(1) Lands available for leasing under these rules include any state lands in which mineral rights are not reserved by the United States or other grantor or predecessor in title. Such state lands include those which have been sold but in which mineral rights have been reserved, in whole or in part, by the state of Montana.

(2) Unsurveyed lands, including those under navigable lakes and streams, are available for leasing, provided that any applicant for a lease on such lands shall supply the department with as accurate an estimate of the number of acres to be included under such lease as can be derived from the latest survey, or an aerial photograph, and such other information as is available to the applicant. Further provided, that if and when such lands are leased and metalliferous metals or gems in commercial quantities are produced from the lands, the lessee shall supply the department with a legal description of the lands by courses and distances (metes and bounds) . The department assumes no liability or responsibility for the correctness, completeness or validity of such description and does not warrant title to such lands.

(3) No lease may embrace more than one governmental section. The land shall be leased in as compact bodies as possible. No lease may embrace noncontiguous subdivisions of lands unless such subdivisions are within an area comprising not more than one square mile.

(4) No lease on lands covered by lease for the mining of coal, oil, or gas may be issued to any person, association or corporation other than the holder of such coal, oil, or gas lease while that lease is in force except with the written consent of the holder of the coal, oil, or gas lease.