Montana Statutes

§ 77-3-204 — Royalty Provisions

Montana·Title 77 STATE LANDS·Ch. 3 ROCK, MINERAL, COAL, OIL, AND GAS RESOURCES·Part 2 Nonmetallic Minerals, Excluding Coal, Oil, and Gas

77-3-204 . Royalty provisions.

(1)All such leases shall be upon a royalty basis calculated upon a gross value by weight or cubic measurement as is most favorable for the particular substance being mined or extracted from the lands. The gross value shall be determined at the mine or site of operation, and the rates shall be the same that ordinarily would be charged by private owners under similar circumstances or as in the determination of the board is fair and reasonable.
(2)The board may demand a cash deposit to guarantee the payment of the royalties, a surety bond, or both a cash deposit and bond, as the board may determine.

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Legislative History

En. Sec. 52, Ch. 60, L. 1927; re-en. Sec. 1805.52, R.C.M. 1935; amd. Sec. 1, Ch. 194, L. 1945; amd. Sec. 1, Ch. 147, L. 1953; amd. Sec. 1, Ch. 207, L. 1961; amd. Sec. 49, Ch. 428, L. 1973; R.C.M. 1947, 81-701(part).

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