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Mineral Extraction and Lease Agreement between the City of Luverne and Northern Con-Agg, LLP.
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This Mineral Extraction and Lease Agreement between the City of Luverne (Lessor) and Northern Con-Agg, LLP (Lessee), outlines the lease of designated city-owned land for the purpose of mining sand, gravel, and rock. The Lessee is granted exclusive rights to access, occupy, and use the premises to extract and remove those minerals, with responsibility for obtaining all required permits. Lease payments include an annual flat fee of $100 plus a royalty of $1.35 per cubic yard of materials removed, subject to annual surveys and accounting. The lease term is ten years, with an option to renew for an additional five years. The Lessee agrees to reclaim mined lands and maintain the premises during the lease. The agreement includes provisions for termination upon payment default, voluntary notice, or expiration of the lease term, assignment rights, indemnification of the Lessor, and other standard legal terms. This contract ensures the City's property is utilized and maintained properly while enabling mineral extraction by the Lessee under specified conditions.
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City Administrator Recommendation: City Council Approve Mineral Extraction and Lease Agreement between the City of Luverne and Northern Con-Agg, LLP.