reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 77. State Lands › Chapter 3. Rock, Mineral, Coal, Oil, and Gas Resources › Part 4. Oil and Gas › 77-3-442. Disposition of property of lessee upon termination of lease

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.
History: En. Sec. 17, Ch. 108, L. 1927; re-en. Sec. 1882.17, R.C.M. 1935; amd. Sec. 91, Ch. 428, L. 1973; R.C.M. 1947, 81-1717; amd. Sec. 5, Ch. 34, L. 1997; amd. Sec. 11, Ch. 472, L. 2009.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 3. Rock, Mineral, Coal, Oil, and Gas Resources › Part 4. Oil and Gas › 77-3-443. Reservation in lease for disposition of surface

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.
History: En. Sec. 1, Ch. 108, L. 1927; re-en. Sec. 1882.1, R.C.M. 1935; amd. Sec. 1, Ch. 90, L. 1943; amd. Sec. 1, Ch. 261, L. 1947; amd. Sec. 6, Ch. 184, L. 1961; R.C.M. 1947, 81-1701(part).
2023 Montana Code Annotated › Title 77. State Lands › Chapter 3. Rock, Mineral, Coal, Oil, and Gas Resources › Part 4. Oil and Gas › 77-3-444. Limitation on overriding royalties and payments out of production

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.
History: En. Sec. 1, Ch. 157, L. 1985; amd. Sec. 287, Ch. 42, L. 1997.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 3. Rock, Mineral, Coal, Oil, and Gas Resources › Part 4. Oil and Gas › 77-3-451. Limitation on public inspection rights

77-3-451. Limitation on public inspection rights.
The department may withhold from public inspection any information obtained from an oil or gas lessee under this part if the information, including drill logs, seismic data, and lithographic descriptions, relates to the geology of the oil or gas lease. The withholding is effective for as long as the department considers it necessary either to protect the lessee's economic interest in the geologic information against unwarranted injury or to protect the public's best interest.
History: En. Sec. 4, Ch. 105, L. 1989.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 3. Rock, Mineral, Coal, Oil, and Gas Resources › Part 5. Underground Storage of Natural Gas › 77-3-501. Lease for underground storage of natural gas authorized

77-3-501. Lease for underground storage of natural gas authorized.
(1) The board is hereby authorized and empowered to lease in such manner and upon such terms as it may determine, not inconsistent with The Enabling Act and the constitution, state lands to which the title has vested in the state, subject to existing rights, for use for the underground storage of natural gas upon the terms and conditions herein prescribed, to any natural gas public utility authorized to do business in this state and engaged in the business of transporting or distributing natural gas by means of pipelines into, within, or through this state for ultimate public use.
(2) State lands which may be leased shall include lands in which the deposit of native gas shall have been depleted, provided the lessee pays to the state the amount specified by the board for the native gas then remaining in the lands to be leased.
History: En. Sec. 1, Ch. 213, L. 1955; R.C.M. 1947, 81-1725(1).
2023 Montana Code Annotated › Title 77. State Lands › Chapter 3. Rock, Mineral, Coal, Oil, and Gas Resources › Part 5. Underground Storage of Natural Gas › 77-3-502. Rules

77-3-502. Rules.
The board shall have the power and authority to prescribe such rules and to do and perform all acts and things not inconsistent with The Enabling Act, the constitution, and the statutes of this state as it may deem necessary and proper relating to the leasing of state lands for the underground storage of natural gas and the sale of the gas remaining in state lands in a gas field wherein native gas deposits have been depleted.
History: En. Sec. 3, Ch. 213, L. 1955; R.C.M. 1947, 81-1727.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 3. Rock, Mineral, Coal, Oil, and Gas Resources › Part 5. Underground Storage of Natural Gas › 77-3-503. Hearings on questions related to leases

