Administrative Rules of Montana › Department 36 - NATURAL RESOURCES AND CONSERVATION › Chapter 36.25 - STATE LAND LEASING › Subchapter 36.25.3 - Coal Leasing Rules › Rule 36.25.311 - ASSIGNMENTS AND TRANSFERS

Current through Register Vol. 13, July 5, 2024
(1) A lessee may
				assign any lease, either in whole or as to subdivisions of land embracing not
				less than 40 acres covered thereby, to any assignee qualified to be a lessee as
				provided under the law and these regulations. Such assignment is not, however,
				binding upon the state until filed with the department, accompanied by the
				required fees, together with proof of qualifications of the assignee as a
				lessee, and until the assignment is approved by the department. For the purpose
				of this rule, any government surveyed lot whether it contains 40 acres or more
				shall be assignable. The approval of any assignment so filed and supported may
				not be withheld in any case where the rights or interests of the state in the
				premises assigned will not, in the judgment of the board, be prejudiced
				thereby, and the decision is subject to appeal as provided by law. Until such
				an assign- ment is approved by the department, the lessee of record shall
				continue fully liable and responsible for all of the requirements and
				obligations of the lease.
(2) In
				the case of a partial assignment, i.e., assignment of a full interest in only a
				portion of the leased premises, the department shall issue a new lease or new
				leases, with the same expiration date as the original lease for the assigned
				acreage. A new ledger sheet or sheets shall be prepared and the original lease
				adjusted accordingly. The original lessee and the assignee(s) assume full
				liability for their respective leases.
(3) The lessee may assign an undivided,
				fractional interest in any lease, either as to the whole of the leased premises
				or as to any portion thereof, by assigning title to the acreage in question to
				himself and the assignee. The assignment must show the respective shares of
				interest and may be approved by the director as a transfer of title only
				without recognition of any assignment of lease obligations and
				responsibilities.
(4) All other
				assignments of coal leases or interests therein are subject to approval by the
				board and are binding upon the state in the discretion of the board.
(5) Assignments involving reservations of
				overriding royalties or other interests by assignee are approved by the
				director as a transfer of title only and without recognition of such overriding
				royalties or interests. Such reservations do not affect the validity of the
				transfer of title.
(6) An
				assignment or transfer must be on the form currently approved by the board.
				Evidence of transfers by operation of law should be in the form of a certified
				copy of the appropriate court order or decree or similar document, such as
				letters of administration to personal representatives, decree of distribution,
				executor's deed or sheriff's deed.
(7) The board may recognize any transfer by
				operation of law to an unqualified lessee for a period of time no longer than
				one year and only for the purpose of the further transfer of the
				interest.
(8) The director shall
				notify the parties to any assignment or other transfer submitted of approval or
				non-approval thereof.
77-3-303, MCA; IMP,
					 77-3-303,
					 MCA;