Section R. 299.4006 - Awarding of leasesRule 6.
(1) Lessor approval is required before any lease may be issued. Approval may be withheld for good and sufficient reasons.(2) The department may group lease rights for which issuance of leases has been approved into 1 or more leases, depending on the location of the lease rights and any special lease conditions.(3) Before a lease is executed for any state lands, the successful bidder or proposed direct lessee shall file a performance bond acceptable to the lessor, unless waived by the lessor. The amount of performance bond, maximum acreage covered, and when and how the bond may be drawn upon must be specified by the lessor.(4) The department shall provide 1 lease instrument to the proposed lessee for signature. Unless otherwise agreed to in writing by the lessor, the proposed lessee shall return all leases, properly executed, with proper performance bond and payment, within 30 days from the date the department sent the leases.(5) If the proposed lessee is unable to return the lease forms, payment, and performance bond within the time specified, the lessor may, upon request of the lessee, authorize additional time if the lessor determines that the delay is not the fault of the proposed lessee. Failure of the proposed lessee to comply within time limits authorized must result in forfeiture of the entire amount paid. Lands on which lease rights have been forfeited must be offered for leasing at the earliest possible date, unless withdrawn for any stated reason by the lessor or unless leased under R 299.4005.(6) The department shall return the original of the fully executed lease to the lessee and retain a copy.(7) Without the written consent of the department, no operations on any leased lands will be conducted until a fully executed lease has been received by the lessee.(8) All leases are subject to all present and future applicable federal and state laws and rules.(9) The lessor may require any lease applicant or the successful bidder or assignee under any lease to submit the following information:(a) If an individual, proof of attainment of legal age.(b) If a co-partnership, a copy of the "Certificate of Co-partnership" or "Certificate of Persons Conducting Business Under Assumed Name" approved by the county clerk in the county where the leased lands are located.(c) If a corporation or other legal entity, copies of the documents showing qualifications to do business in the state of Michigan.Mich. Admin. Code R. 299.4006
1984 AACS; 2018 MR 4, Eff. 2/9/2018An obvious error in R 299.4001 was corrected at the request of the promulgating agency, pursuant to Section 56 of 1969 PA 306, as amended by 2000 PA 262, MCL 24.256. The rule containing the error was published in Michigan Register, 2018 MR 4. The memorandum requesting the correction was published in Michigan Register, 2018 MR 5.