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PSC closes multiple AML reclamation projects, approves bond release for Freedom Mine acreage

June 18, 2025 | Public Service Commissioners, Officials, Organizations, Executive, North Dakota


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PSC closes multiple AML reclamation projects, approves bond release for Freedom Mine acreage
The North Dakota Public Service Commission on June 18 approved closure of multiple Abandoned Mine Land (AML) reclamation projects and approved a partial bond release for the Freedom Mine operated by Coteau Properties Company.

The commission voted to close contracts for reclamation work at Dakota Collieries and Lehigh Road Phase 9 after staff reported final contract payments and contractor certifications that employees, subcontractors and suppliers had been paid and that work was completed satisfactorily. The Dakota Collieries project, contracted to Young Gun Construction of Ludlow, S.D., began with an original contract amount of about $1,015,000 and concluded with final costs just under $1,082,000 after nine change orders for additional gravel, silt fencing and related work. Staff cited Michael Howe as the project manager for Dakota Collieries.

The Lehigh Road Phase 9 project near Dickinson contracted to Earth Energy and Water Systems of New Salem had an original contract amount of $1,024,000 and final costs just over $1,229,000, driven largely by more extensive grouting than originally estimated. A related contract for grout testing with GeoServe Inc. carried an original amount of $27,004.50 and presented final costs substantially lower than budgeted. Staff identified Brett Job as project manager and Scott Besner as project inspector for the drilling and grouting work.

The commission also approved closure of a renewed contract for exploratory drilling, casing and grouting near New Salem. The renewed contract had an amount of $325,500 and, after three change orders to address additional voids, final costs totaled just over $390,000; final payment was approved March 19, 2025.

Separately, the commission approved Bond Release No. 2 for a surface-coal-mining permit (NACT-1801) held by Coteau Properties Company for the Freedom Mine, covering release of reclamation liabilities on 377.6206 acres in Mercer County effective July 18, 2025, unless a formal hearing is requested. The application divides the acreage into two tracts: Tract 1 (about 218 acres) is owned by Coteau and includes 167 acres of reclaimed tame pasture and 47 acres never disturbed; Tract 2 (about 159 acres) is owned by an estate/partnership and includes 33 acres of reclaimed pasture and roughly 125 acres never disturbed. Reclamation on the first tract began in 1997 and seeding that initiated the 10-year revegetation responsibility period was completed in 2012; the other tract’s reclamation was completed in February 2007.

Staff reported a formal inspection on Oct. 29 and publication of notice in the county newspaper with no objections received. The commission noted that Coteau is not requesting a reduction in the overall mine bond amount as the area remains covered by a worst-case reclamation condition; staff indicated the company’s total bond as part of a renewal process may be about $204 million when finalized.

Commissioners approved the AML project closures and the bond release by voice vote with all commissioners present signaling approval. Commission staff will monitor any requests for formal hearings tied to the Freedom Mine bond-release application and proceed according to the administrative process if requested.

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