Section 299.4021. Definitions.

Rule 1. 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 a nonmetallic minerals lease.

(c)   "Department" means the Michigan department of natural resources.

(d)    "Direct nonmetallic minerals lease" means     a    lease    issued     as    the  result of individual negotiations with the lessor.

(e)    "Land" means any property in which the state    owns     any    nonmetallic mineral rights.

(f)    "Leasable with restriction" means    the    lands     will    be    leased     for nonmetallic mineral exploration, development,  or  production  subject  to special lease restrictions.

(g)   "Lease sale unit" means the land described and numbered on the lease sale notice.

(h)   "Lessee" means the working interest owner or owners of  a  lease   as shown in the records of the department.

(i)   "Lessor" means the Michigan natural resources commission.

(j)     "Nonleasable  lands"   means  lands   that  will  not  be  leased  for  metallic  mineral exploration, development, or production.

(k)    "Nonmetallic minerals" or "nonmetallic     mineral    products"   includes any of the following:

(i)   Andalusite.

(ii)   Anhydrite.

(iii)   Asbestos.

(iv)   Barite.

(v)   Celestite.

(vi)   Clay.

(vii)   Coal.

(viii)   Feldspar.

(ix)   Garnet.

(x)   Gem stones, excluding diamonds.

(xi)   ) Graphite.

(xii)   ) Gypsum.

(xiii)   Kyanite.

(xiv)   Limestone or dolomite.

(xv)   Marl.

(xvi)   ) Mica.

(xvii)        Natural    salines,    including    iodine,    bromine,      calcium,      and   magnesium compounds.

(xviii)   ) Potash salts.

(xix)   (xix) Salt.

(xx)   nd and gravel, both construction and industrial.

(xxi)   i) Sandstone.

(xxii)   i) Shale.

(xxiii)   Sillimanite.

(xxiv)   v) Slate.

(xxv)   Miscellaneous stone, both crushed and dimension.

(xxvi)   i) Sulphur.

(xxvii)   Talc.

(l)   "Nonmetallic minerals lease" means a lease that allows  the   use  of state  lands  for nonmetallic  mineral   exploration,   development,    or production.

(m)   "Performance bond" means a surety or cash bond 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.

History: 1987 AACS.