I don't want to take up space here discussing a non-related topic, so does someone know where I would look to see what is important in a deep mine lease for limestone? I am looking for another quality forum like this, or good web sites or references where I can see what others have signed for, and what language is important to get in or out of my lease. If this is a good forum for this discussion, then feel free to start commenting. Otherwise - I can give an email or other contact info. to discuss elsewhere.
For those interested, I have been offered $0.30 per ton or 3 percent of the sales price, whichever is greater. It's a 25-year lease, with $250 monthly advance royalties paid until they start mining. Thanks, much.
What state are you in? What is the thickness of the limestone? How deep is the cover? What is the limestone formation in reference, as there are only certain formations that are mined.
Limestone extractions in Iowa are deep mined with no blasting. They cut the face and leave pillars. Some companies in Ohio are implementing this method due to too much top cover.
I have heard the price of $0.42 per ton in Ohio as it really adds up big with thickness.
In Ohio we have a state agency, ODNR with a Geology Department that answers these questions.
You could contact a Mining Engineer that could give you some insight.
I am in Western PA, and my understanding is that the seam needs to be 16 feet or thicker before they will deep mine, and I know that borings to the north of me have shown 20+ thickness, and to the south of me, it starts to phase out. The limestone is at least 200 feet below my home, and probably 100 feet below the lowest valley portion of my property. I don't know if blasting is needed - I suspect that it is done the way you describe. I can contact the DCNR or PADEP (wherever mining is covered), but wasn't sure if lease rates and sample leases would be included there. It's a good tip, though.