(1) Exploration operations shall be conducted
in compliance with all federal, state, and local laws, and all ordinances,
rules and regulations which are applicable to such operations. Particularly,
permittee shall comply with the oil and
gas rules on state lands, oil and gas lease stipulations, if any, on those lands,
and the bonding requirements before commencing operations.
(2) The permittee shall take such measures
for the prevention and suppression of fire on the permit area and other
adjacent lands used or traversed by the permittee as are required by
applicable laws and regulations. When in the opinion of the department weather
and other conditions affecting fire incidence and control make special
precautions necessary to protect the area, the permittee shall take such additional or other fire prevention and control measures as may be required by
(3) The permittee shall obtain appropriate
permission to use water necessary for the exploration activities. This normally
will require a permit from the owner of the water right.
(4) The permittee shall make satisfactory
adjustment of any damages sustained by the owner to the surface of the lands or
sustained by the surface lessee to his leasehold interest in connection with
operations by the permittee. The surface lessee should not receive damages over
and above his annual rental unless special circumstances are demonstrated.