36.25.208    RENTALS

(1) An annual money rental shall be paid to the state for each oil and gas lease at the rate of $1.50 for each acre of land leased; however, such rental shall in no case be less than $100.00 per annum. Rental for the first year of the lease shall include any sums, in excess of $1.50 per acre offered and accepted for such first year's rental. The first year rental shall be paid before the issuance of the lease. Rental for each subsequent year of the lease shall be due and payable before the beginning of each subsequent year upon failure to make such payments, the lease terminates. The annual money rental is not in lieu of drilling operations, but continues throughout the life of the lease. The annual money rental is in addition to any nondrilling penalty and any royalty payment. No credit against royalty payment is allowed by reason of the annual money rental payment. No partial rental payment will be accepted, and the entire rental shall be considered unpaid until the full rental payment has been received.

History: 77-3-402, MCA; IMP, 77-3-423, MCA; NEW, Eff. 12/5/75; TRANS, 1996 MAR p. 2384.