(1) (a) The assignment of any lease, either in whole or as to subdivisions of land embracing not less than 40 acres covered thereby, made to an assignee qualified as provided under the law and these regulations is permitted. Such assignment is not, however, binding upon the state until filed with the department, accompanied by the required fees, and until the assignment is approved by the board or its lawful representative. For the purposes of this rule, any lot, according to the governmental survey, shall be deemed to be a legal subdivision of land embracing not less than 40 acres. The approval of any assignments 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. Until such an assignment is approved by the board, the lessee of record shall continue fully liable and responsible for all of the requirements and obligations of the lease.

(b) In case of a partial assignment, i.e., assignment of a full interest in only a portion of the leased premises, a new lease is issued for the assigned acreage, with the same expiration date as the original lease. The original lessee and the assignee assume full liability for their respective lessee.

(2) The assignment of any geothermal resources lease, either in whole or in part, to more than one assignee will be permitted if the proposed assignment is otherwise in compliance with the foregoing requirements; provided however, that any such assignment will not be approved by the board until one of the assignees is designated to act as agent for the purpose of receiving any and all notices from the board given in connection with the lease and meeting all requirements and obligations under the lease.

(3) Assignment of undivided, fractional interests in any lease, either as to the whole of the leased premises, or as to any portion thereof, is accomplished by having the lessee assign title to the acreage in question to himself and the assignee. The assignment may show the respective shares of interest but the transaction is approved by the director as a transfer of title only and without recognition of the respective interests.

(4) All other assignments of geothermal resources leases or interests therein are subject to approval by the board, and are binding upon the state in the discretion of the board.

(5) An assignment or transfer on the form currently approved by the board will be acceptable. 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 executor or administrator, decree of distribution, executor's deed or sheriff's deed.

(6) Any transfer, by operation of law, to an unqualified lessee will be recognized by the board for a period of time in no event longer than 1 year, and only for the purposes of the further transfer of the interest to a qualified lessee.

(7) The director shall notify the parties to any assignment or other transfer submitted for approval or nonapproval thereof.

(8) Unless the lease account is in good standing at the time the assignment is reached for action, the request for approval of the assignment will be denied, and the lease shall be subject to termination in accordance with these rules.

(9) All applications for approval of assignments must be accompanied by a fee of $25.00 for each assignment.