Leasing Information

Leasing Mineral Acres

Nominations must be accompanied by the First Year’s Rental --$1.00 per acre -- and a Minimum Bonus --$2.00 per acre in area "B" and $.50 per acre in area "A"-- Bidding at the mineral auction will be based on the Bonus Amount.
If the applicant is the successful bidder, monies received will be credited to the total amount owed for acres leased at auction.
If the applicant is unsuccessful, the monies received will be refunded after the auction.

Leases are to be for a term of five years unless held by production.
Leases shall be issued to include units of 640 acre areas, more or less. Lesser-sized areas will be leased only when there are no other state lease areas contiguous to or cornering said areas.
The annual rental is one dollar ($1.00) per acre per annum on a drill or pay basis due and payable on or before the anniversary date of the lease. "Rental Due" notices are not mailed out.
The royalty rate upon production will be one-eighth (1/8) the production amount.
Leases are to be executed in conformity with SDCL 5-7 and applicable sections there under an the rules and regulations promulgated by the Commissioner of School and Public Lands.

The Commissioner of School and Public Lands must approve the assignment.
There is a $10.00 filing fee per assignment.
Blanket Assignments are possible; however the $10.00 fee per lease still applies.
Assignment fees must be accompanied by the Mineral Lease Assignment Forms.