(1) (a) The assignment of any lease, either in
whole or as to subdivisions of land embracing not less than 40 acres covered
thereby, made to an assignee qualified as provided under the law and these regulations
is permitted. Such assignment is not, however, binding upon the state until
filed with the department, accompanied by the required fees, and until the
assignment is approved by the board or its lawful representative. For the purposes
of this rule, any lot, according to the governmental survey, shall be deemed to
be a legal subdivision of land embracing not less than 40 acres. The approval of any assignments 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. Until
such an assignment is approved by the board, the lessee of record shall
continue fully liable and responsible for all of the requirements and
obligations of the lease.
(b) In case of a partial
assignment, i.e., assignment of a full interest in only a portion of the leased
premises, a new lease is issued for the assigned acreage, with the same expiration
date as the original lease. The original lessee and the assignee assume full
liability for their respective lessee.
(2) The assignment of any
geothermal resources lease, either in whole or in part, to more than one
assignee will be permitted if the proposed assignment is otherwise in compliance
with the foregoing requirements; provided however, that any such assignment
will not be approved by the board until one of the assignees is designated to
act as agent for the purpose of receiving any and all notices from the board
given in connection with the lease and meeting all requirements and obligations
under the lease.
(3) Assignment of
undivided, fractional interests in any lease, either as to the whole of the
leased premises, or as to any portion thereof, is accomplished by having the
lessee assign title to the acreage in question to himself and the assignee. The
assignment may show the respective shares of interest but the transaction is
approved by the director as a transfer of title only and without recognition of
the respective interests.
(4) All other assignments
of geothermal resources leases or interests therein are subject to approval by
the board, and are binding upon the state in the discretion of the board.
(5) An assignment or
transfer on the form currently approved by the board will be acceptable.
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 executor or administrator, decree of distribution,
executor's deed or sheriff's deed.
(6) Any transfer, by operation
of law, to an unqualified lessee will be recognized by the board for a period
of time in no event longer than 1 year, and only for the purposes of the
further transfer of the interest to a qualified lessee.
(7) The director shall notify
the parties to any assignment or other transfer submitted for approval or nonapproval
(8) Unless the lease account is in good standing at the time the assignment is reached for action, the request
for approval of the assignment will be denied, and the lease shall be subject
to termination in accordance with these rules.
(9) All applications for approval of assignments must be accompanied by a fee of $25.00 for each assignment.