77-3-503. Hearings on questions related to leases.
The board may order and hold hearings on any matter or question involving leases issued under 77-3-501 under such rules as it adopts.
History: En. Sec. 5, Ch. 213, L. 1955; amd. Sec. 96, Ch. 428, L. 1973; R.C.M. 1947, 81-1729(part).
2023 Montana Code Annotated › Title 77. State Lands › Chapter 3. Rock, Mineral, Coal, Oil, and Gas Resources › Part 5. Underground Storage of Natural Gas › 77-3-504. Lessee's right to hearing

77-3-504. Lessee's right to hearing.
Any lessee, upon application, is entitled to a hearing on any notice or demand of the department before any lease is granted, forfeited, or canceled by the board.
History: En. Sec. 5, Ch. 213, L. 1955; amd. Sec. 96, Ch. 428, L. 1973; R.C.M. 1947, 81-1729(part).
2023 Montana Code Annotated › Title 77. State Lands › Chapter 3. Rock, Mineral, Coal, Oil, and Gas Resources › Part 5. Underground Storage of Natural Gas › 77-3-505. Bond of lessees

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.
History: En. Sec. 4, Ch. 213, L. 1955; amd. Sec. 95, Ch. 428, L. 1973; R.C.M. 1947, 81-1728.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 3. Rock, Mineral, Coal, Oil, and Gas Resources › Part 5. Underground Storage of Natural Gas › 77-3-506. Disposition of leased land

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.
History: En. Sec. 1, Ch. 213, L. 1955; R.C.M. 1947, 81-1725(2).
2023 Montana Code Annotated › Title 77. State Lands › Chapter 3. Rock, Mineral, Coal, Oil, and Gas Resources › Part 5. Underground Storage of Natural Gas › 77-3-507. Lessee to prevent waste

77-3-507. Lessee to prevent waste.
(1) Leases issued under the provisions of this part shall all be subject to the conditions that the lessee in conducting the underground storage of natural gas shall use all reasonable precautions to prevent waste of oil or gas developed in the land or the entrance of water through wells drilled to store natural gas to the oil or gas sands or oil or gas bearing strata to the destruction or injury of oil or gas deposits.
(2) Violations of any of these conditions shall constitute grounds for the forfeiture of the lease after hearing had thereon before the board.
History: En. Sec. 1, Ch. 213, L. 1955; R.C.M. 1947, 81-1725(3).
2023 Montana Code Annotated › Title 77. State Lands › Chapter 3. Rock, Mineral, Coal, Oil, and Gas Resources › Part 5. Underground Storage of Natural Gas › 77-3-508. Duration of lease

77-3-508. Duration of lease.
All leases issued under 77-3-501 may be granted for a period not exceeding 20 years, and the lessee has a preferential right to renew the lease for an additional period not exceeding 20 years, subject to any terms and conditions the board imposes.
History: En. Sec. 2, Ch. 213, L. 1955; amd. Sec. 94, Ch. 428, L. 1973; R.C.M. 1947, 81-1726.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 3. Rock, Mineral, Coal, Oil, and Gas Resources › Part 5. Underground Storage of Natural Gas › 77-3-509. Disposition of funds

77-3-509. Disposition of funds.
All rentals collected for or under leases issued under 77-3-501 shall be paid to the department and credited in the same manner as rentals from oil and gas leases.
History: En. Sec. 6, Ch. 213, L. 1955; amd. Sec. 97, Ch. 428, L. 1973; R.C.M. 1947, 81-1730.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 3. Rock, Mineral, Coal, Oil, and Gas Resources › Part 5. Underground Storage of Natural Gas › 77-3-510. Cancellation and forfeiture of lease

77-3-510. Cancellation and forfeiture of lease.
All leases granted under 77-3-501 shall provide for their forfeiture and cancellation upon failure of the lessee to fully discharge the obligations provided therein, after written notice from the department and reasonable time allowed to the lessee for performance of any undertaking or obligation specified in such notice concerning which the lessee is in default.
History: En. Sec. 5, Ch. 213, L. 1955; amd. Sec. 96, Ch. 428, L. 1973; R.C.M. 1947, 81-1729(part).
2023 Montana Code Annotated › Title 77. State Lands › Chapter 3. Rock, Mineral, Coal, Oil, and Gas Resources › Part 5. Underground Storage of Natural Gas › 77-3-511. Termination and surrender of lease

