Minnesota Administrative Rules
Agency 158 - Natural Resources Department
Chapter 6125 - MINERAL RESOURCES
PERMITS AND LEASES FOR METALLIC MINERALS, EXCEPT IRON ORES AND TACONITE ORES
Part 6125.0700 - FORM OF LEASE
Current through Register Vol. 49, No. 13, September 23, 2024
The form of lease for exploration for, mining, and removing metallic minerals belonging to the state shall consist of the following provisions, with insertions, changes, or additions as may be necessary to incorporate the royalty rates and other particulars applicable to each lease as may be authorized under parts 6125.0100 to 6125.0700:
This lease agreement is entered into on the ______ day of ___________, __. The parties to this lease are the State of Minnesota, called the state, and ____________________________, called the lessee.
1. Term; description of mining unit. The state, in consideration of the sum of ______ Dollars, paid by the lessee, being the rental provided in this lease for the unexpired portion of the current calendar year and for the next succeeding two (2) calendar years, the receipt whereof is hereby acknowledged, and in further consideration of the covenants and conditions of this lease to be performed by the lessee, agrees to lease to the lessee for a term of ____________________ (__) years beginning the __________ day of ______________, __, the following-described mining unit, situated in the county of _________________________, in the State of Minnesota:
2. Definitions. For the purposes of this lease, the following words have the meanings given them:
3. Use of surface of lands. The mining unit is leased to the lessee for the purpose of exploration for, mining, and removing ores primarily valuable for metallic minerals content that are found on or in the mining unit.
The lessee has the right to construct or make buildings, excavations, openings, ditches, drains, railroads, roads, and other improvements on the mining unit as necessary or suitable for those purposes. All buildings and ditches must be constructed according to applicable local ordinances. The locations of railroads, roads, and other improvements are subject to review by the commissioner. The lessee has the right to mill and concentrate the ore so mined, either upon the mining unit or elsewhere, but the right to mill and concentrate does not include the right to reduce or smelt ore upon the mining unit without an agreement between the lessee and the commissioner, authorizing that use of the surface of the land and providing for the necessary protection of life and property. The lessee may contract with others for doing any work authorized or required under this lease, or for the use of the mining unit or any part of it for the purposes of the lease, but no contract of this type relieves the lessee from any duty, obligation, or liability under the lease. No such contract providing for shipping, handling, or removal of ore bearing material becomes effective for any purpose until three executed duplicates of the contract have been filed with the commissioner.
4. State's right to lease iron ores, taconite ores, coal, oil, gas, and other liquid or gaseous hydrocarbon substances. The state reserves the right to lease or grant to other persons or corporations the right to explore for, mine, remove, and beneficiate iron ores, taconite ores, coal, oil, gas, and other liquid or gaseous hydrocarbon substances, that are located in the mining unit. The state agrees that any permit or lease granted by it to any person or corporation to explore for, develop, mine, or dispose of the iron ores, taconite ores, coal, oil, gas, and other liquid or gaseous hydrocarbon substances shall contain a provision that the permittee or lessee shall exercise those rights so as not to cause any unnecessary or unreasonable injury or hindrance to the operations of the lessee of this lease in the exploration for, or the development, mining, or removal of metallic minerals other than iron ores, taconite ores, coal, oil, gas, and other liquid or gaseous hydrocarbon substances covered by that permit or lease. The lessee of this lease agrees that it will exercise the rights granted to it by this lease in such manner as not to cause any unnecessary or unreasonable injury or hindrance to the operations of any permittee or lessee of the state in the exploration for, or the development, mining, or removal of iron ores, taconite ores, coal, oil, gas, and other liquid or gaseous hydrocarbon substances.
Written notice shall be provided by the commissioner to the lessee whenever the commissioner is planning to issue a mineral lease according to the rights reserved under this paragraph. The commissioner must meet with the lessee to obtain information for terms and conditions under which multiple mineral development could occur.
5. State's right to lease surface and sell timber. The state reserves the right to sell and dispose of all the timber upon the mining unit without hindrance from the lessee and according to the law now or hereafter governing the sale of timber on state lands, and reserves to the state and to the purchaser of the timber, and the purchaser's agents, the right at all times to enter the mining unit, and to cut and remove timber from it according to the terms of the purchaser's permit from the state. The timber purchaser shall not unduly interfere with the exploration or mining operations. The state further reserves the right to grant leases, permits, or licenses to any portion of the surface of the mining unit to any person, partnership, corporation, or other association under the authority of Minnesota Statutes, section 92.50, or other applicable laws, after consultation with lessee. The surface leases, permits, or licenses shall not unduly interfere with the exploration or mining operations conducted on the mining unit.
6. Annual rental. The lessee agrees to pay to the state rental for the mining unit at the rate of $1.50 per acre of land and water area included in the mining unit, per calendar year, payable in advance, for the unexpired portion of the current calendar year from the effective date of this lease and for the next succeeding two calendar years; and after that time at the rate of $5 per acre per calendar year, payable quarterly for the three succeeding calendar years; and after that time at the rate of $15 per acre per calendar year, payable quarterly for the five succeeding calendar years; and after that time at the rate of $30 per acre per calendar year, payable quarterly for the remainder of the term of this lease.
The mining unit may include lands where an interest in the minerals is owned by the state, including trust fund lands, land forfeited for nonpayment of taxes and held in trust by the state, lands where severed mineral interests have forfeited under Minnesota Statutes, section 93.55, lands where severed mineral interests have been otherwise acquired, lands where severed mineral interests may be leased by the commissioner under Minnesota Statutes, section 93.55, subdivisions 1a and 3, the beds of public waters, and lands otherwise acquired. Any amount paid for rental, at the time of payment, shall be allocated to the proper fund as determined by the mineral ownership.
