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State of Punjab - Section

Section 37 in The Punjab Minor Mineral Concession Rules, 1964

37. Conditions of mining lease.

- Every mining lease shall be subject to the following conditions :-
(i)The provisions of rules 15, 18(3), 20, clause (i) to (xv), (xvii) and (xviii) of rule 21(1) and 21(2) shall apply to such leases with the modification that the word "Government" occurring in clauses (ii) to (iv) and (xviii) of sub rule (1) of rule 21 shall be substituted by the word 'lessor'.
(ii)The lease may contain such other conditions not being inconsistent with the provisions of these rules, as may be agreed upon between the parties.
(iii)The period for which a mining lease may be granted shall be five years in the first instance, unless the Government allows a longer period not exceeding ten years.
(iv)If the lessee makes any default in payment of royalty as required by rule 21(1)(i) or commits a breach of any of the conditions of the lease, the lessor shall give notice to the lessee requiring him to pay the royalty or remedy the breach, as the case may be within thirty days from the date of receipt of the notice and if the royalty is not paid or the breach is not remedied within such period the lessor without prejudice to any proceeding that may be taken against the lessee, determine the lease.
(v)The lessee may determine lease at any time by giving not less than six calendar months' notice in writing to the lessor after paying all outstanding dues to the latter.
(vi)The lessee shall furnish a bank guarantee of Rs. 1,000/- to the lessor for due observance of the terms and conditions of the lease, before the execution of the lease deed.