.-(1) Every mining lease shall be subject to the following conditions [* * *] [ Certain words omitted by G.S.R. 449(E), dated 13.4.1988.]:-(a)the lessee shall report to the State Government the discovery in the leased area of any mineral not specified in the lease, within sixty days of such discovery;(b)if any mineral not specified in the lease is discovered in the leased area, the lessee shall not win and dispose of such mineral unless such mineral is included in the lease or a separate lease is obtained therefor;(c)the lessee shall pay, for every year, except the first year of the lease, such yearly dead rent [at the rates specified in the Third Schedule] [ Substituted by G.S.R. 86(E), dated 10.2.1987.][of the Act] [ Inserted by G.S.R. 449(E), dated 13.4.1988.] and if the lease permits the working of more than one mineral in the same area [the State Government shall not charge separate dead rent in respect of each mineral] [ Substituted by G.S.R. 703, dated 30.3.1968.]:Provided that the lessee shall be liable to pay the dead rent or royalty in respect of each mineral whichever be higher in amount but not both;(d)the lessee shall also pay for the surface area used by him for the purpose of mining operations, surface rent and water rate at such rate, not exceeding the land revenue, water and cesses assessable on the land, as may be specified by the State Government in the lease;[* * *] [ Clause (e) omitted by G.S.R. 724(E), dated 27.9.1994.](f)[* * *] [ Certain words omitted by G.S.R. 449(E), dated 13.4.1988.] The lessee shall commence mining operations within one year from the date of execution of the lease and shall thereafter conduct such operations in a proper, skillful and workman-like manner.Explanation .-For the purposes of this clause, mining operations shall include the erection of machinery, laying of a tramway or construction of a road in connection with the working of the mine;(g)the lessee shall at his own expenses erect and at all times maintain and keep in good repair boundary marks and pillars necessary to indicate the demarcation shown in the plan annexed to the lease;(h)the lessee shall not carry on, or allow to be carried on, any mining operations at any point within a distance of fifty metres from any railway line, except under and in accordance with the written permission of the railway administration concerned [or under or beneath any ropeway or any ropeway trestle or station, except under and in accordance with the written permission of the authority owning the ropeway] [ Inserted by G.S.R. 791, dated 26.2.1969.] or from any reservoir, canal or other public works, or buildings, except under and in accordance with the previous permission of the State Government;(i)the lessee shall keep [accurate and faithful ] [ Substituted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).]accounts showing the quantity and other particulars of all minerals obtained and despatched from the mine, the number and nationality of persons employed therein, and complete plans of the mine, and shall allow any officer authorised by the Central Government or the State Government in this behalf to examine at any time any accounts, plans and records maintained by him and shall furnish the Central or the State Government with such information and returns as it or any officer authorised by it in this behalf may require;(j)the lessee shall keep accurate records of all trenches, pits and drillings made by him in the course of mining operations carried on by him under the lease, and shall allow any officer authorised by the Central or the State Government to inspect the same. Such records shall contain the following particulars, namely:-(a)the sub-soil and strata through which such trenches, pits or drillings pass;(b)any mineral encountered;(c)such other particulars as the Central or the State Government may, from time to time, require;(k)the lessee shall strengthen and support, to the satisfaction of the railway administration concerned or the State Government, as the case may be, any part of the mine which in its opinion requires such strengthening or support for the safety of any railway, reservoir, canal, road or any other public works or buildings;(l)the lessee shall allow any officer authorised by the Central or the State Government to enter upon any building, excavation or land comprised in the lease for the purposes of inspecting the same;(m)the State Government shall at all times have the right of pre-emption of the minerals won from the land in respect of which the lease has been granted:Provided that the fair market price prevailing at the time of pre-emption shall be paid to the lessee for all such minerals;(n)[ the lessee shall store properly the unutilised or non-saleable sub-grade ores or minerals for future beneficiation;] [ Substituted by G.S.R. 129(E), dated 20.2.1991.](o)[ in respect of any mineral which in relation to its use for certain purposes is classified as a major mineral and in relation to its use for other purposes as a minor mineral, the lessee who holds a lease for extraction of such mineral, under these rules whether or not it is specified as a major mineral in the lease deed, shall not use or sell the mineral or deal with it in whatsoever manner or knowingly allow any one to use or sell the mineral or deal with it in whatsoever manner as a minor mineral: [ Added by G.S.R. 842, dated 18.5.1963.]Provided that if on an application made to it in this behalf by the lessee, the State Government is satisfied that having regard to the inferior quality of such mineral, it cannot be used for any of the purposes by reason of which use it can be called a major mineral or that there is no market for such mineral as a major mineral, the State