77-3-132. Leasing privileges of permittee. (1) During the life of any permit the permittee may apply for a lease of the lands or mineral rights covered by the permit, and if a lease is granted it must be in the form and subject to all the terms and conditions specified in this part, as in the case of a mining lease issued under this part.

(2) If some other person makes a better bid for a mining lease upon the land covered by the permit and if the board awards a mining lease to a better bidder, the board shall also require the mining lessee to pay to the permittee, prior to the issuance of the lease, the full value of all the work the permittee has performed upon the land under the permit in connection with prospecting and exploration work. Within 30 days from the date the board gives the permittee notice of the issuance of the mining lease or within a further time as the board upon good cause shown allows, the permittee may remove any machinery, equipment, improvements, and other property placed on the land by the permittee.