MARVIN MANDEL, Governor                            2121

IS ELIGIBLE TO RECEIVE AN INTEREST-FREE LOAN COVERING 100
PERCENT OF THE FIRST $20,000 OF PROJECT CONSTRUCTION
COST, 50 PERCENT OF THE NEXT $10,000 OF PROJECT
CONSTRUCTION COST, 25 PERCENT OF THE NEXT $10,000 OF
PROJECT CONSTRUCTION COST, AND 10 PERCENT OF THE PART OF
CONSTRUCTION COST EXCEEDING $40,000. HOWEVER, IF TWO OR
MORE PROPERTY OWNERS ARE INCLUDED WITHIN A PROJECT AND
PROJECT CONSTRUCTION COSTS EXCEED $40,000, THE LAND OF
EACH PROPERTY OWNER IS CONSIDERED A SEPARATE PROJECT FOR
THE PURPOSE OF COMPUTING NET PROJECT CONSTRUCTION COST
UNDER THIS FORMULA.

(B) EACH LOAN SHALL CONSTITUTE A [[FIRST]] LIEN ON
THE BENEFITED PROPERTY FOR REPAYMENT TO THE STATE OF NET
PROJECT CONSTRUCTION COST.

7-514.3.

(A) THE OWNER OF ANY ORPHANED LANDS MAY FILE WITH
THE DEPARTMENT A WRITTEN APPLICATION REQUESTING
ASSISTANCE IN DESIGN AND CONSTRUCTION OF AN ORPHANED LAND
RECLAMATION PROJECT. THE APPLICATION SHALL BE IN A FORM
AND CONTAIN THE INFORMATION THAT THE DEPARTMENT
SPECIFIES. EACH APPLICATION FORM SHALL CONTAIN A NOTICE
WARNING THAT THE APPLICANT IS RESPONSIBLE FOR MAINTENANCE
OF ANY PROJECT AFTER IT IS CONSTRUCTED.

[[(B) THE DEPARTMENT MAY NOT APPROVE A PROJECT
APPLICATION UNLESS ALL ENCUMBRANCES, OTHER THAN TAXES,
THAT EXIST ON THE BENEFITED PROPERTY AND REQUIRE PAYMENT
OF MONEY, ARE SUBORDINATED TO THE RIGHT OF THE STATE TO
REPAYMENT OF THE LOAN.]]

[[(C)]] (B) (1) ON APPROVAL OF AN APPLICATION, THE
DEPARTMENT SHALL ENTER INTO AN AGREEMENT WITH THE OWNER
OF THE BENEFITED PROPERTY FOR CONSTRUCTION OF THE
PROJECT. EACH AGREEMENT SHALL SPECIFY THAT THE NET
PROJECT CONSTRUCTION COST IS TO BE REPAID IN FULL OVER A
PERIOD NOT EXCEEDING 25 YEARS.

(2) EACH AGREEMENT SHALL BE PLACED IN THE
LAND RECORDS OF THE POLITICAL SUBDIVISION WITHIN WHICH
THE BENEFITED PROPERTY IS LOCATED AND SHALL CONSTITUTE
NOTICE OF THE LIEN ON THE PROPERTY.

[[(D)]] (C) COSTS TO MAINTAIN ORPHANED LAND
RECLAMATION PROJECTS ARE THE SOLE RESPONSIBILITY OF THE
BENEFITED PROPERTY OWNER. THE DEPARTMENT SHALL
PERIODICALLY INSPECT THESE PROJECTS AND RECOMMEND TO THE
PROPERTY OWNER ANY MEASURES REQUIRED TO MAINTAIN THE
PROJECT.

7-514.4.

(A) THE DEPARTMENT SHALL ESTABLISH A SCHEDULE OF
PRIORITIES FOR RECLAMATION PROJECTS BASED ON THE RATE OF
EROSION, THE NATURE AND AMOUNT OF PUBLIC BENEFITS
PROVIDED BY THE PROJECT, AND ANY OTHER FACTORS SET FORTH