Section 299.8106. Awarding of leases.

(1) Commission approval is required before any lease may be issued. The commission 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 shall be executed for any state lands, the successful bidder shall file a performance bond acceptable to the lessor, unless waived by the commission. The amount of performance bond, maximum acreage covered, and when and how the bond may be drawn upon shall be specified by the commission.

(4)    Two copies of each lease instrument shall be provided, by certified mail, to the lessee for signature. Unless otherwise agreed to in writing by the lessor, 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 Lands on which lease rights have been forfeited shall be offered for leasing at the earliest possible date, unless withdrawn for any stated reason by the commission or unless leased under R 299.8105.

(6)   The original copy of the properly executed lease shall be returned to the lessee and the duplicate copy shall 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 shall be subject to all  present  and  future  applicable federal and state laws and rules.

(9)   The commission 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. The lessee shall file these papers with the lessor within 15 days from  the date of receipt of the lessor's notice as shown on the receipt form of the post office department.

History: 1981 AACS.