Utah Admin. Code R652-20-4000 - Readjustment Rule
1. Any lease,
except an oil, gas and hydrocarbon lease, which is subject to a readjustment
provision may be readjusted as follows:
(a)
Any term or condition of a lease may be readjusted including the rent, royalty,
minimum rental, or minimum royalty provisions of the lease.
(b) The division shall give notice to the
lessee at least one year prior to readjustment. Failure to give notice prior to
a date a lease is eligible for readjustment shall not waive or prejudice the
right of the division to readjust the lease at a later date.
(c) The readjusted terms shall become
effective on the date specified by the division at the time the readjusted
terms are sent to the lessee.
(d)
Failure of the lessee to accept the terms of any readjustment shall be
considered a violation of the provisions of the lease and shall subject the
lease to forfeiture.
2.
In the event of a conflict between this section and the terms of a readjustment
provision in a lease, the lease terms shall supersede to the extent of the
conflict.
Notes
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