A new North Carolina law will allow bidding on mineral rights or deposits being leased, and may require some bidders to post a surety bond. House Bill 924 expands on Chapter 146-9 of the North Carolina General Statutes.
Chapter 146-9 previously allowed the Department of Administration to sell, lease or otherwise dispose of mineral rights or deposits on land acquired by the state. The land cannot be underwater. All proceeds from land sales go to the State Literary Fund.
HB 924 will allow the Department of Administration or another designated department to solicit bids on expiring mineral deposit leases. Upset bidders are those who offer to lease mineral rights for an amount exceeding the previous winning or upset bid by at least 5%. The department soliciting bids may require the upset bidder to furnish a cash or surety bond in an amount designated by the department. The amount of the bond will be no more than the amount of the winning bid minus any required deposits.