Mont. Code Ann. § 77-1-802 — MT Code / Title 77 / Chapter 1 / Part 8 / Section 77-1-802
77-1-802 Recreational use -- fee
Status: in_force

77-1-802 . (Temporary) Recreational use -- fee. (1) The fee for general recreational use on state trust land must attain full market value whether the license is sold pursuant to 77-1-801 or under an agreement with the department of fish, wildlife, and parks as provided in 77-1-815 .

(2) Money received by the department for general recreational use of state lands must be credited as follows:

(a) Except as provided in subsection (2)(b), fees must be apportioned on a pro rata basis to the land trusts, in proportion to the respective trust's percentage of acreage in the total acreage of all state land trusts.

(b) Revenue from recreational use license fees, less 50 cents from the fee for each license that must be returned to the license dealer as a commission, is distributable revenue and must be deposited pursuant to 77-1-109 and used to pay for administrative costs as provided in 77-1-108 .

(3) The department may contract with the department of fish, wildlife, and parks for the distribution and sale of recreational use licenses through the license agents appointed by and the administrative offices of the department of fish, wildlife, and parks and in accordance with the provisions of Title 87, chapter 2, part 9. (Void on occurrence of contingency--sec. 8, Ch. 596, L. 2003.)
Mont. Code Ann. § 77-2-301 — MT Code / Title 77 / Chapter 2 / Part 3 / Section 77-2-301
77-2-301 Sales of state land under board control
Status: in_force

77-2-301 . Sales of state land under board control. The board may decide when sales of state land are to be held and what state lands are to be offered for sale, subject to the limitations of this title, as the best interests of the state may appear to require.
Mont. Code Ann. § 77-3-113 — MT Code / Title 77 / Chapter 3 / Part 1 / Section 77-3-113
77-3-113 Quantity of lands covered by lease
Status: in_force

77-3-113 . Quantity of lands covered by lease. A mining lease shall cover the quantity of ground the board determines to be reasonable and consistent with the character of the ground, the type of deposit or deposits for which the lands are to be mined, and the character and size of the operation contemplated, necessary, or reasonable in good mining practice for the profitable recovery of the metalliferous minerals or gems therefrom.
Mont. Code Ann. § 77-5-101 — MT Code / Title 77 / Chapter 5 / Part 1 / Section 77-5-101
77-5-101 Classification of lands as state forests
Status: reserved

77-5-101 . Classification of lands as state forests. All lands at present owned by the state and all that may hereafter be acquired by the state through escheat, exchange, purchase, grant, or devise which are principally valuable for the timber that is on them or for the growing of timber or for watershed protection are hereby classified and designated "state forests" and reserved for forest production and watershed protection.
Mont. Code Ann. § 77-1-139 — MT Code / Title 77 / Chapter 1 / Part 1 / Section 77-1-139
77-1-139 Terminated
Status: in_force

77-1-139 . Terminated. Sec. 7, Ch. 380, L. 1999.
Mont. Code Ann. § 77-2-367 — MT Code / Title 77 / Chapter 2 / Part 3 / Section 77-2-367
77-2-367 Road easements on state lands
Status: in_force

77-2-367 . Road easements on state lands. County roads or easements for county roads on lands purchased from the state of Montana are subject to the provisions of Title 7, chapter 14, part 26, regarding the establishment, alteration, or abandonment of county roads.
Mont. Code Ann. § 77-3-204 — MT Code / Title 77 / Chapter 3 / Part 2 / Section 77-3-204
77-3-204 Royalty provisions
Status: in_force

77-3-204 . Royalty provisions. (1) All such leases shall be upon a royalty basis calculated upon a gross value by weight or cubic measurement as is most favorable for the particular substance being mined or extracted from the lands. The gross value shall be determined at the mine or site of operation, and the rates shall be the same that ordinarily would be charged by private owners under similar circumstances or as in the determination of the board is fair and reasonable.

(2) The board may demand a cash deposit to guarantee the payment of the royalties, a surety bond, or both a cash deposit and bond, as the board may determine.
Mont. Code Ann. § 77-1-121 — MT Code / Title 77 / Chapter 1 / Part 1 / Section 77-1-121
77-1-121 Environmental review compliance -- exemptions
Status: in_force

77-1-121 . Environmental review compliance -- exemptions. (1) Except as provided in 77-1-122 , 77-1-1112 , and subsection (2) of this section, the department and board are required to comply with the provisions of Title 75, chapter 1, parts 1 and 2, when implementing provisions within this title only if the department is actively proposing a sale or exchange or to issue a right-of-way, easement, placement of improvement, lease, license, or permit or is acting in response to an application for an authorization for a proposal.

(2) The department and board are exempt from the provisions of Title 75, chapter 1, parts 1 and 2, when issuing any lease or license that expressly states that the lease or license is subject to further permitting under any of the provisions of Title 75 or 82.

(3) Except for rulemaking and as provided in subsection (1), the department and board are otherwise exempt from the provisions of Title 75, chapter 1, parts 1 and 2, when implementing provisions within this title, including but not limited to the issuance of lease renewals. The department and board do not have an obligation to comply with the provisions of Title 75, chapter 1, parts 1 and 2, when implementing provisions within this title if the department or board chooses not to take any action, even though either may have the authority to take an action.

(4) The department and board are exempt from the provisions of Title 75, chapter 1, parts 1 and 2, when taking actions, including preparing plans or proposals, in relation to and in compliance with the following local government actions:

(a) development or adoption of a growth policy or a neighborhood plan pursuant to Title 76, chapter 1;

(b) development or adoption of zoning regulations;

(c) review of a proposed subdivision pursuant to Title 76, chapter 3;

(d) actions related to annexation;

(e) development or adoption of plans or reports on extension of services; and

(f) other actions that are related to local planning.

(5) The department and board are exempt from the provisions of Title 75, chapter 1, parts 1 and 2, when authorizing the following actions related to agricultural or grazing leases under Title 77, chapter 6, part 1:

(a) the repair, maintenance, or replacement of infrastructure;

(b) water developments that have a de minimis impact on the environment, including but not limited to placement of stockwater tanks and pipeline; and

(c) routine herbicide applications.
Mont. Code Ann. § 77-2-331 — MT Code / Title 77 / Chapter 2 / Part 3 / Section 77-2-331
77-2-331 Manner of making payments
Status: in_force

77-2-331 . Manner of making payments. (1) The department is not required to accept fractional payments of the installments on certificate of purchase on account of the complications arising from the division of payments.

(2) The purchaser may make payment of one or more installments before the same becomes due, but unless such payments are made at least 6 months before the installments become due, no reduction may be made in the interest payments. If installments on principal and interest are paid more than 6 months prior to the due date, the interest from the date of such payment shall be figured upon the balance of the principal unpaid after the advance payment has been made up to the date on which it comes due.

(3) If for any reason any installment is not paid when due, the total of that installment, including payment on the principal and payment on interest, shall draw penalty interest at the rate of 6% per annum from the date due until the date actually paid.

(4) Payment may be made in full at any time before maturity by paying the balance on the principal and interest accrued up to the date of such payment.
Mont. Code Ann. § 77-2-103 — MT Code / Title 77 / Chapter 2 / Part 1 / Section 77-2-103
77-2-103 Processing of application
Status: in_force

77-2-103 . Processing of application. (1) Upon the filing of an application and plats, the department shall, whenever it considers it necessary, examine the proposed right-of-way and report its findings to the board. The board shall consider the application and report and take any action it considers proper, including the fixing of compensation and damages to be paid to the state. The compensation must be the full market value of the estate or interest disposed of through the granting of the right-of-way easement, and the damages must be the actual damages resulting to the remaining land as nearly as they can be ascertained. If the right-of-way is granted according to the plat, the plat is the official plat of the right-of-way and must be retained in the office of the department.

(2) If the state land over or through which a right-of-way is applied for is under certificate of purchase or sales contract, the purchaser or the purchaser's assignee must be made a party to the proceedings and the purchaser's or assignee's consent in writing to the laying out and establishment of the proposed highway, street, or other easement and to the amount of compensation and damages to be paid must be filed with the board before the right-of-way is granted. The board is the judge of how much compensation and damages must be paid to the state and applied on the certificate of purchase or sales contract and of how much, if any, must be paid to the purchaser, as the circumstances in each individual case warrant. This subsection applies to all grants of rights-of-way on state lands.

(3) If the purpose of the right-of-way applied for is a regional water authority provided for in Title 75, chapter 6, part 3, the provisions of 77-2-351 related to public entities apply.

(4) A right-of-way easement issued pursuant to 77-2-102 (6) is exempt from the requirements of Title 22, chapter 3, part 4, and Title 75, chapter 1, parts 1 and 2.

(5) Damages for a lessee's improvements, crops, or leasehold interests are not allowed for right-of-way easement applications made pursuant to 77-2-102 (6).
Mont. Code Ann. § 77-3-123 — MT Code / Title 77 / Chapter 3 / Part 1 / Section 77-3-123
77-3-123 Failure of title
Status: in_force

77-3-123 . Failure of title. In issuing mining leases, the board and the state have leased only such right, title, and interest as the state has in the lands, metalliferous minerals, or gems therein contained. Neither the state, the board, nor any representative, agent, or employee of the state or the board are under any liability for the failure of the title of the state, in whole or in part, to the lands, metalliferous minerals, or gems covered by the lease.
Mont. Code Ann. § 77-4-109 — MT Code / Title 77 / Chapter 4 / Part 1 / Section 77-4-109
77-4-109 Conflicting leases
Status: in_force

77-4-109 . Conflicting leases. Where there are conflicting leases, including but not limited to geothermal, coal, mineral, and oil and gas leases, embracing the same land, the person who first was issued a lease shall be entitled to priority of rights; provided, however, that the exercise of this priority shall not interfere with actual production from the lease as determined by the board.
Mont. Code Ann. § 77-3-427 — MT Code / Title 77 / Chapter 3 / Part 4 / Section 77-3-427
77-3-427 Provision for offset wells -- compensatory royalties
Status: in_force

77-3-427 . Provision for offset wells -- compensatory royalties. (1) Oil and gas leases granted by the state shall contain suitable provisions imposing upon all lessees the obligation to drill offset wells wherever and whenever necessary to prevent waste and damage to the property of the state.

(2) The board may allow the lessee the following options in lieu of drilling an offset well:

(a) releasing the lands in question; or

(b) paying a compensatory royalty on a nonproducing lease if the board determines that such compensatory royalty will fully compensate the state for waste and damage to the property of the state. The compensatory royalty shall be based upon the estimated drainage, as determined by the board, and shall be paid on a monthly basis unless circumstances require otherwise.

(3) If the board or the lessee terminates the lease, that termination does not impair any implied covenant against drainage or the right of the board to seek damages from the lessee for the lessee's failure to protect the lease from drainage of oil or gas by a well adjacent to the state lease.
Mont. Code Ann. § 77-4-304 — MT Code / Title 77 / Chapter 4 / Part 3 / Section 77-4-304
77-4-304 Rental and disposition of rent and other receipts
Status: in_force

77-4-304 . Rental and disposition of rent and other receipts. (1) The rental payment to the state for a wind resource development lease may not be less than the full market value of the interest described in the approved lease.

(2) Rentals are credited to the income fund of the grant to which the lands under each lease belong.
Mont. Code Ann. § 77-4-123 — MT Code / Title 77 / Chapter 4 / Part 1 / Section 77-4-123
77-4-123 Extension of lease
Status: in_force

77-4-123 . Extension of lease. If geothermal resources are not being produced from the leased premises at the expiration of the primary term of the lease but the owner of the lease is then engaged in drilling on the premises for geothermal resources, then the lease term shall be extended for so long as the drilling operations are diligently continued. If geothermal resources are recovered from any well drilled after the expiration of the primary term, the lease shall continue in force so long as geothermal resources in paying quantities are produced from the leased premises.
Mont. Code Ann. § 77-2-323 — MT Code / Title 77 / Chapter 2 / Part 3 / Section 77-2-323
77-2-323 Sale procedure and limitation
Status: in_force

77-2-323 . Sale procedure and limitation. (1) At the time fixed for the sale, state land must be offered for sale at auction in the order that the land appears in the notice of sale. Under the direction of the department, the state land must be sold to the highest qualified bidder. State land may not be sold for less than the value determined by the board after appraisal by a qualified land appraiser.

(2) The state land must be sold as nearly as practicable according to the subdivisions in which it is advertised, and care must be taken not to subdivide any tract in such a way as to separate remaining portions from a water supply or from section lines or public highways.

(3) The sale may be adjourned from day to day until all the state land advertised has been offered for sale.
Mont. Code Ann. § 77-1-905 — MT Code / Title 77 / Chapter 1 / Part 9 / Section 77-1-905
77-1-905 Rental provisions for commercial leasing -- payments and credits -- administration -- lease options
Status: in_force

77-1-905 . Rental provisions for commercial leasing -- payments and credits -- administration -- lease options. (1) The first year's annual rental payment for state trust land leased for commercial purposes must be paid by cashier's check or electronic funds transfer, as defined in 32-6-103 , and payment is due upon execution of the lease. The department may require the lessee of state trust land for commercial purposes to pay the department's cost of the request for proposals process, including publication and other reasonable expenses. Failure to make the first year's rental payment at the time of lease execution must result in the cancellation of the lease and forfeiture of all money paid. In the event of cancellation or in the event that the successful proposer is offered and does not accept the lease, the board may enter into negotiations with other persons who submitted a proposal for commercial purposes in response to the department request for proposals on that tract.

(2) The annual rental payment is full market value and may not be less than the product of the land value multiplied by a rate that is 2 percentage points a year less than the rate of return of the unified investment program administered by the board of investments pursuant to 17-6-201 . The rate of return from the unified investment program used in this subsection must be determined no less than 30 days prior to the execution of the competitive bid. A commercial lease may include a rental adjustment formula established by the board that periodically adjusts the annual rental payment provided for in the lease at frequencies specified in the lease. The board may allow a credit against the annual rental payment for payments made by the lessee on behalf of the state of Montana for construction of structures and improvements, special improvement district assessments, annexation fees, or other city or county fees attributable to the state's property interest in land leased for commercial purposes. The board may accept as lawful consideration in-kind payments of services or materials equal to the full market rental value calculated for any commercial lease. A lease issued under this part may include an amortization schedule to be used to determine the value to the lessee of improvements when the lease is terminated.

(3) The department may use funds appropriated from the trust land administration account provided for in 77-1-108 to contract with realtors, property managers, surveyors, legal counsel, or lease administrators to administer the commercial lease, either singly or in common with other leases, or to provide assistance to the department in the administration of commercial leases.

(4) In anticipation of entering into a commercial lease, the board may issue an option to lease at a rental rate that the board determines to be appropriate. An option to lease may not be construed to grant a right of immediate possession or control over the land but may only preserve the optionholder's exclusive right to obtain a commercial lease on the land in the future.
Mont. Code Ann. § 77-2-207 — MT Code / Title 77 / Chapter 2 / Part 2 / Section 77-2-207
77-2-207 Approval or disapproval of exchanges
Status: in_force

77-2-207 . Approval or disapproval of exchanges. All exchanges of state lands are subject to approval and confirmation by the board, and no exchange is considered completed until after such approval and confirmation. The board has the power and it is its duty to disapprove any exchange which in its opinion would be disadvantageous to the state.
Mont. Code Ann. § 77-3-206 — MT Code / Title 77 / Chapter 3 / Part 2 / Section 77-3-206
77-3-206 Disposition of royalties, fees, and penalties
Status: in_force

77-3-206 . Disposition of royalties, fees, and penalties. The royalties, fees, and penalties received under these leases shall be credited to the various funds to which they properly belong in the same manner as is now provided for crediting the same under oil and gas leases.
Mont. Code Ann. § 77-1-137 — MT Code / Title 77 / Chapter 1 / Part 1 / Section 77-1-137
77-1-137 Terminated
Status: in_force

77-1-137 . Terminated. Sec. 7, Ch. 380, L. 1999.
Mont. Code Ann. § 77-3-323 — MT Code / Title 77 / Chapter 3 / Part 3 / Section 77-3-323
77-3-323 Audit -- notice -- action to compel payment
Status: in_force

77-3-323 . Audit -- notice -- action to compel payment. (1) Except as provided in subsection (2), the department may, within 5 years of the filing of a report pursuant to 77-3-317 , commence an audit of a lessee's or former lessee's operation to determine whether the report is complete and accurate and whether all royalties owed have been paid. The department shall notify the lessee in writing of the audit. The notice must describe the period for which the audit is being conducted. Upon conclusion of the audit, the department shall notify the lessee of the department's conclusions and, if the department has determined that additional royalties are owed, the basis for that determination. An action to compel payment of royalties due must be commenced within 2 years of the date of mailing the notice.

(2) If a lessee or former lessee, with intent to evade payment of royalties, purposely or knowingly files a false report or purposely or knowingly fails to pay royalties owed, the department may conduct an audit and file an action to collect royalties at any time after the royalties are due.
Mont. Code Ann. § 77-3-305 — MT Code / Title 77 / Chapter 3 / Part 3 / Section 77-3-305
77-3-305 Limitations on leasing
Status: in_force

77-3-305 . Limitations on leasing. (1) The board may not issue leases to any citizen of another country or any person, partnership, corporation, association, or other legal entity controlled by interests foreign to the United States unless that country provides for similar or like privileges to citizens of the United States.

(2) The board shall consider whether the extraction of the coal from those lands by strip-mining methods would adversely affect the methods of recovery of deep minable coal from those operations on those lands in the future.
Mont. Code Ann. § 77-3-438 — MT Code / Title 77 / Chapter 3 / Part 4 / Section 77-3-438
77-3-438 Assignments of leases
Status: in_force

77-3-438 . Assignments of leases. (1) The assignment of any oil and gas lease issued under this part, either in whole or as to subdivisions of land embracing not less than 40 acres covered thereby, made to an assignee qualified as provided herein is permitted. Such assignment is not, however, binding upon the state until filed with the department and accompanied by the required fees, together with such proof of qualifications required by the board, and approved by the board or its lawful representative. The approval of any assignment so filed and supported may not be withheld in any case where the rights or interest of the state in the property assigned will not in the judgment of the board be prejudiced thereby, and the decision of the board in all cases is subject to appeal upon proper court proceedings.

(2) All other assignments of oil and gas leases issued under this part or interests therein are subject to approval by the board and are binding upon the state in the discretion of the board.
Mont. Code Ann. § 77-1-134 — MT Code / Title 77 / Chapter 1 / Part 1 / Section 77-1-134
77-1-134 Irrigation structures, utility structures, and bridges of formerly taxable land -- water rights
Status: in_force

77-1-134 . Irrigation structures, utility structures, and bridges of formerly taxable land -- water rights. (1) If an irrigation structure, a utility structure, or a bridge was placed on land that consists of the bed of a navigable river or stream, the irrigation structure, utility structure, or bridge remains the property of the original owner or the original owner's successors in interest or assignees. Subject to 77-1-1112 (10), access to the irrigation structures, utility structures, and bridges described in this section for the purposes of operation, maintenance, repair, enhancement, or improvement may not be impeded by the state.

(2) Subject to 77-1-1112 (10), the change of designation of the bed of a navigable river or stream from a taxable to a nontaxable status may not interfere with or impede the exercise of a water right, including a livestock watering right for which a claim was not required to be filed pursuant to 85-2-212 and 85-2-222 .
Mont. Code Ann. § 77-2-330 — MT Code / Title 77 / Chapter 2 / Part 3 / Section 77-2-330
77-2-330 Computation of interest and payment schedule
Status: in_force

77-2-330 . Computation of interest and payment schedule. The balance of the purchase price shall draw interest from the date on which the sale was confirmed and approved by the board, and all installments on principal and interest shall become due and payable on that date in each succeeding year until payment has been made in full.
Mont. Code Ann. § 77-2-204 — MT Code / Title 77 / Chapter 2 / Part 2 / Section 77-2-204
77-2-204 Notification of proposed exchange -- hearing
Status: in_force

77-2-204 . Notification of proposed exchange -- hearing. (1) Upon receipt of a proposal for an exchange of land under this part, the board shall give notice of the proposed exchange by certified mail to each person who has leased, under chapter 1 of this title, any portion of land involved in the proposed exchange. Any such leaseholder may present written or oral comments on the proposed exchange to the board before or during the hearing required by subsection (2). The notice must contain a statement informing the recipient of this right to comment.

