5-7-61. Assignment of lease.
All leases issued under the provisions of this chapter are assignable in whole or in part. The assignment shall be executed and acknowledged in the manner prescribed for conveyance in this state and shall be filed in the office of the commissioner. Any assignment is subject to the consent of the commissioner who may not withhold his consent unreasonably. The approval of the commissioner shall be noted upon the assignment. The commissioner shall prescribe by rule promulgated pursuant to chapter 1-26 the form to be used for such assignments and shall fix a reasonable fee for the filing, recording and approval of the assignment. Upon approval by the commissioner of an assignment, the assignee is the successor to all of the rights and privileges of the assignor with respect to such tracts and shall be held to have assumed all of the duties and obligations of the assignor to the state as to such tracts. However, the record owner of any mineral lease may enter into any contract for the development of the leasehold premises or any portion thereof, or may create overriding royalties or obligations payable out of production, or enter into any other agreements with respect to the development of the leasehold premises or disposition of the production therefrom, and it is not necessary for any such contracts, agreements or other instruments to be approved by the commissioner of school and public lands. Nothing in this section relieves the record title owner of such lease from complying with any of the terms or provisions thereof. In any controversy respecting any such contracts, agreements or other instruments entered into by such lessee with other persons, neither the State of South Dakota nor the commissioner of school and public lands is a necessary party. All such contracts and other instruments shall be filed in the office of the commissioner of school and public lands and recorded in the office of the register of deeds of the county where the lands are situated, and the filing or recording thereof shall constitute public notice of the existence and contents of the instruments so filed or recorded. The commissioner may by rule promulgated pursuant to chapter 1-26 prescribe a reasonable fee for the filing of such instruments in the office of the commissioner of school and public lands. The production of minerals upon any lands embraced in any mineral lease shall continue such lease as to all of the land embraced therein for as long thereafter as any mineral or minerals in paying quantities are being produced in accordance with the provisions thereof, regardless of any assignment of all or a portion of the lease which may have been made prior or subsequent to the production.
Source: SL 1993, ch 53, ยง17.
Structure South Dakota Codified Laws
Title 5 - Public Property, Purchases and Contracts
Chapter 07 - Minerals On School And Public Lands
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 5-7-8 - 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 5-7-21 - 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 5-7-23.1 - 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 5-7-25.1 - Geothermal resources--Additional provisions applicable to.
Section 5-7-26 - Leases assignable--Minimum tract assignable.
Section 5-7-28 - Grounds for refusal to approve assignment of lease.
Section 5-7-29 - Effect of approved assignment of lease.
Section 5-7-31 - 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 5-7-44 - 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 5-7-50 - Validity of leases prior to 1993 amendments to this chapter.
Section 5-7-51 - Relinquishment of prospecting permit.
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.