If you are looking to lease mineral rights on your property, it is essential to have a mineral rights lease agreement in place. This agreement should outline the terms and conditions of the lease, including the duration of the lease, the rights and responsibilities of both parties, and the compensation to be paid to the property owner.
To help you get started on drafting your own mineral rights lease agreement, we have provided an example below.
Mineral Rights Lease Agreement Example
This Mineral Rights Lease Agreement (the “Agreement”) is made and entered into on [Date] by and between [Name of Property Owner] (the “Lessor”) and [Name of Lessee] (the “Lessee”).
1. Grant of Lease
The Lessor hereby grants the Lessee the exclusive right to explore, develop, and extract minerals located on the property owned by the Lessor (the “Property”) for a term of [Duration of Lease]. The Lessee agrees to use reasonable care to minimize damage to the Property and to restore the Property to its original condition once the exploration, development, and extraction activities have been completed.
2. Payment
In consideration for the rights granted under this Agreement, the Lessee shall pay the Lessor [Compensation Amount] per year during the term of the lease. The compensation shall be paid [Frequency of Payment] and shall be due and payable on [Due Date] each year.
3. Rights and Obligations
a. The Lessee shall have the right to enter the Property to conduct exploration, development, and extraction activities in accordance with applicable laws and regulations.
b. The Lessee shall obtain all necessary permits, licenses, and approvals from relevant government agencies before commencing any exploration, development, or extraction activities.
c. The Lessee shall be responsible for all costs associated with exploration, development, and extraction activities, including but not limited to equipment, labor, materials, and transportation.
d. The Lessee shall indemnify and hold harmless the Lessor from any and all claims arising from the Lessee`s use of the Property under this Agreement.
e. The Lessor shall have the right to inspect the Property at any time during the term of the lease to ensure compliance with this Agreement.
f. The Lessor shall not be entitled to any royalties or other payments from the minerals produced or extracted by the Lessee under this Agreement.
4. Termination
This Agreement may be terminated by either party upon [Notice Period] prior written notice to the other party. Upon termination of this Agreement, the Lessee shall remove all equipment and facilities from the Property and restore the Property to its original condition.
5. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of [State] without regard to its conflict of laws provisions.
6. Entire Agreement
This Agreement constitutes the entire agreement between the parties and supersedes all prior understandings or agreements, whether oral or written.
In conclusion, a mineral rights lease agreement is crucial when it comes to leasing mineral rights on your property. This example provides a basic outline for what should be included in the agreement. However, it is essential to consult with an experienced attorney to ensure that your lease agreement meets all legal requirements and protects your interests.