77-3-204. Royalty provisions. (1) All such leases shall be upon a royalty basis calculated upon a gross value by weight or cubic measurement as is most favorable for the particular substance being mined or extracted from the lands. The gross value shall be determined at the mine or site of operation, and the rates shall be the same that ordinarily would be charged by private owners under similar circumstances or as in the determination of the board is fair and reasonable.
(2) The board may demand a cash deposit to guarantee the payment of the royalties, a surety bond, or both a cash deposit and bond, as the board may determine.
History: En. Sec. 52, Ch. 60, L. 1927; re-en. Sec. 1805.52, R.C.M. 1935; amd. Sec. 1, Ch. 194, L. 1945; amd. Sec. 1, Ch. 147, L. 1953; amd. Sec. 1, Ch. 207, L. 1961; amd. Sec. 49, Ch. 428, L. 1973; R.C.M. 1947, 81-701(part).
Structure Montana Code Annotated
Chapter 3. Rock, Mineral, Coal, Oil, and Gas Resources
Part 2. Nonmetallic Minerals, Excluding Coal, Oil, and Gas
77-3-201. Nonmetallic mineral leases authorized
77-3-205. Report of lessee and payment of royalty
77-3-206. Disposition of royalties, fees, and penalties
77-3-207. Land leased for other purposes
77-3-208. Stone, gravel, and sand permits for public use