ARIZONA MINING PERMITTING GUIDE - AZGS Document Repository

Arizona Mining Permitting Guide
Private Lands - Land Use Authorizations (Agreements)
In General:
Privately held minerals are most often developed through contractual arrangements between
the land or mineral estate owner and the operator. These contracts vary widely in levels of
sophistication and detail. The most obvious matter is the price. For many products such as
sand and gravel or decorative rock, the price - commonly termed the royalty - is usually
expressed as an amount per ton or cubic yard.
For metal bearing material the price is usually based on net smelter royalty, which considers
the metal produced from the ore less certain processing costs. Other considerations include
minimum annual payments, responsibilities for site permitting under the various regulatory
agencies, surface disturbance considerations, reclamation of the site when the material is
removed, access, insurance, limits of liabilities, guarantee of ownership, ownership of waste
or by-products and any other circumstances the parties feel should be addressed formally.
Provisions for the exploration for private minerals vary widely also. These may range from
relatively informal “hand shake” arrangements, to formal contracts specifying any number of
details and provisions. Options to purchase or lease are often contingent on the quality and
quantity of the material discovered. As with any property matters, participants should equip
themselves with a thorough understanding of the situation or seek out sound professional
advisors well versed in the field.
Reclamation of private lands is regulated by the Arizona State Mine Inspector through the
Mined Land Reclamation Plan or the Aggregate Mined Land Reclamation Plan.
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