MCA Chapter 9

in effect

Miss. Code Ann. § 17-9-1 Powers of governing authorities of counties and municipalities.

Subject to the provisions of this chapter, the boards of supervisors of each county and the mayors and boards of aldermen, or mayors and councilmen, as the case may be, of each municipal corporation are hereby authorized and empowered, in their discretion, to lease in the name of the county or municipal corporation any or all lands or minerals owned by the county or by the municipality for oil, gas and mineral exploration and development, upon such terms and conditions and for such consideration as the boards of supervisors or the mayors and the boards of aldermen or the mayors and councilmen, in their discretion, shall deem proper and advisable.

Miss. Code Ann. § 17-9-3 Bonus consideration, delay drilling rentals, term, and royalties; rights of lessees.

No lease authorized by this chapter shall be made: For an original bonus consideration of less than One Dollar ($1.00) per acre, For a delay drilling rental of less than One Dollar ($1.00) per acre per annum, For a primary term of more than six years and as long thereafter as oil, gas or other mineral is being produced from the leased premises or as long thereafter as lessee shall conduct drilling, mining, producing or other operations and during the production of oil, gas, sulphur or other mineral resulting therefrom, For royalties of less than 1. On oil, one-eighth (1/8) of that produced and saved from the leased premises; 2. On gas, including casinghead gas or other gaseous substances, produced from the leased premises and sold or used off the premises or in the manufacture of gasoline or other products therefrom, the market value at the well of one-eighth (1/8) of the amount realized from such sale; 3. On sulphur mined and marketed, the royalty shall be Fifty Cents (50¢) per long ton; 4. On all other minerals mined and marketed one-tenth (1/10) either in kind or value at the well or mine at lessee’s election. Lessee shall have free use of oil, gas, coal, and water from the leased premises, except water from lessor’s wells, for all operations thereunder, and the royalty on oil, gas and coal shall be computed after deducting any so used. Where the interest to be leased by a county or municipality is less than the full and undivided fee simple estate, then the bonus consideration, delay drilling rental and royalties required by this section may be reduced in the proportion which the interest of the county or municipality bears to the whole and undivided fee. Any such oil, gas and mineral lease may provide that where the production from a well producing gas or gas with well distillate or condensate only, is not sold or used, lessee may pay as royalty an annual amount equal to the amount of the drilling delay rental, and if such payment is made, it will be considered that such well is producing for every purpose thereunder.

Miss. Code Ann. § 17-9-5 Terms permissible in mineral lease.

Any such oil, gas and mineral lease may provide that the lessee therein shall have the right and power to pool and consolidate the land covered by said lease in its entirety, or as to any stratum or strata or any portion or portions thereof, with other lands and leases in the immediate vicinity thereof, for the purpose of joint development and operation of the entire consolidated premises as a unit, in which event the lessor in such lease shall share in the royalty on oil and gas produced from said consolidated tract in such manner as the boards of supervisors of the county or the mayors and boards of aldermen or the mayors and councilmen of a municipal corporation, in their discretion, may determine. Said lease also may include such other general provisions as are customary and proper for the protection of the rights of the lessor and of the lessee of the leased premises and as are not inconsistent or in conflict with the provisions of this chapter.

Miss. Code Ann. § 17-9-7 Payment of bonus consideration, delay drilling rentals and royalties.

The bonus consideration, delay drilling rentals, and royalties accruing under any lease executed with the authority of this chapter shall be paid by the lessee to a county depository to the credit of the county or to a municipal depository to the credit of the municipal corporation, said depository to be selected and designated in the order authorizing said lease, and all of said funds so accruing shall go into the general fund of the county or municipality, as the case may be.

Miss. Code Ann. § 17-9-9 Chapter inapplicable to sixteenth section or in lieu lands.

This chapter shall not apply to sixteenth section lands or in lieu lands.