Minerals Leasing Program
The Minerals Leasing Program is administered by the State Board of Land Commissioners (Land Board) through the Idaho Department of Lands (IDL).
The Land Board has statutory authority to administer the leasing of minerals on approximately three million acres of land, as well as the beds of navigable waters which were granted to the state in trust at statehood in 1890.
This mineral ownership does not include lands held by the Idaho Departments of Fish and Game, Parks and Recreation, Transportation or other state agencies. If other state agencies allow their lands to be leased for minerals, IDL will issue and administer the leases.
The State leases minerals to generate revenue for the owning endowment fund, such as Public Schools, or for the general fund when public trust lands are involved. Leases are issued for metals and other mineral commodities, oil and gas and geothermal resources on both land and navigable waters.
Purpose
The State leases minerals to generate revenue for the owning endowment fund, such as Public Schools, or for the general fund when public trust lands are involved. Leases are issued for metals and other mineral commodities, oil and gas and geothermal resources on both land and navigable waters.
Any individual, company or governmental agency that desires to mine minerals owned by the State must obtain a mineral lease from IDL.
Application forms are available from IDL. IDL also maintains a central land records system at the Director’s office in Boise with up-to-date information on lands that are open for mineral leasing.
Conditions
>> TERMS: All mineral leases are issued for a maximum term of ten (10) years with the right of renewal if the lease is being developed or in production.
>>SIZE: The maximum lease size is 640 acres or one section.
>> RENTAL: Rental is paid annually with the rental amount based on the acreage under lease.
>> ROYALTY: Royalty is paid on all minerals mined and removed from the lease. Royalty rates vary by commodity. Rental can be used as a credit against production royalty during a given lease year except on oil and gas and geothermal leases.
Leaseable Commodities
Oil and Gas
>> More on the Oil and Gas Leasing web page
Geothermal
Geothermal leases are available through over-the-counter filing of applications on a first come, first served basis. If two or more applications are received at the same time on the same day, it is considered a simultaneous filing which will be resolved by competitive auction.
Annual rental is one dollar per acre per year for the first through the fifth year, two dollars per acre per year for the sixth through the tenth year and three dollars per acre per year thereafter if the lease is extended.
There is a 10 percent royalty assessed on the amount or value of the geothermal resource or on any form of heat or energy derived from the production of geothermal resources.
A $2,000 bond is required to hold each lease. This bond must be increased to $10,000 prior to drilling a geothermal well 1000 feet or deeper. Additional bonding is required under a drilling permit issued by the Idaho Department of Water Resources.
Other Minerals
This category includes metals, gemstones, phosphate, coal, uranium and other fissionable minerals, sand, gravel, rock and clay, among others.
Mineral leases for these commodities are available through over-the-counter filing on a first-come first-served basis. Applications filed by two or more individuals or companies for the same commodity on the same tract of land are considered simultaneous filings and are resolved by competitive auction.
The annual rental for mineral leases is one dollar per acre per year with a minimum of $160. Phosphate leases are assessed a $3.00 per acre minimum royalty. Some mineral leases have prepaid royalty requirements that vary with the commodity leased. Minimum or prepaid royalties are paid with the annual rental in advance.
A $5,000 bond is required to hold a mineral lease, except for phosphate leases, which require a $2,000 bond. Bonds on lands where the state owns the mineral rights but not the surface rights are set at $2,000 if the surface owner is the lessee, otherwise they are $5,000. Additional bonding is required on producing leases in accordance with either the Idaho Surface Mining Act or the Idaho Dredge and Placer Mining Protection Act.
Beds of Navigable Rivers
The Land Board has statutory authority to lease the beds of navigable waters for various minerals. Applications for riverbed leases are reviewed on a case by case basis.
Each application is advertised in a newspaper legal notice in the county or counties where the riverbed under application is located. The Land Board may order a public hearing to receive oral and written testimony if requested by 10 individuals whose lawful right to use the water applied for may be injured.
Exploration Locations
Most state endowment lands and navigable waterways are open to exploration locations. Each location is limited to 20 acres in size and has a two-year term upon payment of a $100 fee for land locations and a $250 fee for riverbed locations.
One hundred dollars worth of work must be done on each location annually. Exploration is the only mining activity that is allowed. The locator must take out a lease after the two-year term has expired if he wishes to continue working the site.
