| (a) When applicable, a veteran may execute mineral leases covering
the land being purchased through the board. The following conditions must
be met:
(1) No oil and gas lease will be accepted unless the board's
standard form is used. Copies of this form will be furnished upon request.
(2) The lease must be approved by the chairman of the board.
(3) Each lease must state the actual and true consideration
to be paid.
(4) At least 1/2 of all proceeds, including bonus, rentals
and royalties received under the terms of such leases, shall be paid to the
board and applied toward the principal balance of the account. If an account
is delinquent, the board will require that additional payments of bonus,
rental and royalty be paid until the delinquency is satisfied. Payments made
in this manner will not relieve the veteran of his obligation to make the
regular installment payments.
(5) The lease term may not exceed 10 years, except when a lease
is held in force by production. However, coal and lignite leases may be executed,
with board approval, for terms up to 40 years.
(6) No lease may contain a provision for an option, renewal
or release for any term, nor may such provision be provided for by separate
instrument.
(b) Each executed mineral lease must be submitted to the board
in duplicate. The approved original will be returned for recording with the
county clerk. One half of the bonus payment should accompany the lease, along
with a lease review fee. If the account is delinquent, all of the bonus payment,
or as much as may be required, should be sent to the board to satisfy the
delinquency.
(c) At least five acres around and including improvements on
a tract must be excluded from all leases executed for iron ore, gravel, coal,
or other substances, the mining or development of which tends to destroy the
surface value of the land.
(d) The veteran may lease the property for agricultural, hunting
or grazing purposes or for other surface uses without obtaining the approval
of the board. However, if the tract is forfeited the rights of the lessee
are then terminated.
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