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.
History: En. Sec. 7, Ch. 213, L. 1955; amd. Sec. 98, Ch. 428, L. 1973; R.C.M. 1947, 81-1731(1).
2023 Montana Code Annotated › Title 77. State Lands › Chapter 3. Rock, Mineral, Coal, Oil, and Gas Resources › Part 5. Underground Storage of Natural Gas › 77-3-512. Disposition of lessee's property upon termination of lease

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.
History: En. Sec. 7, Ch. 213, L. 1955; amd. Sec. 98, Ch. 428, L. 1973; R.C.M. 1947, 81-1731(2).
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 1. Geothermal Resources › 77-4-101. Geothermal leases authorized

77-4-101. Geothermal leases authorized.
(1) The board may lease state-owned lands, including the beds of navigable streams and the beds of navigable bodies of water, to persons, associations, or corporations for prospecting, exploration, well construction, and the production of geothermal resources.
(2) The board may exercise business discretion in entering into leases under this part.
History: (1)En. 21-2601 by Sec. 1, Ch. 111, L. 1974; Sec. 81-2601, R.C.M. 1947; (2)En. 81-2604 by Sec. 4, Ch. 111, L. 1974; Sec. 81-2604, R.C.M. 1947; R.C.M. 1947, 81-2601, 81-2604(part).
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 1. Geothermal Resources › 77-4-102. Definitions

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.
History: En. 81-2602 by Sec. 2, Ch. 111, L. 1974; R.C.M. 1947, 81-2602(part).
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 1. Geothermal Resources › 77-4-103. Rules

77-4-103. Rules.
The board shall adopt rules governing the issuance of geothermal resource leases and the conduct of all geothermal operations. The board may also require the applicant for a geothermal lease to pay an application fee.
History: En. 81-2603 by Sec. 3, Ch. 111, L. 1974; R.C.M. 1947, 81-2603.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 1. Geothermal Resources › 77-4-104. Nature of geothermal resources

77-4-104. Nature of geothermal resources.
Geothermal resources are sui generis, being neither a mineral resource nor a water resource, but they are closely related to and possibly affecting and affected by water resources in many instances.
History: En. 81-2602 by Sec. 2, Ch. 111, L. 1974; R.C.M. 1947, 81-2602(part).
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 1. Geothermal Resources › 77-4-105. State retention of geothermal resources

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.
History: En. 81-2602 by Sec. 2, Ch. 111, L. 1974; R.C.M. 1947, 81-2602(part).
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 1. Geothermal Resources › 77-4-106. Bonding requirements

77-4-106. Bonding requirements.
The board may, at any time prior to the execution and delivery of a geothermal lease or at any time during the life of the lease, require a lessee to file with the department a bond to protect the rights of the state. The bond shall be in form and amount prescribed by the board. The board may at any time require new or additional bonds if the interests of the state will not adequately be protected by the bond previously filed.
History: En. 81-2606 by Sec. 6, Ch. 111, L. 1974; R.C.M. 1947, 81-2606.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 1. Geothermal Resources › 77-4-107. Compensation to surface lessee

77-4-107. Compensation to surface lessee.
The lessee of any geothermal lease shall compensate the surface lessee for any damage to the surface or leasehold interest caused as a result of the geothermal lease. The board may require the geothermal lessee to post a bond in an amount to be set by the board to insure the payment of damages to any surface lessee. If the surface lessee and the geothermal lessee disagree as to the reasonable amount of surface damage, damage shall be ascertained in the same manner as prescribed in 77-4-129.
History: En. 81-2607 by Sec. 7, Ch. 111, L. 1974; R.C.M. 1947, 81-2607.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 1. Geothermal Resources › 77-4-108. Water rights in connection with geothermal development

