1. (a) The commission may enter into written contracts designating a person as the permittee of the state with the exclusive right to prospect and explore not to exceed three (3) sections, or an equivalent area, of the public land for the occurrence of petroleum. A contract must contain the conditions prescribed by the rules adopted by the commission under this chapter. A permit must be for a period of not more than one (1) year in the discretion of the commission. A permit shall be granted without cost, except:

   1. (1) as provided in section 16 of this chapter; and
   2. (2) that, if more than one (1) application for a permit is received with respect to the same public land, the commission shall grant the permit to the person offering the highest cash bonus.

2. (b) A permittee may, under a contract:

   1. (1) enter in and upon the land; and

   2. (2) prospect and explore the land to determine the occurrence of petroleum.

      [Pre-1995 Recodification Citation: 14-4-3-2.]

As added by P.L.1-1995, SEC.31.