Tenn. Code Ann. § 59-8-420

Any agency, unit, or instrumentality of state, federal, or local government, including any publicly owned utility or publicly owned corporation of state, federal, or local government, which proposes to engage in mining operations which are subject to the requirements of this part, shall comply with this part; provided, however, that local governmental entities and state agencies shall not be subject to fees or bonds except as otherwise required by this part.