§182-3  Bond; compensation to occupiers. (a)  Every lessee of a mining lease granted under this chapter and everyassignee thereof shall file with the board of land and natural resources abond, in a form and in an amount approved by the board, made payable to theState and which shall be conditioned upon the faithful performance by thelessee of all the requirements of this chapter and of the mining lease, andalso conditioned upon the full payment by the lessee of all damages suffered bythe occupiers hereinunder mentioned.  If the State sells or leases its mineralrights 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 anycrops or improvements is damaged by any mining or other incidental operations,including exploratory work, or by the failure of the lessee of the mining leaseto properly restore the land after termination of the operations, the occupiershall be reimbursed the full extent of the damages caused by the miningoperations of the lessee to be allocated between the lessee and the fee ownerin accordance with the lease terms, if any.

(b)  Nothing herein shall be construed toprevent the occupier from demanding and receiving rentals from the lessee ofthe mining lease or to forbid and prevent the occupier and the lessee fromagreeing upon the amount of damages to be paid and the terms and conditions ofpayment.  The occupier may in writing before or within thirty days after thepublic auction notify the board that the occupier elects to have the amount ofdamages and the amount of rentals to be paid as a result of the mining leasedetermined by arbitration with the successful bidder.  In such event, theoccupier shall notify the successful bidder of the occupier's election toarbitrate, and the arbitration shall proceed in accordance with chapter 658A. The arbitrators in fixing the amount of damages to be paid to the occupiershall award the occupier the amount which in their judgment shall fairly compensatethe occupier for the damages the occupier may suffer to the occupier's crops orimprovements or to the surface or condition of the occupier's land caused bythe mining or other incidental operations, including exploratory work, and areasonable 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]