South Dakota Codified Laws 5-7-41. Assignment of certain state-owned minerals to oil and gas royalty increment status–Required findings
The commissioner of school and public lands may, upon his own motion or upon petition by an interested person assign, specific state–owned minerals to oil and gas royalty increment status. The assignment shall be made pursuant to the contested case requirements of chapter 1-26 and shall include a legal description of the state mineral lands assigned the status and a specific term, under ten years, during which the lands may be leased as on an oil and gas royalty increment status. The assignment may be made only upon a finding by the commissioner that:
(1) There has been no oil or gas production on the state–owned mineral land proposed to be assigned royalty increment status, and on private or federal minerals within the immediate area;
Terms Used In South Dakota Codified Laws 5-7-41
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Person: includes natural persons, partnerships, associations, cooperative corporations, limited liability companies, and corporations. See South Dakota Codified Laws 2-14-2
(2) There has been no oil or gas lease issued on the state–owned mineral land proposed to be assigned royalty increment status within the last ten years;
(3) There has been no oil or gas prospecting permit issued for the state–owned mineral land proposed to be assigned royalty increment status within the last five years;
(4) There has been no exploration permit for oil or gas issued by the Department of Agriculture and Natural Resources in the immediate area of the state–owned mineral land proposed to be assigned royalty increment status within the last five years;
(5) The assignment of oil and gas royalty increment status to the state–owned minerals may encourage the development of oil or gas reserves on those lands; and
(6) The assignment will not have a substantial impact on privately owned minerals within the immediate area surrounding the state–owned mineral land proposed to be assigned royalty increment status.
Source: SL 1992, ch 43, § 1; SL 2021, ch 1 (Ex. Ord. 21-3), § 14, eff. Apr. 19, 2021.