GIVE WHAT? TO WHOM? BUT WHY? AREA OF INTEREST PROVISIONS IN MINING AGREEMENTS(Chapter 38)

摘要

"Give what? To whom? But why?" just might be the last words out of the mouth of your boss before the words "You're fired." As the title of this chapter indicates, sometimes area of interest (AOI) provisions in mining agreements lead to unintended--or unanticipated--consequences, and such consequences sometimes have further consequences of their own. As an example, take the case of Mountain West Mines, Inc. v. Cleveland-Cliffs Iron Company.3 Mountain West entered into an Option and Agreement with Cleveland-Cliffs in 1967. In the agreement, Cleveland-Cliffs was given the option to purchase certain uranium properties owned by Mountain West in the "Powder River Basin."4 In return, Cleveland-Cliffs agreed "to convey a two and one-half percent (2-1/2%) royalty interest to 'Mountain West' in any lands it may hereafter acquire in the 'Powder River Basin'... ."