(2) A public hearing on any exchange under this part shall be held in the county containing the state land to be exchanged. When specific objections to the proposed exchange are raised before or during any such hearing pursuant to subsection (1), the board shall make findings of fact responding to such objections and explaining their action.
Mont. Code Ann. § 77-2-337 — MT Code / Title 77 / Chapter 2 / Part 3 / Section 77-2-337
77-2-337 Disposition of sale proceeds
Status: in_force

77-2-337 . Disposition of sale proceeds. (1) Except as provided in 77-2-362 and subsection (3) of this section, the proceeds from the state land sold, including all subsequent payments on the principal, must be credited to the permanent fund arising from the grant to which it belongs and must become and forever remain an inseparable and inviolable part of the permanent fund.

(2) All payments on interest must be credited to the proper income fund and must be available for use as provided by law.

(3) (a) Proceeds from the sale of any state trust land, as authorized by 77-2-361 through 77-2-367 , must be deposited into the state land bank fund established in 77-2-362 to be used for the purposes described in 77-2-362 and 77-2-364 for the long-term financial benefit of the beneficiaries for whom the funds were deposited.

(b) If the proceeds from the sale of state trust land, as authorized by 77-2-361 through 77-2-367 , are not used for the purposes described in 77-2-362 and 77-2-364 , the proceeds from the sale and any earnings on the proceeds must be deposited pursuant to subsection (1) of this section.
Mont. Code Ann. § 77-3-506 — MT Code / Title 77 / Chapter 3 / Part 5 / Section 77-3-506
77-3-506 Disposition of leased land
Status: reserved

77-3-506 . Disposition of leased land. In every lease granted pursuant to the terms hereof there shall be reserved unto the state the right to sell, lease, or otherwise dispose of the lands covered thereby, subject always to the rights and privileges granted unto the lessee under a lease provided for by this part.
Mont. Code Ann. § 77-3-106 — MT Code / Title 77 / Chapter 3 / Part 1 / Section 77-3-106
77-3-106 Disposition of royalties, fees, and penalties
Status: in_force

77-3-106 . Disposition of royalties, fees, and penalties. All fees and penalties collected under this part shall be credited to the state general fund; all rentals shall be credited to the income fund of the grant to which the land belongs; and all moneys collected as royalties shall be credited to the permanent fund arising from the grant to which the land belongs under each particular permit or lease; provided, however, that all rentals and royalties received from "mortgage lands" shall be credited to the same fund or funds as other receipts from such lands and that all rentals and royalties received under or in connection with a lease or permit on other lands or mineral rights not acquired through any grant to the state of Montana from the United States shall be paid into the same funds into which such receipts are paid when the land is part of the grant for the benefit of the public schools of the state of Montana.
Mont. Code Ann. § 77-1-115 — MT Code / Title 77 / Chapter 1 / Part 1 / Section 77-1-115
77-1-115 Punishments
Status: in_force

77-1-115 . Punishments. (1) An officer, employee, or representative of the state who is found guilty of a felony as defined in 77-1-112 is punishable by imprisonment in the state penitentiary for not less than 1 or more than 10 years, by a fine that may not be less than $500 or less than twice the amount of the loss that resulted to the state through the crime of which the officer, employee, or representative has been convicted, or by both.

(2) An officer, employee, or representative of the state who is found guilty of a misdemeanor as defined in 77-1-112 is punishable by imprisonment in a county jail not to exceed 1 year, by a fine that may not be less than $100 or less than twice the amount of the loss that resulted to the state through the crime of which the officer, employee, or representative has been convicted, or by both.
Mont. Code Ann. § 77-5-201 — MT Code / Title 77 / Chapter 5 / Part 2 / Section 77-5-201
77-5-201 Sale of timber
Status: in_force

77-5-201 . Sale of timber. (1) Under the direction of the board, the department may sell the timber crop and other crops of the forests after examination, estimate, appraisal, and report and under any rules established by the board. Timber or forest products sold from state trust lands may be sold by a stumpage method or a lump-sum method or marketed by the state through contract harvesting as provided in 77-5-214 through 77-5-219 .

(2) Timber proposed for sale in excess of 500,000 board feet must be advertised in a paper of the county in which the timber is situated or on the department's website for a period of at least 30 days, during which time the department must receive sealed bids up to the hour of the closing of the bids, as specified in the notice of sale.

(3) (a) In cases of emergency because of fire, insect, fungus, parasite, or blowdown or to address forest health concerns or in cases when the department is required to act immediately to take advantage of access granted by permission of an adjoining landowner, timber proposed for sale not in excess of 1 million board feet may be advertised by invitation to bid for a period of not less than 10 days. The department may reject any bids, upon approval of the board, or it shall award the sale to the highest responsible bidder.

(b) (i) In cases when the department is required to act immediately to take advantage of access granted by permission of an adjoining landowner and there is only one potential buyer with legal access, the department may negotiate a sale of timber not in excess of 2 million board feet without offering the timber for bid if the sale is for fair market value.

(ii) The provisions of subsection (3)(b)(i) do not apply to situations when the only access is totally controlled by a potential purchaser of the timber, in which case the department shall seek to negotiate permanent, reciprocal access.

(c) In the situations described in subsections (3)(a) and (3)(b)(i), the department is not required to comply with the provisions of 75-1-201 (1) to the extent that compliance is precluded by limited time available to take advantage of the sales opportunities described by this subsection (3).
Mont. Code Ann. § 77-1-705 — MT Code / Title 77 / Chapter 1 / Part 7 / Section 77-1-705
77-1-705 Index and verification of ownership records
Status: in_force

77-1-705 . Index and verification of ownership records. (1) The department shall establish and maintain a filing system and index of the following information on state land:

(a) legal description of the land;

(b) when the land was acquired or disposed of;

(c) name of the state agency administering or disposing of the land; and

(d) name of the grantor or grantee.

(2) To the extent feasible within available funding and personnel, the department shall:

(a) verify the accuracy of information contained in the ownership records; and

(b) perfect title to state land whenever necessary.
Mont. Code Ann. § 77-3-512 — MT Code / Title 77 / Chapter 3 / Part 5 / Section 77-3-512
77-3-512 Disposition of lessee's property upon termination of lease
Status: in_force

77-3-512 . Disposition of lessee's property upon termination of lease. Upon the termination for any cause of any lease issued under 77-3-501 , the lessee has 6 months after the date of the termination within which to remove all machinery, fixtures, improvements, buildings, and equipment belonging to it upon the premises.
Mont. Code Ann. § 77-4-303 — MT Code / Title 77 / Chapter 4 / Part 3 / Section 77-4-303
77-4-303 Lease provisions
Status: in_force

77-4-303 . Lease provisions. (1) A lessee under this part has exclusive rights of possession of the lands or interest leased, subject to conditions in the lease and compliance with the lease.

(2) The state reserves the right in leases under this part to sell, lease, or otherwise dispose of the surface, and the right to lease or exchange the subsurface, of the lands covered by the lease subject to the rights and privileges granted the lessee under the terms of the lease.

(3) A lease must specify the rental to be paid, duration, reasonable forfeiture provisions, bonding, and decommissioning terms.

(4) A lease may contain other provisions that the board and the lessee agree upon that are consistent with this part.
Mont. Code Ann. § 77-4-201 — MT Code / Title 77 / Chapter 4 / Part 2 / Section 77-4-201
77-4-201 Lease or license of power sites
Status: in_force

77-4-201 . Lease or license of power sites. It is unlawful to sell or advertise for sale state lands constituting power sites or part of power sites capable of developing hydroelectric energy in commercial quantities. However, the board may issue a lease or license to any person, corporation, or municipality for the development of power sites and the distribution, use, and disposition of the electrical energy generated on the sites as specifically provided in this chapter.
Mont. Code Ann. § 77-2-205 — MT Code / Title 77 / Chapter 2 / Part 2 / Section 77-2-205
77-2-205 Restriction on exchange for nongovernment-owned land
Status: in_force

77-2-205 . Restriction on exchange for nongovernment-owned land. An exchange for nongovernment-owned land under 77-2-203 may not be made that will induce or encourage large-scale commercial, industrial, or residential development unless the development value is considered in determining the fair market value and unless the proposed development will not adversely affect the resources of the existing state tracts or those tracts that the state would receive under the proposed exchange.
Mont. Code Ann. § 77-2-333 — MT Code / Title 77 / Chapter 2 / Part 3 / Section 77-2-333
77-2-333 Reinstatement of canceled certificates of purchase
Status: in_force

77-2-333 . Reinstatement of canceled certificates of purchase. (1) In all cases in which a certificate of purchase of state lands has been canceled and annulled as provided by law and the lands under the certificate have not been resold to another purchaser, the board may in its discretion reinstate the canceled certificate upon:

(a) proper application made in writing by the original purchaser or the original purchaser's heirs, assigns, or devisees, filed within 1 year and 6 months from the cancellation;

(b) payment of all delinquent installments of principal and interest on the certificate, together with penalty interest at the rate of 6% a year upon all delinquent installments from the date due until the date of actual payment; and

(c) the furnishing of proof from the county treasurer showing that there are no tax liens against the land.

(2) This reinstatement does not have the effect of canceling any lease that the state may have issued on the land or affecting any of the provisions of the lease.
Mont. Code Ann. § 77-1-217 — MT Code / Title 77 / Chapter 1 / Part 2 / Section 77-1-217
77-1-217 Payment of certain obligations
Status: in_force

77-1-217 . Payment of certain obligations. Obligations for the acquisition of land incurred by the board under the authority of 77-1-214 shall be paid solely and exclusively from revenues derived from such lands and shall not impose any liability upon the general credit and taxing power of the state.
Mont. Code Ann. § 77-5-402 — MT Code / Title 77 / Chapter 5 / Part 4 / Section 77-5-402
77-5-402 Definitions
Status: in_force

77-5-402 . Definitions. As used in this part, the following definitions apply:

(1) "Community and urban forestry" means the planning, establishment, protection, care, and management of trees and associated plants individually, in small groups, or under forest conditions within municipalities and counties.

(2) "Department" means the department of natural resources and conservation provided for in 2-15-3301 .

(3) "Local government" means a city, town, county, consolidated city-county, or other political subdivision of the state.
Mont. Code Ann. § 77-5-203 — MT Code / Title 77 / Chapter 5 / Part 2 / Section 77-5-203
77-5-203 Breach of timber sale agreement
Status: in_force

77-5-203 . Breach of timber sale agreement. For breach of timber sale agreement, the department may suspend cutting or removal of the timber and take such steps as are advisable upon advice and counsel of the attorney general to adjust the breach or to liquidate the state's claim for damages or it may submit the case with full report as to damages sustained by the state to the attorney general for collection on the bond.
Mont. Code Ann. § 77-2-107 — MT Code / Title 77 / Chapter 2 / Part 1 / Section 77-2-107
77-2-107 Involvement of lessee when land subject to prior lease
Status: in_force

77-2-107 . Involvement of lessee when land subject to prior lease. (1) Except as provided in 77-2-103 (5), whenever any kind of right-of-way easement has been granted under this part and the state land in which it is granted is under lease, the party receiving the grant shall give timely notice to the lessee and shall make just settlement with the lessee for any damages resulting to the lessee's improvements, crops, or leasehold interests.

(2) After the settlement is made, the lessee shall open or move any fences that may obstruct the right-of-way over the lands under lease and otherwise cooperate in the opening of the right-of-way. Proof must be filed with the board that the settlement has been made before the deed to the easement is issued.

(3) (a) If the lessee and the party receiving the right-of-way easement are unable to agree on the value of the damages resulting from the easement, the value of the damages must be ascertained and fixed by three arbitrators, one of whom must be appointed by the lessee, one by the party receiving the easement, and the third by the two appointed arbitrators.

(b) If a party refuses to appoint an arbitrator within 15 days of being requested to do so by the director of the department, the director may appoint an arbitrator for that party. An arbitrator appointed by the director has the same duties and powers as if appointed by one of the parties.

(c) The arbitrators may fix reasonable compensation for their services. The compensation must be paid in equal shares by the owner of the easement and the lessee.

(d) The value of the damages as ascertained and fixed by the arbitrators is binding on both parties; however, if either party is dissatisfied with the valuation, the party may, within 10 days, appeal from their decision to the department. The department shall examine the easements, and, except as provided in subsection (3)(e), its decision on the appeal is final. The department shall collect the actual cost of the reexamination from the owner of the easement and the lessee in the proportion that, in its judgment, justice may demand.

(e) If either party is dissatisfied with the valuation fixed by the department, the party may within 30 days after receipt of the department's decision petition the district court in the county in which the majority of the state land is located for judicial review of the decision.
Mont. Code Ann. § 77-2-344 — MT Code / Title 77 / Chapter 2 / Part 3 / Section 77-2-344
77-2-344 Copy of deed or patent as evidence
Status: in_force

77-2-344 . Copy of deed or patent as evidence. A certified copy of the record of any such deed or patent shall be received in evidence in all courts of record of this state the same as the original.
Mont. Code Ann. § 77-2-363 — MT Code / Title 77 / Chapter 2 / Part 3 / Section 77-2-363
77-2-363 Land banking land sales and limitations -- sale preparation costs
Status: in_force

77-2-363 . Land banking land sales and limitations -- sale preparation costs. (1) (a) The board may not cumulatively sell or dispose of more than 250,000 acres of state land. Seventy-five percent of the acreage cumulatively sold must be isolated parcels that do not have a legal right of access by the public. At any one time during the life of the land banking process, the board may not sell more than 20,000 acres of state land unless the board has acted to use the revenue from that land to make purchases pursuant to 77-2-364 .

(b) The estimated fair market value must be determined by a Montana-licensed and Montana-certified appraiser.

(2) (a) A person bidding to purchase state land offered for sale shall 20 days prior to the day of auction deposit with the department a bid bond in the form of a certified check or cashier's check drawn on any Montana bank or an electronic funds transfer, as defined in 32-6-103 , equal to at least 20% of the minimum sale price specified by the department pursuant to 77-2-323 (1) to guarantee the bidder's payment of the purchase price. Bid bonds submitted to secure a bid on a parcel formerly leased as a cabin or home site need only be equal to 5% of the minimum sale price as specified by the department.

(b) Except as provided in subsection (2)(c), if the current lessee of the land to be sold has initiated the sale as authorized by 77-2-364 , the lessee may cancel the sale by giving notice to the department at least 10 days prior to the day of the auction. When the sale is canceled by the lessee, the lessee shall pay the costs incurred by the department for the preparation of the sale, including any costs incurred for preparation of documents required by 75-1-201 .

(c) If the land to be sold is a leased cabin or home site as provided in 77-2-318 and the current lessee has initiated the sale as authorized by 77-2-364 , the lessee may cancel the sale by giving notice to the department at least 10 days prior to the day of the auction unless another person has deposited a bid bond per subsection (2)(a), at which point the sale cannot be canceled by the lessee. When the sale is canceled by the lessee, the lessee shall pay the costs incurred by the department for the preparation of the sale, including any costs incurred for preparation of documents required by 75-1-201 .

(d) The department shall retain the bid bond of the successful bidder and shall return the bid bonds of the unsuccessful bidders. If the successful bidder fails to comply with the terms of the sale for any reason, the successful bidder's bid bond must be forfeited and credited to the interest and income account of the proper trust.

(3) Except for a sale that is initiated by the lessee of the parcel of land proposed for sale, prior to the proposed sale of any parcel of state land under the land banking process, the board shall give 60 days' notice of the proposed sale to the lessee of the parcel to allow the lessee sufficient time to determine whether the lessee wishes to propose an exchange of the land to the board.

(4) For a sale initiated by the board, the department, or the cabin or home site lessee, the lessee of the land must be afforded all the rights and privileges to match the high bid as provided in 77-2-324 .

(5) (a) Except as provided in subsection (6), when the lessee has initiated a sale of land under this section, the lessee shall remit to the department the estimated costs of preparing the parcel for sale, including but not limited to appraisals, cultural surveys, environmental review pursuant to Title 75, chapter 1, parts 1 through 3, and land surveys, if necessary. Payment must be made within 10 days after the board has provided preliminary approval for the sale of the parcel.

(b) If the parcel is sold to the lessee, the funds remitted for the costs of the sale must be applied to the actual costs at closing. If the parcel is sold to a party other than the lessee, the funds remitted by the lessee must be refunded to the lessee and the actual costs of preparing the parcel for sale must be assessed to the purchaser at closing.

(6) For the sale of a cabin or home site, the department shall prepare and assume the cost of the land survey. The department may allow the survey to be paid for in advance by the lessee or the owner of any improvements if the survey is contracted through the department according to department specifications. If the parcel is sold but the purchaser is other than the lessee or the owner of the improvements, the cost of the survey must be included in the actual costs at closing and the department shall refund the cost of the survey to the former lessee or the owner of the improvements.

(7) The sale of a cabin or home site is exempt from the provisions of Title 75, chapter 1, parts 1 through 3.
Mont. Code Ann. § 77-1-704 — MT Code / Title 77 / Chapter 1 / Part 7 / Section 77-1-704
77-1-704 Department to maintain repository
Status: in_force

77-1-704 . Department to maintain repository. The department shall provide a secure yet accessible repository for the ownership records of state land.
Mont. Code Ann. § 77-6-113 — MT Code / Title 77 / Chapter 6 / Part 1 / Section 77-6-113
77-6-113 Lease conditions -- cancellation
Status: in_force

77-6-113 . Lease conditions -- cancellation. (1) It is a condition of all leases of agricultural or grazing state lands that:

(a) in the case of agricultural lands, the lessee shall observe the ordinary rules for good management of agricultural lands and shall handle the leased land with the view of maintaining its productivity and minimizing wind and soil erosion and noxious weeds and planting crops with a view of securing the greatest yields of good quality; and

(b) in the case of grazing lands, the lessee shall observe the ordinary rules for good range management and shall manipulate the numbers, class, distribution, and season of the range use and the handling, feeding, breeding, and marketing of grazing livestock with a view of securing the production of the maximum of livestock and livestock products, consistent with the conservation of the land resources and the perpetuation of its productivity, and to these ends the state land lease may not be abused by overgrazing.

(2) For the gross violation of any of these rules, the lease involved must be canceled by the department, subject to the appeal procedure provided in 77-6-211 .

(3) This section may not be construed to interfere with the right of the owner of property adjacent to a navigable river or stream to control noxious weeds on the land adjacent to the navigable river or stream.
Mont. Code Ann. § 77-4-102 — MT Code / Title 77 / Chapter 4 / Part 1 / Section 77-4-102
77-4-102 Definitions
Status: in_force

77-4-102 . Definitions. Unless the context requires otherwise, in this part, the following definitions apply:

(1) "Geothermal development" means any of the operations or facilities necessary for the production of geothermal resources.

(2) "Geothermal resources" means the natural heat energy of the earth, including the energy, in whatever form, which may be found in any position and at any depth below the surface of the earth, either present in, resulting from, created by, or which may be extracted from such natural heat and all minerals in solution or other products obtained from the material medium of any geothermal resource.
Mont. Code Ann. § 77-6-306 — MT Code / Title 77 / Chapter 6 / Part 3 / Section 77-6-306
77-6-306 Arbitrators to fix value of improvements
Status: in_force

77-6-306 . Arbitrators to fix value of improvements. (1) If the owner of any improvements on state lands of the type authorized by law at the time they were placed on state lands desires to sell these improvements to the new lessee and they are unable to agree on the value of the improvements pursuant to 77-6-302 , the value must be ascertained and fixed by three arbitrators, one of whom is appointed by the owner of the improvements, one by the new lessee, and the third by the two appointed arbitrators. If any party refuses to appoint an arbitrator within 15 days of being requested to do so by the director of the department, the director may appoint an arbitrator for that party. An arbitrator appointed by the director has the same duties and powers as if appointed by one of the parties. The value of the improvements must be ascertained and fixed pursuant to 77-6-302 .

(2) The reasonable compensation that the arbitrators may fix for their services must be paid in equal shares by the owner of the improvements and the new lessee.

(3) The value of the improvements ascertained and fixed is binding on both parties. If either party is dissatisfied with the valuation, the party may within 10 days appeal from the decision to the department. The department shall examine the records pertaining to the costs of the improvements, and except as provided in subsection (4), its decision is final. The department shall charge and collect the actual cost of the reexamination to the owner and the new lessee in the proportion as, in its judgment, justice may demand.

