What is a mineral rights lease?

A mineral rights lease is a specific legal agreement that grants permission to a lessee to explore, extract, and utilize the mineral resources located beneath the surface of a property. This type of lease typically involves mineral rights, which refer to the ownership of the minerals found below the surface of a piece of land, separate from surface rights, which involve ownership of the land itself.

In this context, the lessee is usually a mining or oil and gas company looking to develop the mineral resources, and they may pay the lessor (the property owner) a bonus payment, royalties, or rent for the rights to extract these resources. This contract explicitly outlines the terms, conditions, and duration of mineral extraction activities, ensuring that both parties understand their rights and responsibilities.

The other options address different types of leases or permits unrelated to mineral extraction. For example, a lease for residential property pertains to living spaces, while a permit for agricultural use is focused on farming activities. Lastly, a lease for commercial space typically relates to retail or business operations rather than the extraction of underground resources.