- 1. Before commencement of any operations on a state mineral lease, the lessee or designated operator shall post with the Division a bond in the form and amount as may be determined by the Division to assure compliance with all terms and conditions of the lease.
- 2. The bond required for an oil and gas, geothermal, or minerals exploration or extraction project may be deemed by the Division to be sufficient if the bond is accepted and held by the appropriate agency or agencies with statutory authority over the operator developing the resource and a copy of the bond is filed with the Division.
- 3. Any lessee or designated operator forfeiting a bond is denied approval of any future exploration or mining on state lands, except by compensating the state for previous defaults and posting the full bond amount estimated for reclamation or lease performance and reclamation on subsequent operations.
- 4. Bonds may be increased at any time pursuant to the authority of the relevant agency or agencies with statutory authority that holds the bonds.
KEY: royalties, salt, primary term, administrative procedures
Date of Last Change: January 7, 2026
Notice of Continuation: March 2, 2022
Authorizing, and Implemented or Interpreted Law: 65A-6-2; 65A-6-4(3)