_________ Bill No. _______

Introduced By _______________________________________________________________________________

By Request of the Department of Natural Resources and Conservation

A bill for an Act entitled: "An Act revising prospecting permits on state lands by making the permit nonexclusive; prohibiting mechanized prospecting; eliminating the permittee's preference right to a lease and compensation for improvements; amending section

77-3-131, MCA; repealing section 77-3-132, MCA; and providing an effective date."

Be it enacted by the Legislature of the State of Montana:

Section 1.  Section 77-3-131, MCA, is amended to read:

"77-3-131.   Limitations on prospecting permits. A permit shall be is limited to nonmechanized prospecting for metalliferous minerals or gems and is nonexclusive. no A permittee may not remove from any lands or mineral rights covered by the permit any metalliferous minerals or gems except such as those that are necessary for the proper testing and sampling of the lands or mineral rights and except as are permitted by the board."

NEW SECTION. Section 2.  Repealer. Section 77-3-132, MCA, is repealed.

NEW SECTION. Section 3.  Effective date. [This act] is effective on July 1, 1997.