Merchantable and Mineable Coal Clause Samples
The 'Merchantable and Mineable Coal' clause defines the standards and criteria that coal must meet to be considered suitable for commercial sale and feasible extraction. Typically, this clause outlines specific qualities such as coal grade, size, and accessibility, and may reference industry benchmarks or testing methods to determine merchantability and mineability. Its core function is to ensure that only coal which can be profitably extracted and sold is subject to the rights and obligations of the agreement, thereby protecting both parties from disputes over substandard or inaccessible coal resources.
POPULAR SAMPLE Copied 2 times
Merchantable and Mineable Coal. The term “merchantable and mineable coal,” as used in this Sublease shall have the same meaning (for such term or similar term, such as “mineable and merchantable coal”) as in the Base Lease. If it is found and reported to Sublessee in writing by an agent of Sublessor that in the progress of the work any areas of merchantable and mineable coal have been passed by or abandoned with the result that coal has not been mined and removed, which in accordance with accepted overburden/coal ratio criterion or in accordance with good mining practice should have been mined and removed, it shall be the duty of Sublessee to return as soon as possible to such areas and mine and remove the coal therefrom, or failing so to do, Sublessee shall account for the coal contained therein and pay the royalty therefor the same as though it had been mined. If there is a dispute between Sublessor and Sublessee as to whether Sublessee has passed by or abandoned any coal which should have been mined and removed as above provided, such dispute shall be submitted to arbitration in the manner provided in this Sublease.