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The Impact of Reclamation on Acceptable Strip Mining Royalty Payments

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  • Otte, John
  • Boehlje, Michael
  • Catlett, Lowell

Abstract

Rapid increases in energy prices, federal policies of energy independence and further projections of energy shortages are encouraging development of sources of energy such as strip mining for coal. A key issue faced by the owner of surface and sub-surface (mineral) rights to land is determination of the price or fee (royalty) that should be extracted from a miner who wants access to the subsurface resource. This is a crucial problem because productivity and income potential of the surface resource may be altered during the mining process. Although extracting coal through strip mining is an obvious example of this phenomenon, the same issue is confronted in surface extraction of other minerals or in placement of easements or restrictions on land use options available to surface property-right owners.

Suggested Citation

  • Otte, John & Boehlje, Michael & Catlett, Lowell, 1977. "The Impact of Reclamation on Acceptable Strip Mining Royalty Payments," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 9(2), pages 29-36, December.
    • Handle: RePEc:cup:jagaec:v:9:y:1977:i:02:p:29-36_01
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