Haw. Code R. § 13-183-26 - Revocation of mining leases

(a) A mining lease may be revoked by the board if the lessee fails to pay rentals or royalties when due or fails to comply with any of the other terms of the lease, law, or rules, or if the lessee wholly ceases all mining operations for a period of one year without the written consent of the board for reasons other than force majeure or the production of less than commercial quantities of geothermal resources or by-products. Before revocation of a lease for defaults other than the failure to pay rents or royalties when due, the board shall give the lessee written notice of the claimed default and an opportunity to be heard within thirty days of the notice. The lessee shall be allowed sixty days to correct the default or, if the default is one that cannot be corrected within sixty days to commence in good faith and thereafter proceed diligently to correct the default, following written notice of a determination after hearing by the board that the default exists. Failure to comply with the foregoing shall be deemed sufficient cause for revocation. Defaults arising because of failure to pay rents or royalties when due shall be cured within sixty days of a written notice of default or the lease may be revoked. In the alternative, the lessee may surrender the lease pursuant to § 13-183-27.

(b) Upon the revocation of a geothermal mining lease, lessor shall have the right to retain the improvements or require the lessee to remove the same and restore the premises to a similar condition prior to any development or improvements, to the extent reasonably possible.

Notes

Haw. Code R. § 13-183-26

[Eff. JUN 22 1981] (Auth: HRS § 182-14) (Imp: HRS § 182-10)