Federal coal lease agreement is one that is entered into between the federal government and another company to whom the coal excavation has been leased out to. All the national resources are the property of the federal government and in order to make best use of the natural resources the government offers proposal to lease out public lands that have rich coal resources. The federal government conducts the leasing through a bidding process wherein the company that has the specifications and cost matching the government requirements will be given the coal lease.
As this is a government process the federal coal lease agreement has many important aspects covered in it such as name of the bidder company, official address of the bidder company, brief profile of the bidder company, location of coal reserve, area and dimensions of land covered, total cost of coal reserve excavation, total time involved in federal coal lease, exploration license number of bidder company etc.
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