77-4-123. Extension of lease. If geothermal resources are not being produced from the leased premises at the expiration of the primary term of the lease but the owner of the lease is then engaged in drilling on the premises for geothermal resources, then the lease term shall be extended for so long as the drilling operations are diligently continued. If geothermal resources are recovered from any well drilled after the expiration of the primary term, the lease shall continue in force so long as geothermal resources in paying quantities are produced from the leased premises.
History: En. 81-2604 by Sec. 4, Ch. 111, L. 1974; R.C.M. 1947, 81-2604(part).
Structure Montana Code Annotated
Chapter 4. Renewable Resources
77-4-101. Geothermal leases authorized
77-4-104. Nature of geothermal resources
77-4-105. State retention of geothermal resources
77-4-106. Bonding requirements
77-4-107. Compensation to surface lessee
77-4-108. Water rights in connection with geothermal development
77-4-110. through 77-4-120 reserved
77-4-121. Provisions of the lease
77-4-124. Operating agreements
77-4-125. Pooling agreements and unit operations
77-4-126. Royalties and rentals
77-4-127. Disposition of royalties and other receipts