36.25.410    SURRENDER OF LEASE

(1) The lessee under any geothermal RESOURCES lease granted by the state may at the termination of any rental year, by giving to the department 60 days previous notice in writing, surrender and relinquish the lease to the state in whole or in part, and should be discharged from any obligation not yet accrued as to the lands so surrendered and relinquished without prejudice to the continance of the lease as to lands not surrendered or relinquished.

(2) Although no particular form of surrender is required, each surrender must be in writing, must sufficiently identify the lease sought to be surrendered, and must specifically describe the lands to be surrendered, whether all of the lease premises or a portion only.

(3) Such written instrument of surrender and relinquishment must be signed by the owner of the lease as shown by the records of the director, or by his duly authorized agent. If more than one person owns the working interest in the lease, either all owners must join in a joint surrender of the lease or each must submit a separate, written surrender.

(4) If operations have been conducted on a lease which lessee desires to surrender, the lessee shall also submit with his written instrument of surrender evidence of the proper plugging and abandonment of any hole drilled on the lease premises, together with evidence that he has complied with the reclamation provisions of ARM 36.25.316. Before the bond is released subsequent to surrender of a lease the department shall inspect the tract to determine that reclamation has been accomplished.

(5) If timely notice is given by the lessee of an intent to surrender a lease, but the instrument of surrender is inadequate under the rules herein set forth, or if any additional required information is not timely supplied by the lessee, such informal notice of intent to surrender shall be effective to relieve the lessee of any obligation to pay further rental under the lease, provided that an instrument of surrender and any additional required information is supplied to the board within 60 days after the termination date of the lease as intended and sought by the lessee.

History: 77-4-103, MCA; NEW, Eff. 12/31/72; AMD, Eff. 3/7/75; TRANS, 1996 MAR p. 2384.