(4) The department shall provide 1 lease instrument to the proposed lessee for
signature. Unless otherwise agreed to in writing by the lessor, the proposed lessee shall
return all leases, properly executed, with proper performance bond and payment, within
30 days from the date the department sent the leases.
(5) If the proposed lessee is unable to return the lease forms, payment, and performance
bond within the time specified, the lessor may, upon request of the lessee, authorize
additional time if the lessor determines that the delay is not the fault of the proposed
lessee. Failure of the proposed lessee to comply within time limits authorized must result
in forfeiture of the entire amount paid. Lands on which lease rights have been forfeited
must be offered for leasing at the earliest possible date, unless withdrawn for any stated
reason by the lessor or unless leased under R 299.4005.
(6) The department shall return the original of the fully executed lease to the lessee and
retain a copy.
(7) Without the written consent of the department, no operations on any leased lands
will be conducted until a fully executed lease has been received by the lessee.
(8) All leases are subject to all present and future applicable federal and state laws and
rules.
(9) The lessor may require any lease applicant or the successful bidder or assignee
under any lease to submit the following information:
(a) If an individual, proof of attainment of legal age.
(b) If a co-partnership, a copy of the “Certificate of Co-partnership” or “Certificate of
Persons Conducting Business Under Assumed Name” approved by the county clerk in
the county where the leased lands are located.
(c) If a corporation or other legal entity, copies of the documents showing qualifications
to do business in the state of Michigan.
History: 1984 AACS; 2018 AACS.
Editor's Note: An obvious error in R 299.4001 was corrected at the request of the promulgating agency,
pursuant to Section 56 of 1969 PA 306, as amended by 2000 PA 262, MCL 24.256. The rule containing
the error was published in Michigan Register, 2018 MR 4. The memorandum requesting the correction
was published in Michigan Register, 2018 MR 5.
R 299.4007 Leases; form; lessor to determine terms; issuance in name of successful
bidder required; responsibility for compliance with terms of lease.
Rule 7. (1) A lease must be on a form prescribed by the lessor.
(2) The lessor shall determine the royalty and rental rates, primary lease term, and other
lease terms.
(3) A lease on land offered at public auction must be issued in the name of the
successful bidder or bidders at the time of auction or the party or parties designated by
them at the time of auction.
(4) The lessee is responsible for compliance with all terms and conditions of the lease.
History: 1984 AACS; 2018 AACS.
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