Construction aggregate lease term.

85-04-02-02. Construction aggregate lease term. 1. A construction aggregate lease term may not exceed five years. 2. If the lessee is a state agency or a political subdivision and the: a. Lease term is one year or less, the royalty rate must be a fixed amount based on fair market value; b. Lease term is greater than one year, the royalty rate must be based on fair market value. The department may include an annual adjustment based on the current fair market value. 3. If the lessee is a private entity: a. For leases with a term of one year or less: (1) The royalty rate must be a fixed amount based on fair market value; and (2) The lease must be for less than five thousand cubic yards [3822.77 cubic meters] of construction aggregate. b. For leases with a term greater than one year: (1) The lease shall be offered at public auction; and (2) The royalty rate must be based on fair market value. The department may include an annual adjustment based on the current fair market value. 4. If construction aggregate is requested for an emergency, the term of the construction aggregate lease may not exceed one year. 5. A construction aggregate lease is limited to a maximum of one hundred sixty contiguous acres [64.75 contiguous hectares] of like net construction aggregate interest. History: Effective January 1, 2020; amended effective April 1, 2026. General Authority: NDCC 15-01-02, 15-05-18 Law Implemented: NDCC 15-05-18