Mont. Admin. R. 36.25.311 - ASSIGNMENTS AND TRANSFERS
(1) 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, however,
binding upon the state until filed with the department , accompanied by the
required fees, together with proof of qualifications of the assignee as a
lessee, and until the assignment is approved by the department . For the purpose
of this rule, any government surveyed lot whether it contains 40 acres or more
shall be assignable. The approval of any assignment so filed and supported may
not be withheld in any case where the rights or interests of the state in the
premises assigned will not, in the judgment of the board , be prejudiced
thereby, and the decision is subject to appeal as provided by law. Until such
an assign- ment is approved by the department, the lessee of record shall
continue fully liable and responsible for all of the requirements and
obligations of the lease.
(2) In
the case of a partial assignment, i.e., assignment of a full interest in only a
portion of the leased premises, the department shall issue a new lease or new
leases, with the same expiration date as the original lease for the assigned
acreage. A new ledger sheet or sheets shall be prepared and the original lease
adjusted accordingly. The original lessee and the assignee(s) assume full
liability for their respective leases.
(3) The lessee may assign an undivided,
fractional interest in any lease , either as to the whole of the leased premises
or as to any portion thereof, by assigning title to the acreage in question to
himself and the assignee. The assignment must show the respective shares of
interest and may be approved by the director as a transfer of title only
without recognition of any assignment of lease obligations and
responsibilities.
(4) All other
assignments of coal leases or interests therein are subject to approval by the
board and are binding upon the state in the discretion of the board .
(5) Assignments involving reservations of
overriding royalties or other interests by assignee are approved by the
director as a transfer of title only and without recognition of such overriding
royalties or interests. Such reservations do not affect the validity of the
transfer of title.
(6) An
assignment or transfer must be on the form currently approved by the board .
Evidence of transfers by operation of law should be in the form of a certified
copy of the appropriate court order or decree or similar document, such as
letters of administration to personal representatives, decree of distribution,
executor's deed or sheriff's deed.
(7) The board may recognize any transfer by
operation of law to an unqualified lessee for a period of time no longer than
one year and only for the purpose of the further transfer of the
interest.
(8) The director shall
notify the parties to any assignment or other transfer submitted of approval or
non-approval thereof.
Notes
77-3-303, MCA; IMP, 77-3-303, MCA;
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