MS SB2149

Amends procedures for leasing sixteenth section school lands for exploration and extraction of oil, gas, coal, and other mineral substances, with separate provisions for bore hole extraction versus surface mining.

Increases minimum royalty rates: oil and gas royalties increase from one-eighth (1/8) to three-sixteenths (3/16) of production or market value; coal royalty remains at one-twentieth (1/20) of market value per ton.

Requires minimum bonus of $1.00 per acre and paid-up delay rental bonus of $1.00 per acre per annum during primary term for all leases.

Mandates public notice published for at least three (3) weeks in county newspapers, with sealed competitive bidding through superintendent of education; leases must be awarded to highest bidder and cannot be let at special board meetings.

Establishes separate subsections for bore hole mineral leases (oil, gas, other liquid/gaseous substances) with five-year primary terms, surface mining leases (metals, sand, gravel, clay) with five-year terms, and coal leases with twenty-year primary terms plus optional twenty-year renewal term.

Prohibits clay extraction within incorporated municipality boundaries or within 150 feet of occupied dwelling houses without written consent of surface leaseholder.

Takes effect July 1, 2024.