Government may by order permit the lessee to dispose of the mineral in such quantity and in such manner as may be specified therein as a minor mineral;](p)[ the lessee shall, in the matter of employment, give preference to the tribals and to the persons who become displaced because of the taking up of mining operations;] [ Inserted by G.S.R. 888, dated 18.10.1986.](q)[ the lessee shall not pay a wage less than the minimum wage prescribed by the Central or State Government from time to time under the Minimum Wages Act, 1948 (11 of 1948); [Inserted by G.S.R. 86(E), dated 10.2.1987. ](r)the lessee shall observe the provisions of Mines Act, 1952 ][(35 of 1952) and of the Atomic Energy Act, 1962 (33 of 1962), in so far as they relate to atomic minerals included in Part B of the First Schedule to the Act;] [ Inserted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).](s)[ the lessee shall- [ Substituted by G.S.R. 449(E), dated 13.4.1988, for Clause (s). Earlier, it was inserted by G.S.R. 86(E), dated 10.2.1987.](i)take immediate measures for planting in the same area or any other area selected by the Central or State Government not less than twice the number of trees destroyed by reasons of any mining operations;(ii)look after them during the subsistence of the lease after which these trees shall be handed over to the State Forest Department or any other authority nominated by the Central or State Government;(iii)restore, to the extent possible, other flora destroyed by the mining operations;](t)[ the lessee shall pay to the occupier of the surface of the land such compensation as may become payable under these rules; [ Inserted by G.S.R. 86(E), dated 10.2.1987.](u)the lessee shall comply with the Mineral Conservation and Development Rules framed under section 18.](2)A mining lease may contain such other conditions as the State Government may deem necessary in regard to the following, namely:-(a)the time-limit, mode and place of payment of rents and royalties;(b)the compensation for damage to the land covered by the lease;(c)the felling of trees;(d)the restriction of surface operations in any area prohibited by any authority;(e)the notice by lessee for surface occupation;(f)the provisions of proper weighing machines;(g)the facilities to be given by the lessee for working other minerals in the leased area or adjacent area;(h)the entering and working in a reserved or protected forest;(i)the securing of pits and shafts;(j)the reporting of accidents;(k)the indemnity to Government against claims of third parties;(l)the delivery of possession of lands and mines on the surrender, expiration or determination of the lease;(la)[ the time limit for removal of mineral, ore, plant, machinery and other properties from the lease hold area after expiration, or sooner determination or surrender or abandonment of the mining lease;] [ Inserted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).](m)the forfeiture of property left after determination of lease;(n)the power to take possession of plant, machinery, premises and mines in the event of war or emergency;(o)[ filing of civil suits or petitions relating to disputes arising out of the area under lease.] [ Inserted by G.S.R. 296, dated 9.4.1983 and corrected by G.S.R. 826, dated 4.8.1984.](3)[ The State Government may, either with the previous approval of the Central Government or at the instance of the Central Government, impose such further conditions as may be necessary in the interests of mineral development, including development of atomic minerals.] [ Substituted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).](4)If the lessee does not allow entry or inspection under clause (i), (j) or (l) of sub-rule (1), the State Government shall give notice in writing to the lessee requiring him to show cause within such time as may be specified in the notice why the lease should not be determined and his security deposit forfeited; and if the lessee fails to show cause within the aforesaid time to the satisfaction of the State Government, the State Government may determine the lease and forfeit the whole or part of the security deposit.(4A)[ If the lessee holding a mining lease or a licencee holding a prospecting licence, is convicted of illegal mining and there are no interim orders of any court of law suspending the operation of the order of such conviction in appeals pending against such conviction in any court of law, the State Government may, without prejudice to any other proceedings that may be taken under the Act or the rules framed thereunder, after giving such lessee or licencee an opportunity of being heard and for reasons to be recorded in writing and communicated to the lessee or licencee, determine such mining lease or, as the case may be, cancel such prospecting licence and forfeit whole or part of the security deposit.] [Inserted by Notification No. G.S.R. 593 (E) dated 26.7.2012 (w.e.f. 11.11.1960)][(5) If the lessee makes any default in the payment of royalty as required under section 9 or payment of dead rent as required under section 9-A or commits a breach of any of the conditions specified in sub-rules (1), (2) and (3), except the condition referred to in clause (f) of sub-rule (1), the State Government shall give notice to the lessee requiring him to pay the royalty or dead rent or remedy the breach, as the case may be, within sixty days from the date of the receipt of the notice and if the royalty or dead rent is not paid or the breach is not remedied within the said period, the State Government may, without prejudice to any other proceedings that may be taken against him, determine the lease and forfeit the whole or part of the security deposit.] [ Substituted by G.S.R. 129(E), dated 20.2.1991.]
