§ 53C-2-405. Mineral leases -- Multiple leases on same land -- Lease terms.

(1)

(a) Mineral leases, including oil, gas, and hydrocarbon leases, may be issued for prospecting, exploring, developing, and producing minerals described by rule as available for lease on any portion of trust lands or the reserved mineral interests of the trust.

(b)

(i) Leases may be issued for different types of minerals on the same land.

(ii) If leases are issued for different types of minerals on the same land, the leases shall include stipulations for simultaneous operations.

(c) Leases may not be issued for the same resource on the same land.

(2)

(a) Each mineral lease issued by the administration shall provide for an annual rental of not less than $1 per acre per year.

(b) However, a lease may provide for a rental credit, minimum rental, or minimum royalty upon commencement of production, as prescribed by rules of the director.

(3) The primary term of a mineral lease may not exceed 10 years.

(4) The director shall make rules regarding the continuation of a mineral lease after the primary term has expired.

Amended by Chapter 39, 2005 General Session