South Dakota Codified Laws
Chapter 07 - Minerals On School And Public Lands
Section 5-7-23 - Term of oil and gas leases--Resumption of drilling operations after cessation of production.

5-7-23. Term of oil and gas leases--Resumption of drilling operations after cessation of production.
The term of all such oil and gas leases shall be for a period not to exceed ten years and as long thereafter as oil or gas is produced from the leased land. In no event, however, shall such leases covering lands granted to the state of South Dakota by the Enabling Act of February 22, 1889, or by later congressional act, be for terms longer than as provided in said acts as subsequently amended or to be amended. If for any reason production of oil or gas from the leased lands shall cease after the primary term the lessee shall be entitled to resume drilling operations on said land within such reasonable time as may be prescribed by the rules and regulations of the commissioner of school and public lands, and if such drilling operations shall be conducted with reasonable diligence and the production of oil and gas in paying quantities shall result therefrom, then said lease shall remain in force as long thereafter as oil or gas in paying quantities is or can be produced from the leased lands.

Source: SL 1931, ch 203, §2; SDC 1939, §15.0510; SL 1941, ch 53, §1.

Structure South Dakota Codified Laws

South Dakota Codified Laws

Title 5 - Public Property, Purchases and Contracts

Chapter 07 - Minerals On School And Public Lands

Section 5-7-1 - Commissioner of school and public lands to conduct leasing of state-owned mineral interests.

Section 5-7-2 - Advertising and auction of mineral leases--Exemptions.

Section 5-7-3 - Lands subject to lease.

Section 5-7-4 - Right of entry to prospect for and remove minerals.

Section 5-7-4.1 - Lease required to explore for minerals--Civil penalty--Publication of data collected--Judicial remedies for enforcement.

Section 5-7-6 - Oil, gas, and geothermal resources not subject to provisions--Exemption of lands sold prior to reservation.

Section 5-7-8 - Priority to receive permit determined by application date.

Section 5-7-16 - Right of lease holder to enter sold or leased lands.

Section 5-7-17.1 - Disposition of payments for damages.

Section 5-7-18 - Oil and gas leases--Casing-head gas included.

Section 5-7-19 - Oil, gas, and geothermal exploration, development and production leases authorized.

Section 5-7-20 - Application for oil, gas, or geothermal lease--Tender of annual rental and bonus--Form and contents of application.

Section 5-7-21 - Advertising of oil and gas or geothermal leases--Conduct of auction.

Section 5-7-22 - Withholding of tracts from oil, gas, other mineral or geothermal resources leasing.

Section 5-7-23 - Term of oil and gas leases--Resumption of drilling operations after cessation of production.

Section 5-7-23.1 - Term of geothermal leases.

Section 5-7-24 - Royalty provisions in oil and gas leases--Annual rental.

Section 5-7-24.1 - Royalty provisions in geothermal leases--Renegotiation--Annual rental.

Section 5-7-25 - Customary provisions inserted in leases for protection of state and surface owners and lessees.

Section 5-7-25.1 - Geothermal resources--Additional provisions applicable to.

Section 5-7-26 - Leases assignable--Minimum tract assignable.

Section 5-7-27 - Execution and acknowledgment of assignments of leases--Filing and recordation--Form and fees.

Section 5-7-28 - Grounds for refusal to approve assignment of lease.

Section 5-7-29 - Effect of approved assignment of lease.

Section 5-7-30 - Grounds for cancellation of lease--Notice of intent to cancel and opportunity to remedy default.

Section 5-7-31 - Correction of mistaken land descriptions in leases.

Section 5-7-32 - Pooling agreements on behalf of state authorized.

Section 5-7-33 - Deposit of collections from leases in treasury.

Section 5-7-34 - Apportionment of receipts from leasing of school, indemnity and endowment lands.

Section 5-7-36 - Records of mineral interests and leases maintained by commissioner.

Section 5-7-37 - Rules and regulations governing leasing--Promulgation.

Section 5-7-38 - Water law provisions applicable to certain geothermal leases.

Section 5-7-39 - Validation of oil and gas leases prior to July 1, 1981.

Section 5-7-40 - Limitation of actions to contest validity of oil and gas leases.

Section 5-7-41 - Assignment of certain state-owned minerals to oil and gas royalty increment status--Required findings.

Section 5-7-42 - Amount of royalty for leases of lands assigned oil and gas royalty increment status.

Section 5-7-43 - Royalty increments for commingled lands assigned oil and gas royalty increment status.

Section 5-7-44 - Leases offered only during term of royalty increment status.

Section 5-7-45 - Commissioner authorized to issue leases for prospecting, exploration and mining.

Section 5-7-46 - Penalties for fraud.

Section 5-7-47 - Inspection of records.

Section 5-7-48 - Preferential right of lessee to renew or purchase leased lands.

Section 5-7-49 - Definitions.

Section 5-7-50 - Validity of leases prior to 1993 amendments to this chapter.

Section 5-7-51 - Relinquishment of prospecting permit.

Section 5-7-52 - Term of permit--Primary and secondary terms--Tertiary and quaternary terms--Royalties.

Section 5-7-53 - Conditions warranting suspension of license--Effective date--Term of suspension.

Section 5-7-54 - Annual rental--Minimum.

Section 5-7-55 - Payment of royalty--Amount.

Section 5-7-56 - Marketing minerals.

Section 5-7-57 - Bond required--Amount.

Section 5-7-58 - Records furnished within reasonable bounds--Confidentiality of records.

Section 5-7-59 - Relinquishing lease to state.

Section 5-7-60 - Cancellation of lease by commissioner--Notice required.

Section 5-7-61 - Assignment of lease.

Section 5-7-62 - Removal of improvements and equipment upon termination--Time limit.

Section 5-7-63 - Authority to withhold land from leasing--Rejection of application--Competitive bidding.

Section 5-7-64 - Transfer of State Cement Plant Commission mineral estates to commissioner of school and public lands.

Section 5-7-65 - Limited surface and subsurface easements for access to oil, gas, minerals, and geothermal resources.