Any amount paid and accrued for rental in excess of the rate of $5 per acre per year for any calendar year shall be credited on any royalty that may become due for ore removed under this lease during the same calendar year in which the rental was due but no further, and only to the extent that the rental was paid or deposited into the particular fund to which the royalty for the ore is due. Any amount paid for royalty in excess of rental at the rate of $5 per acre per year for any calendar year must be credited on rental, if any, subsequently accruing for that same calendar year but no further, and only to the extent that the royalty was paid or deposited into the particular fund to which the rental is due.
Rental payments must be made on or before May 20, August 20, November 20, and February 20 for the previous calendar quarters. The first calendar quarter is the first three calendar months of the year, and so on. Any rental payments not received by the date due are subject to interest at the rate of six percent per year from the due date.
When the lessee exercises the right under paragraph 30 of this lease to surrender any part or parts of the mining unit, the annual rental payment may be discontinued as to those parts for all subsequent calendar years; however, the rentals paid on the parts surrendered must not be credited on any royalties due for ore removed from that part of the mining unit which remains under lease.
Where the state owns only a fractional undivided interest in the minerals in any portion of the mining unit, only that fractional part of the rentals and royalties established in this lease shall be paid for that portion.
If at any time during the term of this lease it is determined in a proper proceeding that the state does not own the minerals in a part of the area included in the mining unit, the commissioner shall delete from the description of the mining unit the part not owned by the state, and only if that determination is made prior to the fifth anniversary date of this lease is the lessee entitled to a refund, or in the case of tax forfeited minerals to receive credit on future payments due the same fund, for payments made to the state on that part prior to the determination. If the commissioner deems it necessary, additional time to make the determination may be granted.
7. Tonnage for royalty purposes. Royalty must be computed on the dry weight of the crude ore. The dry weight of the crude ore shall be calculated from natural crude ore weights and moisture percentages from samples taken at the time the crude ore is weighed.
8. Royalty.
The adjustment to the base rate must be computed by multiplying $75 by a fraction, the denominator of which is the Base Index and the numerator of which is equal to the amount by which the Producer Price Index for All Commodities for the month in question exceeds the Base Index. The resulting products must be carried to four decimal places and then rounded to the nearest one-hundredth of a dollar. The difference between this rounded product and the net return value must then be determined. The Royalty Base Rate Table must be referred to and the difference resulting from this computation must be used instead of the net return value to determine the base rate.
For example, the Base Index under this lease is 121.5 and if the Producer Price Index for All Commodities for January 1996 was 132.7, the adjustment to the base rate would be computed as follows:
$ 75 | x | (132.7 - 121.5) -------------------- 121.5 | = | $6.9136, rounded to $6.91 |
If the net return value of the metallic minerals and associated mineral products recovered from each ton of dried crude ore equalled $85, then the difference between the net return value and $6.91 would be computed as follows:
$85 - 6.91 = $78.09 |
The resulting difference of $78.09 would then be used instead of the net return value to determine the base rate.
If some period other than 1982 is used as a base of 100 in determining the Producer Price Index for All Commodities, for the purposes of this lease provision the index must be adjusted so as to be in correct relationship to the 1982 base. In the event the index is not published by any federal agency, the index to be used as previously provided must be the index independently published, which, after necessary adjustments, if any, provides the most reasonable substitute for the Producer Price Index for All Commodities during any period after November 1994, it being intended to substitute an index that most accurately reflects fluctuations in the prices of commodities in the all commodities index in the manner presently reported by the Producer Price Index for All Commodities (1982 equals 100), published by the Bureau of Labor Statistics of the United States Department of Labor.
The amount of royalties deferred for each calendar quarter as provided above, plus interest at the rate of six percent per year, becomes finally due and payable on the future date that is determined by adding the total number of years of deferral granted under this section to the date on which royalties would have been due and payable had there been no deferral.
The commissioner in considering the lessee's application for deferral of royalties may consider factors including, but not limited to, the expected operational life of the mine producing the royalties, the express purposes for which the money deferred is proposed to be used by the lessee, the cash flow analysis of the mine, the amount of either the capital invested or to be invested, or both, by the lessee in exploration and mining operations under this lease, and the technical and financial capabilities of the lessee.
9. Net return value of metallic minerals and associated mineral products.
The allowable charges in determining the net return value of metallic minerals and associated mineral products recovered in a smelter from each ton of dried crude ore are limited to the following:
As used in this lease for the purpose of determining the net return value of metallic minerals, "hydrometallurgy" means that phase of metallurgy which involves the extraction and recovery of metals using aqueous or organic solutions, and "pyrometallurgy" means that phase of metallurgy which involves the extraction and recovery of metals using heat. The unit processes of hydrometallurgy include the leaching of ores or concentrate for recovery of metals, the separation of the leaching solution from the spent ore, and the recovery of the dissolved metal from the leaching solution.
The allowable charges in determining the net return value of metallic minerals and associated mineral products recovered in a hydrometallurgical process or a combination hydrometallurgical and pyrometallurgical process are limited to the following: charges attributable to recovery of dissolved metal from the leaching solution by chemical purification, pressurization, roasting of concentrate, melting of concentrate, filtration, absorption, solvent extraction, evaporation, distillation, electrolysis, ion exchange, or precipitation. The charges attributable to the direct leaching of ores for recovery of metals, or to the separation of the leaching solution from the spent ore, are nonallowable charges.
