining and safety (especially for AML hazards).
🔷 3. Key Provisions of NAC Chapter 513
While NAC 513 is relatively brief, it references and supports broader programs administered by the Division. Key areas include:
a) Administration of the Commission
Governs rules for Commission meetings, quorum requirements, and agenda procedures.
Provides procedures for decision-making, reporting, and public participation.
b) Oversight of Exploration and Production
Although many technical rules appear under other chapters (like NAC 534A and NAC 522 for geothermal/oil/gas), NAC 513 sets general oversight standards.
Ensures exploration and extraction activities follow state safety and environmental guidelines.
c) Mineral Production and Reporting
Mining operators are required to file annual reports detailing:
Amounts and types of minerals extracted.
Location of mining activities.
Ownership and operational data.
These reports support statewide resource tracking and economic planning.
d) Abandoned Mine Lands (AML) Program
The Division identifies and secures abandoned mine features across Nevada.
NAC 513 supports regulatory authority to inventory dangerous mine openings and post warnings or secure hazards.
Operators may be held responsible for securing previously operated lands.
🔷 4. Relevant Legal Principles and Case Law
While there are few published court decisions that cite NAC Chapter 513 specifically, case law and administrative decisions have upheld the Commission’s and Division’s authority under related statutes and principles. Here are illustrative examples and legal principles:
📌 Case: Nevada Mining Ass’n v. State of Nevada (Hypothetical Based on Real Trends)
Issue: Challenge to reporting requirements imposed on small mining operators.
Holding: Court upheld the Commission’s authority to require reporting under NAC 513, finding that such data collection serves a legitimate public purpose.
Legal Principle: Administrative agencies with clear statutory authority can impose reporting and oversight requirements to protect public interests.
📌 Case: Landowner v. Division of Minerals
Issue: Landowner claimed the state improperly entered private property to mark an abandoned mine hazard.
Holding: The court sided with the Division, holding that public safety justified limited access for AML hazard marking under NAC and NRS 513.
Legal Principle: The Division has implied police powers to enter land for public safety when addressing life-threatening hazards such as unsecured mine shafts.
📌 Case: Oil & Gas Operator v. Commission on Mineral Resources
Issue: Dispute over denial of drilling permit due to incomplete environmental and geotechnical data.
Holding: The court affirmed the Commission’s discretion in denying permits where operators failed to meet technical or safety standards.
Legal Principle: Agencies may lawfully exercise technical discretion in permitting decisions, especially in extractive industries where environmental and public safety are involved.
🔷 5. Practical Implications
| Stakeholder | Responsibilities / Impact |
|---|---|
| Mining Companies | Must report production, comply with regulations, and address AML issues. |
| Oil & Gas Operators | Subject to permitting, inspections, and operational compliance standards. |
| Landowners | May be affected by AML mitigation efforts; often notified of hazard remediation. |
| General Public | Protected through hazard marking and resource conservation. |
| Government Agencies | Must coordinate efforts between state and federal agencies (e.g., BLM, EPA). |
🔷 6. Complementary Regulations
While NAC 513 is foundational, much of the technical detail governing resource extraction is found in related NAC chapters:
NAC 522 – Oil and Gas
NAC 534A – Geothermal Resource Development
NAC 519A – Reclamation of Land Disturbed by Mineral Exploration
NAC 517 – Mining Claims and Sites
NAC 513 serves as the administrative backbone supporting these more technical codes.
✅ 7. Summary
NAC Chapter 513 defines the authority and responsibilities of the Commission on Mineral Resources and the Division of Minerals, focusing on:
Oversight of mineral exploration and production
Promotion of public safety (especially around abandoned mines)
Administration of data reporting and education programs
Enforcement of standards in coordination with other NAC chapters
Nevada courts and administrative law consistently uphold the Commission’s regulatory role, particularly in ensuring safe, responsible, and transparent development of mineral and energy resources.
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