Or. Admin. Code § 141-014-0400

Current through Register Vol. 63, No. 12, December 1, 2024

Section 141-014-0400 - Assignment of Leases and Licenses; Subleasing

(1) Except as authorized in the lease or these rules, in no event will the lessee sublease or assign, or licensee assign any portion of the authorized area prior to receipt of written approval from the Department. Violation of this provision may be grounds for termination of the lease or license.

(2) A lessee must apply in writing on a form provided by the Department to the Department for a sublease or an assignment.

(3) Licensees may only apply to the Department for an assignment.

(4) Lessees desiring to sublease or assign a lease, or licensees desiring to assign a license in a manner not permitted outright by the lease, license or these rules must:

(a) Apply to the Department on a form provided by the Department; and

(b) Submit a non-refundable application processing fee of $750 payable to the Department of State Lands.

(5) If the application is incomplete, the Department will return the application to the applicant with a written explanation of the reason(s) for rejection.

(6) If an application is rejected by the Department for incompleteness or some other reason, the applicant may resubmit it to the Department within 120 calendar days from the date of the letter of written explanation sent by the Department with no additional application fee due.

(7) Sublessees and assignees must meet all applicable requirements set forth in these rules and the lease or license.

(8) The transfer of ownership of the lease or license caused by the death of the lessee or licensee will be considered an assignment requiring the Department's approval. A transfer of ownership to a spouse or immediate family member is an assignment that does not require the Department's prior approval.

(9) A lessee or licensee may not grant a mortgage or security interest in the lease or license without the prior written consent of the Department which shall not be unreasonably withheld. Any subsequent assignment by the creditor will require the prior written approval of the Department.

(10) The Department may request additional information on the sublessee's or assignees's financial status, or past business and management practices, or both. The Department may, at its discretion, deny the assignment request if the assignee's financial status, or past business and management practices, or both, indicate that they may not be able to fully meet the terms and conditions of a lease offered by the Department.

Or. Admin. Code § 141-014-0400

DSL 2-2008, f. & cert. ef. 10-15-08

Stat. Auth.: ORS 273.551, 274.525, 274.530, 274.550 & 274.560

Stats. Implemented: ORS 274 .525 & 274 .550