(1) Application for lease of a
tract of state land may be made at any time during the year on a form provided
by the department.
(a) Such application shall contain the information called for therein, including an
adequate and sufficient description of the lands sought to be leased.
(b) Such application shall be accompanied by a non-refundable $10.00 application
fee. Applications not accompanied by the application fee will not be considered.
(2) When sufficient applications have been received to warrant a sale, or at the
director's discretion, a sale will be announced.
(a) Notice of sale will be given by publication in a trade journal of general
circulation in the geothermal industry or in 2 newspapers of general
circulation in Lewis and Clark County, Montana. Notice will be published each
week for 4 weeks preceding the date of sale.
(b) The board will maintain a master mailing list of prospective geothermal resource
lessees who request, in writing that their names be placed on such list; and
concurrently with the publication of the notice of sale in the newspaper, the
board shall mail to each addressee on the master mailing list a copy of the
notice of sale. However, such mailing shall not be deemed a legal prerequisite
to a valid sale. Furthermore, the board shall have no liability to any person
who may be inadvertently omitted in the mailing of such additional notices.
(c) Geothermal lease by competitive bidding will be by sealed bid submitted to the
department 40 days after announcement of the sale. Bids must be made on each
(i) Lease will be awarded to the qualified bidder who submits a bid of the highest
cash amount per acre above the minimum bid of $1.00 per acre for the first
year's rental for the right to lease state-owned geothermal lands.
(ii) Each bidder must submit with his sealed bid, 1/5 of the amount of the bid in
cash or by cashier's check, certified check or money order payable to the order
of the department of natural resources and conservation. After completion of
the lease offer, the amounts submitted by unsuccessful bidders will be
returned. The successful applicant must submit to the department the remaining
4/5 of the amount bid within 30 days following receipt of notice of award.
(d) The board reserves the right to reject any and all bids on any tract offered for lease.
(3) If, at the lease sale, no bid is made on the tract for which an application was
made, the applicant may negotiate with the board for lease. The board reserves
the right to reject negotiations on any tract of land offered for lease.
(4) Each application
shall constitute an undertaking to pay the required first year's rental plus a
$25.00 fee for the
issuance of the lease if at the lease sale the applicant is the successful bidder
therefore, or at the lease sale no bid is made on the tract for which
application was made and a lease is successfully negotiated with the applicant.