(1) Subject to the conditions of this rule where mining operations are not commenced within a period of two years from the date of execution of the mining lease, or is discontinued for a continuous period of two years after commencement of such operations, the mining lease shall lapse.
(2) The lapsing of a mining lease shall be recorded through an order issued by the State Government and shall also be communicated to the lessee.
(3) Where a lessee is unable to commence the mining operations within a period of two years from the date of execution of the mining lease or discontinuation of mining operations for reasons beyond his control, he may submit an application to the State Government, explaining the reasons for the same, at least three months before the expiry of such period of two years:
Provided where the lessee has failed to make the application within the time stipulated above, the lease shall lapse on expiry of the period of two years.
(4) Application made under sub-rule (3) shall specify in detail:
(a) the reasons on account of which it will not be possible for the lessee to undertake mining operations or continue such operations;
(b) the manner in which such reasons are beyond the control of the lessee; and
(c) the steps that have been taken by the lessee to mitigate the impact of such reasons.
(5) Every application under sub-rule (3) shall be accompanied by a fee of rupees one lakh.
(6) The State Government shall, after examining the adequacy and genuineness of the reasons for the non-commencement of mining operations or discontinuance thereof, pass an order, within a period of three months from the date of receipt of the application made under sub-rule (3) or the date on which the mining lease would have otherwise lapsed, whichever is earlier, either granting or rejecting such request:
Provided that such mining lease shall lapse on failure to undertake mining operations or inability to continue the same before the end of a period of six months from the date of the order of the State Government communicating that the lease has not lapsed.
(7) The State Government may, on an application made by the holder of a mining lease submitted within a period of six months from the date of its lapse and on being satisfied about the adequacy and genuineness of the reasons for non-commencement of mining operations or discontinuance thereof was beyond the control of the holder of the mining lease, revive the mining lease within a period of three months from the date of receiving the application from such prospective or retrospective date as it thinks fit but not earlier than the date of lapse of the mining lease:
Provided that no mining lease shall be revived for more than twice during the entire period of the mining lease.
(8) Application made under sub-rule (7) for revival of the mining lease shall specify in detail:
(a) the reasons on account of which the lessee failed to undertake mining operations or continue such operations;
(b) the manner in which such reasons are beyond the control of the lessee; and
(c) the steps that have been taken by the lessee to mitigate the impact of such reasons.
Provided that the State Government may seek such additional information, documents or clarifications with respect to the application as it may require.
(9) Every application under sub-rule (7) shall be accompanied by a fee of rupees one lakh.
(10) The State Government shall have the right to enforce the performance security of the lessee to carry out protective, reclamation and rehabilitation measures in the leased area of the mining lease which has lapsed.
(11) The lessee shall pay any expenditure over and above the performance security incurred by the State Government, towards protective, reclamation and rehabilitation measures in the leased area of the mining lease which has lapsed.