10. Commingled ores. The lessee has the right to commingle ore from the mining unit with other ore, either in the mine, in stockpile, in the mill, or in the smelter, but the ores must be kept entirely separate and distinct until their quantities and metal and mineral contents have been separately measured and determined. Ratios of concentration, percent mill recoveries, and any other factors necessary for determining the beneficiating amenability of the commingled ores, the allocation of values and the royalties, must be separately measured and determined by methods approved by the commissioner and shall be reported on a monthly basis. "Ratio of concentration" means the dry weight of the crude ore divided by the dry weight of the concentrate derived from the crude ore. "Percent mill recovery" means the dry weight of the metal in the concentrate divided by the dry weight of the metal in the crude ore, expressed as a percent.
11. Quarterly payment on ore removed. The lessee agrees to pay to the state, on or before May 20, August 20, November 20, and February 20 in each year during the period this lease continues in force, royalty at the rates specified in paragraph 8 for all of the ore removed from the mining unit during the previous calendar quarter. The lessee also agrees to pay to the state on or before May 20 of each year all royalty due and payable as a result of the adjustment to value of the metallic minerals and associated mineral products sold during the previous calendar year as provided for in paragraph 9b.
The lessee is liable for payment of royalty when due on all ore removed from the mining unit for concentration elsewhere or for any other purpose, from the actual time of removal; and if the royalty due on the ore is not determined and accounted for as provided by the next royalty payment date, the commissioner may determine the royalty by any method as the commissioner deems appropriate and consistent with the royalty rates set forth in this lease. Any amount paid for royalty must be allocated to the proper fund as determined by the mineral ownership. Any royalty payments not received by the date due are subject to interest at the rate of six percent per year from the due date.
12. Lessee to transmit statement of ore removed and royalty due. The lessee shall transmit to the commissioner with each royalty payment an exact and truthful statement of the tonnage and royalty value of the ore mined and removed from the mining unit during each of the three months for which the payment is made, and the amount of royalty due on the ore, separated as to the various state fund ownerships. The lessee shall provide for all the operations required for these determinations except as otherwise specified.
13. Weighing. The methods of obtaining the weights used to determine tonnage for the calculation of royalty, or to determine other weights required by the state, are subject to the approval of the commissioner.
14. Sampling. Samples for royalty purposes must be taken of the ores and their products at places and intervals subject to the approval of the commissioner. A portion of each sample or composite sample must be delivered to the commissioner unless, by mutual agreement, it has been decided that certain of such portions are not needed by the state. Except as otherwise permitted by the commissioner, all ore mined from this mining unit must be sampled and its weight determined before being commingled with any other ores.
Each royalty sample must be analyzed at the expense of the lessee by competent chemists or assayers approved in writing by the commissioner. The elements in the royalty sample for which analytical determinations will be made are subject to agreement between the commissioner and the lessee.
15. Monthly reports. Except as otherwise permitted by the commissioner, the lessee shall transmit within 20 days after the end of each calendar month, statements for that calendar month in the form the commissioner may require, covering the tonnages and analyses of the following: all material mined from the mining unit, all material milled from the mining unit, all material stockpiled from the mining unit, all concentrates produced from the mining unit, all material mined from any source and commingled with material from the mining unit, all commingled material concentrated, all commingled material stockpiled, all commingled concentrates produced during that calendar month, and such other information as may reasonably be required by the commissioner for the purpose of verifying the amount of royalty due.
The weight of ore as set forth in the monthly statements shall prima facie be binding as between the parties, but the state has the right to sample the ore, check the analyses, and inspect, review and test the correctness of the methods, books, records and accounts of the lessee in sampling, analyzing, recording, and reporting the weights, and to inspect, review, and test the correctness of the weights and scales and other equipment used in measuring the amount of ore, it being understood that any errors in these reports, when ascertained, shall be corrected.
16. Additional monthly and annual reports to be furnished by lessee; exploration; mine samples required. Except as otherwise permitted by the commissioner, in addition to other reports or statements required in this lease, the lessee shall furnish the following:
17. How remittances and reports are to be transmitted. All remittances by the lessee under this lease must be made payable to the Department of Natural Resources. All such remittances and all reports, notices and documents required under this lease must be transmitted to the commissioner through the director of the division of minerals at Saint Paul, Minnesota.
18. State inspection; inspectors at plants and mines. The commissioner may at all reasonable times enter the mining unit and any other premises used or operated by the lessee in connection with the operation of the mining unit, inspect the operations conducted under this lease, and conduct such engineering and sampling procedures and other investigations as the commissioner may require, not unreasonably hindering or interrupting the operations of the lessee.
The lessee shall provide, upon written request of the commissioner, a suitable room in the dry or wash house or in some other suitable place on the mining unit or elsewhere when necessary, with water, light, and heat, all without cost to the state, for the use of state inspectors. The room must be at least equal in size and equipment to that customarily furnished for the use of the mine engineer.
Whenever royalties or rentals due the state are required to be distributed to more than one fund, or when ore from the mining unit is commingled with other ore, or when ore from the mining unit is concentrated at the same plant as other ore, the commissioner may appoint special inspectors as the commissioner considers necessary to insure proper accounting and protect the interests of the state. The lessee shall reimburse the state monthly for the cost of this inspection service upon notification by the commissioner.
19. Removal of ore for experimental purposes. Notwithstanding paragraph 11, upon written application of the lessee, the commissioner may authorize the removal of ore from the mining unit for experimental purposes without payment of royalty; and it is further understood that the removal of samples obtained by drilling, trenching, or testpitting, for the purposes of exploration, is not subject to the payment of royalty.
20. Stockpiled materials. All materials mined and not shipped from the mining unit remains the property of the state and shall be stockpiled only in such manner and on such sites as may be authorized by the commissioner in writing. When, however, the commissioner agrees that substantially all minerals of value have been extracted from the mill tailings, the material may be used for stope filling on the mining unit or elsewhere, and the tailings material used shall be considered abandoned, and title to the material shall revert to the mineral owners of the property in which it is deposited.
