HAR §13-183-24. Size of leaseable tract

Unless otherwise approved by the board a geothermal mining lease shall not embrace an area of more than 5,000 acres of contiguous land. No lease shall grant and include an area of more than 2,560 acres of contiguous land if that area's longest dimension is six times greater than its narrowest dimension. A geothermal mining lease shall embrace an area of not less than 100 acres, unless the board, at its discretion, deems otherwise. [Eff. JUN 22 1981] (Auth: HRS §182-14) (Imp: HRS §182-8) §13-183-25 Transfer of mining leases; overriding royalty interests. (a) Any transfer of a mining lease, which includes the assignment or sublease thereof, shall be subject to the approval of the board. No transfer of a mining lease to a minor shall be approved except to a permittee's heir or devisee. All applications for approval of transfers shall be accompanied by a non-refundable fee of $100 for each assignment. (b) Upon approval of the board a mining lease may be transferred in whole or in part, to a transferee who shall have the same qualifications as any bidder for a mining lease. The transferee shall be bound by the terms of the lease to the same extent as if the transferee were the original lessee. The board may release the transferor from any liabilities or duties under the mining lease as to the portion thereof transferred except for any liability or duty which arose prior to the approval of the transfer by the board and which remains unsatisfied or unperformed. (c) No transfer shall be effective until written approval is given. (d) A lease may be transferred as to all or part of the acreage included therein to any person qualified to hold a state lease, provided that neither the transferred nor the retained 12 acreage created by the transfer shall contain less than one hundred acres unless the board at its discretion approves otherwise. No undivided interest in a lease of less than ten percent shall be created by any voluntary transfer. (e) The transferor and its surety shall continue to be responsible for performance of any and all obligations under the lease unless released by the board. After the approval of any transfer, the transferee and surety shall be bound by the terms of the lease to the same extent as if the transferee were the original lessee, any conditions in the transfer to the contrary notwithstanding. (f) Where a transfer does not convey a separate interest in the record title to the lease, the transferee, if the transfer so provides, may become a joint principal on the bond with the transferor. The application shall also be accompanied by a consent of the surety to remain bound under the bond of record, if the bond, by its terms, does not contain the consent. If a party to the transfer has previously furnished a statewide bond, no additional showing by the party is necessary. (g) Overriding royalty interests in geothermal leases constitute accountable acreage holdings under these rules and shall be based on the percentage of overriding royalty multiplied by the acreage involved. If an overriding royalty interest is created which is not shown in the instrument of transfer, a statement shall be filed with the chairperson describing the interest. Any transfer shall be accompanied by a notarized statement that the transferee is a person as defined in these rules and that their interests in geothermal leases do not exceed any acreage limitations established. All transfers of overriding royalty interests without a working interest and otherwise not contemplated by §13-183-25 shall be filed for record in the office of the department in Honolulu within ninety days from the date of execution. The interests do not require approval. [Eff. JUN 22 1981] (Auth: HRS §182-14) (Imp: HRS §182-11)