HAR §13-183-27. Surrender of mining leases

Any lessee of a mining lease, who has complied fully with all the terms, covenants, and conditions of an existing lease and provisions of these rules, may with the consent of and under the terms and conditions set by the board surrender at any time and from time to time all or any part of the mining lease or the land contained therein upon payment as consideration therefor two years' rent prorated upon the portion of the lease or land surrendered pursuant to §182-13, Hawaii Revised Statutes, unless the law provides otherwise. Upon any approved surrender, the lessee shall be relieved of all further obligations with respect to the lands so surrendered except for previous activities conducted on the land or under the lease. A mining lease may also be surrendered if, as a result of a final determination by a court of competent jurisdiction, the lessee is found to have acquired no rights in or to the minerals on reserved lands, nor the right to exploit the same, pursuant to the lease, and, in such event, the lessee shall be reimbursed for all rentals, royalties, and payments paid to the State pursuant to the lease. The lessee shall be entitled to all equipment, buildings, and plants placed on the land surrendered and the lessor may require the lessee to remove the same and restore the premises to a similar condition prior to any development or improvements, to the extent reasonably possible. [Eff. JUN 22, 1981] (Auth: HRS §182-14) (Imp: HRS §182-13) §13-183-28 Number of mining leases; undeveloped acreage limitations. (a) There shall be no limit on the number of geothermal mining leases that may be granted to a person undertaking any geothermal mining operation or production, unless 14 otherwise authorized by law. (b) No person shall, unless it is a charitable trust existing in the State of Hawaii on the effective date of these rules, take hold, own, or control at any one time, whether acquired from the board under these rules by lease or approved transfer of lease, or indirectly, a divided or undivided interest in geothermal resources in state or reserved lands in excess of 80,000 undeveloped acres. This acreage limitation may be increased by the board where, in the opinion of the board, the increase is in the best interest of the State in the promotion and development of geothermal resources. (c) In computing total holdings, ownership, or control, no person shall be charged with an interest through any association, firm or corporation unless it is the beneficial owner of ten percent or more of the stock or other instruments of ownership or control of the association, firm, or corporation. In this case and in the case of an undivided interest, the amount of acreage chargeable to the person shall be the pro-rata amount of acreage based on the percentage of stocks or interest owned. Persons owning an overriding royalty or other interest determined by or payable out of a percentage of production from a lease shall be charged with an interest. Undeveloped acreage which subsequently is unitized with the approval of the board or is actually producing geothermal resources in commercial quantities and paying production royalties shall not be included in accountable interests in determining the 80,000-acre undeveloped acreage limitation. Any and all leases creating the excess undeveloped acreage may be canceled or forfeited in their entirety by the board. A person may hold an unlimited interest in acreage which is producing geothermal resources and paying production royalties. [Eff. JUN 22 1981] (Auth: HRS §182-14) (Imp: HRS §182-8)