(Creation of Lease of Minefield)
Article 17. Subject to the provisions of the present Law, lease of minefield may be created on mining right.
Article 18. Lease of minefield may be created for the purpose of mining specified coal bed.
No two or more lease of minefield may be created in the same area of the same minefield. However, this shall not apply to the provisions of the previous paragraph.
(Contents of Lease)
Article 19. Leaseholders of minefield shall be entitled to mine and obtain coal in the minefield with respect to which lease was registered (shall hereinafter be referred to as "leased minefield" ).
Leased minefield may be expanded or diminished.
(Transfer of Right and Obligation)
Article 20. Right and obligation of leaseholders of minefield shall transfer with the transfer of the lease.
Right and obligation of owners of mining right under the provisions of the Mining Industry Law that shall apply with or with out necessary modifications to mining carried out by leaseholders of minefield shall be transferred, with the creation of lease of minefield to leaseholders of the minefields concerned. Right and obligation of leaseholder of minefield under the provisions that have been applied with or without modifications to mining carried out by leaseholders of minefield shall be transferred, with the extinction of the lease, to owners of mining right. However, this shall not apply to case where lease has been extinguished due to the extinction of mining right.
(Restriction of Right that can be made Subject of Lease of Minefield)
Article 21. Lease of minefield may not be made the object of right other than that of inheritance, assignment, mortgage and disposition for the recovery of taxes in arrear and compulsory execution.
(Duration)
Article 22. The term of duration of lease of minefield snall be limited to a certain period.
The period as mentioned in the preceding paragraph may be extended.
(Matters to be registered)
Article 23. The following matters shall be registered in the mining register:
1, Creation, change, transfer, extension of duration, extinction and restriction in disposal of lease of minefield;
2. Restriction or extinction of leaseholders of minefield under Article 26, Paragraph 2 and Article 31, Paragraph 2.
Registration (toroku) in the preceding paragraph shall be substituted for registration (toki).
Rules for registration shall be provided by the Ministerial Ordinance.
(Effect of Registration)
Article 24. With the exception of such cases as inheritance or extinction of lease of minefield due to extinction of mining right or expiration of the term of duration, the matters as mentioned in Paragraph 1 of preceding Article shall not come into effect unless registered.
(Relation with Mortgage Right)
Article 25. A lease of minefield may set up against mortgages who have registered, befor the registration of the said lease, their right on the mining right concerned or on mining foundation to which the said mining right belongs.
In case there exists mortgage right as mentioned in the preceding paragraph, leaseholder of minefield shall deposit the rent to be paid to an owner of the mining right concerned. However, this shall not apply in case where consent was obtained from the mortgagee.
In the case of the preceding paragraph, the mortgages may exercise his right on the said deposit.
(Approval of Creation or Modification, etc. of lease of Minefield)
Article 26. Creation of lease of minefield, expansion, diminution, or transfer of lease of minefield (excluding case of inheritance), renewal or reduction of the term of duration or extinction of lease of minefield shall not be made unless obtained approval of Chief of Coal Bureau through the proceedings as prescribed by the Ministerial Ordinance.
Chief of Coal Bureau may, in case where he makes approval with respect to creation of lease of minefield, expansion, diminution in leased minefield or transfer of lease of minefield, attach, if he deemed it necessary, conditions to the approval.
Chief of Coal Bureau shall, in case where he makes approval or disapproval as mentioned in Paragraph 1, consult with the Local Coalmins Control Committee.
(Consolidation and Partition of Minefield)
Article 27. An owner of mining right shall, in case where he intends to apply for partition, consolidation, expansion or diminution of minefields that are leased ones, obtain the consent of leaseholders of the minefields concerned.
An owner of mining right shall, in case where he intends to obtain the consent as mentioned in the preceding paragraph, obtain approval of diminution of leased minefield or extinction, before expiration of term of duration, of lease of minefield under the provisions of Paragraph 1 of the preceding Article.
(Increase or Decrease of Rent)
Article 28. Parties concerned may, in case where the amount of rent became unfair due to fluctuation of coal price, etc. request for increase or decrease in the amount of rent for the future. In this case parties who were requested shall not without rightful reason deny consent.
Any person who was rejected or could not obtain the consent as mentioned in the preceding paragraph may file petition with Chief of Coal Bureau for arbitration.
The provisions of Articles 7, 9 and 11 shall apply with necessary modifications to the arbitration of the preceding paragraph.