(4) If either party is dissatisfied with the valuation fixed by the department, the party may within 30 days after receipt of the department's decision petition the district court in the county in which the majority of the state land is located for judicial review of the decision.
Mont. Code Ann. § 77-6-506 — MT Code / Title 77 / Chapter 6 / Part 5 / Section 77-6-506
77-6-506 Date when rental due -- penalty -- cancellation for nonpayment
Status: in_force

77-6-506 . Date when rental due -- penalty -- cancellation for nonpayment. (1) For a grazing lease, for the grazing portion of a lease containing both agricultural and grazing land, and for agricultural leases not based on a crop share, the grazing rental for the first year of the lease must be paid at or before the time of the execution of the lease; however, in the case of a lease that takes effect on and after October 1 and before the expiration of the coming February, both the rental for the fractional year and for the next full year beginning March 1 must be paid and collected at the time of issuing the lease. If the United States is the lessee of state lands for grazing purposes, the rental is payable at the end of each year of the lease. The rental for each succeeding year on a lease issued after July 1, 1999, with the exception of a lease that involves the United States as the lessee, is due and payable before March 1. If the rental is not paid before March 1, a $25 penalty must be imposed on the lessee. If the full rental and the $25 penalty are not paid by April 1, the entire lease is canceled.

(2) For an agricultural lease and for the agricultural portion of a lease containing both grazing and agricultural land, when the rental is paid on a crop share basis, on a cash lease basis, or on a crop share/cash basis, the rental is due in cash on or before November 15 of the year in which the crop is harvested. If the rental is not paid on or before November 15 of the year of crop harvest, a $25 penalty must be imposed on the lessee. If the full rental and the $25 penalty are not paid on or before December 31 of the year in which the crop is harvested, the entire lease is canceled. The department may extend the deadline in writing. If the lessee does not make the rental payment by the date of extension, the entire lease is canceled. Any rental payment made after November 15 of the year in which the crop is harvested, including payment made after an extension of the deadline, must include the $25 penalty.

(3) For all state land leases and licenses other than those described in subsections (1) and (2), the department shall impose a $25 penalty for failure to make a rental payment by any deadline established by statute, by rule, or in the lease or license.

(4) At least 2 weeks prior to the final deadline for payment under subsection (1) or (2), the department shall send by certified mail to each lessee who has not made payment a letter notifying the lessee that the lease is canceled if payment and the $25 penalty are not received by the final deadline. The notice must be sent to the lessee at the address given in the lease.

(5) When a lease is canceled under subsection (1) or (2), the department shall notify the lessee of the cancellation by letter at the address given in the lease.

(6) The department may, within 30 days of cancellation, reinstate a canceled agricultural, grazing, or other surface lease upon payment of the rental that is owing, plus a penalty not to exceed three times the annual rental, except that a penalty imposed under this subsection may not be less than $500.

(7) A canceled lease that is not reinstated must be made available for lease as provided in 77-6-202 .

(8) The penalties collected pursuant to this section must be deposited into the same trust account as the rentals from the state land to which the penalties apply.
Mont. Code Ann. § 77-3-103 — MT Code / Title 77 / Chapter 3 / Part 1 / Section 77-3-103
77-3-103 Prospecting permits authorized
Status: in_force

77-3-103 . Prospecting permits authorized. Prospecting permits without lease may be issued by the board upon the payment of the issuance fee under 77-1-302 . The permittee shall also pay an annual fee established by the department and approved by the board at the end of each year during the life of the permit. A permit shall provide for due diligence in the work of prospecting during the life of the permit.
Mont. Code Ann. § 77-3-401 — MT Code / Title 77 / Chapter 3 / Part 4 / Section 77-3-401
77-3-401 Oil and gas leases authorized
Status: reserved

77-3-401 . Oil and gas leases authorized. (1) The board is hereby authorized and empowered to lease in such manner as it may determine, not inconsistent with The Enabling Act and the constitution, any state lands to which the title has vested in the state and in which the oil and gas rights are not reserved by the United States, for prospecting and exploring for oil and gas, mining, drilling, developing, and removing the same upon the terms and conditions herein prescribed to any person, association, corporation, domestic or foreign, or municipality qualified under the constitution and the laws of the state.

(2) This power and authority to lease state lands for such purposes shall extend to and include all lands owned by the state under navigable lakes and streams and shall also extend to and include all those state lands which have been sold but in which the oil and gas rights have been reserved by the state; but in such cases and in all cases where the lands are under lease for grazing, agriculture, or similar purposes, care shall be taken in issuing the oil and gas leases to protect the rights of the purchaser or lessee.
Mont. Code Ann. § 77-1-128 — MT Code / Title 77 / Chapter 1 / Part 1 / Section 77-1-128
77-1-128 Administrative hearings
Status: in_force

77-1-128 . Administrative hearings. (1) A person adversely affected by any notice, action, or order of the department may, within the timeframe stated in the notice of noncompliance provided for in 77-1-126 , request an administrative hearing before the director or the director's designee. The director or the director's designee shall hold a hearing within 30 days of the request. Participants may be represented by legal counsel. The director or the director's designee shall make a record of the proceeding and enter an order and findings within 30 days after the hearing.

(2) Within 30 days after the director or the director's designee renders an order and findings, the person adversely affected may file a petition in district court requesting that the order and findings be set aside or modified. The court may affirm, modify, or set aside the order complained of, in whole or in part.
Mont. Code Ann. § 77-3-439 — MT Code / Title 77 / Chapter 3 / Part 4 / Section 77-3-439
77-3-439 Surrender of leases
Status: in_force

77-3-439 . Surrender of leases. The lessee under any oil and gas lease granted by the state may at the termination of any rental year, by giving to the department 30 days' previous notice in writing, surrender and relinquish the lease to the state in whole or as to any legal subdivision of the lands covered thereby and be discharged from any obligation not yet accrued as to lands so surrendered and relinquished without prejudice to the continuance of the lease as to lands not surrendered or relinquished.
Mont. Code Ann. § 77-3-302 — MT Code / Title 77 / Chapter 3 / Part 3 / Section 77-3-302
77-3-302 Lands subject to coal leasing
Status: reserved

77-3-302 . Lands subject to coal leasing. The authority to lease extends to state lands no matter how acquired and extends to state lands which have been sold but in which the coal rights are reserved by the state, whether the lands are under certificate of purchase or patents have been issued.
Mont. Code Ann. § 77-6-207 — MT Code / Title 77 / Chapter 6 / Part 2 / Section 77-6-207
77-6-207 Form of lease -- bond optional
Status: in_force

77-6-207 . Form of lease -- bond optional. The general form of lease to state lands shall be prescribed by the board, and no changes in the form for these leases may be made without the approval of the board. All leases shall be issued in duplicate, one copy shall be mailed to the lessee, and one copy shall be preserved by the department. Unless the board decides otherwise, these leases shall be issued without bonds, but the board may require a bond and prescribe the form and conditions thereof whenever it considers it necessary.
Mont. Code Ann. § 77-6-505 — MT Code / Title 77 / Chapter 6 / Part 5 / Section 77-6-505
77-6-505 No reduction for summer fallow
Status: in_force

77-6-505 . No reduction for summer fallow. No credit or reduction or refund in rental shall be allowed any lessee of agricultural or grazing state land on account of summer fallow.
Mont. Code Ann. § 77-1-809 — MT Code / Title 77 / Chapter 1 / Part 8 / Section 77-1-809
77-1-809 Compensation for damage to improvements, growing crops, or livestock
Status: in_force

77-1-809 . Compensation for damage to improvements, growing crops, or livestock. A lessee may apply to the department for reimbursement of documented costs of repair to or replacement of improvements, growing crops, or livestock damaged by recreational users of state lands. For the purpose of this section, improvements include the structures described in 77-1-134 . The application must include an affidavit by the applicant setting forth the nature of the loss, allegations and reasonable proof supporting the involvement of recreational users, and documentation of repair or replacement costs. Upon review of the application and supporting proof and upon additional investigation as required, the department shall grant, modify, or deny the claim. The department, by reason of payment to the lessee for damage to improvements, is entitled to be subrogated to the rights of the lessee to recover the amount paid from the party causing the damage. Payments under this section must be made from appropriations from the trust land administration account established by 77-1-108 , and the liability of the department for damage payments is limited to 10% of revenue received from the recreational use fee and deposited in the account. Claim applications are to be considered in the order they are received.
Mont. Code Ann. § 77-3-407 — MT Code / Title 77 / Chapter 3 / Part 4 / Section 77-3-407
77-3-407 New leases on lands leased prior to February 28, 1953
Status: in_force

77-3-407 . New leases on lands leased prior to February 28, 1953. (1) In the case of all leases issued under the provisions in force prior to February 28, 1953, where oil or gas is being produced, the board shall at the expiration thereof or termination for any cause advertise the land held thereunder for re-leasing and lease the same to the highest responsible bidder therefor at public auction on the terms then existing for such leasing. Any person, association, firm, or corporation who held such lease at the expiration thereof shall have the privilege of re-leasing the same at such highest responsible bid offered therefor upon such terms and conditions as may be prescribed by the board or the legislature.

(2) In the case of all leases issued under the provisions in force prior to February 28, 1953, where oil or gas is not being produced, the board may at the expiration thereof or termination for any cause advertise the land held thereunder for re-leasing and lease the same to the highest responsible bidder therefor at public auction if in the judgment of the board such advertising and public auction will result in leasing of the land on terms advantageous to the state.
Mont. Code Ann. § 77-1-213 — MT Code / Title 77 / Chapter 1 / Part 2 / Section 77-1-213
77-1-213 Acceptance of gifts, donations, grants, legacies, and devises to the state
Status: in_force

77-1-213 . Acceptance of gifts, donations, grants, legacies, and devises to the state. (1) The board is hereby authorized and empowered to accept on behalf of the state from any natural person gifts, donations, grants, legacies, and devises having a value of not less than $250 from each person. All lands passing to the state under these provisions or through the operation of law shall be managed as other state lands, and the rents and earnings shall be applied in accordance with the object and purpose specified by the grantor, subject to all constitutional limitations.

(2) All money realized from the sale of such lands and from other property and all gifts, donations, grants, legacies, and devises made in money or the equivalent of money shall be administered by the board for the benefit of the specific purposes designated by the person from whom they were received and as further regulated by this title. The provisions of this section shall apply to gifts, donations, grants, legacies, and devises already made to the state and now under the administration of the board if not contrary to any specific provisions made therein by the persons from whom they were received.
Mont. Code Ann. § 77-1-804 — MT Code / Title 77 / Chapter 1 / Part 8 / Section 77-1-804
77-1-804 Rules for recreational use of state lands -- penalty
Status: in_force

77-1-804 . Rules for recreational use of state lands -- penalty. (1) The board shall adopt rules authorizing and governing the recreational use of state lands allowed under 77-1-203 . The board shall use local offices of the department to administer this program whenever practical.

(2) Rules adopted under this section must address the circumstances under which the board may close legally accessible state lands to recreational use. Action by the board may be taken upon its own initiative or upon petition by an individual, organization, corporation, or governmental agency. Closures may be of an emergency, seasonal, temporary, or permanent nature. State lands may be closed by the board only after public notice and opportunity for public hearing in the area of the proposed closure, except when the department is acting under rules adopted by the board for an emergency closure. Closed lands must be posted by the lessee or by the department at the request of the lessee at customary access points, with signs provided or authorized by the department.

(3) Closure rules adopted pursuant to subsection (2) may categorically close state lands whose use or status is incompatible with recreational use. Categorical or blanket closures may be imposed on state lands due to:

(a) cabin site and home site leases and licenses;

(b) the seasonal presence of growing crops; and

(c) active military, commercial, or mineral leases.

(4) The board shall adopt rules that provide an opportunity for any individual, organization, or governmental agency to petition the board for purposes of excluding a specified portion of state land from a categorical closure that has been imposed under subsection (3).

(5) Under rules adopted by the board, state lands may be closed on a case-by-case basis for certain reasons, including but not limited to:

(a) damage attributable to recreational use that diminishes the income-generating potential of the state lands;

(b) damage to surface improvements of the lessee;

(c) the presence of threatened, endangered, or sensitive species or plant communities;

(d) the presence of unique or special natural or cultural features;

(e) wildlife protection;

(f) noxious weed control; or

(g) the presence of buildings, structures, and facilities.

(6) (a) Rules adopted under this section may impose restrictions on general recreational activities, including the discharge of weapons, camping, open fires, vehicle use, and any use that will interfere with the presence of livestock.

(b) The board may also by rule restrict access on state lands in accordance with a block management program administered by the department of fish, wildlife, and parks.

(c) Motorized vehicle use by recreationists on state lands is restricted to federal, state, and dedicated county roads, trails developed by the department for motorized use, and roads designated by the department to be open to motorized vehicle use.

(d) Recreational overnight use of state lands in a 30-day period is limited to 16 days:

(i) in a designated campground; and

(ii) on unleased, unlicensed lands outside a campground unless otherwise allowed by the department.

(e) Pets on state lands must be on a leash or otherwise controlled to prevent harassment of livestock or wildlife.

(f) Horses may be kept overnight on state lands if:

(i) the horses do not remain in a stream riparian zone for more than 1 hour; and

(ii) only feed certified as noxious weed seed free is present on state lands.

(g) A horse kept overnight on state lands where there is a lease or license must be kept in compliance with the provisions of subsection (6)(f) and must be restrained.

(h) Restrictions on general recreational activities must comply with the following:

(i) at least 30 days prior to a restriction, except in the case of emergency, the lessee or the department if requested by the lessee shall:

(A) post notice of the proposed restriction at frequent access points to the land where the restriction is proposed; and

(B) issue a press release or a public service announcement detailing the proposed restriction;

(ii) except for seasonal restrictions and unless required for public safety, a restriction in an area may not exceed 1 year; and

(iii) if a misuse of the land, including littering, may lead to a restriction, common access points must be posted with notice of the possible restriction for 30 days with information detailing the misuse of land and stating the penalties for the violation. If the misuse persists at the end of 30 days, a proposed restriction notice may be posted in accordance with subsection (6)(h)(i).

(7) The board shall adopt rules providing for the issuance of a recreational special use license. Commercial or concentrated recreational use, as defined in 77-1-101 , is prohibited on state lands unless it occurs under the provisions of a recreational special use license. The board may also adopt rules requiring a recreational special use license for recreational use that is not commercial, concentrated, or within the definition of general recreational use.

(8) (a) For a violation of rules adopted by the board pursuant to this section, the department may assess a civil penalty of up to $1,000 for each day of violation. The board shall adopt rules providing for notice and opportunity for hearing in accordance with Title 2, chapter 4, part 6.

(b) If the department and the department of fish, wildlife, and parks consent to and sign an agreement for general recreational use as provided in 77-1-815 , a person who violates a department rule that governs general recreational use is guilty of a misdemeanor and shall be fined not less than $50 or more than $500. In addition, the person, upon conviction or forfeiture of bond or bail, may be subject to forfeiture of any current hunting, fishing, or trapping license issued by this state and the privilege to hunt, fish, or trap in this state or to use state lands, as defined in 77-1-101 , for recreational purposes for a period of time set by the court.

(c) Penalties collected under this subsection (8) must be deposited as provided in 87-1-601 (8).

(9) Unauthorized dumping of refuse on state lands and destruction of property, which includes land and improvements, are misdemeanor crimes punishable by a fine of not more than $1,500.
Mont. Code Ann. § 77-3-432 — MT Code / Title 77 / Chapter 3 / Part 4 / Section 77-3-432
77-3-432 Royalty
Status: reserved

77-3-432 . Royalty. In each oil and gas lease granted by the state under this part, there must be reserved to the state as consideration for the lease a royalty in all oil and gas produced and saved from all lands covered by the lease and not used for light, fuel, and operation purposes on the leased premises, which must be equivalent to the full market value, as ascertained by the board at the date of the lease, of the estate or interest of the state in the lands and oil and gas deposits disposed of under the lease. The royalty reservation must be set by the board but may not be less than 12 1/2% on gas and not less than 12 1/2% on oil or casinghead gasoline for each producing well for the calendar month. The state may share the expense of transporting the oil to the nearest market on a basis proportional to the state's royalty interest in the oil and at a rate per mile acceptable to the department.
Mont. Code Ann. § 77-6-108 — MT Code / Title 77 / Chapter 6 / Part 1 / Section 77-6-108
77-6-108 Who may lease
Status: in_force

77-6-108 . Who may lease. A person may not lease state lands, except one who is the head of a family, unless the person has attained 18 years of age. An eligible person and an association, company, or corporation authorized to hold lands under lease may lease state lands and may hold more than one lease to state lands.
Mont. Code Ann. § 77-6-115 — MT Code / Title 77 / Chapter 6 / Part 1 / Section 77-6-115
77-6-115 Acquisition of water right by lessee -- limitation
Status: in_force

77-6-115 . Acquisition of water right by lessee -- limitation. (1) Subject to subsection (4), the lessee of state lands may at any time prior to 1 year before the expiration of the lease make application to the board for permission to secure a water right to the land under the lease. The application must be in writing and must show how much of the land can be irrigated, the permanency of the water supply, and the probable cost of placing the land under irrigation. If the proposed plan meets with the approval of the board, permission must be granted the lessee to secure the desired water right for the land and to place the land under irrigation.

(2) Subject to subsection (4), if the water right becomes a permanent and valuable improvement, then in case of the sale or lease of the land to other parties, the former lessee is entitled to receive compensation in the amount of the reasonable value of the water right, as in the case of other improvements, from the new lessee or the purchaser.

(3) These provisions may not be construed to make the state liable to the lessee for the payment of the cost or value of the irrigation improvements.

(4) A water right acquired under this section may not interfere with a water right used in conjunction with a structure described in 77-1-134 .
Mont. Code Ann. § 77-1-1116 — MT Code / Title 77 / Chapter 1 / Part 11 / Section 77-1-1116
77-1-1116 Easement transferable -- relocation of structure -- increased footprint
Status: in_force

77-1-1116 . Easement transferable -- relocation of structure -- increased footprint. (1) An easement granted pursuant to 77-1-1112 or 77-1-1115 runs with the benefited land and may be transferred or assigned.

(2) (a) Pursuant to rules adopted under 77-1-1117 , the holder of a lease, license, or easement under 77-1-1112 or 77-1-1115 may relocate or increase the size of a footprint and associated facilities due to the natural relocation of a navigable river or other factors.

(b) (i) The holder of a lease, license, or easement shall provide written notice to the department when a footprint or associated facilities are proposed to be relocated or increased in size.

(ii) Without prior board approval, the holder of a lease, license, or easement for water diversion structures associated with a water right may relocate or increase the size of the footprint if the relocation or increase is necessary to accomplish the purpose for which the lease, license, or easement was granted. If the footprint is increased in size, the holder shall pay full market value for the portion of the footprint that is greater than the original footprint and shall obtain the appropriate state or federal permits.

(3) Section 77-1-805 applies to the use of navigable rivers for which leases, licenses, or easements for the use of the bed have been granted.
Mont. Code Ann. § 77-4-301 — MT Code / Title 77 / Chapter 4 / Part 3 / Section 77-4-301
77-4-301 Wind and solar leases authorized
Status: in_force

77-4-301 . Wind and solar leases authorized. (1) The board may lease state lands for exploration, planning, development, and the production of energy from wind and solar resources.

(2) Leases for wind or solar rights only where no ground disturbance is authorized do not require reclassification.

(3) The board may exercise business discretion in entering leases under this part.
Mont. Code Ann. § 77-5-215 — MT Code / Title 77 / Chapter 5 / Part 2 / Section 77-5-215
77-5-215 Definitions
Status: in_force

77-5-215 . Definitions. As used in this part, unless the context indicates otherwise, the following definitions apply:

(1) "Contract harvesting" means a timber harvest or timber sale occurring on state trust lands by which:

(a) the department solicits bids and contracts with a firm or individual awarded the bid to:

(i) perform all necessary work to harvest and process trees into merchantable forest products;

(ii) sort trees pursuant to contract specifications and department use standards; and

(iii) transport and deliver the products to forest product purchasers; and

(b) the department sells the forest products to one or more forest product purchasers through the competitive bidding process pursuant to 77-5-201 (1) and (2).

