MS SB2246

Revises leasing procedures for sixteenth section school lands to allow exploration via bore hole for oil, gas, carbon dioxide, and other gaseous or liquid substances.

Increases minimum royalty rates on oil and gas from one-eighth (1/8) to three-sixteenths (3/16) of production and establishes minimum bonus of $1.00 per acre and paid-up delay rental bonus of $1.00 per acre per annum.

Separates leasing authority into three categories: subsurface exploration via bore hole (oil, gas, liquids); surface mining for metals and ores; and coal mining, each with distinct primary terms up to 5-20 years depending on type.

Requires notice of lease offerings be published for at least three weeks in county newspapers and allows additional publication in trade publications, online sites, or other media to encourage competitive bidding; restricts lease decisions to regular board meetings only.

Establishes $1.00 per acre minimum bonus for surface mining leases (sand, gravel, clay, metals) and reinforces restrictions on clay removal within municipalities and near occupied dwellings without surface leaseholder consent.

Takes effect July 1, 2025.