§182-4  Mining leases on state lands. 
(a)  If any mineral is discovered or known to exist on state lands, any
interested person may notify the board of land and natural resources of the
person's desire to apply for a mining lease.  The notice shall be accompanied
by a fee of $100 together with a description of the land desired to be leased
and the minerals involved and any information and maps that the board by rule
may prescribe.  As soon as practicable thereafter, the board shall cause a
public notice to be given in the county where the lands are located, at least
once in each of three successive weeks, setting forth the description of the
land, and the minerals desired to be leased.  The board may hold the public
auction of the mining lease within six months from the date of the first notice
or any further time that may be reasonably necessary.  Whether or not the state
land sought to be auctioned is then being utilized or put to some productive
use, the board, after due notice of public hearing to all parties in interest,
within six weeks from the date of the first notice or any further time that may
be reasonably necessary, shall determine whether the proposed mining operation
or the existing or reasonably foreseeable future use of the land would be of greater
benefit to the State.  If the board determines that the existing or reasonably
foreseeable future use would be of greater benefit to the State than the
proposed mining use of the land, it shall disapprove the application for a
mining lease of the land without putting the land to auction.  The board shall
determine the area to be offered for lease and, after due notice of public
hearing to all parties in interest, may modify the boundaries of the land
areas.  At least thirty days prior to the holding of any public auction, the
board shall cause a public notice to be given in the State at least once in
each of three successive weeks, setting forth the description of the land, the
minerals to be leased, and the time and place of the auction.  Bidders at the
public auction may be required to bid on the amount of annual rental to be paid
for the term of the mining lease based on an upset price fixed by the board, a
royalty based on the gross proceeds or net profits, cash bonus, or any
combination or other basis and under any terms and conditions that may be set
by the board.



(b)  Any provisions to the contrary
notwithstanding, if the person who discovers the mineral discovers it as a
result of exploration permitted under section 182-6, and if that person bids at
the public auction on the mining lease for the right to mine the discovered
mineral and is unsuccessful in obtaining such lease, that person shall be
reimbursed by the person submitting the highest bid at public auction for the
direct or indirect costs incurred in the exploration of the land, excluding
salaries, attorneys fees and legal expenses.  The department shall have the
authority to review and approve all expenses and costs that may be reimbursed.
[L 1963, c 11, pt of §1; Supp, §99A-4; HRS §182-4; am L 1978, c 135, §3; am L
1983, c 296, §2; gen ch 1985; am L 1998, c 2, §45]



 



Revision Note



 



  In subsection (b), "attorneys fees" substituted for
"attorney fee's".



 



Cross References



 



  Strip mining, see chapter 181.