Arizona Administrative Code
Title 12 - NATURAL RESOURCES
Chapter 5 - STATE LAND DEPARTMENT
Article 21 - OIL AND GAS LEASES
Section R12-5-2115 - Competitive Lease; Award of Lease
Current through Register Vol. 30, No. 38, September 20, 2024
When state lands are located within a known geological structure of a producing oil or gas field, the oil and gas interest in the land shall be leased only by sealed bid.
1. Within 30 days of opening of sealed bids, the Department, subject to its right to reject a bid, shall award the lease to the highest qualified bidder. The Department shall give notice of its decision, by certified mail, to the applicants.
2. The Department shall send a lease offer to the successful bidder. The successful bidder shall execute the leases and pay the first year's rental, within 30 days from receipt of the lease offer.
3. If two or more tracts, where the acreage does not exceed more than two sections of land, are awarded to any bidder the tracts may, if not otherwise prohibited by law, be included in a single lease.