77-6-208. Assignment of leases -- subleasing -- loss of preference right. - Montana Statutes

     77-6-208. Assignment of leases -- subleasing -- loss of preference right. (1) Leases to state lands may be assigned on blanks prescribed by the department, but an assignment is not binding on the state unless the assignment is filed with the department and approved by it and payment made of the assignment fee under 77-1-302.
     (2) Preference must always be given to the applicant who wants the land for the applicant's own individual use, so that the full advantage coming from the leasing and use of the lands may reach those who actually till the soil and so that they are not compelled to pay a higher rental than that due the state.
     (3) (a) If a lessee, other than a holder of a commercial lease, subleases state lands on terms less advantageous to the sublessee than the terms given by the state, the department shall cancel the lease, subject to the appeal procedure provided in 77-6-211.
     (b) If a lessee subleases state lands without filing a copy of the sublease with the department and without receiving the department's approval, the department may cancel the lease, subject to the appeal procedure provided in 77-6-211.
     (c) Upon approval by the department, a commercial leaseholder may sublease state land on terms less advantageous to the sublessee than the terms given to the lessee by the state. However, the department may adjust the lease rate to require that the lessee pay the state a portion of what the sublessee pays to the lessee.
     (4) The subleasing of state land may result in loss of the preference right to renew the lease as provided in 77-6-212.
     (5) An assignment or series of assignments may not be made to avoid the loss of the preference right under 77-6-212.

     History: En. Sec. 32, Ch. 60, L. 1927; re-en. Sec. 1805.32, R.C.M. 1935; amd. Sec. 1, Ch. 14, L. 1937; amd. Sec. 12, Ch. 207, L. 1945; amd. Sec. 18, Ch. 121, L. 1965; amd. Sec. 3, Ch. 22, L. 1971; amd. Sec. 4, Ch. 27, L. 1971; amd. Sec. 21, Ch. 428, L. 1973; R.C.M. 1947, 81-419; amd. Sec. 2, Ch. 383, L. 1987; amd. Sec. 1, Ch. 96, L. 1993.