2006 Code of Virginia § 53.1-31 - Sale or lease of gas, oil or minerals

53.1-31. Sale or lease of gas, oil or minerals.

The Director, with the approval of the Board, is empowered to make andexecute contracts, easements and leases in the name of the Commonwealth forthe removal or mining of gas, oil or any valuable minerals that may be foundin any real estate, title of which is vested in the Board, whenever itappears to the Board that it will be in the best interest of the Commonwealthto make such disposition of such gas, oil or minerals. Before a contract,easement or lease is made, the same shall be approved by the Governor, andany contract, easement or lease shall be approved as to form by the AttorneyGeneral.

Bids therefor shall be received after notice by publication once a week forfour successive weeks in at least two newspapers of general circulation. TheDirector shall have the right to reject any or all bids and to readvertisefor bids. The accepted bidder shall give bond with good and sufficient suretyto the satisfaction of the Director and in such amount as he may fix for thefaithful performance of all the conditions and covenants of such contract,easement or lease.

Each such contract, easement or lease may be for a period not exceeding fiveyears, may include the right to renew the same for an additional period notexceeding five years each and shall specify the rent royalties and otherterms deemed expedient and proper. Such contracts, easements and leases may,in addition to any other rights, authorize the grantees and lessees toprospect for and take from the real estate oil, gas and such other mineralsas are therein specified. No such contract, easement or lease shall in anyway affect or interfere with the orderly operation of any state correctionalfacility. All rents or royalties collected from such contracts, easements orleases shall be paid into the state treasury to the credit of the generalfund.

(Code 1950, 53-19.38:1; 1978, c. 474; 1982, c. 636; 1984, c. 734; 1989, c.733.)