Montana Administrative Code

36.25.237 REPORT UPON TERMINATION OF SEISMOGRAPHIC PERMIT Within 6 months after termination of a permit, the permittee shall submit to the department an affidavit setting forth the following: the nature of the tests conducted; a narrative description of or a map showing the numbe…

36.25.301 DEFINITIONS When used herein, unless a different meaning clearly appears from the context: "Board" means the Board of Land Commissioners of the state of Montana; "Commercial quantities" means that quantity of coal which can be sold at profit in the commercial market; "C…

36.25.302 LANDS AVAILABLE FOR LEASING State lands available for leasing by the board under these rules include state lands to which the title has vested in the state and in which the coal or coal rights are not reserved by the United States. Such state lands include those which h…

36.25.303 WHO MAY LEASE FOR COAL -- QUALIFIED LESSEES Any person qualified under the constitution and laws of the state of Montana may lease state lands for coal purposes provided that: all corporations not incorporated in Montana must obtain a certificate of authority to transac…

36.25.304 PROCEDURES FOR ISSUE OF LEASE The land shall be leased in as compact bodies as the form and areas of the tract held by the state and offered for lease will permit. No lease may embrace noncontiguous subdivisions of lands unless such subdivisions are within an area compr…

36.25.309 RENTALS An annual money rental, shall be paid to the state for each coal lease at the rate of not less than $2.00 for each acre of land leased. Rental for the first year of the lease shall include any sums in excess of $2.00 per acre offered and accepted as a cash bonus…

36.25.310 ROYALTIES The lessee shall pay in cash a royalty on all coal produced from the leased premises at a rate of not less than ten percent of the value of the coal. The fair market value of the coal shall be determined by the board in accordance with 77-3-312 and 77-3-316(4)…

36.25.311 ASSIGNMENTS AND TRANSFERS A lessee may assign any lease, either in whole or as to subdivisions of land embracing not less than 40 acres covered thereby, to any assignee qualified to be a lessee as provided under the law and these regulations. Such assignment is not, how…

36.25.313 IMPROVEMENTS OF FORMER LESSEE When a coal mining lease is applied for on land where mining operations have been carried on by a former lessee and there are surface or underground improvements on the land used at the former operations, disposition of the improvements sat…

36.25.314 SURRENDER OF LEASE The lease may be terminated at any time by mutual consent of the lessee and the department. Such termination shall not excuse the lessee of his duty to perform obligations which have accrued or become fixed before the date of such termination. Termina…

36.25.315 FORFEITURE, CANCELLATION, AND TERMINATION OF LEASES If the lessee fails to comply with any provisions of state law relating to coal leases, the provisions of these rules, or the provisions of its coal lease, the department shall give lessee written notice specifying suc…

36.25.316 OPERATING AGREEMENTS Any lessee may enter into agreements with another person for mining and other operations involving coal production on state lands under his lease or leases. However, no such operating agreements are in any way binding upon the state until filed with…

36.25.317 OPERATIONS ON STATE LEASES A coal lease on state lands is subject to the conditions that the coal must be mined, handled, and marketed in a manner that will prevent as far as possible all waste of coal and that the mining operations shall be carried on in a systematic a…

36.25.319 HEARINGS AND APPEALS It is the desire and intent of the board that any lessee or prospective lessee be given full and adequate opportunity to be heard with respect to any matter affecting his interests in any particular lease. Any hearing will be conducted informally, w…

36.25.320 RECORDS The board shall keep a record of all of its meetings in the form of minutes of such meetings, reflecting all matters considered by the board, decisions made and actions taken with respect to the leasing or possible leasing of state lands for coal. Such minutes s…

36.25.321 FEES The department shall assess the following fees: application for coal lease - $50.00; issuance of each coal lease - $25.00; and filing each assignment affecting a coal lease, or interest therein, of whatever nature - $10.00. Authorizing statute(s): 77-3-303, MCA Imp…

36.25.322 AMENDMENT OF RULES AND REGULATIONS These rules and regulations may be altered, changed or modified at any time by action of the board in accordance with the Montana Administrative Procedure Act. No alteration, change or modification of the rules will alter, change or mo…

