justicedao/ipfs_state_laws huggingface dataset:
141-070-0100 Lease Conditions and Requirements All oil and gas leases shall be on a form approved by the Director of the Division of State Lands. The oil and gas lease form contains specific contractual rights and obligations including, but not limited to, the following: (1) The lease agreement allows only limited right of surface entry to the leased lands. After the Environmental Impact Assessment has been approved by the Division and the Operations Plan has been approved by the Department of Geology an Mineral Industries, and all necessary bonds, insurance, permits, and approvals have been received, pursuant to OAR 141-070-0110 below, the Division may issue a surface entry permit to accomplish the purpose of the lease. (2) The lessee shall be responsible for all damages resulting from its operations on the leased lands. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 3-1988, f. & cert. ef. 9-19-88
141-070-0110 Surface Entry Permit When the State owns the surface as well as the oil and gas rights, no road construction, site preparation or drilling for oil or gas shall take place on the surface of the leased premises prior to the issuance of a surface entry permit. When the state owns oil and gas rights but not surface, the lessee must pursue obtaining surface entry in the manner provided by law for exercising access to severed estate mineral rights. The Division may issue a surface entry permit upon receipt and approval of the following: (1) An Operations Plan as required by the Department of Geology and Mineral Industries in conjunction with obtaining a drilling permit. (2) A payment, production and performance bond or bonds in the amount stipulated in the lease agreement in addition to any performance bond that may be required by the Department of Geology and Mineral Industries in connection with issuance of an oil and gas drilling permit. (3) A certificate of insurance for not less than $1,000,000 combined single limit per occurrence showing that the lessee is insured for personal injury, property damage to third persons and liability under the terms of the lease agreement. The insurance amount shall be for each occurrence and shall name the State of Oregon as an additional insured. (4) An Environmental Impact Assessment completed by the lessee on a form provided by the Division. The environmental assessment shall include but will not be limited to adverse effects on the human and natural resources of the area, including scenic, recreational, public health, and plant and animal resources. It will also require a description of procedures the lessee will take to mitigate said impacts. The approval or disapproval of the Environmental Impact Assessment will be determined by the Division within 90 days of receipt of the completed form. (5) Permits as required by governmental bodies. (6) A designated agent, if lessee is a nonresident. Lessee shall designate, in writing, an Oregon resident as a designated agent upon whom may be served written notices or orders respecting the lease agreement. (7) Operator. Any operator appointed by the lessee shall be jointly responsible for the faithful performance of all covenants and obligations of the lease. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 3-1988, f. & cert. ef. 9-19-88
141-070-0120 Rental Amounts Lessee shall pay to the state annually in advance, the following rental amounts per acre or fraction of an acre per year: (1) Annual Rental — The amount of $1 per acre or fraction of an acre payable in advance on an annual basis during the primary ten-year lease term and any extended term of the lease. (2) Delayed Rental — The amount of $1 per acre or fraction of an acre in addition to the annual rental to defer the lease agreement drilling requirement. Delayed rental is payable on or before the 5th through the 9th anniversary dates of the primary lease term unless the drilling requirements are satisfied or the lease agreement is terminated. (3) The lease shall automatically terminate if all annual and delayed rental payments required by the lease are not received by the Division on or before the anniversary date of the lease. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 3-1988, f. & cert. ef. 9-19-88
141-070-0130 Royalties The minimum royalties on all leases shall be: (1) Oil — One-eighth of the market value at well head. (2) Gas — One-eighth of the proceeds from sale of gas as calculated at well head. (3) Sulphur — One dollar per long ton. (4) At the discretion of the Director, royalties for negotiated leases and for leases within six miles of a shut in or producing oil and gas well may be in excess of the minimum royalty but not to exceed 3/8 of the value as described under sections (1) and (2) of this rule. (5) The lessee shall furnish monthly royalty statements specifying the total production, sales price, taxes, and the state’s share of production attributable to each leased parcel of state land. (6) Any person authorized by the state may examine all books and records pertaining to oil and gas resources taken from the leased lands. (7) The state shall have the right to measure, sample and/or witness the removal of all substances from the leased lands at any reasonable time. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 3-1988, f. & cert. ef. 9-19-88