(2) "Contract harvesting costs" means expenses related to the production of log sorts or other merchantable products from a stand of timber and the transportation of the products to point-of-sale locations. These expenses may include but are not limited to:

(a) sale preparation and development costs;

(b) marketing of forest products and administration of contract harvesting contracts;

(c) road building and maintenance;

(d) labor for felling, bucking, yarding, and loading;

(e) scaling of forest products; and

(f) the transportation of sorted logs and other merchantable products from the harvest site to a point of sale.

(3) "Decked" means a pile of logs or other merchantable forest products that have been prepared for sale or shipment and placed upon a landing.

(4) "Forest health concerns" means issues that can be addressed through management or harvest of merchantable or nonmerchantable trees and includes:

(a) forested lands that are overcrowded or stagnant and that are showing declining annual growth;

(b) wildland-urban interface areas where timber harvest or forest management is necessary to prevent catastrophic or other damage to forested lands, livestock, buildings, or other infrastructure;

(c) fire fuel buildup and treatment on forested lands;

(d) forested lands susceptible to imminent or repeated insect or disease attack and timber degradation;

(e) forested lands that are in a high state of decline or decay or are rapidly deteriorating;

(f) forested lands with high recreational use and high degradation risk; and

(g) forested lands under drought stress.

(5) "Forest products" means any product produced from the forest that the department can sell through competitive bid or direct negotiation.

(6) "Log sorts" means trees or portions of trees that are grouped and sorted into various product categories, including but not limited to pulp logs, sawlogs, and house logs.

(7) "Sawlogs" means merchantable timber prepared and sorted as decked, scaled logs and sold f.o.b., as defined in 30-2-319 , at a designated location, expressed in terms of dollars per thousand board feet or dollars per ton.

(8) "Scaled" means the measured volume, weight, or other measurement of a log, load of logs, or other products.

(9) "Stumpage" means the value of timber as it exists, uncut, within a harvest unit, expressed in terms of dollars per thousand board feet, dollars per ton, or other appropriate value per-unit designation.

(10) (a) "Timber" means any wood growth on state trust land, mature or immature, alive or dead, standing or down, that is capable of furnishing merchantable raw material used in the manufacture of lumber or other forest products.

(b) The term does not include cultivated Christmas trees.
Mont. Code Ann. § 77-1-101 — MT Code / Title 77 / Chapter 1 / Part 1 / Section 77-1-101
77-1-101 Definitions
Status: in_force

77-1-101 . Definitions. Unless the context requires otherwise and except for the definition of state land in 77-1-701 , in this title, the following definitions apply:

(1) "Board" means the board of land commissioners provided for in Article X, section 4, of the Montana constitution.

(2) "Commercial or concentrated recreational use" means any recreational use that is organized, developed, or coordinated, whether for profit or otherwise. Commercial or concentrated recreational use includes all outfitting activity and all activities not included within the definition of general recreational use.

(3) "Department" means the department of natural resources and conservation provided for in Title 2, chapter 15, part 33.

(4) "Distributable revenue" applies to all land trusts managed by the board, except property held pursuant to the Morrill Act of 1862, 7 U.S.C. 301 through 308, and the Morrill Act of 1890, 7 U.S.C. 321 through 329, and includes:

(a) 95% of all revenue from the management of school trust lands and the common school permanent fund, except for mineral royalties or land sale proceeds that are deposited directly in the permanent fund;

(b) the interest and income described in 20-9-341 , less any unrealized gains or losses;

(c) the interest and income received from the leasing, licensing, or other use of state trust lands; and

(d) subject to 17-3-1003 , the proceeds and income from the sale of timber from capitol building land grant and university system lands.

(5) (a) "General recreational use" includes noncommercial and nonconcentrated hunting, fishing, and other activities determined by the board to be compatible with the use of state lands.

(b) The term does not include the use of streams and rivers by the public under the stream access laws provided in Title 23, chapter 2, part 3.

(6) "Legally accessible state lands" means state lands that can be accessed by:

(a) dedicated public road, right-of-way, or easement;

(b) public waters;

(c) adjacent federal, state, county, or municipal land if the land is open to public use; or

(d) adjacent contiguous private land if permission to cross the land has been secured from the landowner. The granting of permission by a private landowner to cross private property in a particular instance does not subject the state land that is accessed to general recreational use by members of the public, other than those granted permission.

(7) "Noxious weeds" or "weeds" means any exotic plant species established or that may be introduced in the state that may render land unfit for agriculture, forestry, livestock, wildlife, or other beneficial uses or that may harm native plant communities and that is designated:

(a) as a statewide noxious weed by rule of the department of agriculture; or

(b) as a district noxious weed by a district weed board organized under 7-22-2103 .

(8) (a) "State land" or "lands" means:

(i) lands granted to the state by the United States for any purpose, either directly or through exchange for other lands;

(ii) lands deeded or devised to the state from any person; and

(iii) lands that are the property of the state through the operation of law.

(b) The term does not include:

(i) lands that the state conveys through the issuance of patent;

(ii) lands that are used for building sites, campus grounds, or experimental purposes by a state institution and that are the property of that institution;

(iii) lands that the board of regents of higher education has authority to dispose of pursuant to 20-25-307 ; or

(iv) lands acquired through investments under the provisions of 17-6-201 .

(9) "State trust land" means lands or property interests held in trust by the state:

(a) under Article X, sections 2 and 11, of the Montana constitution;

(b) through The Enabling Act of Congress (approved February 22, 1889, 25 Stat. 676), as amended; and

(c) through the operation of law for specified trust beneficiaries.

(10) "Weed management" or "control" has the meaning provided in 7-22-2101 .
Mont. Code Ann. § 77-3-410 — MT Code / Title 77 / Chapter 3 / Part 4 / Section 77-3-410
77-3-410 False statements relating to oil and gas leases
Status: in_force

77-3-410 . False statements relating to oil and gas leases. Any person who shall knowingly make and file in any department, bureau, or office of the state any application, statement, or report in writing required by regulation promulgated pursuant to the provisions of this part containing any false statement of a material fact shall be guilty of a felony.
Mont. Code Ann. § 77-2-206 — MT Code / Title 77 / Chapter 2 / Part 2 / Section 77-2-206
77-2-206 Settlement for improvements
Status: in_force

77-2-206 . Settlement for improvements. If any state land is exchanged on which there are improvements belonging to a lessee and some person other than the lessee is the transferee, that person shall settle with the lessee for all improvements on the land belonging to the lessee before the exchange is completed. The provisions of 77-6-301 through 77-6-303 and 77-6-306 relating to the payment and settlement for improvements on state lands between a former lessee and a new lessee apply to the settlement between a lessee and the transferee in an exchange. If settlement is not reached within 6 months of the date of exchange, all improvements become the property of the state unless the department for good cause shown grants both parties additional time in which to exhaust arbitration.
Mont. Code Ann. § 77-5-221 — MT Code / Title 77 / Chapter 5 / Part 2 / Section 77-5-221
77-5-221 Definition
Status: in_force

77-5-221 . Definition. As used in 77-5-222 , 77-5-223 , and this section, "annual sustainable yield" means the quantity of timber that can be harvested from forested state lands each year in accordance with all applicable state and federal laws, including but not limited to the laws pertaining to wildlife, recreation, and maintenance of watersheds, and in compliance with water quality standards that protect fisheries and aquatic life and that are adopted under the provisions of Title 75, chapter 5, taking into account the ability of state forests to generate replacement tree growth.
Mont. Code Ann. § 77-1-109 — MT Code / Title 77 / Chapter 1 / Part 1 / Section 77-1-109
77-1-109 Deposits of proceeds in trust land administration account
Status: in_force

77-1-109 . Deposits of proceeds in trust land administration account. (1) The amount of money that is deposited into the trust land administration account established in 77-1-108 may not exceed an amount equal to 25% of distributable revenue generated in the fiscal year completed prior to the legislative session that will appropriate money for the next biennium. This excludes revenue generated by the forest improvement fee provided for in 77-5-204 .

(2) (a) Subject to subsection (1), the department shall deposit into the trust land administration account the following:

(i) distributable revenue;

(ii) the proceeds or income from the sale of easements and timber, except timber from public school and Montana university system lands;

(iii) mineral royalties; and

(iv) fees collected pursuant to 77-2-328 .

(b) As deposits are made, they must be identified and accounted for by trust.

(c) The department may not make deductions from interest or income generated from lands granted to the state pursuant to the Morrill Act of 1862, 7 U.S.C. 301 through 308, and the Morrill Act of 1890, 7 U.S.C. 321 through 329.

(3) After the deposits in subsection (2) have been made, the remainder of the proceeds, other than proceeds from timber from Montana university system lands, must be deposited in accordance with 17-3-1003 , 18-2-107 , and 20-9-341 (2). Timber proceeds from university system lands must be paid over to the state treasurer, who shall deposit the money to the credit of the proper fund for use as provided in 17-3-1003 .
Mont. Code Ann. § 77-2-332 — MT Code / Title 77 / Chapter 2 / Part 3 / Section 77-2-332
77-2-332 Procedure in case of default
Status: in_force

77-2-332 . Procedure in case of default. (1) If a purchaser or assignee of state land defaults for a period of 30 days or more in the payment of any of the installments due on the certificate of purchase, the certificate is subject to cancellation. The department shall mail to the purchaser at the purchaser's last-known post-office address a notice of default and pending cancellation. The notice must give the purchaser 60 additional days from the date of mailing the notice in which to make payment of the delinquent installment or installments with penalty interest.

(2) If the purchaser fails to make the payment within 60 days, the certificate of purchase from that date and without further notice is void, the duplicate of the certificate in the office of the department must be canceled, and the land under the certificate reverts to and becomes the property of the state to the same extent as other state lands and must be open to lease and sale.

(3) All buildings, fences, and other improvements placed on the land subsequent to the date of execution of the certificate of purchase must be and remain the property of the purchaser named in the certificate of purchase or of the purchaser's heirs, assigns, or devisees and may be removed from the land at any time within 90 days after the date of the cancellation. If the buildings, fences, and other improvements are not removed prior to the expiration of the 90-day period, they become the property of the state.

(4) In case of cancellation of certificate of purchase or surrender of certificate of purchase and when the land is again open to lease, the former lessee has the prior right to lease the tract at the existing rate or at the rate set by competitive bidding if bidding occurs.
Mont. Code Ann. § 77-3-118 — MT Code / Title 77 / Chapter 3 / Part 1 / Section 77-3-118
77-3-118 Restrictions on removal of minerals and gems during preliminary prospecting period
Status: in_force

77-3-118 . Restrictions on removal of minerals and gems during preliminary prospecting period. No mining lessee may, during any preliminary prospecting period contained in any lease, remove any metalliferous minerals or gems from the leased premises, except as are necessary for the proper testing and sampling of the lands or mineral rights, and except as are permitted by the board.
Mont. Code Ann. § 77-1-236 — MT Code / Title 77 / Chapter 1 / Part 2 / Section 77-1-236
77-1-236 Rental market valuation lease program -- transition -- rules
Status: in_force

77-1-236 . Rental market valuation lease program -- transition -- rules. (1) (a) Subject to subsection (2), the board shall offer all existing cabin site lessees or licensees the option of 15-year lease contracts based on the rental market valuation process provided in 77-1-235 .

(b) (i) At least three winning bids made pursuant to 77-1-235 must be referenced against the most recent appraised value of the cabin site property by the department of revenue in order to establish a rental market percentage. All rental market percentages that have been determined pursuant to 77-1-235 must be grouped together by geographic location and averaged together to determine a final rental market percentage for each geographic location. If there are not three winning bids in any one geographic location, then three bids from similar locations may be averaged to establish a rental market percentage.

(ii) The final rental market percentage determined for each geographic location pursuant to this subsection (1)(b) must be applied to the department of revenue's most recent appraised value for each cabin site property in that location that did not go through the open competitive bidding process to determine the initial lease amount for each cabin site property.

(c) If no properties in a particular geographic location go through an open competitive bidding process, the most applicable comparable location, as determined based on professional appraisal standards, must be chosen and the final rental market percentage must be applied as provided in subsection (1)(b).

(2) The lease amount for the first year must be set as provided in subsection (1). The annual lease rental fee for each subsequent year must be adjusted using the average annual consumer price index as published by the U.S. bureau of labor statistics.

(3) By January 1, 2012, the board shall adopt rules for the orderly transition for cabin site lessees or licensees who have chosen the lease option pursuant to subsection (1) that is consistent with the board's constitutional fiduciary duty of attaining full rental market value.

(4) Nothing in this chapter prevents:

(a) an existing lessee or licensee from completing or renewing the lessee's or licensee's current lease or license based on existing methods of valuation as provided in 77-1-208 ; or

(b) a lessee or licensee that has abandoned a lease or license from bidding on the abandoned lease or license.
Mont. Code Ann. § 77-3-130 — MT Code / Title 77 / Chapter 3 / Part 1 / Section 77-3-130
77-3-130 Limitation on public inspection rights
Status: in_force

77-3-130 . Limitation on public inspection rights. The department shall withhold from public inspection any information obtained from a mining lessee or permittee under this part if the information relates to proprietary geological information. The withholding is effective for as long as the department considers necessary, but in no event may be less than 5 years after expiration of the lease or permit, to protect the mining lessee's or permittee's economic interest in the proprietary geologic information against unwarranted injury or to protect the public's best interest.
Mont. Code Ann. § 77-3-443 — MT Code / Title 77 / Chapter 3 / Part 4 / Section 77-3-443
77-3-443 Reservation in lease for disposition of surface
Status: reserved

77-3-443 . Reservation in lease for disposition of surface. In every oil and gas lease granted pursuant to the terms hereof there shall be reserved unto the state the right to sell, lease, or otherwise dispose of the surface of the lands covered thereby, subject always to the rights and privileges granted unto the lessee under such oil and gas lease.
Mont. Code Ann. § 77-6-203 — MT Code / Title 77 / Chapter 6 / Part 2 / Section 77-6-203
77-6-203 Bid deposit
Status: in_force

77-6-203 . Bid deposit. (1) A person bidding for the lease of state lands shall deposit with the department, as evidence of good faith, a certified check, cashier's check, or money order in an amount equal to 100% of the annual rental bid in the case of grazing land and an amount equal to $20 per acre for each acre of agricultural land contained in the lease in the case of agricultural land.

(2) The department shall retain the deposit of the successful bidder, apply it on the rental for the first year of the lease only, and return any balance of the deposit at the end of the first year to the successful bidder. The department shall return the deposits of the unsuccessful bona fide bidders. If the department finds a bid has been submitted that is frivolous, forged, or a bad faith bid or a bid submitted for purposes of harassment, the deposit is forfeited. The department shall make a reasonable attempt to notify the bidder in writing of the forfeiture and the reasons for it.

(3) If the successful bidder fails to execute the lease for any reason, the deposit is forfeited.

(4) The department shall credit all forfeited deposits to the interest and income account of the proper trust.
Mont. Code Ann. § 77-3-406 — MT Code / Title 77 / Chapter 3 / Part 4 / Section 77-3-406
77-3-406 Number of leases which one person may hold
Status: in_force

77-3-406 . Number of leases which one person may hold. Any person, association, corporation, or municipality qualified to hold an oil or gas lease on state lands may receive from the board or take through assignment or succession, will, judgment, decree, or otherwise through the operation of law more than one oil and gas lease to state lands, subject to such regulations and limitations as the board prescribes.
Mont. Code Ann. § 77-6-404 — MT Code / Title 77 / Chapter 6 / Part 4 / Section 77-6-404
77-6-404 Proof of termination of pledge or mortgage to be filed
Status: in_force

77-6-404 . Proof of termination of pledge or mortgage to be filed. The lessee of any grazing or agricultural lease of or leasehold interest in state lands which is pledged or mortgaged as provided in this part shall, within 30 days after payment of the indebtedness secured thereby or within 30 days after the pledge agreement is terminated or the leasehold interest is released from the mortgage, file with the department proof of that fact.
Mont. Code Ann. § 77-1-1103 — MT Code / Title 77 / Chapter 1 / Part 11 / Section 77-1-1103
77-1-1103 Void
Status: in_force

77-1-1103 . Void. Sec. 12, Ch. 475, L. 2009.
Mont. Code Ann. § 77-1-219 — MT Code / Title 77 / Chapter 1 / Part 2 / Section 77-1-219
77-1-219 Public school land purchases -- considerations -- distributions
Status: in_force

77-1-219 . Public school land purchases -- considerations -- distributions. (1) The board may request the board of examiners to issue bonds for the purpose of purchasing interests in and appurtenances to real property selected by the board in accordance with the requirements of this section. Upon issuance of the bonds, the board shall purchase the real property and its appurtenances.

(2) Prior to requesting the issuance of bonds under subsection (1), the board shall consider the following:

(a) the income-generating potential of the real property and appurtenances;

(b) the opportunity for sustainable forest management activities and outcomes as described in 76-13-701 and 76-13-702 ; and

(c) the opportunity for recreational use of the real property and appurtenances consistent with Title 77, chapter 1, part 8.

(3) Prior to requesting the issuance of bonds, the board or the department, at the board's direction, shall complete a cost-benefit analysis of potential real property and appurtenance purchases. This cost-benefit analysis must be made available to the public upon request.

(4) Prior to purchasing any real property and appurtenances, the board shall determine that the benefits of the purchase are significant and that the financial risks are prudent. In order to reach that determination, the board shall examine the purchase of any real property and appurtenances as if the board had a fiduciary duty as a reasonably prudent trustee of a perpetual trust. For the purposes of this section, that duty requires the board to:

(a) discharge its duties with the care, skill, and diligence that a prudent person acting in a similar capacity with the same resources and familiar with similar matters should exercise in the conduct of an enterprise of similar character and aims;

(b) manage the land holdings purchased pursuant to 77-1-218 and this section in accordance with an asset management plan to minimize the risk of loss and maximize the sustained rate of return;

(c) discharge its duties and powers solely in the interest of and for the benefit of the trust; and

(d) discharge its duties subject to the fiduciary standards set forth in 72-38-801 .

(5) All interests in real property and appurtenances acquired under this section must be managed pursuant to this title.
Mont. Code Ann. § 77-4-105 — MT Code / Title 77 / Chapter 4 / Part 1 / Section 77-4-105
77-4-105 State retention of geothermal resources
Status: in_force

77-4-105 . State retention of geothermal resources. No right to seek, obtain, or use geothermal resources has passed or shall pass with any existing or future lease of state or school lands.
Mont. Code Ann. § 77-1-605 — MT Code / Title 77 / Chapter 1 / Part 6 / Section 77-1-605
77-1-605 Types of resource developments
Status: in_force

77-1-605 . Types of resource developments. (1) The developments contemplated by this part may include those projects that will develop or conserve the various state land resources, including water, both surface and underground, grazing land, agricultural land, timber land, and other land to the benefit of the state. They may also include expenses necessary to perfect title to lands claimed by the state that are suitable for development and other expenses or costs that in the judgment of the board are desirable or necessary in order to develop or increase the value of the land or the revenue from the land.

(2) The department may use funds appropriated from the trust land administration account provided for in 77-1-108 for the purposes of subsection (1).
Mont. Code Ann. § 77-2-216 — MT Code / Title 77 / Chapter 2 / Part 2 / Section 77-2-216
77-2-216 Final order of board
Status: in_force

77-2-216 . Final order of board. The board shall make a final order describing the terms of the proposal for the exchange of the land involved and shall either dismiss the proposal as not being in the public interest or direct the proper officers to proceed to complete the exchange, as authorized by 77-2-211 .
Mont. Code Ann. § 77-2-305 — MT Code / Title 77 / Chapter 2 / Part 3 / Section 77-2-305
77-2-305 Lands within federal irrigation projects
Status: in_force

77-2-305 . Lands within federal irrigation projects. Whenever state lands are located within the boundaries of federal irrigation projects, the land shall be sold in conformity with the classification of farm units as made by the United States, and all certificates of purchase issued for such lands shall show that the lands are located within a federal irrigation project and are or will be liable for their proper share of the reclamation charges.
Mont. Code Ann. § 77-3-201 — MT Code / Title 77 / Chapter 3 / Part 2 / Section 77-3-201
77-3-201 Nonmetallic mineral leases authorized
Status: in_force

77-3-201 . Nonmetallic mineral leases authorized. When there are found upon state lands deposits of stone, limestone, oil shale, clay, bentonite, calcite, talc, mica, ceramic, asbestos, marble, diatomite, gravel or sand, or phosphate, sodium, potash, sulfur, fluorite or barite, or any other nonmetallic minerals, but not including coal, oil, or gas, valuable for building, mining, or other commercial purposes, the board may in its discretion issue permits or leases to private persons for the removal and disposition of the above-named deposits upon such terms and conditions as the board may determine.
Mont. Code Ann. § 77-1-703 — MT Code / Title 77 / Chapter 1 / Part 7 / Section 77-1-703
77-1-703 Filing of ownership records
Status: in_force

77-1-703 . Filing of ownership records. Except as provided in 77-1-706 , state agencies shall file with the department ownership records of state lands held by the agency.
Mont. Code Ann. § 77-5-302 — MT Code / Title 77 / Chapter 5 / Part 3 / Section 77-5-302
77-5-302 Definitions
Status: in_force

77-5-302 . Definitions. As used in this part, the following definitions apply:

(1) "Alternative practices" means forest practices that are:

(a) conducted in the streamside management zone and that are different from practices required by rules adopted under this part;

(b) designed for site-specific conditions encountered during a timber sale; and

(c) subject to department approval under 77-5-303 .

