§182-4  Mining leases on state lands. (a)  If any mineral is discovered or known to exist on state lands, anyinterested person may notify the board of land and natural resources of theperson's desire to apply for a mining lease.  The notice shall be accompaniedby a fee of $100 together with a description of the land desired to be leasedand the minerals involved and any information and maps that the board by rulemay prescribe.  As soon as practicable thereafter, the board shall cause apublic notice to be given in the county where the lands are located, at leastonce in each of three successive weeks, setting forth the description of theland, and the minerals desired to be leased.  The board may hold the publicauction of the mining lease within six months from the date of the first noticeor any further time that may be reasonably necessary.  Whether or not the stateland sought to be auctioned is then being utilized or put to some productiveuse, 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 maybe reasonably necessary, shall determine whether the proposed mining operationor the existing or reasonably foreseeable future use of the land would be of greaterbenefit to the State.  If the board determines that the existing or reasonablyforeseeable future use would be of greater benefit to the State than theproposed mining use of the land, it shall disapprove the application for amining lease of the land without putting the land to auction.  The board shalldetermine the area to be offered for lease and, after due notice of publichearing to all parties in interest, may modify the boundaries of the landareas.  At least thirty days prior to the holding of any public auction, theboard shall cause a public notice to be given in the State at least once ineach of three successive weeks, setting forth the description of the land, theminerals to be leased, and the time and place of the auction.  Bidders at thepublic auction may be required to bid on the amount of annual rental to be paidfor the term of the mining lease based on an upset price fixed by the board, aroyalty based on the gross proceeds or net profits, cash bonus, or anycombination or other basis and under any terms and conditions that may be setby the board.

(b)  Any provisions to the contrarynotwithstanding, if the person who discovers the mineral discovers it as aresult of exploration permitted under section 182-6, and if that person bids atthe public auction on the mining lease for the right to mine the discoveredmineral and is unsuccessful in obtaining such lease, that person shall bereimbursed by the person submitting the highest bid at public auction for thedirect or indirect costs incurred in the exploration of the land, excludingsalaries, attorneys fees and legal expenses.  The department shall have theauthority 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 L1983, 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.