Why Does the State of Montana Issue Leases for Mineral Exploration and Development?
As discussed in the Overview section, the state received lands from the Federal government at statehood that are dedicated to be managed for the support of public education and other selected institutions. The vast majority of these school trust lands include the mineral rights underneath the surface land. This resource is therefore managed similar to the surface school trust lands. The department issues leases to individuals or companies that will explore and, if commercial mineral resources exist, produce them in an environmentally sensitive manner. The school trust beneficiaries receive revenue in the form of lease rentals and bonuses, as well as royalties (a cost-free share of the revenue generated from the sale of the mineral).