141-070-0140 Assignment of Lease The assignment of a divided or undivided lease interest, in whole or in part, may only be accomplished by compliance with the following: (1) Divided Interests. All request for assignment of divided interests must be submitted on forms provided by the Division and are subject to approval by the State Land Board. Assignment of a separate portion of the lease shall release the assignor from further lease obligations only with respect to the assigned lands. (2) Undivided Interests. All request for assignment of undivided lease interests must be submitted on forms provided by the Division and are subject to approval by the Director. Undivided assignment of lease interests does not segregate the lease, and the original lessee and assignee shall both be responsible for the performance of all duties and obligations of the lease agreement. (3) Fee. The processing fee shall be $50 for each assignment. All assignment forms shall be submitted in duplicate. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 3-1988, f. & cert. ef. 9-19-88
141-070-0150 Production Requirements Whether or not the state owns the surface, no production of oil, gas, and the constituents thereof shall be commenced until the lessee has submitted, and the Director has approved, an Operations Plan and an Environmental Impact Assessment, or an amendment of a previously approved impact assessment. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 3-1988, f. & cert. ef. 9-19-88
141-070-0160 Lease Termination At the expiration of the lease or upon sooner termination, the lessee shall execute and deliver to the state a release or a recorded quitclaim of the leased premises if the original lease was recorded. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 3-1988, f. & cert. ef. 9-19-88
141-070-0170 Leases Issued Prior to the Effective Date of These Rules All upland oil and gas lease agreements issued prior to the effective date of these administrative rules remain subject to the provisions of OAR 141-072-0205 et seq., under division 72 of chapter 141, Division of State Lands. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 3-1988, f. & cert. ef. 9-19-88
141-071-0400 Purpose The purpose of these regulations is to prescribe uniform procedures for obtaining and conducting operations under mineral prospecting permits and mining leases covering onshore state-owned lands and mineral rights under the jurisdiction of the Division of State Lands. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 44, f. & ef. 8-16-77
141-071-0405 Definitions (1) “Division” means Division of State Lands. (2) “Director” means the Division Director. (3) “Mining claim” means as defined in ORS Chapter 517. (4) “Mining lease” means the completed lease following the form adopted by OAR 141-071-0690. (5) “Lands” means the state-owned lands as listed in the Registry of Mineral Rights for which the Division may execute mining leases under ORS 273.780. (Certain minerals and lands are excluded by ORS 273.785.) (6) “Surface Rights” means all property rights and usage exclusive of the mineral estate or reserved mineral rights. (7) “Valuable Minerals” those metallic minerals and uranium covered by these rules which have sufficient values to justify expenditure by a prudent man for development and extraction. (8) “Commercial Quantities” those valuable minerals, as defined herein, which exist in sufficient amounts to justify expenditures by a prudent man for development and extraction. (9) “Hard Mineral Resource” all state-owned metallic and non-metallic minerals except oil, gas and sulphur, geothermal resources and their by-products, and construction grades of rock, sand, and gravel. (10) “Discovery” finding of one or more valuable minerals in commercial quantities. (11) “Exploration” means electrical and electronic surveys, seismic, gravimetric, geochemical surveys, shallow core drilling, assay work, and other measurements of a like nature. (12) “Registry” means the inventory of mineral rights established by the Division of State Lands pursuant to ORS 273.790 listing lands owned by all state agencies in which mineral rights were transferred to the Division for leasing. (13) “Operations Plan” means the planned series of measurements, tests, and surveys which a permittee expects to employ; multiple plan segments may be employed to allow sequence adjustments whenever data warrants. (14) “Qualified Applicant” means any United States citizen of legal age, or any firm, association, or corporation which is qualified to do business in the State of Oregon and is not in default under the laws of the State of Oregon relating to qualifications to do business within this state; and governmental units, including without limitation, municipalities; provided, that no member of the State Land Board or employee of the Division of State Lands may take or hold a lease upon state-owned mineral rights. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 44, f. & ef. 8-16-77
141-071-0410 State Land Board Policy In order to more fully manage the mineral rights in property owned by any state agency as directed by ORS 273.780, the State Land Board adopts the following program policies: (1) The Division’s program should provide for environmental protection on a parcel-by-parcel basis, protect the long-term use of surface rights, and obtain an equitable return to the proper state fund. (2) Mining production leases shall be issued on the following terms: $1 per acre per year; royalty rate of 5 percent for most metallic minerals; escalating development expense from $1 per acre per year to $3 per acre after the third year; and ten year primary term on leases covering a maximum of 640 acres. (3) Competitive bidding should be utilized to obtain the highest available return from discovered mineral occurrences. (4) Lease applications which include assay valuations in excess of $100,000 shall be subject to final approval by the State Land Board. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 44, f. & ef. 8-16-77
