27-252

27-252. Terms of mineral exploration permit;
definition

A. Every mineral exploration permit shall be for a term of one year from the date
of issuance, subject to renewals as provided in this article for an aggregate of not to
exceed five years from such date, and shall give to the permittee the rights, subject to
the terms and conditions, as follows:

1. During the period the permit is in force and effect, the permittee shall have
the exclusive right to explore for minerals within the state land covered by the permit
and to apply for and obtain a mineral lease or leases to the land.

2. The permittee shall have those surface rights necessary for exploration for
mineral on the state land covered by the permit, but may remove from the land only that
amount of mineral required by the permittee for sampling, assay and metallurgical testing
purposes.

3. The permittee shall have the right of ingress to and egress from the land
covered by the permit across other state lands but only along routes first approved by
the commissioner.

4. The permittee shall be liable to and shall compensate the owner and lessee of
the surface of the state land covered by the permit, or across which the permittee
exercises the right of ingress and egress, for any loss to such owner and lessee from
damage or destruction caused by the permittee or the permittee's agents or employees to
grasses, forage, crops or improvements upon such state land.

5. The permit shall terminate automatically as of the end of any annual period from
and after the date of issuance unless during such annual period the permittee expended in
exploration for valuable mineral deposits on the state land covered by the permit not
less than the amount per acre provided in this article or paid to the department a sum
equal thereto, and prior to expiration of such annual period shall have filed with the
department an application for renewal for the ensuing annual period, and an affidavit
showing such expenditure, together with such other proof in support thereof as the
commissioner by rule may prescribe. The amount to be so expended or paid to the
department during each of the first two annual periods in which such permit may be in
effect shall be not less than ten dollars for each acre of state land covered by the
permit at the commencement of such annual period, and the amount to be so expended or
paid to the department during each of the last three annual periods in which such permit
may be in effect shall be not less than twenty dollars for each acre of state land
covered by the permit at the commencement of such annual period. Prior to termination of
any such annual period, the permittee may, by instrument in writing filed with the
department, release from the permit the acreage covered thereby and contained within one
or more rectangular subdivisions of twenty acres, more or less, or lots, according to the
lines of the public land surveys.

6. When a permittee has an interest in one or more contiguous properties for which
he or she holds a mineral exploration permit, such permittee may group such permits and
expend the sum required by this article under a common plan of development on one or more
of the properties for the benefit of all if the total area of such contiguous property
does not exceed three miles on a side.

7. Upon termination of the mineral exploration permit, other than by issuance of a
mineral lease, the permittee shall submit to the department the following information,
which shall not include any chemical analysis or other identification of minerals,
concerning any drill holes or wells drilled on state land covered by the permit:

(a) Total depth.

(b) Lithologies and depths of lithologic boundaries encountered in the hole.

8. Drill hole information shall be confidential for one year after termination of
the permit, and such period of confidentiality shall be extended for an additional year
upon the request of the permittee.

9. Any expenditures in exploration for valuable mineral deposits made in excess of
the requirements of this article during any annual period of the permit may be credited
against expenditure requirements of successive annual periods of the permit.

10. In lieu of making expenditures in exploration, the permittee may elect to make a
money payment of the amounts required for expenditures in exploration for valuable
mineral deposits to the department.

B. Upon any partial or total relinquishment, or the cancellation or expiration of
the permit other than by issuance of a mineral lease, the permittee shall fill any holes,
ditches or other excavations, as may be required by the commissioner, and, as far as
reasonably possible, reclaim the surface to its former condition.

C. As used in this article, "exploration" means activity conducted upon the state
land covered by an exploration permit to determine the existence or nonexistence of a
valuable mineral deposit, including but not limited to geological, geochemical or
geophysical surveys conducted by qualified experts, and drilling, sampling and
excavation, together with the costs of assay and metallurgical testing of samples from
such land.