Section R. 299.4026 - Awarding of leasesRule 6.
(1) Department approval is required before any lease is issued.(2) The department may group approved lease rights into 1 or more leases, depending on the location of the lease rights and any special lease conditions.(3) Before a lease shall be executed for any approved lease rights, the successful bidder shall file with the department a performance bond acceptable to the department. The department shall specify the amount of performance bond, maximum acreage covered, and when and how the bond may be drawn upon.(4) The department shall provide the original lease instrument to the proposed lessee for signature. Unless otherwise agreed to in writing by the department, the proposed lessee shall return the properly executed lease instrument and, for direct leases, the bonus and rental due or the minimum royalty, as applicable, within 30 calendar days from the date the department sent the lease instrument.(5) If the proposed lessee is unable to return the lease instrument and amount due within the time specified, the department may, upon request of the proposed lessee, authorize additional time if the department determines the delay is not the fault of the proposed lessee. Failure of the proposed lessee to comply within time limits authorized shall result in forfeiture of the entire bonus and first years rental or the minimum royalty, as applicable. Lands on which lease rights are forfeited may be offered to the back-up bidder at the departments sole discretion.(6) The department shall return the properly executed lease instrument to the lessee and retain a copy of the lease instrument.(7) The lessee shall not conduct operations on any leased lands until the lessee receives both of the following:(a) A fully executed lease.(b) All necessary separate written permissions required by the department or any other local, state, or federal government agency.(8) All leases are subject to all federal, state, and local laws.(9) The department may require any proposed lessee, bidder, or proposed assignee for a nonmetallic minerals lease to submit all the following information to verify that the proposed lessee, bidder, or proposed assignee is qualified to conduct business in this state:(a) If an individual, proof of attainment of legal age.(b) If a copartnership, a copy of the "Certificate of Copartnership" or "Certificate of Persons Conducting Business Under Assumed Name" approved by the county clerk in the county where the leased lands are located.(c) If a corporation or other legal entity, documentation demonstrating the entity's qualifications to conduct business in this state.(d) If a sole proprietor doing business under an assumed name, copy of the "Certificate of Persons Conducting Business Under Assumed Name" approved by the county clerk in the county where the leased lands are located.Mich. Admin. Code R. 299.4026
1987 AACS; 2019 MR 1, Eff. 1/3/2019