77-4-108. Water rights in connection with geothermal development.
If any geothermal development located on state land requires the utilization of water, the lessee 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, show the permanency of the water supply, and give the estimated cost of utilizing the water resources. If the proposed plan meets with the approval of the board, permission must be granted to the lessee to secure the desired water right for the land. The right must be secured in accordance with Title 85, chapter 2, and must be filed in the name of the state. Existing water rights purchased by the geothermal lessee are the property of the lessee.
History: En. 81-2611 by Sec. 11, Ch. 111, L. 1974; R.C.M. 1947, 81-2611; amd. Sec. 2560, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 1. Geothermal Resources › 77-4-109. Conflicting leases

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.
History: En. 81-2612 by Sec. 12, Ch. 111, L. 1974; R.C.M. 1947, 81-2612.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 1. Geothermal Resources › 77-4-121. Provisions of the lease

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.
History: En. 81-2604 by Sec. 4, Ch. 111, L. 1974; R.C.M. 1947, 81-2604(part); amd. Sec. 2561, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 1. Geothermal Resources › 77-4-122. Duration of lease

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.
History: En. 81-2604 by Sec. 4, Ch. 111, L. 1974; R.C.M. 1947, 81-2604(part).
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 1. Geothermal Resources › 77-4-123. Extension of lease

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.
History: En. 81-2604 by Sec. 4, Ch. 111, L. 1974; R.C.M. 1947, 81-2604(part).
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 1. Geothermal Resources › 77-4-124. Operating agreements

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.
History: En. 81-2604 by Sec. 4, Ch. 111, L. 1974; R.C.M. 1947, 81-2604(4).
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 1. Geothermal Resources › 77-4-125. Pooling agreements and unit operations

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.
History: En. 81-2604 by Sec. 4, Ch. 111, L. 1974; R.C.M. 1947, 81-2604(5), (6).
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 1. Geothermal Resources › 77-4-126. Royalties and rentals

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.
History: En. 81-2605 by Sec. 5, Ch. 111, L. 1974; R.C.M. 1947, 81-2605.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 1. Geothermal Resources › 77-4-127. Disposition of royalties and other receipts

77-4-127. Disposition of royalties and other receipts.
(1) The department shall credit fees collected under geothermal leases to the general fund.
(2) All rentals, penalties, 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 grant to which the land under each particular lease belongs.
History: En. 81-2610 by Sec. 10, Ch. 111, L. 1974; R.C.M. 1947, 81-2610.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 1. Geothermal Resources › 77-4-128. Permission for and disposition of improvements

77-4-128. Permission for and disposition of improvements.
(1) A geothermal lessee of state lands has the right to place upon the leased lands a reasonable amount of improvements, provided that the improvements are directly related to the purpose of the lease.
(2) Whenever another person becomes the geothermal lessee, the person shall pay the former lessee the reasonable value of the improvements at the time the new lessee takes possession of the improvements.
(3) In determining the value of these improvements, the original cost, the present condition, and the suitability of the improvements for the uses ordinarily made of geothermal resources must be considered.
(4) The former lessee may remove or dispose of the movable improvements from the land within 60 days from the expiration of the former lessee's lease except for the well casing and other equipment necessary for the preservation of any geothermal well. If not removed within 60 days, improvements become the property of the state unless the board grants additional time for the removal of the improvements. Before a lease is issued to the new lessee, the new lessee shall show that the new lessee has paid the former lessee the value of the improvements as agreed upon by them or as fixed and determined under 77-4-129, that the new lessee has offered to pay the value of the improvements as fixed and determined, or that the former lessee elects to remove the improvements.
History: En. 81-2608 by Sec. 8, Ch. 111, L. 1974; R.C.M. 1947, 81-2608; amd. Sec. 2562, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 1. Geothermal Resources › 77-4-129. Procedure to fix value of improvements

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.
History: En. 81-2609 by Sec. 9, Ch. 111, L. 1974; R.C.M. 1947, 81-2609; amd. Sec. 2563, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 2. Hydroelectric Resources › 77-4-201. Lease or license of power sites