21. Reversion of title on land conveyed to the state for stockpiling purposes. When the commissioner determines that it is necessary and that the interests of the state will be fully protected, the lessee may convey land to the state upon the condition that it be used for the storage of ore or other materials having present or potential value belonging to the state. The commissioner may accept a conveyance that provides for the state's interest in the land to terminate and title to revert to the lessee when the land is no longer needed or used for storage of ore or other materials. No consideration shall be paid for the conveyance unless authorized by law.
22. Cross mining rights. The lessee is hereby granted the right to mine and remove any ores from the mining unit through any shafts, openings, or pits that may be made upon adjoining and nearby premises controlled by the lessee; and the lessee may, if it so desires, use the mining unit and any shafts, openings, or pits, made on it for the mining or removal of any ores from adjoining or nearby premises, not, however, preventing or interfering with the mining or removal of ore from said mining unit. The ores taken from the mining unit must at all times be kept entirely separate and distinct from any other ores until measured and sampled as provided in this lease so that the rights of the lessor are at all times preserved and protected. The lessor recognizes the rights and liens of the owners of any nearby or adjoining premises in any ores mined from them and transported through the mining unit.
23. Lessee's obligations under state and federal laws and regulations. The provisions of this lease are subject to all applicable state and federal statutes, orders, rules and regulations, and all operations under this lease shall be conducted in conformity with them. All activities shall be conducted in conformity with the applicable mine land reclamation statutes and rules. No interference, diversion, use or appropriation of any waters over which the commissioner or any other state agency has jurisdiction, may be undertaken unless authorized in writing by the commissioner or the state agency.
24. Operations to be conducted in accordance with good mining, metallurgical, and environmental engineering. The lessee shall open, use, and work the mine or mines on the mining unit and conduct metallurgical operations in such manner only as is usual and customary in skillful and proper mining and milling operations in accordance with the requirements, methods, and practices of good mining, metallurgical, and environmental engineering, and in such manner as not to cause any unnecessary loss of minerals, or unusual permanent injury to the mining unit. Surface lands owned by the state in the mining unit are not to be cleared or used for construction or stockpiling purposes until such use has been approved by the commissioner in writing. The surface use of the mining unit must be conducted in such manner as to prevent or reduce scarring and erosion of the land and pollution of air and water.
25. Notice to owner of surface estate. When the leased premises do not include the surface estate, the lessee shall give notice, in writing, to the owner or administrator of the surface estate at least 20 days in advance of any activities which will require use of the surface estate on the leased premises. The notice shall sufficiently describe the activities to enable the owner or administrator of the surface estate to evaluate the extent of the use of the surface estate.
26. Review of exploration; exploration site closure and stabilization. "Exploration" means the act of searching for or investigating a mineral deposit. Exploration includes examination of an area to determine the quality and quantity of minerals, including obtaining a bulk sample by drilling, excavating, trenching, constructing shafts, ramps, tunnels, pits, and producing refuse and other associated activities. Exploration does not include activities intended, by themselves, for commercial exploitation of the ore body.
The commissioner will identify special features or uses within the leased premises. Conditions identified as special features or uses may include: wildlife management areas and sites; peatland watershed areas of the peatland scientific and natural areas; the Black Bay Management Area; natural heritage sites and features; designated trout streams; state water trails; state trails; historic and archaeological sites; rights-of-way; fire towers; campgrounds; public access sites; state highway rest areas; and other existing easements, sites, conditions, and encumbrances. The commissioner may require the lessee to adjust exploration plans or plans for construction of roads or trails due to special features or uses within the leased premises or due to other natural resource management concerns.
Unless notified to the contrary by the commissioner within 20 days after receipt of the exploration plans by the commissioner, the lessee may proceed with exploration as described in the submitted exploration plans.
27. Lessee's obligation for damages. It is understood and agreed that in case any interest in the land or minerals covered by this lease is owned by anyone other than the state, this lease shall not be construed as authorizing any invasion of or trespass upon such other interest. The lessee hereby agrees and is obligated to indemnify and hold the state harmless from all damages or losses caused directly or indirectly by operations under this lease, whether to land, timber, minerals, growing crops, or buildings, or to any person or other property, including damages suffered by that other owner of the surface or mineral rights, and the state shall not be liable for them.
28. Lessee to pay all taxes. The lessee agrees to pay when due all taxes, general and specific, personal and real that may be assessed against the mining unit and the improvements made on it, and the ore materials in it or mined from it, and any personal property on the mining unit owned, used, or controlled by the lessee. This covenant does not apply to taxes assessed against any part of the mining unit as a result of any other lease granted by the state to other parties. The cancellation, termination, or expiration of this lease does not relieve the lessee of the obligation to pay taxes assessed during the continuance of the lease, even though such taxes may be due or payable after the cancellation, termination, or expiration date.
29. State lien for unpaid sums due. The state reserves and shall at all times have a lien upon all ore mined from the mining unit, all ore concentrated from it, smelter returns due the lessee for the ore, and all improvements made under this lease for any sums not paid when due.
30. Lessee's right to terminate lease. The lessee may at any time deliver to the commissioner written notice of intention to terminate this lease, and this lease shall terminate 60 days after the delivery unless the notice is revoked by the lessee by further written notice delivered to the commissioner before the expiration of 60 days. On December 31 following the tenth anniversary date of this lease, and on any succeeding December 31, the lessee may surrender its rights and privileges granted in this lease on any part or parts of the mining unit, by giving the lessor written notice of its intention so to do at least 60 days before the date of such surrender. For the purposes of this paragraph, "part of the mining unit" means a quarter section of a quarter section or a government lot as described by the public land survey, or a bed of public waters. All sums due to the state under this lease up to the effective date of termination must be paid by the lessee. Any sums not received within 20 days after the effective date of termination are subject to interest at the rate of six percent per year from the effective date of termination.
