Section R. 299.8105 - Direct leasesRule 105.
(1) The department may enter into direct leases for lands needed to complete a drilling unit. Qualified parties shall submit written application as described in R 299.8102(2) and shall submit proof that they own or control lease rights to the majority of the land in the proposed drilling unit.(2) The department may also enter into direct leases for lands offered but not leased at public auction if the lands have been offered at 2 previous lease sales within a 1-year period without receiving the required number of bidders. Qualified parties shall submit written application as described in R 299.8102(2).(3) Direct leases entered into under subrules (1) and (2) of this rule normally require payment of a bonus, rental rate, and rate of royalty at least equal to those under which other lease rights in the proposed unit were acquired, but must not be less than the minimum rates established for leases on lands offered at public auction.(4) This rule and R 299.8104 notwithstanding, when the department determines that state land not under lease is being drained, the department may enter into a direct lease on those lands being drained.Mich. Admin. Code R. 299.8105
1981 AACS; 2020 MR 24, Eff. 12/28/2020