Payments include rentals, royalties or any other financial
obligation owed under the terms of a lease, permit or any other
agreement.
1. As a matter of
convenience, the division allows parties other than the obligee to remit
payments to the state on the obligee's behalf; however, this practice in no way
relieves the obligee of any statutory or contractual obligations concerning the
proper and timely payments or the proper and timely filing of reports. For
practical reasons, the division often makes direct requests for reports and
other records from parties other than the obligees. Payors should be aware that
their actions subject leases to cancellation or subject delinquent royalties to
interest charges. It is, therefore, in the best interest of all parties to
cooperate in responsibly discharging their obligations to each other and to the
state.
2. The obligee bears final
responsibility for payments. In order to meet payment obligations of a lease,
permit, or other financial contract with the division, payments must be
received as defined in subsection 4 of this rule by the appropriate due dates
and must be accompanied by the appropriate report.
3. When a change of payor(s) on a property is
to occur, the most recent payor of record shall notify the division by letter
prior to the change. This shall not be construed, however, to relieve the
obligee of the ultimate responsibility.
4. Payments will be considered received if it
is either delivered to the division, or if the postmark stamped on the envelope
or other appropriate wrapper containing it, is dated on or before the due date.
If the post office cancellation mark is illegible, erroneous, or omitted, the
payment will be considered timely if the sender can establish by competent
evidence that the payment was deposited in the United States mail on or before
the date for filing or paying. If the due date or cancellation date falls upon
a regular non-workday or legal holiday, the payment shall be considered timely
if received as defined herein by the next business day.
5. Payments will be enforced even though a
division order is incomplete or because of other irregularities.
6. A return check fee, in accordance with the
Division fee schedule will be charged on all checks returned by the
bank.
7. Any financial obligation
not received by its contractual due date will initiate a written cancellation
notice by certified mail, return receipt requested. The cancellation date for
any lease/permit or other contractual agreement unless otherwise specified in
this rule, is defined as 30 days after the postmark date stamped on Post Office
Form 3800, Receipt for Certified Mail. In the event payment is not received by
the division on or before the cancellation date, the lease, permit or other
contractual agreement will be subject to cancellation, forfeiture or
termination without further notice.
A default in the payment of any installment of principal or
interest due under the terms of any land purchase agreement not received by the
division more than 30 days after the due date shall initiate a certified
billing, return receipt requested. If all sums then due and payable are not
received within 90 days after the mailing of the certified notice on Post
Office Form 3800, the division may elect any of the remedies as outlined in
R652-80-600(5).
If the cancellation date falls on a weekend or holiday, payment will be
accepted the next business day until 5 p.m.
8. A late penalty of 6% or $10, whichever is
greater, shall be charged after failure to pay any financial obligation,
excluding royalties as provided in
R652-5-300(2),
within the time limit under which such payment is due.
9. Rental payments received after the due
date which do not include a late fee will be returned to the lessee by
certified mail, return receipt requested. A check will only be accepted for the
full amount due.
