§ 77-3-102 — Mining Leases Authorized -- Term Of Leases -- Definitions

Montana § 77-3-102

• Jurisdiction: Montana
• Title 77: STATE LANDS
• Ch. 3: ROCK, MINERAL, COAL, OIL, AND GAS RESOURCES
• Part 1: Prospecting Permits and Mining Leases

Text

77-3-102 . Mining leases authorized -- term of leases -- definitions. (1) The board may, in its discretion and subject to the other provisions of this part, lease state lands, including the beds of navigable streams and the beds of navigable bodies of water and the reserved mineral rights of the state in lands sold or leased by the state, to any person, association, or corporation for the purpose of prospecting for or mining metalliferous minerals or gems.
(2) (a) Subject to subsections (2)(b) and (2)(c), mining leases must be issued for:
(i) a primary term of not less than 10 years and to be held by production for as long thereafter as metalliferous minerals or gems are produced in commercial quantities; or
(ii) if the lands are subject to limitations contained in grants by which the state acquired title to the lands or mineral rights to be leased, a period determined by the board to be in accordance with the limitations.
(b) If a lease issued under this part, a corresponding permit issued pursuant to Title 82, chapter 4, or a proposed evaluation under Title 75 is enjoined or ineffective due to a temporary restraining order, preliminary injunction, or other equitable relief, or if its issuance is postponed by a challenge requiring further agency review, then the primary term of the lease described in subsection (2)(a) must be commensurately extended for the period that the lease, permit, or action is enjoined or ineffective.
(c) If a lease is issued under this part and an exploration license provided for in 82-4-332 is obtained on the leased land, the lease must be extended commensurately with the period for which the exploration license is authorized and for which exploration is occurring on the leased land.
(3) As long as a lessee complies with the terms and conditions of a lease, the lease may not be terminated at the end of the primary term of the lease described in subsection (2)(a) if the lands are covered and described by a mining permit issued under Title 82, chapter 4, or are described in a mine-site location permit under Title 82, chapter 4.
(4) Leases issued under this part must give the lessee, as long as the lessee complies with the terms and conditions of the lease, the exclusive right of possession of the lands or mineral rights leased, subject to any reservations contained in the leases.
(5) In making the leases, the board may exercise business discretion as long as this part is not violated.
(6) As used in this section, the following definitions apply:
(a) "Commercial quantities" means a quantity of metalliferous minerals or gems that can be sold at a profit.
(b) "Covered and described" or "described" means, under a mine permit or a mine-site location permit, that the leased lands or a portion of the leased lands within or outside the boundaries of the permit area are expected to be affected or disturbed at some point during the term of the permittee's exploration activities or surface mining or underground mining operations and are identified in the permittee's license or permit application.

Legislative History

(1), (2)En. Sec. 2, Ch. 148, L. 1937; amd. Sec. 36, Ch. 428, L. 1973; Sec. 81-602, R.C.M. 1947; (3),(4)En. Sec. 3, Ch. 148, L. 1937; amd. Sec. 1, Ch. 205, L. 1947; amd. Sec. 37, Ch. 428, L. 1973; Sec. 81-603, R.C.M. 1947; R.C.M. 1947, 81-602, 81-603(part); amd. Sec. 2554, Ch. 56, L. 2009; amd. Sec. 1, Ch. 617, L. 2025.