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77-3-401 77-3-402 77-3-403 77-3-404 77-3-405 77-3-406 77-3-407 77-3-408 77-3-409 77-3-410 77-3-411 77-3-421 77-3-422 77-3-423 77-3-424 77-3-425 77-3-426 77-3-427 77-3-428 77-3-429 77-3-430 77-3-431 77-3-432 77-3-433 77-3-434 77-3-435 77-3-436 77-3-437 77-3-438 77-3-439 77-3-440 77-3-441 77-3-442 77-3-443 77-3-444 77-3-451

Mont. Code Ann. § 77-3-421

Duration of lease

(1) All state oil and gas leases entered by the board shall be granted for a primary term of not more than 10 years or less than 5 years and as long thereafter as oil or gas in paying quantities is produced, on condition that all drilling, rental, and other obligations are fully kept and performed by the lessee. However, leases for a period of less than 5 years may be issued if the board determines that such shorter term is necessary to ensure full compensation for the oil and gas resource.

(2) Oil or gas produced from any part of a unit in which state lands are included by virtue of a pooling agreement are considered to be produced from the state lands therein within the meaning of this part.

(3) The board may grant reasonable extensions of the primary term of a state oil or gas lease upon a showing that the lessee, despite due care and diligence, is or has been directly or indirectly prevented from exploring, developing, or operating the lease or is threatened with substantial economic loss, due to litigation regarding the lease or another lease in the immediate area held by the same lessee, state compliance with the Montana Environmental Policy Act, Title 75, chapter 1, parts 1 through 3, rules adopted under Title 75, chapter 1, or adverse conditions caused by natural occurrences.

Official Annotations archive.org, 2025 edition
History:
En. Sec. 2, Ch. 108, L. 1927
Amd. Sec. 1, Ch. 193, L. 1931
Amd. Sec. 1, Ch. 171, L. 1933
Re-en. Sec. 1882.2, R.C.M. 1935
Amd. Sec. 1, Ch. 109, L. 1941
Amd. Sec. 1, Ch. 91, L. 1943
Amd. Sec. 1, Ch. 128, L. 1945
Amd. Sec. 1, Ch. 122, L. 1953
Amd. Sec. 84, Ch. 428, L. 1973
R.C.M. 1947, 81-1702(part)
Amd. Sec. 1, Ch. 165, L. 1983
Amd. Sec. 1, Ch. 272, L. 1989