Hawaii Administrative Rules › Title 13 - DEPARTMENT OF LAND AND NATURAL RESOURCES › Subtitle 7 - WATER RESOURCES › Chapter 183 - RULES ON LEASING AND DRILLING OF GEOTHERMAL RESOURCES › Subchapter 3 - LEASES GENERALLY › Section 13-183-25 - Transfer of mining leases; overriding royalty interests

Current through June, 2024
(a)
				  Any transfer of a mining lease, which includes the assignment or sublease
				  thereof, shall be subject to the approval of the board. No transfer of a mining
				  lease to a minor shall be approved except to a permittee's heir or devisee. All
				  applications for approval of transfers shall be accompanied by a non-refundable
				  fee of $100 for each assignment.
(b) Upon approval of the board a mining lease
				  may be transferred in whole or in part, to a transferee who shall have the same
				  qualifications as any bidder for a mining lease. The transferee shall be bound
				  by the terms of the lease to the same extent as if the transferee were the
				  original lessee. The board may release the transferor from any liabilities or
				  duties under the mining lease as to the portion thereof transferred except for
				  any liability or duty which arose prior to the approval of the transfer by the
				  board and which remains unsatisfied or unperformed.
(c) No transfer shall be effective until
				  written approval is given.
(d) A
				  lease may be transferred as to all or part of the acreage included therein to
				  any person qualified to hold a state lease, provided that neither the
				  transferred nor the retained acreage created by the transfer shall contain less
				  than one hundred acres unless the board at its discretion approves otherwise.
				  No undivided interest in a lease of less than ten percent shall be created by
				  any voluntary transfer.
(e) The
				  transferor and its surety shall continue to be responsible for performance of
				  any and all obligations under the lease unless released by the board. After the
				  approval of any transfer, the transferee and surety shall be bound by the terms
				  of the lease to the same extent as if the transferee were the original lessee,
				  any conditions in the transfer to the contrary notwithstanding.
(f) Where a transfer does not convey a
				  separate interest in the record title to the lease, the transferee, if the
				  transfer so provides, may become a joint principal on the bond with the
				  transferor. The application shall also be accompanied by a consent of the
				  surety to remain bound under the bond of record, if the bond, by its terms,
				  does not contain the consent. If a party to the transfer has previously
				  furnished a statewide bond, no additional showing by the party is
				  necessary.
(g) Overriding royalty
				  interests in geothermal leases constitute accountable acreage holdings under
				  these rules and shall be based on the percentage of overriding royalty
				  multiplied by the acreage involved. If an overriding royalty interest is
				  created which is not shown in the instrument of transfer, a statement shall be
				  filed with the chairperson describing the interest. Any transfer shall be
				  accompanied by a notarized statement that the transferee is a person as defined
				  in these rules and that their interests in geothermal leases do not exceed any
				  acreage limitations established. All transfers of overriding royalty interests
				  without a working interest and otherwise not contemplated by § 13-183-25
				  shall be filed for record in the office of the department in Honolulu within
				  ninety days from the date of execution. The interests do not require
				  approval.