<html> <head> <title>Rule 04:01:01:09 Procedure in event of dry hole.</title> <META NAME="Keywords" Content="Administrative Rules 04:01:01:09"> <META NAME="Description" Content="Administrative Rules 04:01:01:09 Procedure in event of dry hole."> <meta name=Generator content="Microsoft Office HTML Filter 2.0"> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Originator content="Microsoft Word 10"> <style> <!-- --> </style> </head> <body lang=EN-US> <div> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>4:01:01:09.&nbsp;&nbsp;Procedure in event of dry hole.</b> If the first well drilled on the land covered in one lease is dry and if the drilling of a second well is not begun within 12 months from the expiration of the last rental period for which the rental has been paid, the lease will terminate. This section will not apply if the lessee resumes payment of rentals under the conditions of the lease and these rules, on or before expiration of the 12 months period specified above.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 2 SDR 36, effective November 17, 1975.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=5-7-23">5-7-23</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=5-7-37">5-7-37.</A></p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Law Implemented:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=5-7-23">5-7-23.</A></p> </div> </body> </html>