31. Lessor's right to cancel lease upon lessee's failure to meet production requirements. The state may cancel this lease as provided in paragraph 32 if the lessee has not met both of the following conditions by the end of the 20th full calendar year of this lease:
The state may exercise its option to cancel the lease during the 21st calendar year of the lease. If it does not do so, and if the conditions have not been met by the end of the 35th full calendar year of this lease, it may exercise its option to cancel during the 36th calendar year of the lease. The commissioner shall take the lessee's financing needs and the state's proportional ownership interest into consideration in determining whether the requirements of this paragraph have been met.
The lessee, at any time, may request a determination and the commissioner, at any time in response to such a request, may determine whether the state will exercise its option to cancel the lease. If the state decides in response to such a request not to exercise its option to cancel the lease, such a decision may require the lessee to meet additional conditions and may include the option to cancel at a time other than the times specified in this paragraph.
32. Lessor's right to cancel lease upon default. This lease is granted upon the express condition that, if any sum owed under it by the lessee for rental, royalty, or otherwise remains unpaid after the time when it became due, or if the lessee or its agent or servant knowingly or willfully makes any false statement in any report, account, or tabulation submitted to the state or to the commissioner, or any of the commissioner's agents pertaining to any matter under this lease, or if the lessee fails to perform any of the conditions required by this lease, the commissioner may cancel this lease by mailing or delivering to the lessee 60 days' notice of the cancellation in writing, specifying such nonpayment or other default as the case may be. This lease shall terminate at the expiration of the 60 days, and the lessee and all persons claiming under the lessee shall be wholly excluded from the mining unit except as hereinafter provided in paragraph 31. Termination does not relieve the lessee from any liability for payment or other liability incurred under this lease. If the default consists of a nonperformance of an act required under this lease other than payment of royalty or rental, the lessee may perform within the period of 60 days and the lease continues in effect. If the correction of any such default requires more time than 60 days after the notice has been received by the lessee, the commissioner, upon written request of the lessee and for good cause shown, may, at the commissioner's discretion, grant an extension of the period of 60 days. If the default consists of a nonpayment of royalty or rental and the lessee performs within 15 days from the mailing or delivery of notice of cancellation, the lease continues in effect; and if the lessee performs at any time thereafter within the period of 60 days, the commissioner, at the commissioner's discretion, may continue the lease in effect.
33. Rights of lessor and lessee during 180-day period following termination. Upon termination of this lease, whether by expiration of its term or by act of either party, except as necessary to comply with applicable mineland reclamation statutes and rules, the lessee has 180 days after termination in which to remove all equipment, materials, railroad tracks, structures and other property placed or erected by the lessee upon said mining unit. Property not removed within that time shall, at the discretion of the commissioner, either be removed by the state at the lessee's expense or become the property of the state. The lessee shall not remove or impair any supports placed in any mine or mines on the mining unit, or any timber or framework necessary to the use or maintenance of shafts or other approaches to such mine or mines or tramways within the mining unit, all of which become the property of the state. During the period of 180 days, the lessee shall, at its own expense, properly and adequately fence all pits, and do all other work which the commissioner deems necessary to leave the premises in a safe and orderly condition to protect against injury or damage to persons or property. Subject to the foregoing, upon the termination of this lease, whether by expiration of the term hereof or otherwise, the lessee shall quietly and peaceably surrender possession of the mining unit to the state.
34. Recovery of expenses. If it is necessary for the state to incur expenses by court action or otherwise for the ejectment of the lessee, or removal from the leased premises of the lessee's property, or recovery of rent or royalties, or for any other remedy of the state under this lease, and the state prevails in the court action or otherwise, then the lessee shall pay to the state all expenses, including attorney's fees, thus incurred by the state.
35. Mining of minerals other than metallic minerals. If any ore found on or in the mining unit is primarily valuable for other than its metallic minerals content, the terms and conditions upon which the ore may be mined or products recovered from it shall be as may be agreed upon by the lessee and the commissioner and approved by the state Executive Council. This provision does not apply to iron ores, taconite ores, coal, oil, gas, and other liquid or gaseous hydrocarbon substances.
36. Agreements, assignments, or contracts. All assignments, agreements, or contracts affecting this lease must be made in writing and signed by all parties thereto, witnessed by two witnesses, properly acknowledged and must contain the post office addresses of all parties thereto, and when so executed must be presented in triplicate to the commissioner for record. No such instrument is valid until approved in writing by the commissioner and approved as to form and execution by the attorney general. No assignment or other agreement relieves the lessee of any obligation or liability imposed by this lease, and all assignees, sublessees, and subcontractors are also liable for all obligations or liabilities imposed by this lease.
37. Lease binding on assignees and successors. The covenants, terms, and conditions of this lease run with the land and extend to and bind all assignees and other successors in interest of the lessee.
38. Notices. For the purposes of this lease, the addresses of the parties are as follows, unless changed by written notice to all parties: For the state -- Commissioner of Natural Resources, State of Minnesota, 500 Lafayette Road, Saint Paul, Minnesota 55155-4037; for the lessee -- _____________________________________________________ .
