§182-3  Bond; compensation to occupiers. 
(a)  Every lessee of a mining lease granted under this chapter and every
assignee thereof shall file with the board of land and natural resources a
bond, in a form and in an amount approved by the board, made payable to the
State and which shall be conditioned upon the faithful performance by the
lessee of all the requirements of this chapter and of the mining lease, and
also conditioned upon the full payment by the lessee of all damages suffered by
the occupiers hereinunder mentioned.  If the State sells or leases its mineral
rights on land which it or its predecessors in interest have granted or leased,
or which it may hereafter sell or lease, and the land thereof including any
crops or improvements is damaged by any mining or other incidental operations,
including exploratory work, or by the failure of the lessee of the mining lease
to properly restore the land after termination of the operations, the occupier
shall be reimbursed the full extent of the damages caused by the mining
operations of the lessee to be allocated between the lessee and the fee owner
in accordance with the lease terms, if any.



(b)  Nothing herein shall be construed to
prevent the occupier from demanding and receiving rentals from the lessee of
the mining lease or to forbid and prevent the occupier and the lessee from
agreeing upon the amount of damages to be paid and the terms and conditions of
payment.  The occupier may in writing before or within thirty days after the
public auction notify the board that the occupier elects to have the amount of
damages and the amount of rentals to be paid as a result of the mining lease
determined by arbitration with the successful bidder.  In such event, the
occupier shall notify the successful bidder of the occupier's election to
arbitrate, and the arbitration shall proceed in accordance with chapter 658A. 
The arbitrators in fixing the amount of damages to be paid to the occupier
shall award the occupier the amount which in their judgment shall fairly compensate
the occupier for the damages the occupier may suffer to the occupier's crops or
improvements or to the surface or condition of the occupier's land caused by
the mining or other incidental operations, including exploratory work, and a
reasonable rental for the use of the surface. [L 1963, c 11, pt of §1; Supp,
§99A-3; HRS §182-3; am L 1978, c 135, §2; gen ch 1985; am L 2001, c 265, §4]