§ 22-5-805 - Leases and permits -- Requirements -- Application -- Terms. - Arkansas Statutes

22-5-805. Leases and permits -- Requirements -- Application -- Terms.

(a) No person, firm, company, corporation, or association shall take any sand, gravel, oil, natural gas, casinghead gas, coal or other minerals, or sever any timber or logs from the beds or bars of navigable rivers and lakes in this state or from any other lands or interest in lands held in the name of the State of Arkansas or any agency, department, or institution of the state, excluding tax-forfeited lands and minerals, unless that person has first procured a lease or permit to do so from the Commissioner of State Lands.

(b) (1) Any person, firm, company, corporation, or association desiring to take sand, gravel, oil, natural gas, casinghead gas, coal or other minerals, or to sever any timber or logs from state-owned lands shall make application for a lease or permit to do so to the Commissioner of State Lands.

(2) Each application shall be on forms prescribed by the Commissioner of State Lands and shall contain such information as shall be prescribed by the Commissioner of State Lands regarding the applicant and the business of the applicant, the sand, gravel, minerals, or timber or logs proposed to be removed from the lands under the lease or permit, and any other information as the Commissioner of State Lands shall deem necessary and appropriate to properly protect the interest of the state and to assure that the leaseholder will in good faith carry out all his or her responsibilities under the lease or permit.

(c) (1) Every lease or permit issued under the provisions of this section and 22-5-801 -- 22-5-804 and 22-5-806 -- 22-5-813 shall define the limit of the area from which the lessee or permittee shall be permitted the exclusive right to take the sand, gravel, minerals, or timber or logs designated in the lease or permit.

(2) Each lease or permit issued by the Commissioner of State Lands under the provisions of this section and 22-5-801 -- 22-5-804 and 22-5-806 -- 22-5-813 shall be for a specific term as may be determined by the Commissioner of State Lands; shall require that reasonable commercial production of the sand, gravel, mineral, or timber or logs covered by the lease or permit shall commence within a specified period of time as determined by the Commissioner of State Lands; and shall provide that the lease or permit shall automatically terminate unless commercial production is commenced within the time prescribed unless the time is extended by the Commissioner of State Lands upon a showing that expenses have been incurred and actual operations are in the process of completion for the commercial production of the oil, natural gas, casinghead gas, sand, gravel, coal or other minerals, or the severance of timber or logs under the lease or permit.

(d) Once reasonable commercial production is commenced under any lease or permit issued under this section and 22-5-801 -- 22-5-804 and 22-5-806 -- 22-5-813, the lease or permit shall automatically terminate if commercial production is discontinued for a period of six (6) months or such other period as may be prescribed in the lease.