Mich. Admin. Code R. 299.8105 - Direct leases
Rule 105.
(1) The
department may enter into direct leases for lands needed to complete a drilling
unit. Qualified parties shall submit written application as described in
R 299.8102(2) and
shall submit proof that they own or control lease rights to the majority of the
land in the proposed drilling unit.
(2) The department may also enter into direct
leases for lands offered but not leased at public auction if the lands have
been offered at 2 previous lease sales within a 1-year period without receiving
the required number of bidders. Qualified parties shall submit written
application as described in
R
299.8102(2).
(3) Direct leases entered into under subrules
(1) and (2) of this rule normally require payment of a bonus, rental rate, and
rate of royalty at least equal to those under which other lease rights in the
proposed unit were acquired, but must not be less than the minimum rates
established for leases on lands offered at public auction.
(4) This rule and
R
299.8104 notwithstanding, when the department
determines that state land not under lease is being drained, the department may
enter into a direct lease on those lands being drained.
Notes
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