Mont. Admin. r. 36.25.408 - ASSIGNMENTS AND TRANSFERS
(1)
(a) The assignment of any lease , either in
whole or as to subdivisions of land embracing not less than 40 acres covered
thereby, made to an assignee qualified as provided under the law and these
regulations is permitted. Such assignment is not, however, binding upon the
state until filed with the department , accompanied by the required fees, and
until the assignment is approved by the board or its lawful representative. For
the purposes of this rule, any lot, according to the governmental survey, shall
be deemed to be a legal subdivision of land embracing not less than 40 acres.
The approval of any assignments 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. Until such an
assignment is approved by the board , the lessee of record shall continue fully
liable and responsible for all of the requirements and obligations of the
lease .
(b) In case of a partial
assignment, i.e., assignment of a full interest in only a portion of the leased
premises, a new lease is issued for the assigned acreage, with the same
expiration date as the original lease . The original lessee and the assignee
assume full liability for their respective lessee .
(2) The assignment of any geothermal
resources lease , either in whole or in part, to more than one assignee will be
permitted if the proposed assignment is otherwise in compliance with the
foregoing requirements; provided however, that any such assignment will not be
approved by the board until one of the assignees is designated to act as agent
for the purpose of receiving any and all notices from the board given in
connection with the lease and meeting all requirements and obligations under
the lease .
(3) Assignment of
undivided, fractional interests in any lease , either as to the whole of the
leased premises, or as to any portion thereof, is accomplished by having the
lessee assign title to the acreage in question to himself and the assignee. The
assignment may show the respective shares of interest but the transaction is
approved by the director as a transfer of title only and without recognition of
the respective interests.
(4) All
other assignments of geothermal resources leases or interests therein are
subject to approval by the board , and are binding upon the state in the
discretion of the board .
(5) An
assignment or transfer on the form currently approved by the board will be
acceptable. 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 executor or administrator, decree of
distribution, executor's deed or sheriff's deed.
(6) Any transfer, by operation of law, to an
unqualified lessee will be recognized by the board for a period of time in no
event longer than 1 year, and only for the purposes of the further transfer of
the interest to a qualified lessee .
(7) The director shall notify the parties to
any assignment or other transfer submitted for approval or nonapproval
thereof.
(8) Unless the lease
account is in good standing at the time the assignment is reached for action,
the request for approval of the assignment will be denied, and the lease shall
be subject to termination in accordance with these rules.
(9) All applications for approval of
assignments must be accompanied by a fee of $25.00 for each
assignment.
Notes
77-4-103, MCA;
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.