Sand, Gravel, Borrow Material, and Rip-Rap ("Sand and Gravel")
If the two lease types above are not appropriate for the product that is intended to be mined, a general metallic/non-metallic lease is used to accommodate the lease. The lease form will be amended to show which product will be mined based on information given in the application for Metallic/Non-Metallic Lease.
All leases that fall under the rock and assorted minerals category are available for lease to the first qualified applicant. Applications submitted to OSLI must be accompanied with a $50 application fee. For specific lease types within this category, please see the descriptions listed in the accordion drop down above. Sand and gravel lease terms are for 2 years. All other lease types have a 10 year primary lease term.
Rentals for leases are on a per acre basis and paid annually. Rent is due on leases in two situations: if the lease is not producing, the entire rental is due; if the lease is producing, the rental due is the difference between minimum annual royalty and royalties paid or the full rental amount, whichever is smaller. Sand and gravel rent is set at $1 per acre for the life of the lease. For all other lease types within this category the rental schedule is as follows: $1 per acre for the first five years of the primary lease term, $2 per acre for the second five years of the lease term. $2 per acre for the entirety of the first 10 year lease renewal. $3 per acre for the second 10 year lease renewal and $4 per acre for the third 10 year lease renewal.
Assignment of any interest within a lease must be approved by the Director of OSLI. The parties transferring interest in any Rock and Assorted Minerals category lease are required to use the Hard Rock Lease Assignment Form, links to the instructions and form are listed below.
All leases in the Rock and Assorted Minerals category are not required to have bonding until operations (including exploration) commence on the leased area. Bonds may be either individual (in the form of corporate surety bond, cash bond, certified cashiers check, certificate of deposit, or non-revocable letter of credit) or a “Blanket Bond” covering all of the lessees coal leases with OSLI. Blanket bonds must be in the form of a corporate surety bond and be in the sum of no less than one hundred thousand dollars. For more information regarding the bonding of leases within this category, please refer to the information located under the “Hard Rock Bonding” drop down on the OSLI Bonding Guide Page.
The Royalty Compliance Section assures timely and accurate payment of royalties in return for the removal of minerals from Trust Lands. In addition, this section serves over 400 oil, gas, coal, sand & gravel, and hard mineral companies by providing them with information for State reporting guidelines. The Section processes royalty and production reports to ensure the trust receives full and fair value for the mienrals that are extracted from State Trust Land.
The Office of State Lands and Investments is happy to announce the availability of our eRMA2 Test Environment. This environment will allow reporters to submit reports to this test environment prior to submission to the Live Environment. If you would like to request access to the eRMA2 Test Environment, or have any questions, please contact Billie Hunter at firstname.lastname@example.org
The primary lease term for a Zeolite or Metallic/Non-Metallic lease is ten years. Sand and Gravel primary lease term in two years. Before the primary term is due, a subsequent renewal needs applied for. The application and application fee are due before the lease expires. Renewal applications are approved by the SBLC. All leases within this category use the “Hard Rock” renewal application form.
Although the State oil and gas leases give the right of ingress and egress related to the leased property; and, allow use of the surface as needed for operations, all mineral lessees are required to pay the Surface Impact Payments (SIP). SIPs are intended ot re-compensate the grazing lessee of the stat surface as well as OSLI for the loss of forage associated with oil and gas development disturbance. Surface impact payments are required propr to exploration and development on any State mineral lease.
Furthermore, use of State Land outside the bounds of the mineral lease require additional permitting. This is handled in two manners. For long term additional permitting, a Special Use Lease may be required. Situations requiring a Special Use Lease (SUL) could include disposal wells, on-lease facilities handling off-lease minerals, or communication towers. For short term permits such as roads or CBM reservoirs, Temporary Use Permits (TUP) are issued. Although the mineral lease allows for ingress and egress related to the leased parcel, access routes across parcels that are not within the lease area are subject to TUP permitting. For more information on SUL's and TUP's please refer to the links below.
Easements are used by OSLI to permit permanent infrastructure such as pipelines, powerlines, and other permanent transmission systems. For more information regarding easements, please refer to the links below.
A lessee may relinquish a lease for any various reasons, using the form below. If the lease being relinquished is not developed in anyway, the lease is relinquished effective the day it is received by OSLI. If the lease being relinquished has been developed, the relinquishment will not be effective until the lands leased are reclaimed to an acceptable condition. Relinquishment of a lease does not relieve a lessee of obligations due to that lease. Parcels may be offered for lease after a lease has been relinquished on that parcel.
Termination of lease can be due to a variety of reasons including; no production without suspension of operations, failure to pay annual rental, or default of lease or SBLC Rules and Regulations, etc. The lessee of a terminating lease will receive thirty (30) notice of the lease termination. If no response or remedy is received within that thirty days, the lease will terminate on the appropriate effective date. Parcels may be offered to lease after a lease on that parcel has been terminated.
Expiration of leases occurs when a lease has reached the end of it’s primary term without production or diligent pursuit of production, or without extension or renewal of the primary term. Leases that have reached the end of their primary term without production or extension expire automatically as a function of the lease. Parcels that may be offered for lease after a lease on that parcel has expired.
All lease types within the Rock and Assorted Minerals category are required to be maintained in an ecologically prudent manner. Furthermore, when a lease is finally disposed of, reclamation of the disturbed areas must take place. Reclamation of the site is required to have vegetative production as good or better than the surrounding rangeland and for the site to be physically stable. Surface compliance and reclamation inspections are performed by the Field Services Division (FSD) of OSLI.
Lessees are encouraged to contact OSLI when surface compliance issues may arise so that the situation can be handled in a timely manner. Also, reclamation planning with OSLI staff is suggested so that reclamation plans can be tailored to meet the expectations of OSLI, and subsequently expedite the reclamation process. FSD Contact Info can be found on the Contact page.