(2) "Department" means the department of natural resources and conservation provided for in 2-15-3301 .

(3) "Forest practices" means, within a timber sale, the harvesting of trees, road construction or reconstruction associated with harvesting and accessing trees, site preparation for regeneration of a timber stand, reforestation, and management of logging slash. The term does not include activities related to the operation of a Christmas tree farm or nursery that do not involve new road construction.

(4) "Operator" means a person responsible for conducting forest practices. An operator may be the owner or a person who, through contractual agreement with the owner, is obligated to or entitled to conduct forest practices or carry out a timber sale.

(5) "Owner" means an individual, firm, partnership, corporation, or association of any nature that holds an ownership interest in forest land or timber.

(6) "Person" means an individual, firm, partnership, company, commercial entity, corporation, or association.

(7) "Stream" means a natural watercourse of perceptible extent that has a generally sandy or rocky bottom or definite banks and that confines and conducts continuously or intermittently flowing water.

(8) "Streamside management zone" or "zone" means a stream, lake, or other body of water and an adjacent area of varying width where management practices that might affect wildlife habitat or water quality, fish, or other aquatic resources need to be modified. The streamside management zone encompasses a strip at least 50 feet wide on each side of a stream, lake, or other body of water, measured from the ordinary high-water mark, and extends beyond the high-water mark to include wetlands and areas that provide additional protection in zones with steep slopes or erosive soils.

(9) "Timber sale" means a series of forest practices designed to access, harvest, or regenerate trees on a defined land area for commercial purposes.
Mont. Code Ann. § 77-3-431 — MT Code / Title 77 / Chapter 3 / Part 4 / Section 77-3-431
77-3-431 Report of lessees
Status: in_force

77-3-431 . Report of lessees. (1) On or before the last day of each month every holder of a producing oil or gas lease shall make a report to the department for the preceding calendar month on a form the department prescribes. The report shall show the amount of oil or gas produced and saved during the preceding month, the price obtained, the total amount of all sales, and any additional information as may be required, and it shall be signed by the lessee or some responsible person having knowledge thereof.

(2) Oil and gas leases granted by the state shall contain suitable provisions imposing upon all lessees the obligation to make such report of operation, production, and sales in the manner, at the time, and to such representative of the state as may be required by the board.
Mont. Code Ann. § 77-1-208 — MT Code / Title 77 / Chapter 1 / Part 2 / Section 77-1-208
77-1-208 Cabin site licenses and leases -- method of establishing value
Status: in_force

77-1-208 . Cabin site licenses and leases -- method of establishing value. (1) The board shall set the annual fee based on full market value for each cabin site and for each licensee or lessee who at any time wishes to continue or assign the license or lease. The fee must attain full market value based on one of the following methods:

(a) appraisal of the cabin site value as determined by the department of revenue. The licensee or lessee has the option to pay the entire fee on March 1 or to divide the fee into two equal payments due March 1 and September 1. The value may be increased or decreased as a result of the statewide reappraisal of property pursuant to 15-7-111 . An appeal of a cabin site value determined by the department of revenue must be conducted pursuant to Title 15, chapter 15.

(b) establishing full rental market value through the use of an open competitive bidding process as provided in 77-1-235 .

(2) A current licensee or lessee may complete or renew the licensee's or lessee's current lease based on valuation methods provided in subsection (1)(a), or at the end of the lease or license contract, the licensee or lessee may choose to proceed with the valuation option provided in subsection (1)(b).

(3) The board shall set the fee of each initial cabin site license or lease or each current cabin site license or lease of a person who does not choose to retain the license or lease. The initial fee must be based upon a system of competitive bidding. The fee for a person who wishes to retain that license or lease must be determined under the method provided for in subsection (1).

(4) (a) Subject to subsection (4)(b), the board shall follow the procedures set forth in 77-6-302 , 77-6-303 , and 77-6-306 for the disposal or valuation of any fixtures or improvements placed upon the property by the then-current licensee or lessee and shall require the subsequent licensee or lessee whose bid is accepted by the board to purchase those fixtures or improvements in the manner required by the board.

(b) (i) A subsequent licensee or lessee may not take occupancy unless the license or lease contract and the sale of improvements have been finalized. If a winning bidder has been identified and the transaction for the sale of the improvements is in process, the current lessee shall pay a prorated lease fee based on the current lease until the date that the sale of the improvements is finalized.

(ii) The valuation of improvements must be applicable to residential property inclusive of all improvements.

(iii) A licensee or lessee may assign or rent any improvements.

(iv) Within 3 years of canceling, terminating, or abandoning a cabin site lease, the owner of the improvements shall sell the improvements, remove the improvements, or transfer ownership of the improvements to the state. If ownership is transferred to the state, proceeds from the sale of the improvements must be paid to the owner who transferred the improvements. The board shall set the conditions of the sale of transferred improvements in order to sell the improvements in an expedient manner.
Mont. Code Ann. § 77-1-801 — MT Code / Title 77 / Chapter 1 / Part 8 / Section 77-1-801
77-1-801 Recreational use license required to use state lands for general recreational purposes -- penalty -- exemption
Status: in_force

77-1-801 . (Temporary) Recreational use license required to use state lands for general recreational purposes -- penalty -- exemption. (1) Except as provided in subsection (2), a person 12 years of age or older shall obtain an annual recreational use license pursuant to 77-1-802 to use state lands, as defined in 77-1-101 , for general recreational purposes.

(2) If the department and the department of fish, wildlife, and parks consent to and sign an agreement for general recreational use pursuant to 77-1-815 , a person is only required to obtain a conservation license for general recreational use of legally accessible state trust land.

(3) A person shall, on the request of a peace officer or fish and game warden, present for inspection the person's conservation license.

(4) A person found in violation of this section pertaining to the use of state trust land:

(a) for a first offense, shall be given a warning;

(b) for a second offense, is guilty of a misdemeanor and shall be fined not less than twice the cost of a conservation license; and

(c) for a third offense, is guilty of a misdemeanor and shall be fined not more than $500. (Void on occurrence of contingency--sec. 8, Ch. 596, L. 2003.)
Mont. Code Ann. § 77-2-314 — MT Code / Title 77 / Chapter 2 / Part 3 / Section 77-2-314
77-2-314 Reversion of lands to state
Status: in_force

77-2-314 . Reversion of lands to state. If any lands sold under this title revert to the state for any reason, the department shall notify the department of revenue and the county treasurer of the county in which the land is situated of that fact. Upon the receipt of the notice, the department of revenue shall cancel any assessment of the land for that year, and the county treasurer shall cancel all tax liens against the land.
Mont. Code Ann. § 77-1-601 — MT Code / Title 77 / Chapter 1 / Part 6 / Section 77-1-601
77-1-601 Statement of policy
Status: in_force

77-1-601 . Statement of policy. It is in the best interest and to the great advantage of the state of Montana to seek the highest development of state-owned lands in order that they might be placed to their highest and best use and thereby derive greater revenue for the support of the common schools, the university system, and other institutions benefiting therefrom, and that in so doing the economy of the local community as well as the state is benefited as a result of the impact of such development.
Mont. Code Ann. § 77-2-328 — MT Code / Title 77 / Chapter 2 / Part 3 / Section 77-2-328
77-2-328 Additional rules -- deposit of fees
Status: in_force

77-2-328 . Additional rules -- deposit of fees. The board may prescribe any additional rules for the conduct of sales of state land as in its judgment the interests of the state may demand. The rules may not include a deduction of fees from land granted to the state pursuant to the Morrill Act of 1862, 7 U.S.C. 301 through 308, and the Morrill Act of 1890, 7 U.S.C. 321 through 329. Any fees collected by a rule adopted pursuant to this section must be deposited in the trust land administration account as provided in 77-1-109 .
Mont. Code Ann. § 77-6-105 — MT Code / Title 77 / Chapter 6 / Part 1 / Section 77-6-105
77-6-105 Criteria for determining land to be included in single lease
Status: in_force

77-6-105 . Criteria for determining land to be included in single lease. (1) All lands shall be leased in as compact bodies as possible, and care shall be taken not to separate parts of any section from the section lines or public highways or from any available water supply or in a form that will make it more difficult to lease the remaining state lands in the section in which they are located.

(2) There may be included under one lease tracts of lands embracing more than one section.
Mont. Code Ann. § 77-1-301 — MT Code / Title 77 / Chapter 1 / Part 3 / Section 77-1-301
77-1-301 Powers and duties of the department
Status: in_force

77-1-301 . Powers and duties of the department. (1) Under the direction of the board, the department has charge of the selecting, exchange, classification, appraisal, leasing, management, sale, or other disposition of the state lands. It shall perform such other duties the board directs, the purpose of the department demands, or the statutes require.

(2) It shall collect and receive all moneys payable to the state through its office as fees, rentals, royalties, interest, penalties, or payments on mortgages or lands purchased from the state or derived from any other source. It shall issue a receipt for each cash payment or whenever requested by the payer.
Mont. Code Ann. § 77-3-505 — MT Code / Title 77 / Chapter 3 / Part 5 / Section 77-3-505
77-3-505 Bond of lessees
Status: in_force

77-3-505 . Bond of lessees. A lessee under 77-3-501 shall furnish bond to the state in a form prescribed by the board and in an amount adequate to indemnify the state against loss, damage, or detriment by reason of failure of the lessee to fully discharge the obligations contained in any lease. No bond in excess of $20,000 is required under any one lease.
Mont. Code Ann. § 77-1-702 — MT Code / Title 77 / Chapter 1 / Part 7 / Section 77-1-702
77-1-702 Transfer of records
Status: in_force

77-1-702 . Transfer of records. The secretary of state shall transfer all ownership records on file in the secretary of state's office to the department. The department shall transfer the records of land held or administered by the department of transportation for highway rights-of-way and maintenance to the department of transportation and any remaining ownership records, other than those of state lands, to the state agency administering the interest or property described in the records.
Mont. Code Ann. § 77-2-403 — MT Code / Title 77 / Chapter 2 / Part 4 / Section 77-2-403
77-2-403 Action by director
Status: in_force

77-2-403 . Action by director. The director of the department shall take action that the director considers appropriate, consistent with federal jurisdiction, to address concerns and issues raised during the hearing. The action may include but is not limited to:

(1) the filing of formal requests for action by the appropriate federal agency that would alleviate concerns expressed at the hearing;

(2) the filing of a formal protest to the proposed sale or transfer.
Mont. Code Ann. § 77-3-212 — MT Code / Title 77 / Chapter 3 / Part 2 / Section 77-3-212
77-3-212 Modification of lease provisions
Status: in_force

77-3-212 . Modification of lease provisions. The board, by agreement with the permittee or lessee, may, in its discretion and upon such terms as it considers best, amend or modify the terms and conditions within the limitations of this part or extend the term of any lease or prospecting permit issued under this part, subject to the limitations contained in 77-3-203 .
Mont. Code Ann. § 77-1-910 — MT Code / Title 77 / Chapter 1 / Part 9 / Section 77-1-910
77-1-910 Encumbrance on leased land
Status: in_force

77-1-910 . Encumbrance on leased land. (1) An encumbrance may not be placed upon the state's interest in land leased for commercial purposes.

(2) A commercial lease of state trust land may contain provisions that will permit the encumbering of the lessee's interest in the lease by mortgage or deed of trust.
Mont. Code Ann. § 77-1-404 — MT Code / Title 77 / Chapter 1 / Part 4 / Section 77-1-404
77-1-404 Records of state lands
Status: reserved

77-1-404 . Records of state lands. All field books, plats, maps, and records of the department shall show the class to which each tract therein belongs and whether it belongs to the public schools of the state or to a state institution or other entity according to the grant or instrument by which title to the land has passed to the state. They shall also show whether or not the coal or other minerals in the land are reserved by the United States and shall contain any other information the department considers necessary.
Mont. Code Ann. § 77-4-124 — MT Code / Title 77 / Chapter 4 / Part 1 / Section 77-4-124
77-4-124 Operating agreements
Status: in_force

77-4-124 . Operating agreements. Lessees may enter into agreements with other persons, associations, firms, and corporations for drilling and other operations on state lands, but no such operating agreements shall be binding upon the state until filed with the department and approved by the board. No drilling or operating agreement may affect the obligations of each individual leaseholder to the state.
Mont. Code Ann. § 77-1-1002 — MT Code / Title 77 / Chapter 1 / Part 10 / Section 77-1-1002
77-1-1002 Planning of lease actions
Status: in_force

77-1-1002 . Planning of lease actions. (1) The department shall manage the property interests acquired from the federal government in the Crown Butte land exchange consistent with 77-3-102 and consult with the private surface owners and the private mineral owners that control the coal property interests that are located in a checkerboard arrangement with the mineral interests acquired from the federal government in the Crown Butte land exchange in the planning of leasing actions.

(2) Consistent with Title 77, the department's leasing actions must:

(a) attain the fair market value and optimize the monetary return to the public school fund; and

(b) facilitate and encourage timely development of the property interests acquired from the federal government in the Crown Butte land exchange.
Mont. Code Ann. § 77-5-404 — MT Code / Title 77 / Chapter 5 / Part 4 / Section 77-5-404
77-5-404 Special revenue account -- donations
Status: in_force

77-5-404 . Special revenue account -- donations. (1) There is an account in the state special revenue fund. The department shall deposit in the account money received from gifts, grants, bequests, or endowments from public or private sources, and the funds must be used to carry out the provisions of this part. The money in the account may be spent in accordance with a legislative appropriation.

(2) The department may accept donations of labor, material, seedlings, and equipment from public or private sources for the purpose of carrying out the provisions of this part.
Mont. Code Ann. § 77-1-122 — MT Code / Title 77 / Chapter 1 / Part 1 / Section 77-1-122
77-1-122 Environmental review of energy development projects on state land
Status: in_force

77-1-122 . Environmental review of energy development projects on state land. (1) Except as provided in subsection (2), the scope of any environmental review under Title 75, chapter 1, parts 1 and 2, for a proposed action on state land is limited to the impacts of the proposed action within the boundaries of the state land parcel or parcels in which the proposed state action is taking place if the:

(a) board or the department, pursuant to this title, is proposing a sale or exchange or to issue a right-of-way, easement, placement of improvement, lease, license, or permit or if the department or board is acting in response to an application for an authorization for a proposal; and

(b) state action is part of a larger energy development project that includes private or federal land that is not subject to permitting or certification under Title 75 or Title 82.

(2) If more than 33% of the total land area physically occupied by the proposed energy development project provided for in subsection (1) is state land, then the scope of the environmental review under Title 75, chapter 1, parts 1 and 2, for the proposed action must include the total land area, including federal and private land, that will be occupied by the proposed energy development project.
Mont. Code Ann. § 77-3-105 — MT Code / Title 77 / Chapter 3 / Part 1 / Section 77-3-105
77-3-105 Assignment of leases or permits
Status: in_force

77-3-105 . Assignment of leases or permits. In case of the assignment of a mining lease or a prospecting permit by the holder thereof, the mining lessee or permittee executing the assignment is not relieved of any responsibility for operations under the lease or prospecting permit until:

(1) the financial and moral responsibility of the assignee has been approved by the board; and

(2) there is deposited with the department:

(a) the assignment or an executed copy thereof;

(b) an instrument executed by the sureties upon any bonds then held by the board in connection with the mining lease or permit and then in force, consenting to the assignment and containing the agreement of the sureties to be bound by the bonds under the assignment or new bonds conforming to all the requirements of 77-3-119 ; and

(c) a fee prescribed under 77-1-302 .
Mont. Code Ann. § 77-1-1108 — MT Code / Title 77 / Chapter 1 / Part 11 / Section 77-1-1108
77-1-1108 Void
Status: in_force

77-1-1108 . Void. Sec. 12, Ch. 475, L. 2009.
Mont. Code Ann. § 77-3-101 — MT Code / Title 77 / Chapter 3 / Part 1 / Section 77-3-101
77-3-101 Definitions
Status: in_force

77-3-101 . Definitions. In this part the following definitions apply:

(1) "Full market value" means the highest net value of products of mining operations in United States markets, less cost of transportation and refining, not including as a deduction any cost of producing or treating at the mine.

(2) "Gems" means sapphires, rubies, and other stones commonly known as "precious stones" or "semiprecious stones", but does not mean stones or other earth materials commonly used in building or construction work.

(3) "Metalliferous minerals" means gold, silver, lead, zinc, copper, platinum, iron, and all other metallic minerals.

(4) "Mining" means the carrying on of operations of any kind for the purpose of extracting from the earth ore and other earth material containing metalliferous minerals or gems and includes operations of any kind for the extraction from ores and other earth material of metalliferous minerals or gems.

(5) "Mining lease" means a lease issued by the board for the prospecting for or mining of metalliferous minerals or gems.

(6) "Mining lessee" means the holder of a mining lease whether the holder is the original lessee under the lease or holds the lease as successor of the original lessee.

(7) "Returns" means the net amount received by the shipper from products of mining operations after deducting transportation costs, smelting charges and deductions, and other treatment costs, not including as a deduction any cost of producing or treating at the mine.
Mont. Code Ann. § 77-3-424 — MT Code / Title 77 / Chapter 3 / Part 4 / Section 77-3-424
77-3-424 Power to terminate lease in absence of commencement of drilling or payment of delay drilling penalty
Status: reserved

77-3-424 . Power to terminate lease in absence of commencement of drilling or payment of delay drilling penalty. (1) In every oil and gas lease granted after March 3, 1955, under this part there must be reserved to the board full power to declare termination of the lease at the end of the fifth year or any subsequent year of the primary term of the lease upon failure of the lessee to either:

(a) commence the drilling of a well for oil and gas upon the leased premises; or

(b) pay a delay drilling penalty as follows:

(i) for the sixth year of the lease $1.25 per acre per year; and

(ii) for the remainder of the primary term of the lease an amount per acre per year as the board may in its discretion determine.

(2) Notice of that determination must be given to the lessee, and if the lessee applies for a hearing thereon within 10 days after receipt of the notice, the determination becomes final only after the hearing has been held.

(3) This annual delay drilling penalty must be paid each year in advance. The board shall refund delay drilling penalties paid on a lease for any year in which the lessee commences drilling on that lease.

