Sec. 12. (a) A petroleum lease other than a lease provided for in section 11 of this chapter may be granted in parcels as determined by the commission.
(b) A lease granted under this section must be at a royalty of:
(1) not less than twelve and one-half percent (12 1/2%) of all petroleum produced and saved from the land covered by the lease; or
(2) the market value of the petroleum;
at the option of the commission.
(c) A lease must provide for an annual rental, payable in advance, of from one dollar ($1) to ten dollars ($10) per acre, as the commission determines. Rentals shall be credited against future royalties.
(d) A lease must be for a primary term of ten (10) years.
(e) The forms and terms of a lease must be the same as the standard commercial petroleum lease generally in use in the territory in which the oil, gas, or other petroleum products are located, with the additional terms provided in this chapter and the rules of the commission. If the conditions contained in a standard commercial lease conflict with this chapter, this chapter controls.
[Pre-1995 Recodification Citation: 14-4-3-8.]
As added by P.L.1-1995, SEC.31.
Structure Indiana Code
Title 14. Natural and Cultural Resources
Article 38. Other Petroleum Regulation
Chapter 1. Petroleum Exploration on State Property
14-38-1-1. "Commence to Drill a Well" Defined
14-38-1-3. "Petroleum" Defined
14-38-1-4. "Proven Territory" Defined
14-38-1-5. "Public Land" Defined
14-38-1-7. No Permits Issued for Proven Territory
14-38-1-8. Compensation of Landowners and State
14-38-1-9. Prosecution of Operations With Reasonable Diligence
14-38-1-10. Surrender of Permit
14-38-1-11. Permittee's Lease for Petroleum Extraction
14-38-1-12. Other Leases for Petroleum Extraction
14-38-1-14. Consideration for Leases
14-38-1-15. Cancellation of Permit or Lease
14-38-1-16. Issuance of New Permit Following Expiration or Forfeiture
14-38-1-17. Agreement for Production From Same Petroleum Field
14-38-1-18. Terms for Protection of Rights
14-38-1-20. Well Not to Be Drilled Within 330 Feet of Property Boundaries
14-38-1-21. Right-of-Way Grants
14-38-1-22. Development Considerations
14-38-1-24. Prospecting Permits or Leases