Exhibit A. Base Royalty Rate Table
Net return value per ton | Base royalty rate (%) | Net return value per ton | Base royalty rate (%) | ||
$ | 0.01- 75 | 3.9500 | $ | 75.01- 76 | 3.9574 |
$ | 76.01- 77 | 3.9650 | $ | 77.01- 78 | 3.9728 |
$ | 78.01- 79 | 3.9808 | $ | 79.01- 80 | 3.9890 |
$ | 80.01- 81 | 3.9974 | $ | 81.01- 82 | 4.0060 |
$ | 82.01- 83 | 4.0147 | $ | 83.01- 84 | 4.0237 |
$ | 84.01- 85 | 4.0329 | $ | 85.01- 86 | 4.0422 |
$ | 86.01- 87 | 4.0518 | $ | 87.01- 88 | 4.0615 |
$ | 88.01- 89 | 4.0715 | $ | 89.01- 90 | 4.0816 |
$ | 90.01- 91 | 4.0919 | $ | 91.01- 92 | 4.1025 |
$ | 92.01- 93 | 4.1132 | $ | 93.01- 94 | 4.1241 |
$ | 94.01- 95 | 4.1352 | $ | 95.01- 96 | 4.1465 |
$ | 96.01- 97 | 4.1580 | $ | 97.01- 98 | 4.1697 |
$ | 98.01- 99 | 4.1816 | $ | 99.01-100 | 4.1937 |
$ | 100.01-101 | 4.2060 | $ | 101.01-102 | 4.2185 |
$ | 102.01-103 | 4.2311 | $ | 103.01-104 | 4.2440 |
$ | 104.01-105 | 4.2571 | $ | 105.01-106 | 4.2703 |
$ | 106.01-107 | 4.2838 | $ | 107.01-108 | 4.2974 |
$ | 108.01-109 | 4.3113 | $ | 109.01-110 | 4.3253 |
$ | 110.01-111 | 4.3395 | $ | 111.01-112 | 4.3540 |
$ | 112.01-113 | 4.3686 | $ | 113.01-114 | 4.3834 |
$ | 114.01-115 | 4.3984 | $ | 115.01-116 | 4.4136 |
$ | 116.01-117 | 4.4290 | $ | 117.01-118 | 4.4446 |
$ | 118.01-119 | 4.4604 | $ | 119.01-120 | 4.4764 |
$ | 120.01-121 | 4.4926 | $ | 121.01-122 | 4.5089 |
$ | 122.01-123 | 4.5255 | $ | 123.01-124 | 4.5423 |
$ | 124.01-125 | 4.5592 | $ | 125.01-126 | 4.5764 |
$ | 126.01-127 | 4.5938 | $ | 127.01-128 | 4.6113 |
$ | 128.01-129 | 4.6290 | $ | 129.01-130 | 4.6470 |
$ | 130.01-131 | 4.6651 | $ | 131.01-132 | 4.6834 |
$ | 132.01-133 | 4.7020 | $ | 133.01-134 | 4.7207 |
$ | 134.01-135 | 4.7396 | $ | 135.01-136 | 4.7587 |
$ | 136.01-137 | 4.7780 | $ | 137.01-138 | 4.7975 |
$ | 138.01-139 | 4.8172 | $ | 139.01-140 | 4.8371 |
$ | 140.01-141 | 4.8571 | $ | 141.01-142 | 4.8774 |
$ | 142.01-143 | 4.8979 | $ | 143.01-144 | 4.9186 |
$ | 144.01-145 | 4.9394 | $ | 145.01-146 | 4.9605 |
$ | 146.01-147 | 4.9817 | $ | 147.01-148 | 5.0032 |
$ | 148.01-149 | 5.0248 | $ | 149.01-150 | 5.0466 |
$ | 150.01-151 | 5.0687 | $ | 151.01-152 | 5.0909 |
$ | 152.01-153 | 5.1133 | $ | 153.01-154 | 5.1359 |
$ | 154.01-155 | 5.1587 | $ | 155.01-156 | 5.1818 |
$ | 156.01-157 | 5.2050 | $ | 157.01-158 | 5.2283 |
$ | 158.01-159 | 5.2519 | $ | 159.01-160 | 5.2757 |
$ | 160.01-161 | 5.2997 | $ | 161.01-162 | 5.3239 |
$ | 162.01-163 | 5.3482 | $ | 163.01-164 | 5.3728 |
$ | 164.01-165 | 5.3976 | $ | 165.01-166 | 5.4225 |
$ | 166.01-167 | 5.4477 | $ | 167.01-168 | 5.4730 |
$ | 168.01-169 | 5.4986 | $ | 169.01-170 | 5.5243 |
$ | 170.01-171 | 5.5502 | $ | 171.01-172 | 5.5763 |
$ | 172.01-173 | 5.6027 | $ | 173.01-174 | 5.6292 |
$ | 174.01-175 | 5.6559 | $ | 175.01-176 | 5.6828 |
$ | 176.01-177 | 5.7099 | $ | 177.01-178 | 5.7372 |
$ | 178.01-179 | 5.7647 | $ | 179.01-180 | 5.7924 |
$ | 180.01-181 | 5.8202 | $ | 181.01-182 | 5.8483 |
$ | 182.01-183 | 5.8766 | $ | 183.01-184 | 5.9050 |
$ | 184.01-185 | 5.9337 | $ | 185.01-186 | 5.9626 |
$ | 186.01-187 | 5.9916 | $ | 187.01-188 | 6.0209 |
$ | 188.01-189 | 6.0503 | $ | 189.01-190 | 6.0799 |
$ | 190.01-191 | 6.1098 | $ | 191.01-192 | 6.1398 |
$ | 192.01-193 | 6.1700 | $ | 193.01-194 | 6.2004 |
$ | 194.01-195 | 6.2310 | $ | 195.01-196 | 6.2618 |
$ | 196.01-197 | 6.2928 | $ | 197.01-198 | 6.3240 |
