R 299.4052 Lease applications; notice of location and classification of lands.
Rule 2. (1) Any qualified party may submit applications identifying lands desired for
gas storage leasing.
(2) Applications for leasing lands must be in writing on a form designated by the
department and must be submitted to the department at the address listed on the form.
Applications must include a development plan.
(3) An application fee must accompany the written application and must be in
accordance with the fee schedule approved by the department.
(4) The department shall identify all available lands requested for leasing and the
recommended lease classifications of development, nondevelopment, or nonleasable.
The lease applicant shall publish a notice describing the general location of the lands
requested for leasing and the recommended classification in a newspaper, as defined in
section 1461 of the revised judicature act of 1961, MCL 600.1461, not less than 30 days
before the department takes final action on the lease request. This notice must be
published at least once in a newspaper in the county where the lands are situated. If a
newspaper is not published in the county where the lands are situated, the notice must be
published in a newspaper in a county adjoining the county in which the lands are located.
History: 1990 AACS; 2018 AACS.
R 299.4053 Direct lease; terms and conditions of lease; request by qualified party;
payment of bonus payment.
Rule 3. (1) The department may enter direct leases.
(2) The department shall stipulate the terms and conditions under which lands may be
leased.
(3) Any qualified party may request a lease.
(4) The proposed lessee shall pay the full amount of the bonus payment upon receipt of
a billing invoice from the lessor.
History: 1990 AACS; 2018 AACS.
R 299.4054 Department approval of lease; lessee performance bond; signing and
return of lease copies; effect of federal and state laws and rules on lease; required
information.
Rule 4. (1) Department approval is required before any lease is granted. The department
reserves the right to deny all lease requests and shall state the reasons for denial.
(2) Any lease issued must include all state-owned surface descriptions within the
development plan as approved by the department.
(3) Before a lease is executed, the proposed lessee shall file a performance bond
acceptable to the lessor. The department shall specify the amount of the performance
bond, the maximum acreage covered, and when and how the bond may be drawn upon.
(4) The department shall provide 1 copy of each lease instrument to the proposed lessee
for signature. Unless otherwise agreed to in writing by the lessor, the proposed lessee
shall return the lease instrument(s), properly executed, with a proper performance bond
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