(4) If a well for oil and gas is commenced, the drilling of the well must be prosecuted with due diligence and dispatch to such depth as is necessary to make a reasonable test for oil or gas.
Mont. Code Ann. § 77-1-403 — MT Code / Title 77 / Chapter 1 / Part 4 / Section 77-1-403
77-1-403 Capability inventory
Status: in_force

77-1-403 . Capability inventory. A capability inventory shall be made prior to changing the classification of state lands. Such inventory shall include, when appropriate to the classification, information on soils capability, vegetation, wildlife use, mineral characteristics, public use, aesthetic values, cultural values, surrounding land use, and any other resource, zoning, or planning information which is related to the classification.
Mont. Code Ann. § 77-1-1111 — MT Code / Title 77 / Chapter 1 / Part 11 / Section 77-1-1111
77-1-1111 Use of beds of navigable rivers -- authorization requirement restricted
Status: in_force

77-1-1111 . Use of beds of navigable rivers -- authorization requirement restricted. The board or the department may require a lease, license, or easement under this part only for a footprint on the bed of a navigable river.
Mont. Code Ann. § 77-4-202 — MT Code / Title 77 / Chapter 4 / Part 2 / Section 77-4-202
77-4-202 Power site defined
Status: in_force

77-4-202 . Power site defined. The words "power site" as used in this part shall mean not only the state-owned land on which the dam is constructed, but also each separate tract of such land which will become part of the reservoir and which in and of itself makes an essential contribution to the value of the power site as a whole of not less than 5% of the entire value of such power site.
Mont. Code Ann. § 77-5-205 — MT Code / Title 77 / Chapter 5 / Part 2 / Section 77-5-205
77-5-205 Approval or disapproval of sales
Status: in_force

77-5-205 . Approval or disapproval of sales. All sales of timber on state lands shall be subject to the approval and confirmation by the board, and no sale shall be deemed completed until after such approval and confirmation. The board shall have the power and it shall be its duty to disapprove any sale which in its opinion would be disadvantageous to the state.
Mont. Code Ann. § 77-4-207 — MT Code / Title 77 / Chapter 4 / Part 2 / Section 77-4-207
77-4-207 Preference to bid of municipality
Status: in_force

77-4-207 . Preference to bid of municipality. In case one of the applicants is a municipality, its bid shall have preference provided that it is in all respects as advantageous to the state as the bid which has been submitted by any person or corporation.
Mont. Code Ann. § 77-5-212 — MT Code / Title 77 / Chapter 5 / Part 2 / Section 77-5-212
77-5-212 Commercial permits for timber sale
Status: in_force

77-5-212 . Commercial permits for timber sale. (1) Permits for quantities of 500,000 board feet or less may be issued to citizens of the state for commercial purposes, at commercial rates, without advertising, and under restrictions and rules that the board may approve for the sale of timber.

(2) To apply for a permit under this section, an individual shall:

(a) complete a permit application on a form provided by the department and submit the completed application to the department office that is responsible for management of the state land where the proposed sale is located;

(b) using ribbon, mark the area of the proposed sale; and

(c) designate on a U.S. geological survey map or other approved map the area proposed for sale and existing roads that would be used to remove timber from the site.

(3) For sales of less than 30,000 board feet, an individual shall provide proof of vehicle liability insurance and $1 million in commercial general liability insurance, naming the state of Montana as additionally insured, and shall provide a performance bond in an amount not to exceed $1,000.

(4) For sales of 30,000 board feet or more, an individual shall provide proof of vehicle liability insurance and $1 million in commercial general liability insurance, naming the state of Montana as additionally insured, and shall provide a performance bond in accordance with 77-5-202 .

(5) Unless the timber proposed for sale is already sold or is part of another proposed sale being reviewed by the department, the department shall review completed permit applications within 30 days of the application's submittal. If the proposed sale complies with existing state and federal laws and regulations, the department shall perform an appraisal within 60 days of the application's submittal.

(6) The department shall issue a permit within 5 working days of the date that the applicant agrees to the terms of the proposed sale, unless the parties mutually agree upon a time extension.

(7) Repeated permits of this kind may not be issued to avoid advertising and the consequent competition secured by advertising.

(8) Permit applications for timber sales in cases of emergency due to fire, insect, fungus, parasite, or blowdown, and no other, are categorical exclusions as defined by rule, and the department is not required to comply with the provisions of 75-1-201 (1) in reviewing those applications.

(9) Proposed timber sales under subsection (8) do not take precedence over the timely sale and harvest of green timber pursuant to 77-5-207 .

(10) Permit applications made pursuant to this section may be subject to further environmental review, and the number of permits may be limited if the department determines that sales may have a cumulative effect on geographic area.
Mont. Code Ann. § 77-5-218 — MT Code / Title 77 / Chapter 5 / Part 2 / Section 77-5-218
77-5-218 Rules
Status: in_force

77-5-218 . Rules. (1) (a) The board may adopt rules to implement the contract harvesting program. The board shall evaluate each proposed contract harvest to determine if, in the board's judgment, contract harvesting will fulfill its duty to prudently obtain the maximum long-term revenue for the trust beneficiaries or to address forest health concerns or other environmental concerns.

(b) The board shall adopt rules describing the procedures necessary to ensure that the trust beneficiaries receive the full market value of the forest products.

(2) The board may adopt rules that impose specific appraisal requirements and sale procedures for any forest products directly marketed and sold by the department.
Mont. Code Ann. § 77-1-1115 — MT Code / Title 77 / Chapter 1 / Part 11 / Section 77-1-1115
77-1-1115 Navigable riverbed uses -- lease, license, or easement required -- challenges
Status: in_force

77-1-1115 . Navigable riverbed uses -- lease, license, or easement required -- challenges. (1) (a) After October 1, 2011, the department shall require a person who proposes to use the bed of a navigable river up to the low-water mark to obtain a lease, license, or easement pursuant to the provisions of this title.

(b) The requirements of subsection (1)(a) do not apply to footprints related to hunting, fishing, or trapping.

(2) An applicant for authorization to use the bed of a navigable river pursuant to 77-1-1112 or for a lease, license, or easement under this section may challenge the requirement of the authorization based on the navigability of the river, the location of the footprint related to the low-water mark, or other factors. There is no presumption of navigability because an entity has applied for or received a lease, license, or easement.
Mont. Code Ann. § 77-3-205 — MT Code / Title 77 / Chapter 3 / Part 2 / Section 77-3-205
77-3-205 Report of lessee and payment of royalty
Status: in_force

77-3-205 . Report of lessee and payment of royalty. (1) On or before the last day of each month, every holder of a producing lease under this part shall make a report to the department on a form the department prescribes showing:

(a) the amount of substances mined or extracted from the lands in the preceding month;

(b) the price obtained;

(c) the total amount of sales; and

(d) any additional information required.

(2) The report must be verified by the lessee or some responsible person having knowledge of the facts and must be accompanied by payment of the amount to the state as royalty for the month covered by the report.
Mont. Code Ann. § 77-4-129 — MT Code / Title 77 / Chapter 4 / Part 1 / Section 77-4-129
77-4-129 Procedure to fix value of improvements
Status: in_force

77-4-129 . Procedure to fix value of improvements. (1) If the owner of any improvements on state lands of the type authorized by law at the time they were placed on the land desires to sell these improvements to the new lessee and they are unable to agree on the value of the improvements, the value must be ascertained and fixed by three arbitrators, one of whom must be appointed by the owner of the improvements, one by the new lessee, and the third by the two arbitrators appointed. The reasonable compensation that the arbitrators may fix must be paid in equal shares by the owner of the improvements and the new lessee. The value of the improvements as ascertained and fixed is binding on both parties.

(2) If either party is dissatisfied with the valuation as fixed, the party may within 10 days appeal the arbitrators' decision to the department and the department shall examine the improvements and make the final decision as to the value of the improvements. The department shall apportion the actual cost of the reexamination to the owner and the new lessee as justice may require. The value of the improvements must be ascertained and fixed as provided in 77-4-128 .
Mont. Code Ann. § 77-1-909 — MT Code / Title 77 / Chapter 1 / Part 9 / Section 77-1-909
77-1-909 Cancellation or termination of commercial lease
Status: in_force

77-1-909 . Cancellation or termination of commercial lease. A commercial lease may be canceled at the option of the board or its designated representative for any violation of a lease provision. Upon cancellation or termination of a lease, the department may seek a new lessee in accordance with this part. If the costs of the commercial development have not been recovered by the state at the time of cancellation or termination, a subsequent lessee under this section shall reimburse the state for development costs, assessments, or fees only to the extent that the proportionate part of the costs, assessments, and fees to the state for obtaining the development have not been recovered.
Mont. Code Ann. § 77-4-122 — MT Code / Title 77 / Chapter 4 / Part 1 / Section 77-4-122
77-4-122 Duration of lease
Status: in_force

77-4-122 . Duration of lease. The term of each lease shall be for a primary term of 10 years and for so long thereafter as geothermal resources in paying quantities are produced, provided that all conditions and terms of the lease are fully performed by the lessee.
Mont. Code Ann. § 77-1-136 — MT Code / Title 77 / Chapter 1 / Part 1 / Section 77-1-136
77-1-136 Terminated
Status: in_force

77-1-136 . Terminated. Sec. 7, Ch. 380, L. 1999.
Mont. Code Ann. § 77-3-208 — MT Code / Title 77 / Chapter 3 / Part 2 / Section 77-3-208
77-3-208 Stone, gravel, and sand permits for public use
Status: in_force

77-3-208 . Stone, gravel, and sand permits for public use. (1) The board may in its discretion issue permits upon such terms and conditions it determines to the department of transportation, the board of county commissioners of any county of the state, or to the governing body of a city or town and of any other political subdivision of the state granting them the right to take, remove, and use stone, gravel, or sand from any state lands that have not been sold under certificate of purchase or otherwise for the construction, maintenance, and improvement of public roads, highways, bridges, streets, or alleys.

(2) The rights of lessees to the lands on which such stone, gravel, or sand may be located shall be properly safeguarded under the terms of the permits.
Mont. Code Ann. § 77-1-105 — MT Code / Title 77 / Chapter 1 / Part 1 / Section 77-1-105
77-1-105 Determining title
Status: in_force

77-1-105 . Determining title. The board may take all proper proceedings for the purpose of determining the title to the beds of lakes and other bodies of water and of streams within the state and to that end may bring or defend suits or other proceedings in court or before other proper tribunals.
Mont. Code Ann. § 77-1-215 — MT Code / Title 77 / Chapter 1 / Part 2 / Section 77-1-215
77-1-215 Expenditures authorized
Status: in_force

77-1-215 . Expenditures authorized. When lands are acquired or leased under 77-1-214 , the board is hereby authorized to:

(1) make expenditures from any funds not otherwise obligated for the management, development, and utilization of such areas;

(2) sell or otherwise dispose of products from such lands; and

(3) make such rules as may be necessary to carry out the purposes of 77-1-214 through 77-1-217 and 77-1-204 (2).
Mont. Code Ann. § 77-6-110 — MT Code / Title 77 / Chapter 6 / Part 1 / Section 77-6-110
77-6-110 Lease expiration dates
Status: in_force

77-6-110 . Lease expiration dates. Except as provided in 77-6-116 , all leases for agricultural lands, grazing lands issued after February 27, 1939, no matter on what date issued, shall expire on February 28 within 10 years from the date on which the lease becomes effective.
Mont. Code Ann. § 77-4-121 — MT Code / Title 77 / Chapter 4 / Part 1 / Section 77-4-121
77-4-121 Provisions of the lease
Status: reserved

77-4-121 . Provisions of the lease. (1) A lease issued by the board gives the lessee, so long as the lessee complies with the terms and conditions of the lease, the exclusive right of possession of the lands or interests leased, subject to conditions contained in the lease.

(2) In a geothermal resource lease granted there is reserved to this state the right to sell, lease, or otherwise dispose of the surface of the lands covered by the lease subject to the rights and privileges granted the lessee under the terms of the lease.

(3) A lease must specify the rental and royalty to be paid, reasonable forfeiture provisions, and reasonable terms under which the lessee may, within a specified time, remove property placed on the leased lands upon the termination of the lease by forfeiture or by lapse of time.

(4) The lease may contain other provisions that the board and the lessee agree upon that are not inconsistent with this part.
Mont. Code Ann. § 77-3-442 — MT Code / Title 77 / Chapter 3 / Part 4 / Section 77-3-442
77-3-442 Disposition of property of lessee upon termination of lease
Status: in_force

77-3-442 . Disposition of property of lessee upon termination of lease. (1) Upon the termination for any cause of a lease issued under this part, the former lessee has 6 months after the date of the termination to remove from the premises all machinery, fixtures, improvements, buildings, and equipment belonging to the lessee, except for casing in the wells and other equipment or apparatus necessary for the preservation of any oil or gas well or wells and the structures described in 77-1-134 . As to the casing, equipment, and apparatus, any succeeding lessee or, in the event there is no succeeding lessee, the state wishing to have the property left upon the premises shall pay a reasonable value for the property to the former lessee.

(2) If the succeeding lessee or the board is unable to agree with the former lessee upon the reasonable cash value of the casing, equipment, and apparatus, the succeeding lessee or, if there is no succeeding lessee, the state shall pay in cash to the former lessee a sum fixed as a reasonable price by a board of three appraisers, one of whom must be chosen by the successful bidder, one by the former lessee, and the third by the two appraisers chosen. If a person refuses to appoint an appraiser within 15 days of a request to do so by the department, the department may appoint an appraiser for that person. The appraisal must be reported to the respective parties in writing and is final and conclusive.

(3) Except as provided in 77-1-134 , unless the department gives written authorization, the former lessee may not remain in possession or manage the land and property formerly covered by the lease. During the time the former lessee remains in authorized possession, the lessee may retain the same share of the products of the premises as inured to the lessee during the term of the lease. Except as provided in 77-1-134 , if the state or other bidder does not desire any of the lessee's property as provided in this section, the lessee shall properly plug all wells and remove all of the lessee's property from the premises.
Mont. Code Ann. § 77-3-444 — MT Code / Title 77 / Chapter 3 / Part 4 / Section 77-3-444
77-3-444 Limitation on overriding royalties and payments out of production
Status: in_force

77-3-444 . Limitation on overriding royalties and payments out of production. (1) A person, partnership, or association may not enter into an agreement that in the aggregate creates overriding royalties or payments out of the production of oil and gas in excess of 5% above the landowner's royalty payable to the state of Montana unless that agreement expressly provides that the obligation to pay overriding royalties or payments out of production may be suspended by the director of the department at any time upon a determination that the excess overriding royalties or payments out of production constitute a burden on lease operations to the extent that:

(a) proper and timely development may be retarded;

(b) continued operation of the lease may be impaired; or

(c) premature abandonment of the wells may occur.

(2) This section applies separately to any zone or portion of a lease segregated for computing a royalty due to the state of Montana.

(3) All agreements of any kind creating overriding royalties or payments out of production of oil and gas must be filed with the department within 30 days of their creation by the lessee.
Mont. Code Ann. § 77-3-131 — MT Code / Title 77 / Chapter 3 / Part 1 / Section 77-3-131
77-3-131 Limitations on prospecting permits
Status: in_force

77-3-131 . Limitations on prospecting permits. A permit shall be limited to prospecting for metalliferous minerals or gems and no permittee may remove from any lands or mineral rights covered by the permit any metalliferous minerals or gems except such as are necessary for the proper testing and sampling of the lands or mineral rights and except as are permitted by the board.
Mont. Code Ann. § 77-6-103 — MT Code / Title 77 / Chapter 6 / Part 1 / Section 77-6-103
77-6-103 Lease of state land to United States for military purposes authorized
Status: in_force

77-6-103 . Lease of state land to United States for military purposes authorized. The board, when it considers it in the public interest, may lease to the United States for military purposes any state land, whether such land was received by the state through federal land grants or whether such land consists of so-called "mortgage lands", on such terms and conditions as it considers necessary to promote the public welfare and protect the interests of the state. Rental shall be payable at the end of each year of the lease.
Mont. Code Ann. § 77-1-125 — MT Code / Title 77 / Chapter 1 / Part 1 / Section 77-1-125
77-1-125 Liability for unauthorized installation or construction of facility or structure on state trust land -- penalty
Status: in_force

77-1-125 . Liability for unauthorized installation or construction of facility or structure on state trust land -- penalty. (1) A person, other than the lessee of the affected state trust land, may not, after September 30, 1997:

(a) install or construct a road, pipeline, ditch, utility line, fence, building, or other facility or structure on state trust land without obtaining an easement, lease, license, or other written permission of the department; or

(b) disturb state trust land in anticipation of the installation or construction of the facility or structure.

(2) A person who violates subsection (1) is liable to the department for a civil penalty in an amount determined by the board. The penalty may be an amount up to three times the full market value of the land disturbed or affected or $500, whichever is greater.

(3) In addition to the penalty provided for in subsection (2), a person who installs or constructs a facility or structure on state trust land without permission is liable for any permanent damage to the state trust land and may be required to remove the facility or structure and to reclaim the disturbed land to the satisfaction of the department or to pay the department's cost of removal and reclamation.

(4) If the department allows the facility or structure to remain on state trust land, the department shall also require payment of full market value of any easement, lease, or license required for the facility or structure.

(5) The penalties provided in this section do not apply to the lessee of the affected state trust land. The remedies and penalties provided in a state trust easement, lease, or license and the statutes and regulations under which the easement, lease, or license was entered are the exclusive remedies and penalties that may be applied to a lessee.

(6) The penalties provided in this section do not apply to persons who have inadvertently installed or constructed pipelines or utility lines within 20 feet of the easement boundaries granted by the state.

(7) The penalties provided in this section do not apply to facilities or structures installed on lands acquired by the state through exchange or purchase that were authorized with the permission of the previous landowner or through authority granted by an appropriate government agency.
Mont. Code Ann. § 77-1-903 — MT Code / Title 77 / Chapter 1 / Part 9 / Section 77-1-903
77-1-903 Authority of board to determine development
Status: in_force

77-1-903 . Authority of board to determine development. The board shall determine how the development of state trust land for commercial purposes is to proceed before any state trust land is offered for lease. In making this determination, the board may consider the following factors:

(1) the purpose of any development or development plan;

(2) the allocation and location of specific uses of the land, including residential, commercial, industrial, recreational, or other appropriate uses;

(3) the densities and intensities of designated land uses;

(4) the timing and rate of development; and

(5) the timely delivery of adequate facilities and services, including water, wastewater collection and treatment systems, parks and public recreational facilities, drainage facilities, school sites, roads, and transportation facilities.
Mont. Code Ann. § 77-1-228 — MT Code / Title 77 / Chapter 1 / Part 2 / Section 77-1-228
77-1-228 Public land trust acquisition account
Status: in_force

77-1-228 . Public land trust acquisition account. (1) There is a public land trust acquisition account in the state special revenue fund established in 17-2-102 . Any funds recovered by the state as a result of the claim that PPL Montana, LLC, owes compensation to the state for using state-owned riverbeds from 2000 through 2007 and any interest that accumulates on the funds must be deposited in the account. The account must be administered by the department and is subject to the provisions of Article X, section 11, of the Montana constitution.

(2) Money deposited in the account pursuant to subsection (1) may be used only for costs associated with evaluating potential purchases and for the purpose of purchasing interests in and appurtenances to real property in accordance with 77-1-229 . Any interest earned on money deposited in the account must be deposited in the guarantee account provided for in 20-9-622 for distribution to public schools on a monthly basis.
Mont. Code Ann. § 77-3-104 — MT Code / Title 77 / Chapter 3 / Part 1 / Section 77-3-104
77-3-104 Notice of permit or lease approval
Status: in_force

77-3-104 . Notice of permit or lease approval. Upon the approval of an application for a prospecting permit or a mining lease under this part, the department shall promptly give written notice, by ordinary mail, to the permittee or lessee and to any holder of an agricultural or grazing lease embracing the same land or to any holder of a certificate of purchase or patent embracing the same land. The notice must be addressed to the permittee, mining lessee, agricultural or grazing lessee, purchaser, or patentee at the person's last-known post-office address.
Mont. Code Ann. § 77-2-102 — MT Code / Title 77 / Chapter 2 / Part 1 / Section 77-2-102
77-2-102 Application for easement -- survey exemptions
Status: in_force

77-2-102 . Application for easement -- survey exemptions. (1) Application for an easement on state land must be made to the department. Except as provided in subsections (3) through (5), the application must describe the proposed right-of-way according to survey, show the necessity for the proposed highway or street or other easement, and give any additional information that the department requires.

(2) This application must be accompanied by two exact copies of the official plat of the proposed highway, street, or other easement, verified by the affidavit of the engineer or surveyor who prepared the application. These plats must show the quantity of land taken by the proposed highway or street or other easement for each 40-acre tract or government lot of state land over or through which it passes and also the amount of land remaining in each portion of that 40-acre tract or government lot. When considered necessary by the department, these plats must show all these facts for smaller subdivisions as the circumstances may render desirable for the state.

(3) The application must include the affidavit of a licensed engineer or professional surveyor stating that the methodology used is known to be accurate to within 5 meters. The survey must be tied to an established section corner or 1/4 corner monument. The department may request greater accuracy if the department determines that the information is needed to adequately describe the easement.

