§ 35-11-416 — Protection of the surface owner

(a) In those instances in which the surface owner is not
the owner of the mineral estate proposed to be mined by mining
operations a permit shall not be issued without the execution of
a bond or undertaking to the state, whichever is applicable, for
the use and benefit of the surface owner or owners of the land,
in an amount sufficient to secure the payment for any damages to
the surface estate, to the crops and forage, or to the tangible
improvements of the surface owner. This amount shall be
determined by the administrator and shall be commensurate with
the reasonable value of the surrounding land, and the effect of
the overall operation of the landowner. This bond is in addition
to the performance bond required for reclamation by this act. As
damage is determined it shall be paid. Financial loss resulting
from disruption of the surface owner's operation shall be
considered as part of the damage. A bond for surface damage
shall not be required when the agreement negotiated between the
surface owner and the mineral owner or developer waives any
requirement therefor. Payment of damages shall be paid annually
unless otherwise agreed to by the surface owner and the
operator.
(b) An owner of real property and who holds a valid
adjudicated water right and who obtains all or part of his
supply of water for domestic, agricultural, industrial,
recreational, or other legitimate use from a surface or an
underground source other than a subterranean stream having a
permanent distinct known channel may maintain an action against
an operator to recover damages for pollution, diminution, or
interruption of such water supply resulting from surface, in
situ mining or underground mining.