Section 85-04-03-03 - Rent credit, cost-share, and depreciation1. Rent credits, cost-share, and depreciation of project costs may be authorized at the sole discretion of the commissioner.2. Rent credits or cost-share may not exceed the approved maximum project cost as determined by the commissioner or the actual project cost, less reimbursements from nondepartment sources, whichever is lower.3. The commissioner may depreciate project costs less reimbursements to the lessee from nondepartment sources and rent credits or cost-share from the department for a period not to exceed ten years.4. Any unexpired depreciation amount must be available from the department before the surface land lease auction and must be announced at the surface land lease auction. If the former lessee is not the successful bidder at auction, the new lessee is required to compensate the former lessee for the undepreciated amount and the department shall continue to depreciate through the original depreciation term. The commissioner may cancel any undepreciated cost of constructing a permanent improvement if the lessee fails to offer the minimum bid for the land and the land is not leased at the next auction at which the land is offered, or if the lessee fails to comply with the conditions of the surface land lease. 5. No rent credits, cost-share, or depreciation for livestock water developments are allowed on surface land leased premises that receive an up-front livestock water deduction in determining the minimum bid for public auction.N.D. Admin Code 85-04-03-03
Adopted by Administrative Rules Supplement 375, January 2020, effective 1/1/2020.General Authority: NDCC 28-32-02
Law Implemented: NDCC 15-04-24, 15-08-26