$ | 198.01-199 | 6.3554 | $ | 199.01-200 | 6.3870 |
$ | 200.01-201 | 6.4188 | $ | 201.01-202 | 6.4507 |
$ | 202.01-203 | 6.4829 | $ | 203.01-204 | 6.5153 |
$ | 204.01-205 | 6.5478 | $ | 205.01-206 | 6.5806 |
$ | 206.01-207 | 6.6135 | $ | 207.01-208 | 6.6467 |
$ | 208.01-209 | 6.6800 | $ | 209.01-210 | 6.7135 |
$ | 210.01-211 | 6.7473 | $ | 211.01-212 | 6.7812 |
$ | 212.01-213 | 6.8153 | $ | 213.01-214 | 6.8496 |
$ | 214.01-215 | 6.8841 | $ | 215.01-216 | 6.9188 |
$ | 216.01-217 | 6.9537 | $ | 217.01-218 | 6.9888 |
$ | 218.01-219 | 7.0241 | $ | 219.01-220 | 7.0596 |
$ | 220.01-221 | 7.0953 | $ | 221.01-222 | 7.1311 |
$ | 222.01-223 | 7.1672 | $ | 223.01-224 | 7.2035 |
$ | 224.01-225 | 7.2399 | $ | 225.01-226 | 7.2766 |
$ | 226.01-227 | 7.3134 | $ | 227.01-228 | 7.3505 |
$ | 228.01-229 | 7.3877 | $ | 229.01-230 | 7.4251 |
$ | 230.01-231 | 7.4628 | $ | 231.01-232 | 7.5006 |
$ | 232.01-233 | 7.5386 | $ | 233.01-234 | 7.5768 |
$ | 234.01-235 | 7.6152 | $ | 235.01-236 | 7.6538 |
$ | 236.01-237 | 7.6926 | $ | 237.01-238 | 7.7316 |
$ | 238.01-239 | 7.7708 | $ | 239.01-240 | 7.8102 |
$ | 240.01-241 | 7.8498 | $ | 241.01-242 | 7.8895 |
$ | 242.01-243 | 7.9295 | $ | 243.01-244 | 7.9697 |
$ | 244.01-245 | 8.0100 | $ | 245.01-246 | 8.0506 |
$ | 246.01-247 | 8.0913 | $ | 247.01-248 | 8.1323 |
$ | 248.01-249 | 8.1734 | $ | 249.01-250 | 8.2147 |
$ | 250.01-251 | 8.2563 | $ | 251.01-252 | 8.2980 |
$ | 252.01-253 | 8.3399 | $ | 253.01-254 | 8.3820 |
$ | 254.01-255 | 8.4243 | $ | 255.01-256 | 8.4668 |
$ | 256.01-257 | 8.5095 | $ | 257.01-258 | 8.5524 |
$ | 258.01-259 | 8.5955 | $ | 259.01-260 | 8.6388 |
$ | 260.01-261 | 8.6822 | $ | 261.01-262 | 8.7259 |
$ | 262.01-263 | 8.7698 | $ | 263.01-264 | 8.8138 |
$ | 264.01-265 | 8.8581 | $ | 265.01-266 | 8.9025 |
$ | 266.01-267 | 8.9472 | $ | 267.01-268 | 8.9920 |
$ | 268.01-269 | 9.0371 | $ | 269.01-270 | 9.0823 |
$ | 270.01-271 | 9.1277 | $ | 271.01-272 | 9.1733 |
$ | 272.01-273 | 9.2192 | $ | 273.01-274 | 9.2652 |
$ | 274.01-275 | 9.3114 | $ | 275.01-276 | 9.3578 |
$ | 276.01-277 | 9.4044 | $ | 277.01-278 | 9.4512 |
$ | 278.01-279 | 9.4981 | $ | 279.01-280 | 9.5453 |
$ | 280.01-281 | 9.5927 | $ | 281.01-282 | 9.6403 |
$ | 282.01-283 | 9.6880 | $ | 283.01-284 | 9.7360 |
$ | 284.01-285 | 9.7841 | $ | 285.01-286 | 9.8325 |
$ | 286.01-287 | 9.8810 | $ | 287.01-288 | 9.9298 |
$ | 288.01-289 | 9.9787 | $ | 289.01-290 | 10.0278 |
$ | 290.01-291 | 10.0772 | $ | 291.01-292 | 10.1267 |
$ | 292.01-293 | 10.1764 | $ | 293.01-294 | 10.2263 |
$ | 294.01-295 | 10.2764 | $ | 295.01-296 | 10.3267 |
$ | 296.01-297 | 10.3772 | $ | 297.01-298 | 10.4279 |
$ | 298.01-299 | 10.4788 | $ | 299.01-300 | 10.5299 |
$ | 300.01-301 | 10.5811 | $ | 301.01-302 | 10.6326 |
$ | 302.01-303 | 10.6843 | $ | 303.01-304 | 10.7361 |
$ | 304.01-305 | 10.7882 | $ | 305.01-306 | 10.8404 |
$ | 306.01-307 | 10.8929 | $ | 307.01-308 | 10.9455 |
$ | 308.01-309 | 10.9984 | $ | 309.01-310 | 11.0514 |
$ | 310.01-311 | 11.1046 | $ | 311.01-312 | 11.1580 |
$ | 312.01-313 | 11.2116 | $ | 313.01-314 | 11.2654 |
$ | 314.01-315 | 11.3195 | $ | 315.01-316 | 11.3736 |
$ | 316.01-317 | 11.4280 | $ | 317.01-318 | 11.4826 |
$ | 318.01-319 | 11.5374 | $ | 319.01-320 | 11.5924 |
$ | 320.01-321 | 11.6476 | $ | 321.01-322 | 11.7029 |
$ | 322.01-323 | 11.7585 | $ | 323.01-324 | 11.8143 |
