27-251

27-251. Application for mineral exploration
permit

A. Any natural person over eighteen years of age and any other person qualified to
transact business in this state may apply to the state land commissioner for a mineral
exploration permit on the state land in one or more of the rectangular subdivisions of
twenty acres, more or less, or lots, in any one section of the public land survey. Such
application shall be in writing and signed by the applicant, or an authorized agent or
attorney for the applicant, and shall contain the name and address of the applicant, a
description according to the public land survey of the state land for which the applicant
seeks a mineral exploration permit, and such other information as the commissioner may
prescribe by rule. The application shall be filed with the state land department and
shall be accompanied by payment to the department of a filing fee as prescribed pursuant
to section 37-107. Each application meeting the requirements of this section shall be
stamped by the department with the time and date it is filed with the department. The
application shall have priority over any other application for a mineral exploration
permit involving the same state land which may be filed with the department subsequent to
such time and date, and such land shall be deemed withdrawn as long as the application is
pending.

B. Not less than thirty days nor more than forty-five days from the filing of the
application with the department, provided there is no prior application for a mineral
exploration permit involving the same state land then pending before the department, or
if such prior application is then pending but is subsequently cancelled, not more than
thirty days after it is cancelled, the department shall mail to the applicant at the
address shown on the application a written notice designating the state land that is
described in the application and that, at the time the application was filed with the
department, was open to application, the amount of rental required to be paid for the
mineral exploration permit as herein provided, and whether a bond will be required under
the provisions of section 27-255 as a condition to issuance of such permit. If, within
thirty days after the mailing of such notice, the applicant pays to the department as
rental for the permit the amount of two dollars per acre for each acre of state land
designated in the notice and files with the department the bond, if any, required under
section 27-255, and if the commissioner finds that issuing the permit is in the best
interest of the trust, the commissioner shall issue to the applicant a mineral
exploration permit for the state land designated in the notice. The commissioner may
deny the application for any of the following reasons:

1. The application was not made in good faith.

2. The proposed exploration or possible future mining activities would not be the
highest and best use of the trust lands.

3. The value and income potential of surrounding trust lands would be adversely
affected and the benefit from proposed exploration and future mining activity cannot
reasonably be expected to be greater than the diminished value to those surrounding trust
lands.

4. The proposed operations would violate applicable state or federal law.

5. The commissioner determines that the proposed exploration activities or possible
future mining activities will create a liability to the state greater than the income
from the proposed operations.

C. During the period such mineral exploration permit is in effect no person except
the permittee and the authorized agents and employees of the permittee shall be entitled
to explore for minerals on the state land covered by the permit. If the applicant fails
to make the payment or furnish the bond within the period of thirty days, the application
shall be deemed cancelled and of no further effect.