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.
History: En. Sec. 2, Ch. 123, L. 1931; re-en. Sec. 1904.2, R.C.M. 1935; R.C.M. 1947, 81-1802; amd. Sec. 70, Ch. 7, L. 2001.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 2. Hydroelectric Resources › 77-4-202. Power site defined

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.
History: En. Sec. 1, Ch. 123, L. 1931; re-en. Sec. 1904.1, R.C.M. 1935; R.C.M. 1947, 81-1801.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 2. Hydroelectric Resources › 77-4-203. Restrictions and regulations

77-4-203. Restrictions and regulations.
In issuing any lease or license under the provisions of this part, the board shall have the power and it shall be its duty to incorporate in the lease or license such reasonable restrictions and regulations as it finds necessary in order to protect the interest of the state and its people.
History: En. Sec. 6, Ch. 123, L. 1931; re-en. Sec. 1904.6, R.C.M. 1935; R.C.M. 1947, 81-1806.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 2. Hydroelectric Resources › 77-4-204. Examination of power sites

77-4-204. Examination of power sites.
Whenever an application in writing has been presented to the board for lease or license on a power site on state lands, the board shall make such preliminary examination as to the value of the power site, as to the plans of development submitted by the applicant, and of all other matters relating to the proposed development as it deems necessary for the proper disposition of the business.
History: En. Sec. 3, Ch. 123, L. 1931; re-en. Sec. 1904.3, R.C.M. 1935; R.C.M. 1947, 81-1803(part).
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 2. Hydroelectric Resources › 77-4-205. Notice of proposed lease or license

77-4-205. Notice of proposed lease or license.
If these preliminary investigations and the offer made for lease or license are such that the board deems further proceedings on the application to be justified, it shall cause notice of the proposed lease or license to be published not less than once each week during not less than 6 weeks previous to the meeting at which further consideration will be given to the application in two newspapers of general circulation throughout the state, one of such newspapers to be published in the neighborhood of the location of the power site.
History: En. Sec. 3, Ch. 123, L. 1931; re-en. Sec. 1904.3, R.C.M. 1935; R.C.M. 1947, 81-1803(part).
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 2. Hydroelectric Resources › 77-4-206. Meeting of board on proposed lease or license

77-4-206. Meeting of board on proposed lease or license.
(1) At this meeting all other applications which may have been received for lease or license to such power sites shall be duly considered together with the application originally filed.
(2) The board shall have the right to reject any or all bids.
(3) If, however, the board finds that any of the bids submitted offers to pay adequate rental for such power site, shows to the satisfaction of the board that it is capable of carrying out the proposed development and of rendering efficient service to the customers that will be served from such power development, and intends in good faith without any unnecessary delay to proceed with the development, then the board shall accept such bid. If more than one such acceptable bid is received, then the lease or license shall be awarded to the person, corporation, or municipality whose offer, considered in its totality, is the most advantageous to the state.
History: En. Sec. 3, Ch. 123, L. 1931; re-en. Sec. 1904.3, R.C.M. 1935; R.C.M. 1947, 81-1803(part).
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 2. Hydroelectric Resources › 77-4-207. Preference to bid of municipality

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.
History: En. Sec. 3, Ch. 123, L. 1931; re-en. Sec. 1904.3, R.C.M. 1935; R.C.M. 1947, 81-1803(part).
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 2. Hydroelectric Resources › 77-4-208. Rental for power sites -- deposit of rental money in proper accounts

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).
History: En. Sec. 3, Ch. 123, L. 1931; re-en. Sec. 1904.3, R.C.M. 1935; R.C.M. 1947, 81-1803(part); amd. Sec. 18, Ch. 377, L. 2009; amd. Sec. 5, Ch. 371, L. 2011.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 2. Hydroelectric Resources › 77-4-209. Duration of lease