$ | 324.01-325 | 11.8702 | $ | 325.01-326 | 11.9264 |
$ | 326.01-327 | 11.9827 | $ | 327.01-328 | 12.0392 |
$ | 328.01-329 | 12.0960 | $ | 329.01-330 | 12.1529 |
$ | 330.01-331 | 12.2100 | $ | 331.01-332 | 12.2673 |
$ | 332.01-333 | 12.3249 | $ | 333.01-334 | 12.3826 |
$ | 334.01-335 | 12.4405 | $ | 335.01-336 | 12.4986 |
$ | 336.01-337 | 12.5569 | $ | 337.01-338 | 12.6153 |
$ | 338.01-339 | 12.6740 | $ | 339.01-340 | 12.7329 |
$ | 340.01-341 | 12.7920 | $ | 341.01-342 | 12.8512 |
$ | 342.01-343 | 12.9107 | $ | 343.01-344 | 12.9704 |
$ | 344.01-345 | 13.0302 | $ | 345.01-346 | 13.0903 |
$ | 346.01-347 | 13.1505 | $ | 347.01-348 | 13.2109 |
$ | 348.01-349 | 13.2716 | $ | 349.01-350 | 13.3324 |
$ | 350.01-351 | 13.3934 | $ | 351.01-352 | 13.4546 |
$ | 352.01-353 | 13.5161 | $ | 353.01-354 | 13.5777 |
$ | 354.01-355 | 13.6395 | $ | 355.01-356 | 13.7015 |
$ | 356.01-357 | 13.7637 | $ | 357.01-358 | 13.8260 |
$ | 358.01-359 | 13.8886 | $ | 359.01-360 | 13.9514 |
$ | 360.01-361 | 14.0144 | $ | 361.01-362 | 14.0775 |
$ | 362.01-363 | 14.1409 | $ | 363.01-364 | 14.2045 |
$ | 364.01-365 | 14.2682 | $ | 365.01-366 | 14.3322 |
$ | 366.01-367 | 14.3963 | $ | 367.01-368 | 14.4606 |
$ | 368.01-369 | 14.5252 | $ | 369.01-370 | 14.5899 |
$ | 370.01-371 | 14.6548 | $ | 371.01-372 | 14.7199 |
$ | 372.01-373 | 14.7852 | $ | 373.01-374 | 14.8507 |
$ | 374.01-375 | 14.9164 | $ | 375.01-376 | 14.9823 |
$ | 376.01-377 | 15.0484 | $ | 377.01-378 | 15.1147 |
$ | 378.01-379 | 15.1812 | $ | 379.01-380 | 15.2479 |
$ | 380.01-381 | 15.3147 | $ | 381.01-382 | 15.3818 |
$ | 382.01-383 | 15.4491 | $ | 383.01-384 | 15.5165 |
$ | 384.01-385 | 15.5842 | $ | 385.01-386 | 15.6520 |
$ | 386.01-387 | 15.7201 | $ | 387.01-388 | 15.7883 |
$ | 388.01-389 | 15.8567 | $ | 389.01-390 | 15.9254 |
$ | 390.01-391 | 15.9924 | $ | 391.01-392 | 16.0632 |
$ | 392.01-393 | 16.1324 | $ | 393.01-394 | 16.2018 |
$ | 394.01-395 | 16.2714 | $ | 395.01-396 | 16.3412 |
$ | 396.01-397 | 16.4112 | $ | 397.01-398 | 16.4814 |
$ | 398.01-399 | 16.5518 | $ | 399.01-400 | 16.6223 |
$ | 400.01-401 | 16.6931 | $ | 401.01-402 | 16.7641 |
$ | 402.01-403 | 16.8352 | $ | 403.01-404 | 16.9066 |
$ | 404.01-405 | 16.9781 | $ | 405.01-406 | 17.0499 |
$ | 406.01-407 | 17.1218 | $ | 407.01-408 | 17.1940 |
$ | 408.01-409 | 17.2663 | $ | 409.01-410 | 17.3388 |
$ | 410.01-411 | 17.4115 | $ | 411.01-412 | 17.4844 |
$ | 412.01-413 | 17.5576 | $ | 413.01-414 | 17.6309 |
$ | 414.01-415 | 17.7044 | $ | 415.01-416 | 17.7781 |
$ | 416.01-417 | 17.8519 | $ | 417.01-418 | 17.9260 |
$ | 418.01-419 | 18.0003 | $ | 419.01-420 | 18.0748 |
$ | 420.01-421 | 18.1494 | $ | 421.01-422 | 18.2243 |
$ | 422.01-423 | 18.2994 | $ | 423.01-424 | 18.3746 |
$ | 424.01-425 | 18.4501 | $ | 425.01-426 | 18.5257 |
$ | 426.01-427 | 18.6016 | $ | 427.01-428 | 18.6776 |
$ | 428.01-429 | 18.7538 | $ | 429.01-430 | 18.8302 |
$ | 430.01-431 | 18.9069 | $ | 431.01-432 | 18.9837 |
$ | 432.01-433 | 19.0607 | $ | 433.01-434 | 19.1379 |
$ | 434.01-435 | 19.2153 | $ | 435.01-436 | 19.2929 |
$ | 436.01-437 | 19.3707 | $ | 437.01-438 | 19.4487 |
$ | 438.01-439 | 19.5268 | $ | 439.01-440 | 19.6052 |
$ | 440.01-441 | 19.6838 | $ | 441.01-442 | 19.7625 |
$ | 442.01-443 | 19.8415 | $ | 443.01-444 | 19.9207 |
$ | 444.01 and above | 20.0000 |
Statutory Authority: MS s 93.08 to 93.12; 93.25