Section R. 299.8101 - DefinitionsRule 101. As used in these rules:
(a) "Auction lease" means a lease issued as the result of competitive bidding at public auction.(b) "Bonus bid" means a payment by the buyer to the lessor at the time of sale as part of the consideration for acquisition of an oil and gas lease.(c) "Department" means the Michigan department of natural resources.(d) "Development lease" means a lease that allows the use of the surface of state lands for oil and gas exploration, development, and production.(e) "Direct lease" means a lease issued as the result of individual negotiations with the department.(f) "Gas" means a mixture of hydrocarbons and varying quantities of non-hydrocarbons in a gaseous state which may or may not be associated with oil, including those liquids resulting from condensation, including, but not limited to, natural gas and casinghead gas.(g) "Land" means any property description in which the state owns any oil and gas rights.(h) "Lessee" means the working interest owner or owners of a lease as shown in the records of the department.(i) "Lessor" means the department.(j) "Nondevelopment lease" means a lease that does not allow any use of the land surface, including the surface of submerged bottom lands, for oil and gas exploration, development, and production.(k) "Nonleasable lands" means lands that will not be leased for oil and gas exploration, development, and production.(l) "Oil" means natural crude oil or petroleum and other hydrocarbons, regardless of gravity, that are produced at the well in liquid form by ordinary production methods and that are not the result of condensation of gas after it leaves the underground reservoir, including, but not limited to, oil, casinghead gasoline, drip gasoline, and natural gasoline extracted from natural gas.(m) "Performance bond" means a surety to guarantee that the lessee and the lessee's heirs, executors, administrators, successors, and assigns shall faithfully perform the covenants, conditions, and agreements specified in the lease and the laws and rules of the state of Michigan.(n) "Qualified party" means an individual of the age of majority or a partnership, corporation, or other legal entity qualified to do business in the state of Michigan.(o) "Sale unit" means the land description or descriptions as numbered on the lease sale notice.Mich. Admin. Code R. 299.8101
1981 AACS; 2020 MR 24, Eff. 12/28/2020