36.25.323 IMPAIRMENT OF CONTRACT Nothing in these rules may be construed to impair the obligations of any contract entered into before the effective date of Chapter 358, L. 1975. Authorizing statute(s): 77-3-303, MCA Implementing statute(s): 77-3-303, MCA History: NEW, 1979 MAR p…

36.25.401 DEFINITIONS When used herein, unless the context requires otherwise: "Board" means the Board of Land Commissioners of the state of Montana; "Department" means the Department of Natural Resources and Conservation of the state of Montana; "Director" means director of Natu…

36.25.402 LANDS AVAILABLE FOR LEASING Lands available for leasing by the board under these rules and regulations include any state land under the jurisdiction of the board. No lease may embrace more than 640 acres, except that any section surveyed by the United States which conta…

36.25.403 WHO MAY LEASE Any person, partnership, corporation, association or other legal entity, or any political subdivision may lease state lands for geothermal resources purposes; provided, all corporations not incorporated in Montana must obtain a certificate of authority to …

36.25.404 PROCEDURES FOR ISSUANCE OF LEASE Application for lease of a tract of state land may be made at any time during the year on a form provided by the department. Such application shall contain the information called for therein, including an adequate and sufficient descript…

36.25.405 TERM OF LEASE, EXTENSION BY DRILLING OPERATIONS AT END OF TENTH YEAR Each geothermal resources lease issued shall be for a primary term of 10 years and so long thereafter as geothermal resources in paying quantities are produced, on condition that all obligations and pr…

36.25.406 RENTALS AND ROYALTIES Each lease issued pursuant to these rules shall provide for the following rentals and royalties with respect to geothermal resources produced, saved, and sold from the lands included within the lease whether directly from the lease or from a poolin…

36.25.407 DILIGENCE Prior to the end of the third year and of each succeeding year of the primary term of a geothermal resources lease, the lessee shall either commence or continue diligent exploration or pay a delayed exploration penalty. Each lease shall include provisions for …

36.25.408 ASSIGNMENTS AND TRANSFERS The assignment of any lease, either in whole or as to subdivisions of land embracing not less than 40 acres covered thereby, made to an assignee qualified as provided under the law and these regulations is permitted. Such assignment is not, how…

36.25.409 OVERRIDING ROYALTY INTERESTS If an overriding royalty interest is created which is not shown in the instrument of assignment or transfer, a statement must be filed with the director describing the interest. Any such assignment will be deemed valid if accompanied by a st…

36.25.410 SURRENDER OF LEASE The lessee under any geothermal RESOURCES lease granted by the state may at the termination of any rental year, by giving to the department 60 days previous notice in writing, surrender and relinquish the lease to the state in whole or in part, and sh…

36.25.411 FORFEITURE, CANCELLATION, AND TERMINATION OF LEASES Every geothermal resources lease granted by the state is subject to forfeiture and cancellation thereof upon failure of the lessee to fully discharge the obligations provided therein after written notice from the board…

36.25.412 UNIT OR COOPERATIVE PLANS OF DEVELOPMENT OR OPERATION For the purpose of more properly conserving the natural RESOURCES of any geothermal pool, field, or like area, lessees under leases issued by the board are authorized, with the written consent of the board, to commit…

36.25.413 BONDING REQUIREMENTS Prior to the execution and delivery of any geothermal RESOURCES lease, the lessee shall furnish to the department a bond in the minimum amount of $2,000 conditioned upon the compliance of the lessee of his obligations under the lease and the terms o…

36.25.414 LAND SURFACE USE RIGHTS AND OBLIGATIONS The lessee may not enter upon the leased lands for casual exploration or inspection until there is in existence a fully executed lease. The lessee may not enter upon the leased lands for exploration operations using motorized eart…

36.25.415 OPERATIONS All operations will conform to the best practice and engineering principles in use in the industry. Operations shall be conducted in such manner as to protect the natural resources on the leased lands, including without limitation geothermal resources, and to…