77-4-209. Duration of lease.
The term of the lease shall not exceed 50 years.
History: En. Sec. 3, Ch. 123, L. 1931; re-en. Sec. 1904.3, R.C.M. 1935; R.C.M. 1947, 81-1803(part).
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 2. Hydroelectric Resources › 77-4-210. Joint development with United States

77-4-210. Joint development with United States.
(1) If the state land constituting a power site is part of a larger power site owned or controlled by the government of the United States, then the board may grant a joint lease or license with the United States for the development of the power site and the distribution, use, and disposition of the electrical energy generated at the power site under the laws of the United States and regulations issued pursuant to those laws.
(2) The lease or license may be granted for a term not exceeding 50 years.
(3) The share or percentage of ownership of the state in the joint power site must be in proportion to the total contribution that the lands of the state make to the value of the entire power site. Before the share of the state in the power site is advertised for lease or license, the percentage of the state's share in the entire power site must be calculated and agreed upon between the state and the United States.
(4) The fee or compensation to be paid to the state under the lease or license must be calculated on the basis of the state's share of ownership in the entire power site as calculated and agreed to. However, the fee or compensation may not be less than the full market value of the estate or interest disposed of in the lands through the granting of the lease or license to be carefully ascertained from all available sources.
(5) Before the lease or license is issued, notice of the lease or license must be given in the same manner as required in this chapter for the issuance of a separate lease or license by the state.
History: En. Sec. 4, Ch. 123, L. 1931; re-en. Sec. 1904.4, R.C.M. 1935; R.C.M. 1947, 81-1804; amd. Sec. 71, Ch. 7, L. 2001.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 2. Hydroelectric Resources › 77-4-211. Amortization of investment

77-4-211. Amortization of investment.
(1) In all cases where the lease or license issued by the United States requires the amortization of the investment made in dams, machinery, equipment, and appurtenant works, such amortization requirement shall also apply to that portion of the investment representing the state's part or share in the power site so that the state will at all times retain its full share of ownership in the power site and in the dams, machinery, equipment, and appurtenant works.
(2) If the state lands constitute a separate power site wholly owned by the state and independently developed, the lease or license issued by the state may provide for the amortization of the capital invested in the dam, machinery, equipment, and appurtenant works, not including the distribution system, so that ultimately the state will become the owner of the power site including the dam, machinery, equipment, and appurtenant works, not including the distribution system.
History: En. Sec. 5, Ch. 123, L. 1931; re-en. Sec. 1904.5, R.C.M. 1935; R.C.M. 1947, 81-1805.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 3. Wind and Solar Resources › 77-4-301. Wind and solar leases authorized

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.
History: En. Sec. 2, Ch. 313, L. 2021.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 3. Wind and Solar Resources › 77-4-302. Compensating surface lessee

77-4-302. Compensating surface lessee.
(1) A person who leases wind or solar resources under this part shall compensate the surface lessee for damage to the surface improvements caused by the lease.
(2) (a) The board may require the wind or solar resource lessee to post a bond in an amount set by the board to insure the payment of damages to any surface lessee.
(b) If a surface lessee and a wind or solar resource lessee disagree on the reasonable amount of surface damage, compensation is determined in the manner prescribed by 77-4-129.
History: En. Sec. 3, Ch. 313, L. 2021.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 3. Wind and Solar Resources › 77-4-303. Lease provisions

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.
History: En. Sec. 4, Ch. 313, L. 2021.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 4. Renewable Resources › Part 3. Wind and Solar Resources › 77-4-304. Rental and disposition of rent and other receipts

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.
History: En. Sec. 5, Ch. 313, L. 2021.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 5. Timber Resources › Part 1. State Forests › 77-5-101. Classification of lands as state forests

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.
History: En. Sec. 1, Ch. 179, L. 1925; re-en. Sec. 1830.1, R.C.M. 1935; amd. Sec. 1, Ch. 145, L. 1949; amd. Sec. 1, Ch. 167, L. 1951; amd. Sec. 97, Ch. 253, L. 1974; R.C.M. 1947, 81-1401.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 5. Timber Resources › Part 1. State Forests › 77-5-102. Designation of state forests