141-071-0420 Fees and Service Charges The Division shall collect nonrefundable service charges to cover the expense of processing the following matters: (1) Original application — $50 for each lease or permit. (2) Assignment — $25 for each assignment. (3) Mineral prospecting permit fee — $.50/acre annually. (4) Renewal prospecting permit fee — $5/acre annually. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 44, f. & ef. 8-16-77
141-071-0425 Insurance Prior to any operations on state-owned land, permittees and lessees shall provide evidence of insurance as follows: (1) Public liability of $100,000, $300,000 and property damage of $100,000, including fire coverage; and (2) Contractual liability covering the permittee’s or lessee’s duty of indemnification of the state — $200,000. The State of Oregon, the Division of State Lands, and the appropriate surface-owing agency shall be named as co-insured; or (3) Self-insurers — In lieu of required types and amounts of insurance coverage an applicant or lessee may provide a certified balance sheet for a segregated self-insurance fund showing net worth of liquid assets in amounts equal to or exceeding the required insurance coverage. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 44, f. & ef. 8-16-77
141-071-0430 Bonds Applicants for permits or mining leases shall furnish corporate surety bonds in amounts and with sureties acceptable to the Division. Bonds will be conditioned on compliance with all the terms of the permit or lease. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 44, f. & ef. 8-16-77
141-071-0440 Reservations (1) The Division may withdraw any mineral rights from availability for exploration or leasing at any time prior to receipt of notice of a discovery. Withdrawals based on applicants’ environmental reports or state investigation shall be subject to appeal under ORS Chapter 183. (2) The Division reserves the right to conduct competitive bid sales on lands not subject to preference rights or otherwise encumbered, whenever deemed necessary on or nearby discovered mineral occurrences. (3) The Division may refuse to grant a lease for state-owned mineral rights because of considerations of environmental quality or other public interest. (4) The Division may, by agreement with interested parties, provide special rules, interagency agreements, compensatory development or other means which deviate from these mineral leasing rules where the statutes, rules, and regulations defining and implementing the dedicated purpose for which state-owned surface rights were acquired are in conflict with mineral rights exploration and development. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 44, f. & ef. 8-16-77
141-071-0445 Refunds and Withdrawals (1) If an application for a Mineral Prospecting Permit is rejected, all checks tendered by applicant, except the filing fee, will be returned. If part of an application is rejected, per acre fees applicable to the rejected acreage will be refunded. (2) Should an applicant desire to withdraw his application, the applicant must make a written request. If the request is received prior to the time the Division approves the application, all checks tendered by the applicant, except the filing fee, will be returned. If the request is received after approval, then, unless the applicant accepts the offered permit, all money tendered is forfeited to the state, unless otherwise ordered by the Director for good cause shown. (3) Should an applicant desire to withdraw an application which has been filed under the simultaneous filing or competitive bidding rules, the applicant must make a written request. If the request is received before the public drawing or bidding, all checks tendered by the applicant, except the filing fee, will be returned. If the request is received after approval, then, unless the applicant accepts the offered lease, all money tendered is forfeited to the state, unless otherwise ordered by the Director for good cause shown. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 44, f. & ef. 8-16-77
141-071-0450 Records Copies of all exploration data, including for example drilling logs, geochemical readings, and field notes, shall be deposited with the State Geologist within five years after performance of the work. If ongoing exploration work or lease performance warrants secrecy of such information, it shall be held under such conditions as the State Geologist and permittee or lessee may agree upon. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 44, f. & ef. 8-16-77
141-071-0455 Lands Subject to Permit All state-owned lands and mineral rights under the Division’s jurisdiction are available for prospecting except: (1) Lands and mineral rights classified as containing commercially valuable mineral deposits; and (2) Lands reserved for a Natural Area Preserve or otherwise withdrawn from exploration; (3) Lands and mineral rights already subject to exclusive permit or lease. State-owned parcels not included in the State Minerals Registry but under the jurisdiction of the Division may be made available for minerals exploration by special arrangement. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 44, f. & ef. 8-16-77
141-071-0460 Mineral Prospecting Permit Required No person shall conduct mechanized exploration operations on, in, or under land or mineral rights owned by the State of Oregon and under the jurisdiction of the Division without a permit or lease issued pursuant to these regulations. Casual prospecting, using hand tools, may be conducted without a Division of State Lands Mineral Prospecting Permit provided that the land surface is otherwise available for public access. Please note that state parks, state tree nurseries, streams, lakes, and waterways are made unavailable or require additional permits under other state agency regulations. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 44, f. & ef. 8-16-77
