Drilling Incentive Grant Program

The Drilling Incentive Grant Program is administered by the Minnesota Department of Iron Range Resources and Rehabilitation and is funded through the Taconite Environmental Protection Fund. The program is designed to encourage exploratory drilling activities that identify new mineral resources, gas deposits, or additional deposits of known resources within the state. A key objective of the program is to support long term economic development through resource discovery, while also ensuring that geological data collected through funded activities is preserved for future use in the state Drill Core Library. The grant provides financial support specifically for exploratory drilling activities, with funding structured as a cost share model. The agency will match up to forty percent of direct drilling costs, capped at twenty thousand dollars per drill hole. Funding is strictly limited to drilling related expenses and cannot be used for unrelated operational or administrative costs. Projects funded through this program must begin within twelve months of the award, ensuring timely execution and alignment with fiscal year priorities. Eligible applicants must meet specific regulatory and operational requirements established by the state of Minnesota. Applicants must comply with Minnesota Statutes Section 103I.601 governing exploratory boring procedures, be authorized to conduct business within the state, and hold a valid Minnesota exploration lease. While the program is open to individual organizations, collaboration among multiple entities is encouraged to strengthen project proposals and expand resource exploration capacity. Applications are submitted through the FLUXX grants portal and follow a two step process. Applicants must first complete a short pre application to establish project eligibility. Once eligibility is confirmed, a full application becomes available. Required application materials include a detailed project narrative addressing evaluation criteria, financial statements, organizational and legal documentation, proof of qualifications, and a comprehensive project budget outlining drilling expenses. Additional disclosures such as conflict of interest statements and workforce impact projections are also required. Applications are evaluated through a competitive review process using a one hundred point scoring system. Evaluation criteria include the logic of site selection and development potential, job creation and workforce impact, applicant qualifications and experience, project planning and timeline, and diversity, equity, inclusion, and accessibility considerations. Projects that demonstrate strong economic impact, support local employment, and incorporate inclusive practices receive higher scores. Final award decisions are made based on reviewer scores, past performance, and available funding, and are subject to approval by the IRRR commissioner. The application window for the fiscal year cycle opens on August 1, 2026 and remains open through May 28, 2027, or until available funds are substantially committed. Applicants are notified of award decisions within approximately sixty days following review. Funded projects are subject to strict reporting and accountability requirements, including annual progress reports, financial verification of expenditures, and a final report detailing drilling results. The program operates on an annual cycle and emphasizes transparency, compliance with state statutes, and measurable economic and resource exploration outcomes.

Emphasize strong site selection rationale, demonstrate clear job creation impact, and incorporate diversity and economic inclusion factors to maximize scoring