060-22 Wyo. Code R. § 22-6

Current through April 27, 2019

Section 22-6 - Rentals

(a) The annual rental payments on all bentonite leases shall be:

• (i) One dollar ($1) per acre for the first through the fifth years;

• (ii) Two dollars ($2) per acre for the sixth through tenth years of the primary lease term and for any renewal year within a second ten (10) year term.

• (iii) Three dollars ($3) per acre for each year for renewals for a third ten (10) year term; and

• (iv) Four dollars ($4) per acre for each year for renewals for a fourth ten (10) year term.

(b) Failure to pay rentals on or before the lease anniversary date shall result in termination of the lease. Termination of a lease shall not relieve the lessee of any obligation incurred under the lease other than the obligation to pay rental or penalty.

(c) After initial submission of the increased annual rental required by the lease upon the discovery of bentonite in paying quantities, lessees are exempt from submission of subsequent annual creditable lease annual rentals for so long as annual royalties paid meet or exceed the required annual rental amount. The annual rental shall be held for a credit on annual royalty in any year the annual royalty does not equal the required annual rental (minimum royalty) amount. Any credit amount used in making up the difference in royalty paid and the minimum lease royalty due must be paid within thirty (30) days following the next lease anniversary date to continue the lease. The Office shall notify lessees of any minimum royalty amount due after the lease anniversary for which a shortfall occurs.

060-22 Wyo. Code R. § 22-6