(4) If the purpose of the right-of-way applied for is the transmission or distribution of electrical energy or the construction and operation of pipelines or telephone, telegraph, or radio systems, the plats and measurements need not be given. An exact geographical survey is not required, but the application must include the description of the location of the center line of the right-of-way that refers to an established monument within a filed corner recordation form, certificate of survey, or subdivision plat. The accuracy requirements of subsection (3) must be met. The entire right-of-way may be applied for in one application with only one plat of the entire right-of-way required. An archaeological survey is not required if, in the opinion of the department, heritage property would not be impacted.

(5) (a) If the purpose of the right-of-way applied for is a regional water authority provided for in Title 75, chapter 6, part 3, the plats and measurements need not be given. An exact geographical survey is not required, but the application must include the description of the location of the center line of the right-of-way.

(b) The application provided for in subsection (5)(a) must be accompanied by electronic global positioning system data in the Montana coordinate system, the easement location depicted on a topographical map to a scale of 1:24,000, easement coordinates, and the quantity of land taken in each quarter-quarter section.

(6) (a) The department may waive survey requirements for rights-of-way or easements provided for in 77-2-101 (11) when there is sufficient information to define the boundaries of the right-of-way or easement to record the right-of-way or easement.

(b) An application for a private access road to private property must include:

(i) a description of appurtenant private lands historically accessed by the access road;

(ii) aerial photographs or images by an agency of the United States government dated prior to October 1, 1997, that depict the access road; and

(iii) easement location depicted on a topographical map to a scale of 1:24,000.

(c) An application for an existing county road must include:

(i) documentation establishing the road pursuant to Title 7, chapter 14, part 26;

(ii) aerial photographs or images by an agency of the United States government dated prior to October 1, 1997, that depict the county road; and

(iii) easement location depicted on a topographical map to a scale of 1:24,000.

(d) An application for an existing public utility infrastructure must include:

(i) evidence of installation prior to October 1, 1997, through submission of plant staking sheets, photographic evidence of dated infrastructure tags, or similar evidence; and

(ii) easement location depicted on a topographical map to a scale of 1:24,000.
Mont. Code Ann. § 77-5-116 — MT Code / Title 77 / Chapter 5 / Part 1 / Section 77-5-116
77-5-116 State forest lands -- deferral of management prohibited
Status: in_force

77-5-116 . State forest lands -- deferral of management prohibited. The board and the department are prohibited from designating, treating, or disposing of any interest in state forest lands for the preservation or nonuse of these lands prior to obtaining funds for the affected beneficiary equal to the full market value of that designation, treatment, or disposition. Unless the full market value of the property interest or of the revenue foregone is obtained, the board and the department are prohibited from either temporarily or permanently designating, treating, or disposing of any interest in any state forest lands for the following purposes:

(1) as a natural area pursuant to Title 76, chapter 12, part 1, or as otherwise provided for by law;

(2) as open-space land as defined in 76-6-104 ;

(3) for old growth timber preservation; and

(4) as a wildlife management area.
Mont. Code Ann. § 77-1-207 — MT Code / Title 77 / Chapter 1 / Part 2 / Section 77-1-207
77-1-207 Board to defend suits
Status: in_force

77-1-207 . Board to defend suits. For the purpose of determining the title to any property seized and taken under the provisions of 77-1-116 , the board is hereby authorized and empowered to defend, in the name of the state, any and all actions that may be brought for that purpose and to do and perform all things necessary to protect the interests of the state.
Mont. Code Ann. § 77-5-202 — MT Code / Title 77 / Chapter 5 / Part 2 / Section 77-5-202
77-5-202 Agreement with purchaser -- bond
Status: in_force

77-5-202 . Agreement with purchaser -- bond. (1) Upon award of sale the purchaser shall execute a formal agreement, approved by the board, which describes the area on which the timber is to be cut, the approximate quantity to be cut by species, and the rate for each product of each species. The agreement shall stipulate that all timber shall be paid for in advance of cutting, fix a date for termination of the agreement, and define rules of silviculture, cutting, utilization, scaling, and slash disposal and such other rules as in the discretion of the board are essential to the perpetuation of the state forests.

(2) (a) Except as provided in subsection (2)(b), as a guarantee for the faithful performance of the agreement, the purchaser shall be required to furnish a bond, with sufficient sureties, to the state of Montana, in an amount equal to the potential loss to the state, as determined by the department.

(b) The bond required under this section must be in an amount equal to at least 5% of the estimated value of the timber sold.
Mont. Code Ann. § 77-3-425 — MT Code / Title 77 / Chapter 3 / Part 4 / Section 77-3-425
77-3-425 Dry hole clause
Status: in_force

77-3-425 . Dry hole clause. If the first well drilled is a dry hole and if a second well is not commenced on the land covered by the lease before the next anniversary of the lease following the completion of the well, the lease may be terminated by the board unless the lessee, on or before such anniversary, resumes payment of any delay drilling penalties imposed by the board. Upon the resumption of payment of any required delay drilling penalties and their continued payment, the lease continues in force during the primary term as though there had been no interruption in the delay drilling penalty payments.
Mont. Code Ann. § 77-3-114 — MT Code / Title 77 / Chapter 3 / Part 1 / Section 77-3-114
77-3-114 Restrictions on mining leases on lands already subject to coal, oil, or gas lease
Status: in_force

77-3-114 . Restrictions on mining leases on lands already subject to coal, oil, or gas lease. In the case of lands covered by a lease for the mining of coal, oil, or gas, no lease for the mining upon any such land for metalliferous minerals and/or gems shall be issued to any person, association of persons, or corporation, other than the holder of such coal, oil, or gas lease while such coal, oil, or gas lease is in force, except with the written consent of the holder of such coal, oil, or gas lease.
Mont. Code Ann. § 77-1-235 — MT Code / Title 77 / Chapter 1 / Part 2 / Section 77-1-235
77-1-235 Alternative rental market valuation -- open competitive bidding process -- rules
Status: in_force

77-1-235 . Alternative rental market valuation -- open competitive bidding process -- rules. (1) (a) In order to establish full rental market value, the board shall establish an open competitive bidding process for all vacant cabin site properties. Except as provided in subsection (1)(c), the minimum bid must be initially set at 2% of the most recent cabin site appraisal value as determined by the department of revenue.

(b) (i) The board shall, within 180 days from the date that a cabin site property becomes vacant, put that site up for open competitive bidding.

(ii) In providing notice of the open competitive bidding process, the board shall notify prospective bidders that a bidder other than the current lessee or licensee is obligated to purchase the improvements pursuant to 77-1-208 (4) if that bidder offers the highest bid.

(iii) A lease or license term for a bidder that offers the highest bid and acquires a lease or license must be for a minimum period of 15 years.

(iv) The fee for each subsequent year must be adjusted using the average annual consumer price index as published by the U.S. bureau of labor statistics.

(c) If pursuant to subsection (1)(a) the board does not receive the minimum bid within 180 days, the board may reduce the bid incrementally until a bid is received.

(2) Subject to 77-1-236 , a lessee or licensee may voluntarily put the lessee's or licensee's cabin site up for open competitive bid as provided in subsection (1) of this section. A lessee choosing to voluntarily place a cabin site lease up for competitive bid is not entitled to a preference right to meet the high bid. Prior to the open competitive bidding process, the board shall follow the procedures provided in 77-1-208 (3) to establish the market value of improvements.

(3) By January 1, 2012, the board shall adopt rules to ensure that:

(a) the open competitive bidding process authorized pursuant to this section is orderly and consistent with the board's constitutional fiduciary duties and that the number of leased cabin or home sites or city or town lots made available for competitive bid at any given time is consistent with the board's constitutional fiduciary duty of attaining full rental market value; and

(b) the information used to determine the rental market percentage pursuant to this section is posted on the department's website and periodically updated.
Mont. Code Ann. § 77-6-403 — MT Code / Title 77 / Chapter 6 / Part 4 / Section 77-6-403
77-6-403 Transfer of lease
Status: in_force

77-6-403 . Transfer of lease. (1) Except as provided in subsection (2), upon due proof that a person has acquired through foreclosure or conveyance the pledgor's or mortgagor's leasehold interest, the board shall transfer the lease to that person, who is subject to all the conditions, obligations, and liabilities and entitled to all the rights and privileges provided for in the lease. To authorize transfer of a lease, a decree of foreclosure must specifically refer to the lease or the leased premises, but neither the board nor the department is required to be named as a party to the action. The plaintiff shall, however, file a copy of the complaint with the department at the time it is filed with the court.

(2) Nothing in this section may be construed to require the board to complete the transfer of a lease to an assignee whom the board considers unqualified as a lessee of state lands.
Mont. Code Ann. § 77-3-111 — MT Code / Title 77 / Chapter 3 / Part 1 / Section 77-3-111
77-3-111 Applications for mining lease
Status: in_force

77-3-111 . Applications for mining lease. Application for a mining lease shall be made to the department on a form prescribed by it.
Mont. Code Ann. § 77-1-904 — MT Code / Title 77 / Chapter 1 / Part 9 / Section 77-1-904
77-1-904 Commercial leasing authorized
Status: in_force

77-1-904 . Commercial leasing authorized. (1) State trust land may be leased for a term not to exceed 99 years for commercial purposes to the highest and best bidder responding to a department request for proposals for commercial uses of a specified tract.

(2) The board may enter into contracts with lessees of state trust land for commercial purposes upon terms and conditions that the board may reasonably determine to be in the best interests of the beneficiary.

(3) A request for proposals for the commercial leasing of state trust land must reserve the board's right to reject any and all bids and the right to reoffer the tract for lease if the bids received are not acceptable to the board.

(4) The board and the department, when preparing plans or proposals under this part, shall implement review criteria in consideration of the following local government provisions except to the extent that the provisions violate Article X, section 4 or 11, of the Montana constitution:

(a) a growth policy or a neighborhood plan adopted pursuant to Title 76, chapter 1;

(b) zoning regulations;

(c) subdivision review as provided in Title 76, chapter 3;

(d) annexation;

(e) plans for the extension of services; and

(f) other actions related to local planning.
Mont. Code Ann. § 77-4-125 — MT Code / Title 77 / Chapter 4 / Part 1 / Section 77-4-125
77-4-125 Pooling agreements and unit operations
Status: in_force

77-4-125 . Pooling agreements and unit operations. (1) Nothing contained in this part or other related laws shall prevent the board from entering into agreements for the pooling of acreage for unit operations for the production of geothermal resources and apportionment of geothermal royalties on an acreage or other equitable basis or from modifying the royalty provisions of existing leases and all subsequent leases in accordance with pooling agreements and unit plans of operation. No agreement may be entered into which changes the percentage of royalties to be paid to the state from the percentages fixed in its leases.

(2) Geothermal resources produced from any part of a unit in which state lands are included by virtue of a pooling agreement shall be considered to be produced from the state lands therein.
Mont. Code Ann. § 77-5-219 — MT Code / Title 77 / Chapter 5 / Part 2 / Section 77-5-219
77-5-219 Contract harvesting account -- authorized expenditures -- termination
Status: in_force

77-5-219 . Contract harvesting account -- authorized expenditures -- termination. (1) An account, called the contract harvesting account, must be created as a subaccount of the trust land administration account established in 77-1-108 , in which to deposit gross revenue and for the payment of expenditures associated with contract harvesting sales. All proceeds of the sale of forest products from a contract harvesting sale must be deposited into this account and must be retained in the account to be used to pay for all contract harvesting costs, as provided in subsection (2).

(2) Expenditures may be credited against the account for contract harvesting costs. Personnel services costs for state employees may not be credited against the account.

(3) An amount equal to the contract harvesting costs must be retained in the account and must be deducted from the gross proceeds to determine the net proceeds. The net proceeds from the sale of the forest products must be distributed to the appropriate trust.

(4) An initial account balance must be created by transferring up to $500,000 into the contract harvesting account from the trust land administration account.

(5) If the contract harvesting program is terminated or discontinued for more than 10 years, any balance remaining in the contract harvesting account in excess of $500,000 must be distributed to the appropriate trust. The remaining balance up to $500,000 must be transferred back to the trust land administration account provided for in 77-1-108 .
Mont. Code Ann. § 77-3-317 — MT Code / Title 77 / Chapter 3 / Part 3 / Section 77-3-317
77-3-317 Report and payment of royalty
Status: in_force

77-3-317 . Report and payment of royalty. (1) On or before the last day of each month every holder of a producing coal mining lease shall make a report to the department on a form the department prescribes showing:

(a) the number of tons mined during the preceding calendar month;

(b) the price obtained for the number of tons mined during the preceding calendar month at the mine;

(c) the total amount of all sales; and

(d) any additional information required by the department.

(2) The report must be verified by the lessee and be accompanied by payment of the royalty due the state for the preceding month as shown by the report.
Mont. Code Ann. § 77-2-317 — MT Code / Title 77 / Chapter 2 / Part 3 / Section 77-2-317
77-2-317 Valuation of cabin or home site and improvements -- rulemaking
Status: in_force

77-2-317 . Valuation of cabin or home site and improvements -- rulemaking. (1) (a) Prior to the board's approval of any sale of state land leased as a cabin or home site or state land with a vacant cabin or home site as provided in 77-2-318 , the board shall separately determine the full market value of the land and the value of the cabin site improvements existing on the land and the value of any necessary access easement across existing state lands from the nearest public road. The appraisal to determine these values must be based upon comparable sales of nearby existing properties with the hypothetical condition that the state parcel to be sold is accessible for all lawful purposes. The appraisal must determine the raw undeveloped value of the parcel and the value of the cabin site improvements.

(b) (i) In determining the value of state land leased as a cabin or home site pursuant to subsection (1)(a), the department shall establish a list that is acceptable to the board of no fewer than two third-party independent appraisers that are available to conduct the appraisal of the land and the cabin site improvements. The department shall provide a copy of the list to the cabin site or home site lessee. The lessee shall provide the department with a list of at least 50% of the appraisers from the department's list. The department shall select the appraiser to conduct the appraisal from the list provided by the lessee.

(ii) The department shall assume the proportionate cost of the appraisal of the state land valuation. The lessee shall assume the proportionate cost of the appraisal of the valuation of the cabin site improvements.

(c) The board shall disclose the results of the appraisal to the cabin site or home site lessee of the land for sale and shall give that lessee notice and opportunity for an administrative hearing before the department to contest those valuations. The department shall review the arguments and evidence received at the hearing to make a recommendation of the values of the land and the cabin site improvements to the board. The board shall make a final determination on the values of the land and cabin site improvements.

(2) (a) If the lessee consents to the terms and conditions of the proposed sale and the valuation of cabin site improvements, the sale must proceed utilizing the board's final determination of the values, and the lessee is obligated to transfer its interest in the cabin site improvements existing on the cabin or home site lease according to the board's final determination of their value.

(b) Nothing in this section prohibits the lessee from accepting a price for the cabin site improvements existing on the cabin or home site that is less than the board's final determination of value.

(3) For purposes of 77-2-318 and this section, "cabin site improvements" includes but is not limited to:

(a) a home or residence;

(b) outbuildings and structures;

(c) sleeping cabins;

(d) utilities;

(e) water systems;

(f) septic systems;

(g) docks; and

(h) landscaping.

(4) The board may adopt rules to implement the provisions of this section.
Mont. Code Ann. § 77-4-126 — MT Code / Title 77 / Chapter 4 / Part 1 / Section 77-4-126
77-4-126 Royalties and rentals
Status: in_force

77-4-126 . Royalties and rentals. Geothermal leases shall be issued at an annual rental of not less than $1 per acre, payable in advance and/or a royalty which shall not be less than 10% of the amount or value of steam or other forms of heat or energy derived from the production under the lease and sold or utilized by the lessee or reasonably susceptible to sale or utilization by the lessee and not more than 5% of any byproduct derived from production under the lease and sold or utilized or reasonably susceptible of sale or utilization by the lessee.
Mont. Code Ann. § 77-1-617 — MT Code / Title 77 / Chapter 1 / Part 6 / Section 77-1-617
77-1-617 Management of isolated trust lands -- reciprocal access
Status: in_force

77-1-617 . Management of isolated trust lands -- reciprocal access. (1) To facilitate the management of isolated tracts of all classifications of state lands, the department may negotiate reciprocal access agreements that may include easements. For an easement granted pursuant to this subsection, the board may waive all or a portion of the survey requirements of 77-2-102 , subject to any conditions that the board may impose.

(2) In granting access, the department is not required to analyze or consider the potential impacts of activities that may occur on private or federal lands in conjunction with or as a result of granting access.
Mont. Code Ann. § 77-2-364 — MT Code / Title 77 / Chapter 2 / Part 3 / Section 77-2-364
77-2-364 Land banking purchases
Status: in_force

77-2-364 . Land banking purchases. (1) The board may select and purchase, lease, receive by donation, hold in trust, or in any manner acquire for and in the name of the state of Montana, in trust for the beneficiaries specified in sections 10 through 19 of The Enabling Act of Congress (approved February 22, 1889, 25 Stat. 676), as amended, any interest in real property and improvements, tracts, and leaseholds of land that the board considers proper in order to best provide prudent, maximum, long-term revenue for the beneficiaries.

(2) Sales of state land may be initiated only by the board, by the department, or at the request of a lessee, pursuant to 77-1-202 , 77-1-301 , 77-2-301 , or 77-2-308 . The board shall ensure that the full market value of the land sold is realized for each trust by using the appraisal, sale, advertising, and competitive bid procedures contained within 77-2-303 , 77-2-321 , 77-2-322 , 77-2-323 , and 77-2-324 . The estimated fair market value must be determined by a Montana-licensed and Montana-certified appraiser.

(3) When it is not inconsistent with the purpose of the trust, the board shall purchase land possessing legal access for all legal purposes.

(4) When purchasing land, easements, or improvements for the existing trusts, the board shall develop and apply appraisal and revenue projection procedures to ensure that the land or easements proposed for purchase or that the improvements proposed to be acquired are likely to produce more net revenue for the affected trust than the revenue that was produced from the land that was sold. The board may not purchase land, easements, or improvements pursuant to 77-2-361 through 77-2-367 unless it has first prudently determined that the land, easements, or improvements are likely to produce a greater or equal annual rate of return, as may be reasonably expected over a 20-year accounting period for Class 1, 3, and 4 lands and over a 60-year accounting period for Class 2 lands, as described in 77-1-401 , with an acceptable level of risk for the affected trust, than the current annual rate of return from the state land that has been sold pursuant to 77-2-363 . As guidance, the board shall use generally accepted accounting standards and the Uniform Appraisal Standards for Federal Land Acquisitions published by the U.S. department of justice and the appraisal institute.

(5) Prior to purchasing any land, easements, or improvements, the board shall determine that the financial risks and benefits of the purchase are prudent, financially productive investments that are consistent with the board's fiduciary duty as a reasonably prudent trustee of a perpetual trust. For the purposes of implementing 77-2-361 through 77-2-367 , that duty requires the board to:

(a) discharge its duties with the care, skill, prudence, and diligence that a prudent person acting in a similar capacity with the same resources and familiar with similar matters should exercise in the conduct of an enterprise of similar character and aims;

(b) diversify the land holdings of each trust to minimize the risk of loss and maximize the sustained rate of return;

(c) discharge its duties and powers solely in the interest of and for the benefit of the trust managed;

(d) discharge its duties subject to the fiduciary standards set forth in 72-38-801 ; and

(e) maintain, as closely as possible, the existing land base of each trust, consistent with the state's fiduciary duty.

(6) Prior to purchasing a parcel of land in excess of 160 acres in any particular county, the board shall consult with the county commissioners of the county in which the parcel is located.
Mont. Code Ann. § 77-1-805 — MT Code / Title 77 / Chapter 1 / Part 8 / Section 77-1-805
77-1-805 Liability of state and lessee
Status: in_force

77-1-805 . Liability of state and lessee. (1) The provisions of 70-16-302 that limit the liability of a landowner or the landowner's tenant for the recreational use of property apply to the state and any lessee of state lands used for general recreational purposes.

