An Overview of Mining Lease Agreements

Understanding mining lease agreements and drilling contracts in Texas, Louisiana and Oklahoma

Mining lease agreements and drilling contracts are two essential mineral transaction agreements.  Most states have laws regulating mining and drilling activity, as well as others regulating the sale of surface and mineral property.  These laws are meant to protect all parties involved in mineral property transactions, as well as the environment.  They are the only protection available to buyers or sellers on issues not specifically addressed in the mineral transaction agreement between them.

This is true of Louisiana mining agreements and Louisiana drilling contracts; Texas mining agreements and Texas drilling contracts; and Oklahoma mining agreements and Oklahoma drilling contracts.

Contact the Sloan, Bagley, Hatcher & Perry Law Firm with questions about mining agreements and drilling contracts in Texas, Louisiana, and Oklahoma.  Our attorneys will put their experience in these areas to work on your behalf.

Mining lease

A mining lease is an agreement providing the lessee the right to excavate and sell minerals from the lessor’s property, or to remove and sell petroleum and natural gas from the pool underlying the property.  In return, the lessor receives a royalty payment based on the value of the minerals removed.

Mining leases are usually long-term, 20 years or more.  The terms and conditions of mining leases vary greatly, and there is no standard form of mining lease.  Some have a stated primary term that can be extended by mining operations or production, while others have a renewable fixed term.  The most important provisions of a mining lease include:

Each of these provisions has particular importance when negotiating or reviewing a Louisiana mining lease, a Texas mining lease, or an Oklahoma mining lease.

Related agreements

Other agreements that may be related to a mining lease or its fulfillment include:

Let us negotiate for you

The attorneys at the Sloan, Bagley, Hatcher & Perry Law Firm are skilled negotiators with a thorough knowledge of oil and gas law, leases and agreements.  To put our experience to work for you, call 1-888-339-6132 or contact us online.