(1) The lessee shall comply with all restrictions and stipulations placed upon the lease by the board or the department. If a violation of a restriction, stipulation or other resource conservation requirement contained in these rules is discovered, the lessee will be notified and given an opportunity to correct the violation and repair any damage. If the damage is not repairable the lessee shall mitigate the damage to the greatest extent possible. If the violation is not corrected, repaired or mitigated within the time specified by the department, the lease shall be canceled as provided in ARM 36.25.214.