(2) The lessee is not responsible for the suppression of or for damages resulting from a fire on the leased land caused by a general recreational user, except that a lessee who observes a fire caused by a general recreational user shall make reasonable efforts to suppress the fire or report it to the proper firefighting authority.
Mont. Code Ann. § 77-1-302 — MT Code / Title 77 / Chapter 1 / Part 3 / Section 77-1-302
77-1-302 Setting fees
Status: in_force

77-1-302 . Setting fees. The department may prescribe fees, with the approval of the board, for the issuance, filing, or making of a copy of any instrument or for any other service.
Mont. Code Ann. § 77-3-318 — MT Code / Title 77 / Chapter 3 / Part 3 / Section 77-3-318
77-3-318 Disposition of royalties and other receipts
Status: in_force

77-3-318 . Disposition of royalties and other receipts. All fees, rentals, royalties, and bonuses collected under state coal leases shall be paid to the department and credited as follows:

(1) All fees shall be credited to the state general fund.

(2) All rentals and bonuses shall be credited to the income fund of the grant to which the lands under each lease belong.

(3) All moneys collected as royalties shall be credited to the permanent fund arising from the grants to which the lands under lease belong.
Mont. Code Ann. § 77-6-102 — MT Code / Title 77 / Chapter 6 / Part 1 / Section 77-6-102
77-6-102 Surface leases authorized
Status: in_force

77-6-102 . Surface leases authorized. Under the general direction and control of the board, the department shall lease all agricultural and grazing lands and all town lots, city lots, and lands valuable for commercial development open to leasing upon proper application.
Mont. Code Ann. § 77-3-429 — MT Code / Title 77 / Chapter 3 / Part 4 / Section 77-3-429
77-3-429 Operating agreements
Status: in_force

77-3-429 . Operating agreements. Owners of state oil and gas leases may enter into agreements with other persons, associations, firms, and corporations for drilling and other operations on the state lands under their leases. No such operating agreements are in any way binding upon the state until filed with the board and approved by it. No such drilling or operating agreement in any way affects the obligations of each individual leaseholder to the state.
Mont. Code Ann. § 77-5-304 — MT Code / Title 77 / Chapter 5 / Part 3 / Section 77-5-304
77-5-304 Inspection -- onsite consultation
Status: in_force

77-5-304 . Inspection -- onsite consultation. (1) The department may inspect forest practices on any federal, state, or private land in this state to assess compliance with the provisions of this part and rules adopted pursuant to this part.

(2) The department may conduct an onsite consultation with an owner or operator to review harvest plans and watershed conditions. During the onsite consultation, the department may review and, if appropriate, approve the proposed use of alternative streamside management practices, as provided in 77-5-303 .
Mont. Code Ann. § 77-1-129 — MT Code / Title 77 / Chapter 1 / Part 1 / Section 77-1-129
77-1-129 Rulemaking authority
Status: in_force

77-1-129 . Rulemaking authority. The department may adopt rules to implement 77-1-126 through 77-1-128 .
Mont. Code Ann. § 77-4-208 — MT Code / Title 77 / Chapter 4 / Part 2 / Section 77-4-208
77-4-208 Rental for power sites -- deposit of rental money in proper accounts
Status: in_force

77-4-208 . Rental for power sites -- deposit of rental money in proper accounts. (1) The rental payment to the state for power sites must be paid annually or semiannually, and the rental may not be less than the full market value of the estate or interest disposed of through the granting of the lease or license. The value must be carefully ascertained from all available sources.

(2) Beginning July 1, 2011, all rental payments received under this section must be deposited in accordance with 17-3-1003 (5).
Mont. Code Ann. § 77-1-1113 — MT Code / Title 77 / Chapter 1 / Part 11 / Section 77-1-1113
77-1-1113 Historic riverbed use account
Status: in_force

77-1-1113 . Historic riverbed use account. (1) There is an account in the state special revenue fund into which the application fees collected pursuant to 77-1-1112 must be deposited.

(2) The funds in the account may be used only for administering the provisions of 77-1-1112 .
Mont. Code Ann. § 77-1-1102 — MT Code / Title 77 / Chapter 1 / Part 11 / Section 77-1-1102
77-1-1102 Void
Status: in_force

77-1-1102 . Void. Sec. 12, Ch. 475, L. 2009.
Mont. Code Ann. § 77-3-308 — MT Code / Title 77 / Chapter 3 / Part 3 / Section 77-3-308
77-3-308 Limitation on public inspection rights
Status: in_force

77-3-308 . Limitation on public inspection rights. The department may withhold from public inspection any information obtained from a coal mining lessee or permittee under this part if the information relates to the geology of the mining lease or permit. The withholding is effective for as long as the department considers it necessary either to protect the lessee's or permittee's economic interest in the geologic information against unwarranted injury or to protect the public's best interest.
Mont. Code Ann. § 77-2-313 — MT Code / Title 77 / Chapter 2 / Part 3 / Section 77-2-313
77-2-313 Land subject to taxation
Status: in_force

77-2-313 . Land subject to taxation. (1) State lands purchased from the state are subject to taxation. The department of revenue shall assess the purchaser for the full value of the land on January 1 following the date of purchase. The holder of certificates of purchase to lands within an irrigation district is liable for the entire irrigation district tax levied against the land.

(2) The improvements on the land must be assessed and taxed as other improvements on farm lands.

(3) On or before January 15 of each year, the department shall furnish the department of revenue with a complete list of all state lands sold in each county during the previous calendar year. This list must show the name and address of the purchaser, the legal description of the land, and the acreage contained in the purchase.
Mont. Code Ann. § 77-5-216 — MT Code / Title 77 / Chapter 5 / Part 2 / Section 77-5-216
77-5-216 Contract harvesting authorized
Status: in_force

77-5-216 . Contract harvesting authorized. (1) Under direction of the board and after submitting the various portions of the sale for bid, as described in 77-5-201 , the department is authorized to sell timber and forest products from contract harvesting sales through the competitive bidding process pursuant to 77-5-201 (1) and (2) and to contract with firms and individuals for the removal of timber and forest products from state trust lands, the preparation of those materials into merchantable form, the transportation of those materials to a point of sale, and other purposes that the department determines to be necessary.

(2) Except as provided in subsection (3), the department may not conduct contract harvesting on state trust lands in an amount greater than 10% of the annual sustained yield.

(3) If the department is addressing forest health concerns as provided in 77-5-217 , the department may exceed the annual sustained harvest level by up to 10% using contract harvesting, provided that the contract harvest volume in excess of the annual sustained harvest level contains no more than 25% merchantable sawlog volume.
Mont. Code Ann. § 77-5-224 — MT Code / Title 77 / Chapter 5 / Part 2 / Section 77-5-224
77-5-224 Forest improvement account
Status: in_force

77-5-224 . Forest improvement account. (1) There is a forest improvement account in the state special revenue fund.

(2) Forest improvement fees collected pursuant to 77-5-204 must be deposited in the forest improvement account and accounted for by trust.

(3) Funds in the forest improvement account must be invested. Any interest earned must be deposited in the forest improvement account in proportionate share to each fund's contribution to the account.
Mont. Code Ann. § 77-4-209 — MT Code / Title 77 / Chapter 4 / Part 2 / Section 77-4-209
77-4-209 Duration of lease
Status: in_force

77-4-209 . Duration of lease. The term of the lease shall not exceed 50 years.
Mont. Code Ann. § 77-2-336 — MT Code / Title 77 / Chapter 2 / Part 3 / Section 77-2-336
77-2-336 Lien on improvements and crops for amount due state
Status: reserved

77-2-336 . Lien on improvements and crops for amount due state. (1) The state has a lien prior and superior to all other liens, except thresher's liens and seed liens as specified in 71-3-701 and 71-3-801 , that have priority, but only for the aggregate amount of the indebtedness then existing, including any advances made, interest due, and other charges, as evidenced by the original loan contract and indebtedness accumulating on that basis, exclusive of any other future advances originally contemplated. This lien is upon all buildings, structures, fences, and other improvements upon the land sold and upon all crops growing upon any of the land and also upon crops after they have been separated from the land for all due and delinquent installments of principal and interest and penalty interest and taxes under the certificate of purchase and also for all installments becoming due during the calendar year in which the crop is harvested, and this lien is expressly reserved.

(2) Any person purchasing or otherwise acquiring the improvements or crops or any part of the improvements or crops takes them subject to the lien.

(3) Any representative of the department or the sheriff of the county in which the land is located or the sheriff's deputy may demand of the purchaser or the purchaser's agent payment of the amounts due the state, and if they are not paid upon demand, the officer making the demand or any representative of the department may immediately seize the improvements and crops and, upon giving 3 days' notice, sell and dispose of, either at private or public sale, sufficient of the crops or improvements or of both to pay the amounts due the state, together with cost and expenses of seizure and sale.
Mont. Code Ann. § 77-3-207 — MT Code / Title 77 / Chapter 3 / Part 2 / Section 77-3-207
77-3-207 Land leased for other purposes
Status: in_force

77-3-207 . Land leased for other purposes. Such portions of the section or other subdivision of the land on which such deposits are located as are not needed for the quarrying or digging and removal of the stone, limestone, oil shale, clay, sand, or gravel may be leased for grazing or agricultural purposes the same as other state lands. In the case that grazing or agricultural leases are issued they shall provide for a right-of-way across the land for the removal of the stone, limestone, oil shale, clay, gravel, sand, or other deposits, but the rights of the lessee shall also be duly protected.
Mont. Code Ann. § 77-1-907 — MT Code / Title 77 / Chapter 1 / Part 9 / Section 77-1-907
77-1-907 Qualifications for commercial lessees -- bonds
Status: in_force

77-1-907 . Qualifications for commercial lessees -- bonds. (1) Before accepting any offer for a commercial lease, the board shall establish, to its satisfaction, the financial capability of the person seeking the commercial lease and the legal authority of the person to conduct business in the state. Prior to executing a commercial lease, the board may require the posting of bonds, sureties, guarantees, or a letter of credit sufficient to ensure that the commercial purposes will be conducted as proposed with no harm to the financial interests of the beneficiaries.

(2) All commercial leases of which the commercial purpose includes the use of a hazardous substance as defined in 75-10-602 must be bonded to ensure a degree of cleanup of the hazardous substance that ensures protection of public health, safety, and welfare and of the environment in a manner that protects the long-term financial interest of the beneficiaries.
Mont. Code Ann. § 77-1-138 — MT Code / Title 77 / Chapter 1 / Part 1 / Section 77-1-138
77-1-138 Terminated
Status: in_force

77-1-138 . Terminated. Sec. 7, Ch. 380, L. 1999.
Mont. Code Ann. § 77-5-102 — MT Code / Title 77 / Chapter 5 / Part 1 / Section 77-5-102
77-5-102 Designation of state forests
Status: in_force

77-5-102 . Designation of state forests. The following state forest units are hereby established, primarily to secure through forestry management a continuous supply of timber and the performance of watershed covers:

(1) A state forest containing lands owned or hereafter acquired by the state, now comprising about 90,000 acres, situated in the watersheds of the Stillwater and Whitefish Rivers of Flathead and Lincoln Counties shall hereafter be known and designated as the "Stillwater State Forest".

(2) A state forest containing all lands owned or hereafter acquired by the state, now comprising about 42,000 acres, situated in the Swan River watershed of Lake County shall hereafter be known and designated as the "Swan River State Forest".

(3) A state forest containing all lands owned or hereafter acquired by the state, now comprising about 20,000 acres, situated in the Coal Creek watershed of the North Fork of the Flathead River shall hereafter be known and designated as the "Coal Creek State Forest".

(4) A state forest containing all lands owned or hereafter acquired by the state, now comprising about 10,000 acres situated in the watersheds of Camp and Cameron Creeks of Ross Hole of Ravalli County shall hereafter be known and designated as the "Sula State Forest".

(5) A state forest containing all lands owned or hereafter acquired by the state, now comprising about 14,628 acres, situated in the west half of township 25 north, range 26 west; and township 23 north, range 27 west; and west half of township 22 north, range 26 west; and township 21 north, range 26 west, except sections 4, 5, 6, 7, 8, and 18, in the Thompson River watershed of Sanders County shall hereafter be known and designated as the "Thompson River State Forest".

(6) A state forest containing all lands owned or hereafter acquired by the state, now comprising about 18,076 acres, situated in townships 13, 14, and 15 north, range 14 west; and townships 13 and 16 north, range 15 west, Montana meridian, in the Clearwater River watershed of Missoula County shall hereafter be known and designated as the "Clearwater State Forest".

(7) A state forest containing all lands owned or hereafter acquired by the state, now comprising about 8,245 acres, situated in township 14 north, ranges 7, 8, and 9 west; and township 13 north, ranges 8 and 9 west, Montana meridian, of the Blackfoot River watershed in Lewis and Clark County shall hereafter be known and designated as the "Lincoln State Forest".
Mont. Code Ann. § 77-3-119 — MT Code / Title 77 / Chapter 3 / Part 1 / Section 77-3-119
77-3-119 Bonds to state
Status: reserved

77-3-119 . Bonds to state. The board may, at the time of the execution and delivery of a mining lease or at any time during the life of the lease, require a mining lessee to file with the department, for the benefit of the state, a bond or bonds conditioned to protect the rights of the state, particularly in the payment to the proper officer of the state of the royalties reserved in the mining lease. The bond or bonds shall be in a form and amount prescribed by the board. The board may at any time require new or additional bonds if in its discretion the interests of the state are not adequately protected by the bond or bonds previously filed.
Mont. Code Ann. § 77-3-411 — MT Code / Title 77 / Chapter 3 / Part 4 / Section 77-3-411
77-3-411 Notice of lease sale required
Status: in_force

77-3-411 . Notice of lease sale required. (1) Within 15 days of the previous oil and gas lease sale, the department shall publish the date and place of the upcoming sale in a publication of general circulation in Montana and on the department's website.

(2) (a) The department shall accept nominations of tracts for an upcoming sale until 77 days prior to the date of the sale.

(b) Upon receipt of a nomination by the department, the location of the tracts is public information.

(3) At least twice, the department shall publish a notice containing the time and place of the sale, a statement that all sales will be by competitive bidding, and the number of tracts in each county offered for sale at the time of the notice on the department's website and in a publication of general circulation in Montana:

(a) not less than 63 days before the date of an upcoming sale; and

(b) between 21 days and 35 days before the date of the sale.

(4) In a publication of general circulation in each county where a tract is nominated for sale, the department shall publish a notice in compliance with subsection (3), except that each notice needs to contain only the number of tracts nominated for sale in that county and notice that a description and maps of tracts nominated are available on the department's website.

(5) The department shall publish on its website a description and maps of all tracts to be offered for sale.

(6) (a) Except as provided in subsection (6)(b), the department shall provide notice by first-class mail to surface owners of a tract being offered for sale using the most current known property owners of record as shown in the records of the county clerk and recorder of the county where the tract is located.

(b) The notice in subsection (6)(a) is not required if the surface is managed by the department pursuant to Title 77, chapter 1.

(7) The notice required by subsection (6) must contain the time and place of the sale, a statement that all sales will be by competitive bidding, and a description and area map of each tract offered for sale.
Mont. Code Ann. § 77-1-701 — MT Code / Title 77 / Chapter 1 / Part 7 / Section 77-1-701
77-1-701 Definitions
Status: in_force

77-1-701 . Definitions. When used in this part, unless a different meaning clearly appears from the context, the following definitions apply:

(1) "Ownership record" means the original deed, abstract, and any other instrument signifying state ownership or other interest in real property.

(2) "State agency" means any board, bureau, department, commission, or officer of the state.

(3) "State land" means land held, possessed, or administered by the state by virtue of fee simple title, grant, or deed. This term does not include:

(a) land acquired through investments under the provisions of 17-6-201 ;

(b) land used by virtue of an interest temporary in nature, such as a lease, license, or permit; or

(c) land used for easements and rights-of-way.
Mont. Code Ann. § 77-6-502 — MT Code / Title 77 / Chapter 6 / Part 5 / Section 77-6-502
77-6-502 Grazing leases
Status: in_force

77-6-502 . Grazing leases. (1) The rental rate for leasing all state grazing lands must attain full market value based upon the appraised animal-unit-month carrying capacity of the land as provided in 77-6-507 .

(2) If the board raises the rentals for state grazing lands during the term of any leases of grazing land that are not issued as a result of competitive bidding, the lessee shall, for the years after the increase becomes effective, pay the increased rental, and the terms of grazing leases must provide for the increase.
Mont. Code Ann. § 77-1-204 — MT Code / Title 77 / Chapter 1 / Part 2 / Section 77-1-204
77-1-204 Power to sell, lease, or exchange certain state trust lands
Status: in_force

77-1-204 . Power to sell, lease, or exchange certain state trust lands. (1) The board is authorized to lease state trust lands for uses other than agriculture, grazing, timber harvest, or mineral production under terms and conditions that best fulfill the duties of the board as specified in 77-1-202 and 77-1-203 . The lease period for these leases, except for power and school site leases, may not be for longer than 99 years.

(2) The board may sell, exchange, or lease lands under its jurisdiction by virtue of 77-1-214 when, in the board's judgment, it is advantageous to the state to do so in the highest orderly development and management of state trust land. The sale, lease, or exchange may not be contrary to the terms of any contract that the board has entered into.
Mont. Code Ann. § 77-3-511 — MT Code / Title 77 / Chapter 3 / Part 5 / Section 77-3-511
77-3-511 Termination and surrender of lease
Status: in_force

77-3-511 . Termination and surrender of lease. The lessee may at the termination of any rental year, by giving to the department 30 days' previous notice in writing, surrender and relinquish such lease to the state and be thereupon discharged from any obligation not yet accrued.
Mont. Code Ann. § 77-2-215 — MT Code / Title 77 / Chapter 2 / Part 2 / Section 77-2-215
77-2-215 Notice and hearing concerning exchange of timbered lands
Status: in_force

77-2-215 . Notice and hearing concerning exchange of timbered lands. If the board approves a proposal for exchange pursuant to 77-2-211 , the department shall publish at least once in a newspaper of general circulation in each county in which any of the lands involved are located a notice stating in general terms the proposal and describing the lands involved and the ownership of the lands. The notice must fix a day not less than 20 and not more than 60 days from the date of the first publication at which the board will hear objections to the proposed exchange and at which any person, firm, or corporation may appear in person or by representative and be heard.
Mont. Code Ann. § 77-6-202 — MT Code / Title 77 / Chapter 6 / Part 2 / Section 77-6-202
77-6-202 Lease by competitive bidding -- full market value required
Status: in_force

77-6-202 . Lease by competitive bidding -- full market value required. When the department receives an application to lease an unleased tract, it shall advertise for bids on the tract. The tract must be leased to the highest bidder unless the board determines that the bid is not in the state's best interest for the reasons set forth in 77-6-205 (2). The board may not accept a bid that is below full market value. If the high bid is rejected, the board shall set forth the reasons for the rejection in writing. The lease may be issued, at a rental rate to be determined by the board, to the first bidder who is willing to pay the board-determined rate whose name is selected through a random selection process from all bidders on the tract.
Mont. Code Ann. § 77-5-214 — MT Code / Title 77 / Chapter 5 / Part 2 / Section 77-5-214
77-5-214 Statement of policy
Status: in_force

77-5-214 . Statement of policy. (1) The application of contract harvesting on Montana's trust lands provides an opportunity to improve forest health and long-term productivity, increase options for managing forests in environmentally sensitive areas, and provide potential revenue benefits for trust beneficiaries.

(2) It is important that the department has clear authorization and direction for conducting contract harvesting, including marketing and selling log sorts and other forest products.

(3) A clear funding mechanism addressing the receipt of revenue and payment for costs associated with contract harvesting projects provides the transparent process that allows beneficiaries to understand the costs and benefits associated with contract harvesting.

(4) Contract harvesting has the potential to result in increased bidder activity, better use and merchandising of products, improved harvesting results and environmental protection, and quicker completion of projects when time constraints are a factor.
Mont. Code Ann. § 77-2-213 — MT Code / Title 77 / Chapter 2 / Part 2 / Section 77-2-213
77-2-213 Department to investigate
Status: in_force

77-2-213 . Department to investigate. (1) When a proposal for an exchange pursuant to 77-2-211 is made and the owners of the respective tracts involved seem agreeable to negotiate exchanges, the proposal must be referred to the department and the department shall thoroughly investigate all the lands involved in the proposal, estimate the value of all of the lands, and consider every factor in connection with the proposal that may affect the public interest.

(2) The estimated fair market value must be determined by a Montana-licensed and Montana-certified appraiser.