Administrative Rules of Montana › Department 36 - NATURAL RESOURCES AND CONSERVATION › Chapter 36.25 - STATE LAND LEASING › Subchapter 36.25.1 - Surface Management Rules › Rule 36.25.119 - SUBLEASING

Current through Register Vol. 13, July 5, 2024
(1) A lessee or licensee desiring to sublease
				may apply on the standard application form prescribed by the department. A
				sublease in order to be legal must be approved by the department. A sublease
				will only be approved if all rentals or other payments or reports due have been
				submitted, and if the terms of the lease or license have not been violated. If
				a sublease is made on terms less advantageous to the sublessee than terms given
				by the state or without filing a copy of the sublease and receiving the
				department's approval, the director shall cancel the lease or license subject
				to the appeal procedures provided in ARM
				36.25.121.
(2) The sublessee may only compensate the
				lessee based upon a $/A.U.M. rate for grazing lands, or a crop share, or cash
				basis on agricultural land depending upon the terms of the state lease.In other
				words, the lessee may only be compensated upon the same unit of measurement as
				the lessee's rental to the state is based. Such rate may not exceed the rate
				charged by the state for such lease.Failure to comply with this provision may
				be grounds for cancellation of the lease pursuant to ARM 36.25.121.
(3) The subleasing of state land may result
				in loss of preference right to meet the high bid offered for the lease or
				license at renewal, as provided in ARM
				36.25.117 and
				77-6-208 and
				77-6-212, MCA. In addition,
				pursuant to the same rules and statutes, subleasing may cause the loss of the
				lease.
(4) A lessee or licensee of
				state land shall not sublease such land as part of the sale of his own fee
				lands or the sale of any improvements, crops, or leasehold interest.To transfer
				such lease or license as part of the sale of lands, improvements, crops, or
				leasehold interest, the lessee or licensee must assign the lease or license as
				provided in ARM
				36.25.118.Failure to comply with
				the terms of this rule shall be grounds for cancellation of the lease or
				license, subject to appeal procedures in ARM 36.25.121.
(5) The lessee or licensee is responsible for
				the actions of the sublessee. Any action committed by the sublessee which if
				committed by the lessee or licensee would result in cancellation of the lease
				or any other penalty will be deemed to have been committed by the lessee or
				licensee.
(6) Custom farming shall
				not be considered a subleasing situation for the purposes of these rules.
				Management of the lease or license must be exercised at all times by the lessee
				or licensee. Failure to provide such management in the absence of an approved
				sublease may be sufficient grounds for cancellation of the lease or license
				and/or loss of the preference right at the time of renewal. The state shall not
				be subject to any reduction in rentals due to custom farming methods. Lessees
				engaged in custom farming shall file a copy of the custom farming agreement
				with the department. Such agreement shall set forth the names of the parties
				involved, the cost of services rendered, the duration of the agreement, and the
				state leases or licenses involved. Under no circumstances may the cost of
				services be based upon a percentage of the crop grown on state lands.
(7) If livestock are present on state land,
				there will be a presumption that the livestock either belong to the lessee or
				licensee, or that such livestock were placed on the state land with the
				lessee's or licensee's permission.
77-1-209, MCA; IMP,
					 77-6-113,
					 77-6-208,
					 77-6-210, and
					 77-6-212,
					 MCA;