141-071-0465 Application for Mineral Prospecting Permit Any qualified applicant wishing to obtain an original, amended, or renewal mineral prospecting permit from the Division shall submit at least two copies of a mineral prospecting application on a form provided by the Division together with the required fees. All such forms shall be completed in full, signed by the applicant of his (its) authorized representative with proof of authorization, and shall include two copies of all necessary exhibits. Maps shall be in reproducible form. The Division may require submission of such other information as it deems necessary to make a decision on granting, modifying, or denying the permit. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 44, f. & ef. 8-16-77
141-071-0470 Priority Applications will be accepted in the order received and priority of permit issuance will be established on the same basis except as provided in the case of simultaneous filings. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 44, f. & ef. 8-16-77
141-071-0475 Application Approval (1) Upon receipt of a mineral prospecting permit application, the Division shall cause copies of the application to be sent to the surface rights holder and affected state agencies, including the Department of Environmental Quality, Department of Geology and Mineral Industries, Public Utility Commissioner, State Fish and Wildlife Commission, Department of Energy, State Historic Preservation Office, and Land Conservation and Development Commission and to such other agencies or persons as the Division deems appropriate. (2) Each agency shall be requested to respond within 30 days by making a recommendation as to whether the permit should be granted. Agencies may recommend conditions to be contained in the mineral prospecting permit to satisfy requirements within their respective statutory jurisdictions. Applicants will be advised of conditions recommended by state agencies and, where advisable, a conference between agencies and applicants will be held. (3) The Division shall make such investigation as it considers necessary. (4) The Division or any state agency holding the surface rights may refuse to grant a permit for exploration of mineral rights under the jurisdiction of the Division of State Lands if it has reason to believe that a mineral lease could not be issued because of considerations of environmental quality or other public interest. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 44, f. & ef. 8-16-77
141-071-0480 Mineral Prospecting Permit Terms (1) Except for additions and modifications required to protect natural resources and environmental quality, the Division of State Lands Mineral Prospecting Permit form as adopted August 15, 1977, will be issued upon approval of a prospecting permit application. Prospecting Permits shall expire three years from date of issuance. (2) In the event that a discovery is not obtained during the initial term of an exploration permit, the Division may agree to renew for an additional three year term provided: (a) An exploration operations budget equal to or exceeding nine times the annual permit fee is submitted by the permittee together with an exploration plan approved by the State Geologist; or (b) Applicant has commenced actual drilling prior to the expiration date of the initial term and agrees to continue with due diligence to reach a promising geologic structure; and (c) Upon payment of a renewal annual permit fee of $5 per acre. (3) Mineral Prospecting Permits allow exclusive use of the mineral estate (not exclusive as to the surface) but are not to be construed as a possessory right. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 44, f. & ef. 8-16-77
141-071-0485 Conversion Upon discovery of valuable minerals in commercial quantities, the permittee shall immediately notify the Division in writing (giving sufficient detail to enable the Division or an impartial consultant to evaluate the discovery). Thereafter, for a period of sixty days, the Division will suspend action on the mining lease applications for lands or mineral rights within four miles of the discovery site. Mining lease applications by the permittee for state-owned land and mineral rights within the suspension zone will be given first priority if properly filed within the sixty days suspension period. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 44, f. & ef. 8-16-77
141-071-0490 Mining Lease Required No person, association, or corporation shall dig, extract, mine, drill and sell, remove or dispose of any hard mineral resource in commercial quantities from state-owned land under the jurisdiction of the Division of State Lands without a lease issued under these rules. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 44, f. & ef. 8-16-77
141-071-0495 Availability State-owned lands are available for mineral leases if: (1) A certified or proven discovery has been made under an exploration permit; or (2) A nearby discovery warrants inclusion of the state land in a unit agreement or in competitive bidding as provided in these rules; or (3) The lands have been formally classified by the State Land Board, or the Division, for minerals leasing. Statutory/Other Authority: ORS 273 Statutes/Other Implemented: ORS 273.780 - 273.790 History: LB 44, f. & ef. 8-16-77