77-3-423. Annual rental. (1) The annual money rentals to be paid to the state for oil and gas leases must be set by the board but may not be less than $1.50 for each acre of land leased.
(2) In addition to the sum of $1.50 per acre, the rental for the first year of the lease must also include any sum in excess of $1.50 per acre offered and accepted for the first year's rental.
(3) The annual rental under this section may not be less than $100 a year.
(4) The first year's rental must be paid before the issuance of the lease. The rentals for each subsequent year of the lease are due and payable before the beginning of the subsequent lease year. Upon failure to make the rental payment, the lease terminates unless there is a well currently being drilled, a producing well, or a shut-in well approved by the department on the lease. Rental paid for any year must be credited against any royalty that accrues during that year.
History: En. Sec. 1, Ch. 161, L. 1955; amd. Sec. 12, Ch. 22, L. 1971; amd. Sec. 85, Ch. 428, L. 1973; amd. Sec. 1, Ch. 136, L. 1974; amd. Sec. 1, Ch. 379, L. 1975; R.C.M. 1947, 81-1702.1(1), (2); amd. Sec. 1, Ch. 163, L. 1989; amd. Sec. 1, Ch. 34, L. 1997.
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