36.25.416 CONFLICTING LEASES Where a lease issued under these rules and regulations conflicts with a mineral lease covering the same lands, the person who was first in time is entitled to priority of rights. However, exercise of this priority shall not interfere with actual produ…

36.25.417 RECORDS The board shall keep a record of all of its meetings in the form of minutes of such meetings, reflecting all matters considered by the board, decisions made and actions taken with respect to the leasing or possible leasing of state lands for geothermal RESOURCES…

36.25.418 FEES The fees charged for geothermal lease related: for application $10.00; for each lease $25.00; for each assignment affecting a geothermal resources lease or interest therein, of whatever nature $25.00. Authorizing statute(s): 77-4-103, MCA Implementing statute(s): 7…

36.25.601 DEFINITIONS When used herein, unless a different meaning clearly appears from the context: "Assignee" means the person or persons to whom a lessee has transferred all or part of the unexpired term of his lease and who appears as such on record in the offices of the depa…

36.25.602 LANDS AVAILABLE FOR LEASING Lands available for leasing under these rules include any state lands in which mineral rights are not reserved by the United States or other grantor or predecessor in title. Such state lands include those which have been sold but in which min…

36.25.603 WHO MAY LEASE - QUALIFIED LESSEES Any person, association, partnership, corporation, domestic or foreign, or municipality qualified under the Constitution and the laws of the state of Montana may lease state lands for metalliferous minerals and gem purposes; however all…

36.25.604 APPLICATION FOR LEASE Any person who desires that any tract of state lands be considered for metalliferous mineral and gem leasing shall make application for a lease on the form prescribed by the department and then in current use. Blank forms for such applications may …

36.25.605 TERM OF LEASE The lease shall be granted on the standard lease form for a primary term or period of 10 years, and as long thereafter as metalliferous minerals or gems in paying quantities are produced, on condition that all royalties, rents, and other obligations are fu…

36.25.606 RENTALS The lessee shall pay an annual rental to the state. The rental for the first year shall be at least $1.00 per acre and may include an additional amount per acre as a bonus determined by the board. The rental for the second and third year shall be $1.00 per acre.…

36.25.607 ROYALTIES The lessee shall pay a royalty to the state on all metalliferous minerals or gems produced, which shall be in cash unless the board at its option requires that the royalty be delivered in kind. The royalty for all ores bearing metalliferous minerals or gems wh…

36.25.608 RECORDS AND REPORTS The lessee shall maintain adequate records to determine the amount of royalty owned. The lessee shall furnish upon request, but not more than once each calendar year, an exploration and development report which describes the work completed by the les…

36.25.609 ASSIGNMENTS AND TRANSFERS The lessee may assign any lease, either in whole or as to subdivisions of land embracing not less than 40 acres, to any person, qualified as provided under the law and this subchapter. Such assignment is not, however, binding upon the state unt…

36.25.610 SURRENDER OF LEASE The lessee may surrender and relinquish to the state any legal subdivision of lands leased, and be discharged from any obligations not yet accrued as to the lands so surrendered and relinquished, without prejudice to the continuance of the lease as to…

36.25.611 CANCELLATION OR TERMINATION The lease is subject to cancellation for failure to comply with the terms of the lease or this sub-chapter. The lessee shall be notified of any failure to comply and allowed a reasonable time to comply. If the lessee fails to comply within a …

36.25.612 MINIMIZATION OF DISTURBANCE The lessee shall prospect and explore for metalliferous minerals or gems with the minimum disturbance to the surface of the land which is required to adequately explore the property. Furthermore, all mining operations shall be conducted in su…

36.25.613 MINERAL LESSEE'S SURFACE RIGHTS The mineral lessee has the right to use the land surface as necessary in order to explore, develop and mine the leased lands. Any sale, contract for sale or lease of state land which has been leased for minerals pursuant to this subchapte…

36.25.614 BONDING Prior to issuance of the lease, the lessee shall file with the department a bond in the penal sum of at least $1,000.00 conditioned upon payment of rentals and royalties, upon compliance with all lease terms and in order to protect the rights of any prior purcha…