Utah Admin. Code R652-20-3100 - Great Salt Lake-Salt and Other Mineral Resources
1. Salts and other minerals in the waters of
Great Salt Lake are reserved to the state and shall be sold only upon a royalty
basis and under the terms and provisions as specified in the royalty agreement
as herein provided for in this rule and all other terms and conditions as the
division deems necessary in the best interest of the state.
2. The term "salts and other minerals" as
used in this rule shall include all salts and other minerals contained in
solution or suspension in the waters of Great Salt Lake, and shall not include
salts or other minerals that have precipitated out or have settled on the
bottom of the lake.
3. Royalty
agreement applications shall be made upon forms provided by the division and
shall be in accordance with the laws and rules governing applicant
qualifications, application and lease form.
4. Royalty agreements for salts and other
minerals contained in waters of Great Salt Lake, shall require the following
advance royalty payment which may be applied against royalties which may
thereafter accrue during the same calendar year for which the advance royalty
is paid.
(a) $10,000 per annum for all royalty
agreements in which the lessee therein also obtains a lease of land within
Great Salt Lake.
(b) $5,000 per
annum for all royalty agreements in which the lessee therein does not obtain a
surface or mineral lease of state lands within Great Salt Lake.
(c) Royalty agreements for sodium chloride
salts shall require on or before January 1st of each year, an advance royalty
of not less than $1,000, which sum may be applied against royalties which may
thereafter accrue during the same calendar year for which the advance royalty
is paid.
5. Royalties
shall be paid upon a calendar year basis. The minimum royalty for the balance
of the calendar-year in which the agreement is executed shall be prorated in
proportion to the time remaining.
6. The gross market value of the products
shipped, upon which the royalty payments are to be paid, shall not include
amounts expended for bags, boxes, receptacles, or other costs directly related
to or necessary in the shipping of any product.
7. Royalty agreements shall contain
provisions necessary to effect the purpose of this rule, including: the rights
of the vendee; the term of the royalty agreement; annual rental and royalties;
rights reserved to the vendor; bonds; reporting of technical data; operation
requirements; vendees consent to suit in any dispute arising under the terms of
the royalty agreement or as a result of operations carried on under the royalty
agreement; procedures for notification; transfers of interest by vendee;
establishment of water rights and water usage; discovery of other minerals;
terms and conditions of royalty agreement forfeiture; protection of the state
from liability from all actions of the vendee; and all other provisions that
the division deems necessary to protect the interest of the state and to
fulfill the purpose of this rule.
Notes
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