Section 299.4024. Offer at public auction; procedure.

(1) Nonmetallic mineral lease  rights  in  state   lands  may  be offered at public auction (lease sale).

(2)   The lessor shall stipulate the  terms  and  conditions   under  which lands may be offered for lease sale.

(3)   Any qualified party may make a bid on lease sale units offered for lease.

(4)   The full amount of the bonus bid shall be paid to the lessor on the same date on which the lease rights are bid. Bidders may establish credit with the department through prior leasing activity  or  by  filing  3 references relating to the financial performance of its bidder, 1 of which shall be a bank, in which case total payment may be made by personal or company check. Bidders who do not have an established credit rating with the department shall pay not less than 1/2 of the total bonus bid in  cash or by certified

check or    money    order.     All    remittances    shall     be     made  payable  to: "State of Michigan."

(5)   Failure of the successful bidder to pay the total bid at the time of sale shall result in the forfeiture of the bonus bid and the lease rights to the lease sale unit or units involved.

(6)   The lessor reserves the right to reject any bid or stop the sale of any lease sale unit when a bid is made that is less than the minimum bid or when the lessor determines that title ownership is in question.

(7)   Available lands in lease sale units on which bids were not accepted or where the successful bidder defaults shall be offered at the following lease sale unless withdrawn from sale or leased under R 299.4025.

History: 1987 AACS.