Section R. 299.4021 - DefinitionsRule 1.
As used in these rules:
(a) "Auction lease" means a lease issued as the result of competitive bidding at public auction that grants the lessee the exclusive right to pursue exploration, mining, or production of the leased nonmetallic mineral rights.(b) "Bonus" means a payment by the proposed lessee to the department at the time of leasing as part of the consideration for acquisition of a nonmetallic minerals lease.(c) "Department" means the Michigan department of natural resources.(d) "Development lease" means an auction lease or a direct lease that allows nonmetallic minerals exploration, mining, or production on the surface of the leased land in compliance with the departments standard nonmetallic minerals lease terms.(e) "Direct lease" means a lease issued as the result of individual negotiations with the department that grants the lessee the exclusive right to pursue exploration, mining, or production of the leased nonmetallic mineral rights.(f) "Director" means the director of the Michigan department of natural resources or the directors designee.(g) "Hold action list" means a list generated by the department containing persons and entities not in compliance with lease terms or lease rules.(h) "Land" means any property in which the state owns any nonmetallic mineral rights.(i) "Development with restrictions lease" means an auction lease or a direct lease that allows nonmetallic minerals exploration, mining, or production on the surface of the leased land in compliance with the departments standard nonmetallic minerals lease terms and subject to special lease restrictions.(j) "Lessee" means the person or entity that is responsible for all covenants, express or implied, in the lease regardless of any partial interest assignments.(k) "Nondevelopment lease" means an auction lease or a direct lease that does not allow nonmetallic minerals exploration, mining, or production on the surface of the leased land without separate authorization from the department.(l) "Nonleasable lands" means lands that will not be leased for nonmetallic minerals exploration, mining, or production.(m) "Nonmetallic minerals" or "nonmetallic mineral products" include any of the following: (x) Gem stones, excluding diamonds.(xiv) Limestone or dolomite.(xvii) Natural salines, including iodine, bromine, calcium, and magnesium compounds.(xx) Sand and gravel, both construction and industrial.(xxv) Miscellaneous stone, both crushed and dimension.(n) "Performance bond" means a surety bond, irrevocable letter of credit, certificate of deposit, or cash 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 this state.(o) "Qualified party" means an individual of the age of majority or a copartnership, corporation, or other legal entity qualified to do business in this state.Mich. Admin. Code R. 299.4021
1987 AACS; 2019 MR 1, Eff. 1/3/2019