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".
History: En. Sec. 2, Ch. 179, L. 1925; re-en. Sec. 1830.2, R.C.M. 1935; R.C.M. 1947, 81-1402.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 5. Timber Resources › Part 1. State Forests › 77-5-103. Role of department

77-5-103. Role of department.
(1) The department shall, under the direction and control of the board, do all the field work in the selection, location, examination, appraisement, and reappraisement of state timberlands.
(2) The department shall do all acts required of it by the board, and under the direction of the board, it has general charge of the timberlands of the state.
(3) The department shall, under the supervision of the board:
(a) execute all matters pertaining to forestry within the jurisdiction of the state;
(b) direct the protection, improvement, and condition of state forests;
(c) take any action authorized by law to prevent and extinguish wildland fires; and
(d) enforce the laws pertaining to forest and nonforest lands and prosecute for any violation of those laws.
History: En. Sec. 10, Ch. 147, L. 1909; amd. Sec. 2, Ch. 118, L. 1911; re-en. Sec. 1831, R.C.M. 1921; re-en. Sec. 1831, R.C.M. 1935; amd. Sec. 1, Ch. 218, L. 1955; amd. Sec. 34, Ch. 93, L. 1969; amd. Sec. 102, Ch. 253, L. 1974; amd. Sec. 16, Ch. 397, L. 1977; R.C.M. 1947, 81-1411; amd. Sec. 1, Ch. 529, L. 1981; amd. Sec. 28, Ch. 336, L. 2007.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 5. Timber Resources › Part 1. State Forests › 77-5-104. Repealed

77-5-104. Repealed.
Sec. 30, Ch. 336, L. 2007.
History: En. Sec. 11, Ch. 147, L. 1909; re-en. Sec. 1833, R.C.M. 1921; re-en. Sec. 1833, R.C.M. 1935; amd. Sec. 1, Ch. 147, L. 1955; amd. Sec. 103, Ch. 253, L. 1974; amd. Sec. 17, Ch. 17, L. 1977; R.C.M. 1947, 81-1412; amd. Sec. 2, Ch. 218, L. 1979; amd. Sec. 1, Ch. 529, L. 1981; amd. Sec. 4, Ch. 286, L. 1985; amd. Sec. 10, Ch. 662, L. 1991; amd. Sec. 1, Ch. 310, L. 1993; amd. Sec. 324, Ch. 418, L. 1995.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 5. Timber Resources › Part 1. State Forests › 77-5-105. Repealed

77-5-105. Repealed.
Sec. 30, Ch. 336, L. 2007.
History: (1)En. Sec. 12, Ch. 147, L. 1909; re-en. Sec. 1834, R.C.M. 1921; re-en. Sec. 1834, R.C.M. 1935; amd. Sec. 104, Ch. 253, L. 1974; Sec. 81-1413, R.C.M. 1947; (2)En. Sec. 13, Ch. 147, L. 1909; re-en. Sec. 1835, R.C.M. 1921; re-en. Sec. 1835; R.C.M. 1935; Sec. 81-1414, R.C.M. 1947; R.C.M. 1947, 81-1413(part), 81-1414.
2023 Montana Code Annotated › Title 77. State Lands › Chapter 5. Timber Resources › Part 1. State Forests › 77-5-106. Repealed

77-5-106. Repealed.
Sec. 30, Ch. 336, L. 2007.
History: En. Sec. 12, Ch. 147, L. 1909; re-en. Sec. 1834, R.C.M. 1921; re-en. Sec. 1834, R.C.M. 1935; amd. Sec. 104, Ch. 253, L. 1974; R.C.M. 1947, 81-1413(part).
2023 Montana Code Annotated › Title 77. State Lands › Chapter 5. Timber Resources › Part 1. State Forests › 77-5-116. State forest lands -- deferral of management prohibited

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.
History: En. Sec. 1, Ch. 259, L. 2001.