Colorado § 36-1-113 - Leases - rental - mineral resources lands.

§ 36-1-113. Leases - rental - mineral resources lands.

(1) The state board of land commissioners may lease any portion of the land of the state at a rental to be determined by it, except as provided in sections 36-1-118, 36-1-123.5, 36-1-147, and 36-1-147.5. The lessee shall pay the annual rental to the board, who shall receipt for the same in the lease. Upon receiving such annual rental, the board shall transmit the same to the state treasurer, as provided by law, and take his or her receipt therefor. If geothermal resources or mineral resources are found upon the state land, such land may be leased for the purpose of removing such resources for such length of time and conditioned upon the payment to the board of such royalty upon the product as the board may determine.

(2) All geothermal leases issued by the state board of land commissioners may be awarded as the result of negotiation or competitive bidding, but no such lease shall be executed until after at least thirty days' public notice that the award of a lease is contemplated.

(3) (a) (I) As used in this subsection (3), "logical mining area" means an area of land in which metallic and industrial minerals, construction materials, or coal resources can be developed in an efficient, economical, and orderly manner as an integrated operation with due regard to conservation of such resources. A logical mining area may consist of state lands including one or more state surface or mineral leases, or both such types of leases, and may include lands owned by other persons or entities.

(II) As used in this subsection (3), "oil and gas unit" means a federal exploratory unit pursuant to unit plan regulations under 43 CFR 3160, unit operations under section 34-60-118, C.R.S., or drilling and spacing units and pooling of interests under section 34-60-116, C.R.S. An oil and gas unit may consist of state lands including one or more state surface or mineral leases, or both such types of leases, and may include lands owned by other persons or entities.

(b) With respect to all surface and mineral lands, or both, included in whole or in part in a logical mining area for those operations permitted under article 32, 32.5, or 33 of title 34, C.R.S., as of July 1, 1997, or, in an oil and gas unit established under applicable federal or state law as of July 1, 1997, nothing in this article shall preclude the state board of land commissioners from issuing a new lease, renewing an existing lease, or issuing a lease extension consistent with article IX of the state constitution to facilitate the complete and orderly development and reclamation of such mining operations or of such oil and gas operations.

(c) (I) When the state board of land commissioners considers whether a lease for such land included in a logical mining area or in an oil and gas unit established under applicable federal or state law as of July 1, 1997, should be issued, renewed, or extended to accomplish the orderly development and reclamation of a logical mining area or to conduct oil and gas operations, the state board of land commissioners shall specifically consider in making its findings:

(A) Whether the benefit to the trust, including the current or proposed income produced from the mining or oil and gas operation, is outweighed by current or proposed uses other than the mining or oil and gas operation; and

(B) Whether the mining or oil and gas operation is incompatible with current or proposed uses.

(II) Nothing in this section shall affect the obligation of any lessee from complying with any federal, state, or local law, rule, code, or regulation.

Source: L. 19: p. 642, § 8. C.L. § 1160. CSA: C. 134, § 59. CRS 53: § 112-3-13. C.R.S. 1963: § 112-3-13. L. 74: Entire section amended, p. 313, § 2, effective May 17. L. 75: Entire section amended, p. 222, § 75, effective July 16. L. 97: (1) amended and (3) added, p. 839, § 11, effective May 21. L. 2007: (1) amended, p. 620, § 1, effective August 3. L. 2009: (1) amended, (HB 09-1317), ch. 381, p. 2073, § 3, effective June 2.

ANNOTATION

The matter of the lease of coal lands is wholly within the discretion of the board with respect to the terms and conditions on which the lease may be granted. Colo. Fuel & Iron Co. v. Adams, 14 Colo. App. 84, 60 P. 367 (1899) (decided prior to earliest source of this section).

The general assembly may not limit commissioners' power to lease certain land. Where the land included within oil and gas leases are lands "granted to the state by the general government", they are lands over which the land commissioners have exclusive powers of disposal. Therefore, it does not lie within the power of the general assembly to place limitation or qualification upon the exercise of that power. Sunray Mid-Continent Oil Co. v. State, 149 Colo. 159, 368 P.2d 563 (1963).

The leasing powers of the board under this section are subject to the implied limitation that it cannot lease state land already properly in the physical possession of others under the mining laws. Dallas v. Fitzsimmons, 137 Colo. 196, 323 P.2d 274 (1958).

Where mineral lode locations are made on state lands in compliance with the state laws relating to discovery, posting, notice, and other applicable provisions, such claims take priority over a subsequent mineral lease issued by a duly authorized state leasing agency. Dallas v. Fitzsimmons, 137 Colo. 196, 323 P.2d 274 (1958).