27-252. Terms of exploration permit

A. An exploration permit shall be for a term of five years after the date of issuance, subject to the eligibility for exploration permit renewal for one additional five-year period as provided in this article for an aggregate of not more than ten years after the date of issuance and shall give to the permittee the rights, subject only to the terms and conditions, as follows:

1. During the period an exploration permit is in force and effect, the permittee shall have the exclusive right to explore for a specific commodity type within the state land covered by the permit and to apply for and obtain a production lease or leases to the state land.

2. During the period the exploration permit is in force and effect, the permittee shall have those surface rights necessary for exploration on the state land covered by the permit but may remove from the state land only that amount of commodity type that is required by the permittee for sampling, assay and metallurgical testing purposes.

3. The permittee shall have the right of ingress to and egress from the state land covered by the permit across other state lands but only along routes first approved by the commissioner.

4. The permittee shall be liable to and shall compensate the owner or any state lessee of the surface of the state land covered by the permit, or across which the permittee exercises the right of ingress and egress, for any loss to such owner and lessee from damage or destruction caused by the permittee or the permittee's agents or employees to grasses, forage, crops or improvements on such state land.

5. The permit shall terminate automatically as of the end of the initial five-year period from and after the date of issuance and is subject to renewal for an exploration permit as provided by this article.  During the initial five-year period, or any renewal period, the permittee must expend in exploration for the specific commodity type on the state land covered by the permit not less than the amount per acre provided in this article or paid to the state land department a sum equal thereto, and before expiration of the initial five-year period shall have filed with the state land department an affidavit showing such expenditure, together with such other proof in support thereof as the commissioner by rule may prescribe. The amount to be so expended or paid to the state land department during each of the first two years that the permit may be in effect must be at least $10 for each acre of state land covered by the permit at the commencement of the five-year period, and the amount to be so expended or paid to the state land department during each of the last three years that the permit may be in effect must be at least $20 for each acre of state land covered by the permit at the commencement of the five-year period. Before termination of any five-year permit period, the permittee may, by instrument in writing filed with the state land department, release from the permit the acreage covered thereby and contained within one or more rectangular subdivisions of twenty acres, more or less, or lots, according to the lines of the public land surveys.

6. When a permittee has an interest in one or more contiguous properties that the person holds an exploration permit, the permittee may group such permits and expend the sum required by this article under a common plan of development on one or more of the properties for the benefit of all.

7. On termination of the exploration permit, other than by issuance of a lease, the permittee shall submit to the state land department the following information, which shall not include any chemical analysis or other identification of commodity types, concerning any drill holes or wells drilled on state land covered by the permit:

(a) Total depth.

(b) Lithologies and depths of lithologic boundaries encountered in the hole.

(c) Logs of surveys made of the hole, including gamma ray, resistivity, caliper and deviation surveys.

8. Drill hole information shall be confidential for one year after termination of the permit, and such period of confidentiality shall be extended for an additional year on the request of the permittee.

9. Any expenditures in exploration for a specific commodity type made in excess of the requirements of this article during any annual period of the permit may be credited against expenditure requirements of successive years of the permit.

10. In lieu of making expenditures in exploration, the permittee may elect to make a money payment of the amounts required for expenditures in exploration for a specific commodity type to the state land department.

B. On any partial or total relinquishment or on the cancellation or expiration of the permit other than by issuance of a production lease, the permittee shall fill any holes, ditches or other excavations, as may be required by the commissioner, and, as far as reasonably possible, reclaim the surface to its former condition.