Mich. Admin. Code R. 299.8106

Current through Vol. 24-21, December 1, 2024

Section R. 299.8106 - Awarding of leases

Rule 106.

(1) Department approval is required before any lease may be issued. The department reserves the right to reject any and all bids with reasons stated.

(2) The department may group descriptions for which issuance of leases has been approved into 1 or more leases, depending on the location of the descriptions and any special lease conditions.

(3) Before a lease is executed for any state lands, the successful bidder shall file a performance bond acceptable to the lessor, unless waived by the department. The amount of performance bond, maximum acreage covered, and when and how the bond may be drawn upon shall be specified by the department.

(4) The lessee shall return all copies, properly executed, with proper performance bond, within 15 days from the date of receipt shown on the receipt form of the post office department.

(5) If the lessee is unable to return the lease forms and performance bond within the time specified, the lessor may, upon request of the lessee, authorize additional time if the lessor determines that the delay is not the fault of lessee. Failure of the lessee to comply within time limits authorized shall result in forfeiture of the entire bid paid. Lands on which lease rights have been forfeited must be offered for leasing at the earliest possible date, unless withdrawn for any stated reason by the department or unless leased under R 299.8105.

(6) The original copy of the properly executed lease must be returned to the lessee and a duplicate copy must be retained by the lessor.

(7) No operations on any leased land shall begin until a fully executed lease has been received by the lessee.

(8) All leases are subject to all present and future applicable federal and state laws and rules.

(9) The department may require any lease applicant or the successful bidder on any sale unit or assignee under any lease to submit the following information:

(a) If an individual, proof of attainment of the age of majority.

(b) If a copartnership, a certified copy of the registration or a sworn statement signed by 1 partner setting forth the names and addresses of all partners and the articles of partnership.

(c) If a corporation or other legal entity, copies of the incorporation papers showing qualifications to do business in the state of Michigan.

Mich. Admin. Code R. 299.8106

1981 AACS; 2020 MR 24, Eff. 12/28/2020