(1) The lessee under any geothermal RESOURCES
lease granted by the state may at the termination of any rental year, by giving
to the department 60 days previous notice in writing, surrender and relinquish
the lease to the state in whole or in part, and should be discharged from any obligation not yet accrued as to the lands so surrendered and relinquished
without prejudice to the continance of the lease as to lands not surrendered
(2) Although no
particular form of surrender is required, each surrender must be in writing,
must sufficiently identify the lease sought to be surrendered, and must
specifically describe the lands to be surrendered, whether all of the lease
premises or a portion only.
(3) Such written
instrument of surrender and relinquishment must be signed by the owner of the
lease as shown by the records of the director, or by his duly authorized agent.
If more than one person owns the working interest in the lease, either all
owners must join in a joint surrender of the lease or each must submit a
separate, written surrender.
(4) If operations have
been conducted on a lease which lessee desires to surrender, the lessee shall
also submit with his written instrument of surrender evidence of the proper
plugging and abandonment of any hole drilled on the lease premises, together
with evidence that he has complied with the reclamation provisions of ARM
36.25.316. Before the bond is released subsequent to surrender of a lease the
department shall inspect the tract to determine that reclamation has been accomplished.
(5) If timely notice is
given by the lessee of an intent to surrender a lease, but the instrument of
surrender is inadequate under the rules herein set forth, or if any additional
required information is not timely supplied by the lessee, such informal notice
of intent to surrender shall be effective to relieve the lessee of any
obligation to pay further rental under the lease, provided that an instrument of
surrender and any additional required information is supplied to the board
within 60 days after the termination date of the lease as intended and sought
by the lessee.