Montana Title 77. State Lands § 77-4-128. Permission for and disposition of improvements

(1) A geothermal lessee of state lands has the right to place upon the leased lands a reasonable amount of improvements, provided that the improvements are directly related to the purpose of the lease.

(2) Whenever another person becomes the geothermal lessee, the person shall pay the former lessee the reasonable value of the improvements at the time the new lessee takes possession of the improvements.

(3) In determining the value of these improvements, the original cost, the present condition, and the suitability of the improvements for the uses ordinarily made of geothermal resources must be considered.

(4) The former lessee may remove or dispose of the movable improvements from the land within 60 days from the expiration of the former lessee's lease except for the well casing and other equipment necessary for the preservation of any geothermal well. If not removed within 60 days, improvements become the property of the state unless the board grants additional time for the removal of the improvements. Before a lease is issued to the new lessee, the new lessee shall show that the new lessee has paid the former lessee the value of the improvements as agreed upon by them or as fixed and determined under 77-4-129, that the new lessee has offered to pay the value of the improvements as fixed and determined, or that the former lessee elects to remove the improvements.