§ 15-05-01 — Coal lands or coal in tracts - Leases - Term

The board of university and school lands may lease any lands or coal in tracts that may be
contained in lands sold with a reservation of coal deposits under its control for coal mining
purposes. Any lease made under this chapter must be for a period of time as the board may
determine. Lands or coal in tracts that may be contained in lands sold with a reservation of coal
deposits must be leased for coal mining purposes for a royalty upon the coal as the board may
deem fair and in the best interest of the state. The royalty applies only to coal actually mined
and saved from the leased premises. If the board owns or controls a smaller interest than the
entire and undivided coal estate, the royalty must be paid to it only in proportion to which its
interest bears to the entire undivided fee. The board may lease land or coal in tracts for the
purpose of prospecting for and mining coal for an annual rental of not less than one dollar per
acre [.40 hectare] per year. The rental paid for any year may not be deducted from the royalties
as they accrue. The board may adjust the royalty of existing coal leases as the board
determines fair and in the best interest of the state.