A mineral lease and coal lease refers to a lease document which lays down the terms and conditions related to mineral and coal mining operations on public or private lands. According to these lease documents, one gets the authority to lease public or private land for developing different types of minerals and coal resources. These are then sent to the refineries and factories so that they can be sorted and refined and used as fuel or for various other purposes.
There are two types of mineral and coal lease — old form, which is more beneficial to the land owner, and short form, which is more advantageous to the mine operator. The company which is mining in the leased land has to pay a royalty to the owner in return for using their coal or other minerals. This royalty amount can be taken upfront and then depending on the production of the resources and the feasibility of production, the royalty amount can be adjusted.
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Sample Mineral Lease and Coal Lease Agreement
Mineral Lease and Coal Lease Agreement
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