36.25.311 ASSIGNMENTS AND TRANSFERS
(1) A lessee may assign any lease, either in whole or as to subdivisions of
land embracing not less than 40 acres covered thereby, to any assignee
qualified to be a lessee as provided under the law and these regulations. Such
assignment is not, however, binding upon the state until filed with the
department, accompanied by the required fees, together with proof of
qualifications of the assignee as a lessee, and until the assignment is
approved by the department. For the purpose of this rule, any government
surveyed lot whether it contains 40 acres or more shall be assignable. The
approval of any assignment so filed and supported may not be withheld in any
case where the rights or interests of the state in the premises assigned will
not, in the judgment of the board, be prejudiced thereby, and the decision is
subject to appeal as provided by law. Until such an assign-
ment is approved by the department, the lessee of record shall continue fully liable
and responsible for all of the requirements and obligations of the lease.
the case of a partial assignment, i.e., assignment of a full interest in only a
portion of the leased premises, the department shall issue a new lease or new
leases, with the same expiration date as the original lease for the assigned
acreage. A new ledger sheet or sheets shall be prepared and the original lease
adjusted accordingly. The original lessee and the assignee(s) assume full
liability for their respective leases.
(3) The lessee may assign an undivided, fractional interest in any lease, either as to
the whole of the leased premises or as to any portion thereof,
by assigning title to the acreage in question to himself and the assignee. The
assignment must show the respective shares of interest and may be approved by
the director as a transfer of title only without recognition of any assignment
of lease obligations and responsibilities.
other assignments of coal leases or interests therein are subject to approval
by the board and are binding upon the state in the discretion of the board.
(5) Assignments involving reservations of overriding royalties or other interests
by assignee are approved by the director as a transfer of title only and
without recognition of such overriding royalties or interests. Such
reservations do not affect the validity of the transfer of title.
assignment or transfer must be on the form currently approved by the board.
Evidence of transfers by operation of law should be in the form of a certified
copy of the appropriate court order or decree or similar document, such as
letters of administration to personal representatives, decree of distribution,
executor's deed or sheriff's deed.
board may recognize any transfer by operation of law to an unqualified lessee
for a period of time no longer than one year and only for the purpose of the
further transfer of the interest.
director shall notify the parties to any assignment or other transfer
submitted of approval or non-approval thereof.
History: 77-3-303, MCA; IMP, 77-3-303, MCA; NEW, 1979 MAR p. 734, Eff. 7/12/79; TRANS, 1996 MAR p. 2384.