Mich. Admin. Code R. 299.4026 - Awarding of leases
Rule 6.
(1)
Department approval is required before any lease is issued.
(2) The department may group approved lease
rights into 1 or more leases, depending on the location of the lease rights and
any special lease conditions.
(3)
Before a lease shall be executed for any approved lease rights, the successful
bidder shall file with the department a performance bond acceptable to the
department. The department shall specify the amount of performance bond,
maximum acreage covered, and when and how the bond may be drawn upon.
(4) The department shall provide the original
lease instrument to the proposed lessee for signature. Unless otherwise agreed
to in writing by the department, the proposed lessee shall return the properly
executed lease instrument and, for direct leases, the bonus and rental due or
the minimum royalty, as applicable, within 30 calendar days from the date the
department sent the lease instrument.
(5) If the proposed lessee is unable to
return the lease instrument and amount due within the time specified, the
department may, upon request of the proposed lessee, authorize additional time
if the department determines the delay is not the fault of the proposed lessee.
Failure of the proposed lessee to comply within time limits authorized shall
result in forfeiture of the entire bonus and first years rental or the minimum
royalty, as applicable. Lands on which lease rights are forfeited may be
offered to the back-up bidder at the departments sole discretion.
(6) The department shall return the properly
executed lease instrument to the lessee and retain a copy of the lease
instrument.
(7) The lessee shall
not conduct operations on any leased lands until the lessee receives both of
the following:
(a) A fully executed
lease.
(b) All necessary separate
written permissions required by the department or any other local, state, or
federal government agency.
(8) All leases are subject to all federal,
state, and local laws.
(9) The
department may require any proposed lessee, bidder, or proposed assignee for a
nonmetallic minerals lease to submit all the following information to verify
that the proposed lessee, bidder, or proposed assignee is qualified to conduct
business in this state:
(a) If an individual,
proof of attainment of legal age.
(b) If a copartnership, a copy of the
"Certificate of Copartnership" or "Certificate of Persons Conducting Business
Under Assumed Name" approved by the county clerk in the county where the leased
lands are located.
(c) If a
corporation or other legal entity, documentation demonstrating the entity's
qualifications to conduct business in this state.
(d) If a sole proprietor doing business under
an assumed name, copy of the "Certificate of Persons Conducting Business Under
Assumed Name" approved by the county clerk in the county where the leased lands
are located.
Notes
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