2015 Arizona Revised Statutes
Title 27 - Minerals, Oil and Gas
§ 27-252 Terms of mineral exploration permit; definition

27-252. Terms of mineral exploration permit; definition

A. Every mineral exploration permit shall be for a term of one year from the date of issuance, subject to renewals as provided in this article for an aggregate of not to exceed five years from such date, and shall give to the permittee the rights, subject to the terms and conditions, as follows:

1. During the period the permit is in force and effect, the permittee shall have the exclusive right to explore for minerals within the state land covered by the permit and to apply for and obtain a mineral lease or leases to the land.

2. The permittee shall have those surface rights necessary for exploration for mineral on the state land covered by the permit, but may remove from the land only that amount of mineral required by the permittee for sampling, assay and metallurgical testing purposes.

3. The permittee shall have the right of ingress to and egress from the land covered by the permit across other state lands but only along routes first approved by the commissioner.

4. The permittee shall be liable to and shall compensate the owner and lessee of the surface of the state land covered by the permit, or across which the permittee exercises the right of ingress and egress, for any loss to such owner and lessee from damage or destruction caused by the permittee or the permittee's agents or employees to grasses, forage, crops or improvements upon such state land.

5. The permit shall terminate automatically as of the end of any annual period from and after the date of issuance unless during such annual period the permittee expended in exploration for valuable mineral deposits on the state land covered by the permit not less than the amount per acre provided in this article or paid to the department a sum equal thereto, and prior to expiration of such annual period shall have filed with the department an application for renewal for the ensuing annual period, and an affidavit showing such expenditure, together with such other proof in support thereof as the commissioner by rule may prescribe. The amount to be so expended or paid to the department during each of the first two annual periods in which such permit may be in effect shall be not less than ten dollars for each acre of state land covered by the permit at the commencement of such annual period, and the amount to be so expended or paid to the department during each of the last three annual periods in which such permit may be in effect shall be not less than twenty dollars for each acre of state land covered by the permit at the commencement of such annual period. Prior to termination of any such annual period, the permittee may, by instrument in writing filed with the department, release from the permit the acreage covered thereby and contained within one or more rectangular subdivisions of twenty acres, more or less, or lots, according to the lines of the public land surveys.

6. When a permittee has an interest in one or more contiguous properties for which he or she holds a mineral exploration permit, such permittee may group such permits and expend the sum required by this article under a common plan of development on one or more of the properties for the benefit of all if the total area of such contiguous property does not exceed three miles on a side.

7. Upon termination of the mineral exploration permit, other than by issuance of a mineral lease, the permittee shall submit to the department the following information, which shall not include any chemical analysis or other identification of minerals, concerning any drill holes or wells drilled on state land covered by the permit:

(a) Total depth.

(b) Lithologies and depths of lithologic boundaries encountered in the hole.

(c) Logs of surveys made of the hole including gamma ray, resistivity, caliper and deviation surveys.

8. Drill hole information shall be confidential for one year after termination of the permit, and such period of confidentiality shall be extended for an additional year upon the request of the permittee.

9. Any expenditures in exploration for valuable mineral deposits made in excess of the requirements of this article during any annual period of the permit may be credited against expenditure requirements of successive annual periods of the permit.

10. In lieu of making expenditures in exploration, the permittee may elect to make a money payment of the amounts required for expenditures in exploration for valuable mineral deposits to the department.

B. Upon any partial or total relinquishment, or the cancellation or expiration of the permit other than by issuance of a mineral lease, the permittee shall fill any holes, ditches or other excavations, as may be required by the commissioner, and, as far as reasonably possible, reclaim the surface to its former condition.

C. As used in this article, " exploration" means activity conducted upon the state land covered by an exploration permit to determine the existence or nonexistence of a valuable mineral deposit, including but not limited to geological, geochemical or geophysical surveys conducted by qualified experts, and drilling, sampling and excavation, together with the costs of assay and metallurgical testing of samples from such land.