Why is a mineral lease law for 10 years?

Answer by  mammakat (11147)

I've read the Pickett Act and the Mineral Leasing Act and deduce that 10 yrs is an arbitrary choice that is a betterment over the prior choices of "99 yrs and a day" etc- allowing better management of the land, and trying to inhibit injurious land use by corporate power-mongers.

Answer by  Vladimir (459)

The duration of a mineral lease is something that is agreed to by both parties of the contract. Many mineral lease contracts are for 90 or 100 years. In other cases, lesser durations may be used due to maket volatility and other such business considerations. Renewal is also possible after expiration- if both parties agree to a renewal contract.

Answer by  carlady (182)

This makes sure that minerals involved are properly harvest and used for advantage of economy, not just passed off from investor to investor for profit. If this were the case natural resources would not be properly utilized and we could have shortage of important minerals in our communities with doesn't benefit anyone.

Answer by  foreverpug (19)

This isn't exactly true. Lease laws depend on what state you are in. I would be able to give you a more accurate answer if you told me where you are located. However, mineral lease laws usually have an initial term for a certain number of years, which can extend indefinitely so long as the property is still producing minerals.

Answer by  tamarawilhite (17883)

In ten years, the minerals may be mined out or the wells tapped out. Thus a lease is typically for ten years because the source is either depleted or running down in that time. If the source is still yielding minerals, the lease can be renegotiated based on new finds or continued production.

Answer by  worker2746 (2434)

Because it takes a long time to set up and mine minerals in certain areas and anything less than 10 years is too short.