CODE OF VIRGINIA

SALE OR LEASE OF GAS, OIL OR MINERALS (§ 53.1-31)

The Director, with the approval of the Board, is empowered to make and execute
contracts, easements and leases in the name of the Commonwealth for the removal
or mining of gas, oil or any valuable minerals that may be found in any real
estate, title of which is vested in the Board, whenever it appears to the Board
that it will be in the best interest of the Commonwealth to 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, and any contract, easement
or lease shall be approved as to form by the Attorney General.Bids therefor
shall be received after notice by publication once a week for four successive
weeks in at least two newspapers of general circulation. The Director shall have
the right to reject any or all bids and to readvertise for bids. The accepted
bidder shall give bond with good and sufficient surety to the satisfaction of
the Director and in such amount as he may fix for the faithful 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 five years, may
include the right to renew the same for an additional period not exceeding five
years each and shall specify the rent royalties and other terms deemed expedient
and proper. Such contracts, easements and leases may, in addition to any other
rights, authorize the grantees and lessees to prospect for and take from the
real estate oil, gas and such other minerals as are therein specified. No such
contract, easement or lease shall in any way affect or interfere with the
orderly operation of any state correctional facility. All rents or royalties
collected from such contracts, easements or leases shall be paid into the state
treasury to the credit of the general fund.

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