Mich. Admin. Code R. 299.8106 - Awarding of leases
Rule 106.
(1)
Department approval is required before any lease may be issued. The department
reserves the right to reject any and all bids with reasons stated.
(2) The department may group descriptions for
which issuance of leases has been approved into 1 or more leases, depending on
the location of the descriptions and any special lease conditions.
(3) Before a lease is executed for any state
lands, the successful bidder shall file a performance bond acceptable to the
lessor, unless waived by the department. The amount of performance bond,
maximum acreage covered, and when and how the bond may be drawn upon shall be
specified by the department.
(4)
The lessee shall return all copies, properly executed, with proper performance
bond, within 15 days from the date of receipt shown on the receipt form of the
post office department.
(5) If the
lessee is unable to return the lease forms and performance bond within the time
specified, the lessor may, upon request of the lessee, authorize additional
time if the lessor determines that the delay is not the fault of lessee.
Failure of the lessee to comply within time limits authorized shall result in
forfeiture of the entire bid paid. Lands on which lease rights have been
forfeited must be offered for leasing at the earliest possible date, unless
withdrawn for any stated reason by the department or unless leased under
R
299.8105.
(6) The original copy of the properly
executed lease must be returned to the lessee and a duplicate copy must be
retained by the lessor.
(7) No
operations on any leased land shall begin until a fully executed lease has been
received by the lessee.
(8) All
leases are subject to all present and future applicable federal and state laws
and rules.
(9) The department may
require any lease applicant or the successful bidder on any sale unit or
assignee under any lease to submit the following information:
(a) If an individual, proof of attainment of
the age of majority.
(b) If a
copartnership, a certified copy of the registration or a sworn statement signed
by 1 partner setting forth the names and addresses of all partners and the
articles of partnership.
(c) If a
corporation or other legal entity, copies of the incorporation papers showing
qualifications to do business in the state of Michigan.
Notes
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