97 Neb. Admin. Code, ch. 4, § 002
The Board will grant all types of leases.
The lease application and agreement form as adopted, and which is subject to amendment of supplementation will be set out in Appendix "A" of these rules. Said lease application and agreement form will hereinafter be referred to as the lease.
Application for the issuance of a sand and gravel lease must be executed under oath by applicant or his agent or attorney, or an office or agent of the corporation, if the application is made by a corporation. Application must be made on the form prescribed by the Board of Educational Lands and Funds, and must contain a description of the land, by legal subdivision, upon which the lease is desired and the terms upon which the applicant desires to acquire such lease.
The lease will be sold at public auction held at the office of the Board of Educational Lands and Funds in the State Office Building, 301 Centennial Mall South, Lincoln, Nebraska, after notice of time and place of such sale has been given by publication for two consecutive weeks, in a newspaper of general circulation in the county where the lands to be leased are located.
Application for a lease must be accompanied by a deposit in the amount of $ 15.00 to cover cost of publishing notice, together with the first year's rental. If the lease is not sold, the one who files the application must pay the cost of publication, otherwise, the cost is paid by the successful bidder.
Any person who is eligible to make a contract in accordance with Nebraska Laws is eligible to bid on school land leases and hold said lease with the following exception: no lessee or former lessee who owns any delinquent rental shall be eligible to bid on a lease or hold a lease unless such delinquent rental, fees and costs of advertising are first paid in full.
Leases are issued for a term not to exceed three (3) years, and may be renewed, at the discretion of the Board, under such terms as directed by the Board.
Lessee must furnish a $1,000 bond to indemnify the state against loss, damage or detriment by reason of the failure of lessee to pay the annual rental and royalty or to fully discharge the obligation contained in the lease. A $5,000 blanket bond may be given if more than one lease is issued to the same person. Such bond must be executed by a corporate surety authorized to do business in the State of Nebraska (Except County applications and Department of Roads).
The lessee must, at the end of each month, file a report in the office of the Board of Educational Lands and Funds setting forth the quantity of sand or gravel removed, and remit for the same. Such report must be certified to under oath, or must be a regular report signed by an inspector representing a governmental subdivision of the State.
The lease must reserve the right to fully use and enjoy for agricultural and grazing purposes the area leased for sand and gravel, except such parts thereof as may be necessary for use in the development and operation thereof for sand and gravel and in the marketing of production therefrom. The owner of the agricultural or grazing rights covered by this lease has prior right to use of water on the premises.
The lesseee must pay all damages to growing crops, Including grass, caused by operation under the lease, and must, after due notice thereof, protect the lessor from claims of such nature.
Assignments of a lease are permitted, but before the same are effective, must be approved by the Board of Educational Lands and Funds accompanied by a filing and recording fee of $ 10.00.
Surrender of lease is subject to approval by the Board of Educational Lands and Funds, and payment of a filing fee of Five Dollars ($ 5.00).
97 Neb. Admin. Code, ch. 4, § 002