N.D. Admin. Code 85-06-02-08

Current through Supplement No. 394, October, 2024
Section 85-06-02-08 - Breach of coal lease
1. A coal lease may be canceled for:
a. Nonpayment of any sum due under the coal lease;
b. Breach of any of the coal lease terms or conditions provided the cancellation does not release lessee from liability for any sum due lessor or from any damages due to the breach; or
c. Violation of the board rules and policies, and applicable laws.
2. Prior to cancellation of a coal lease, the department shall mail a notice of intention to cancel the coal lease specifying the reason for cancellation to the lessee by mail requiring a signed receipt at the address of the lessee as shown in the records of the department. If the notice of intention to cancel is returned undeliverable or refused, the notice must be published in the official newspaper of the county in which the coal leased premises is located.
3. A lessee may file with the commissioner a request for a waiver or a request for the commissioner to review the notice of intention to cancel the coal lease, which must include a statement of the specific grounds for the request. A request must be in writing and filed with the commissioner within twenty days after the date of notice of intention to cancel the coal lease is received or the date of publication. A request for a waiver or review is deemed filed when personally delivered or when received by the department. The commissioner may waive any breach except a breach of coal lease terms required under North Dakota Century Code, or the commissioner may allow the lessee time to cure the breach. Any waiver is limited to the particular breach waived and may not limit the board's right to cancel the coal lease for any other breach.
4. If the lessee has not remedied the default within twenty days after receipt of a notice of intention to cancel or the date of publication, the commissioner shall cancel the coal lease.
5. Cancellation of the coal lease does not release the lessee from liability for any sum due to the board or from any damages from a breach of the coal lease.
6. Upon cancellation of the coal lease, the department shall file a satisfaction of coal lease with the register of deeds' office in the county where the coal leased premises is located.

N.D. Admin Code 85-06-02-08

Adopted by Administrative Rules Supplement 375, January 2020, effective 1/1/2020.

General Authority: NDCC 15-05-05, 15-05-09, 15-07-20, 15-08.1-06, 61-33-06

Law Implemented: NDCC 15-05-01, 15-05-09