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Article 4

Article 4. Leases & Prospecting Permits for Minerals Other Than Oil & Gas

2200. Character and Extent of Lands
2201. Duration of Leases and Permits
2202. Prospecting Permit Procedures
2203. Preferential Lease Procedures
2204. Procedures for Nonpreferential Leases
2205. Statements and Reports

'2200. Character and Extent of Lands.

(a) Lands subject to lease include:

(1) Those containing known deposits of minerals;

(2) Those embraced in a prospecting permit not subject to preferential lease.

(b) For tide and submerged lands and those underlying navigable streams and lakes the commission may determine the extent thereof subject to lease under any application. For all other lands the application shall be for a compact area and may include any number of acres not in excess of 160.

(c) The commission may include in its lease offer, areas adjacent to that for which application has been made, should it determine that such additional areas contain commercially valuable mineral deposits.

(d) Lands subject to prospecting permits are those not classified by the commission as containing commercially valuable mineral deposits.

'2201. Duration of Leases and Permits.

(a) Leases (both preferential and bid) may be issued for a term of 20 years, with option of renewal for successive periods of 10 years upon such terms and conditions as may be prescribed by the commission at the time of renewal.

(b) Prospecting permits are limited to a period not exceeding two years, extendable for a period of an additional one year at the discretion of the commission.

'2202. Prospecting Permit Procedures.

(a) Applications. Any person desiring to apply for a prospecting permit on any land under the jurisdiction of the commission, shall file with the State Lands Division, 200 Oceangate, Suite 1200, Long Beach, California 90802, a written application containing:

(1) Name, address, and status of citizenship of applicant; if applicant is a corporation, the corporate name and name of president, secretary, and officer authorized to execute contracts and leases.

(2) A description of the state lands involved.

(3) A statement of the use proposed.

(4) A statement of the character and use of adjoining lands.

(5) A statement of the nature of the deposits proposed to be developed.

(b) If the applicant has posted a notice on the lands and recorded a copy thereof, as provided by Section 6892 of the Public Resources Code, the application shall so state, describing the monument erected on the lands, giving the location thereof, and stating the dates of posting and recording. The recorded copy of the notice shall be attached to the application.

(c) The application shall be accompanied by:

(1) a filing fee, as provided in Section 1903(a)

(2) a permit fee deposit equal to the amount of $1 per acre for each acre within the desired permit area.

(3) an expense deposit as provided in Section 1903.2.

(d) Upon the acceptance of an application, the commission shall determine the royalty rate to be paid under any ensuing preferential lease.

(c) Upon authorization by the commission, permit forms shall be submitted for the applicant’s acknowledged or witnessed execution.

HISTORY

1. Amendment filed 8-17-55 as an emergency; designated effective 9-7-55 (Register 55, No. 12).

2. Amendment of subsection (c) filed 4-10-69; effective thirtieth day thereafter (Register 69, No. 15).

3. Amendment of subsection (a) filed 3-2-73 as procedural and organizational; effective upon filing (Register 73, No. 9).

4. Amendment of subsection (c) filed 2-2-77; designated effective 3-1-77 (Register 77, No. 6).

'2203. Preferential Lease Procedures.

(a) At any time during the life of a permit, the permittee may apply for a preferential lease upon discovery of a commercially valuable deposit of minerals within the permit area.

(b) An application under this section shall contain, in addition to the data required in Section 2202(a), an affidavit of some responsible person having knowledge of the facts averring that a commercially valuable mineral deposit has been discovered within the permit area.

(c) No lease shall be issued for unsurveyed lands. Upon request of the applicant, accompanied by a deposit of an amount sufficient to cover the costs of a survey, surveying services will be rendered by the Division of State Lands.

(d) Upon determination by the Division of State Lands that a commercially valuable mineral deposit has been discovered and that the applicant is entitled to a preferential lease, the commission may, subject to the payment of the rental for the first year, authorize the execution and delivery of an appropriate lease.

HISTORY

1. Amendment filed 8-17-55 as an emergency; designated effective 9-7-55 (Register 55, No. 12).

'2204. Procedures for Nonpreferential Leases.

Lands known to contain commercially valuable deposits of minerals not subject to a preferential lease under a prospecting permit, may be leased pursuant to a published notice of intention to receive bids. (See Section 1908). The minimum expense deposit required shall be determined by the Commission under the provisions of Section 1903.2.

HISTORY

1. Amendment filed 4-10-69; effective thirtieth day thereafter (Register 69, No. 15).

2. Amendment filed 2-2-77; designated effective 3-1-77 (Register 77, No. 6).

'2205. Statements and Reports.

On or before the fifteenth day of each month, a lessee or permittee shall deliver to the Division of State Lands statements in the form prescribed, showing the work performed upon the leased or permitted area and the amount, quality, and value of all minerals produced, shipped or sold during the preceding calendar month. Longer intervals for such reports may be authorized but such authorization shall be granted only in writing and may be revoked or changed at any time upon written notice to the lessee or permittee.