(Cancellation of lease of Minefield)
Article 29. Chief of Coal Bureau may, consulting with the Local Coalmine Control Committee, cancel lease of minefield that falls under anyone of the following cases:
1. In case where a leaseholder of minefield violated the conditions as mentioned in Article 26, Paragraph 2 and Article 31, Paragraph 2;
2. In case where a leaseholder of minefield did not start mining within six months as from the day of the registration or where he has continuously suspended mining for more than six months or where he has not mined according to the mining plan;
3. In case where a leaseholder did not observe the order under Articles 43-(3), 72 and 74-(4), Paragraph 3 of the Coalmining Industry Law which applies with necessary modifications in Article 33;
4. In case where a leaseholder permitted another person to exercise lease of minefield;
5. In case where petition for extinction of lease of minefield was filed by an owner of mining right when a leaseholder of minefield who has obtained lease of minefield or expanded minefield under the provisions of Article 31, Paragraph.1 was remiss for more than one month in the payment of rent;
6. In case where duration of lease of minefield is deemed unnecessary for the increased production of coal.
Chief of Coal Bureau shall, in case where he intends to effect the cancellation as mentioned in the preceding paragraph, consult with the Local Coalmine Control Committee.
(Registration of Cancellation)
Article 30. Chief of Coal Bureau shall, in case where cancellation as mentioned in Paragraph 1 of the preceding Article, cancellation of disposition of cancellation as mentioned in Paragraph 2 of the same Article or cancellation of conditions that shall be registered in the mining register under Article 23, Paragraph 1, Item 2, was made effect registration thereof.
(Provisions to apply with Necessary Modifications)
Article 31. Provisions of Article 5, Paragraphs 1 and 3, Articles 6, 7, 9, 10 and 15 (excluding Item 2), shall apply with necessary modifications to the use of mining equipment that shall come to be necessary with the creation of lease of minefield, expansion or diminution of leased minefield or exercise of lease of minefield. However, in Article 10, "price" shall read "rent," and in Article 15, Item 3, "the preceding Article" shall read "Article 31, Paragraph 3."
Chief of Coal Bureau may, if he deemed it necessary, attach conditions on the arbitration under the provisions of Article 5, Paragraph 3 which apply, with necessary modifications, in those of the preceding paragraph.
Chief of Coal Bureau shall, in case where he had made the arbitration under the provisions of Article 5, Paragraph 3 which apply with necessary modifications, in those of Paragraph 1, effect registration with respect to creation or ceange in lease of minefield.
In case where the petition was filed under the provisions of Article 5, Paragraph 3 which apply, with necessary modifications, in those of Paragraph 1, an owner of the mining right concerned can neither assign the mining right concerned, consolidate nor partition minefield nor apply for expansion or diminution nor assign nor make any other disposal or change in the form of the mining equipment concerned until the arbitration was made rejecting the petition or registration was effected under the provisions of the preceding paragraph or the mining equipment concerned was delivered. However, this shall not apply to case where it is approved, subject to the provisions of the Ministerial Ordinance, by Chief of Coal Bureau.
Right to the use of mining equipment under the provisions of Paragraph 1 shall in case where the said equipment was delivered, be effective over persons who obtained, after the said delivery, property right on the said equipment.
(Assignment of mining equipment)
Article 32. In case where lease of minefield has ceased to exist, an owner of mining right may demand of the former leaseholder of minefield sale at the current price of mining equipment installed by the side leaseholder of minefield for the purpose of exercising his right. In this case the former leaseholder of minefield may not without rightful reason refuse his consent.
In case where lease of minefield has ceased to exist, the former leaseholder may demand of an owner of mining right sale at the current price of mining equipment, durable in excess of the term of duration of the said lease, installed, with the consent of the said owner of mining right, by the said leaseholder of minefield. However, this shall not apply to cases where lease of minefield has ceased to exist due to extinction of the mining right concerned.
In case where the consent as mentioned in Paragraph 1 was refused or could not be obtained or where consultation regarding conditions for the purchase of equipment under the provisions of preceding paragraph could not be made or no conclusion was reached in the consultations, the parties concerned may file petition with Chief of Coal Bureau for arbitration.
The provision of Articles 7, 9 to 13 inclusive and Article 16, Paragraph 2 shall apply, with necessary modifications, to the arbitration as mentioned in the previous paragraph. However, in Article 7, "mortgagees" shall read "holder of registrated mortgage right" ;in Article 12, "mortgage right" shall read "registered mortgage right" and "mortgagee" (teitokensha) shall read "mortgagee" (tanpokensha).
In case where petition, under Paragraph 3 was filled, the former leaseholder of minefield cannot make assignment, any other disposal or change in the form of the mining equipment concerned until the arbitiation was made rejecting the petition or arbitration applied under the provisions of Article 13 which apply in the preceding paragraph, become null and void or until the mining equipment was delivered completely. However, this shall not apply to case where approval was granted, subject to the provisions of the Ministerial Ordinance, by Chief of Coal Bureau.
(Application, with Necessary Modifications, of the Mining Industry Law)
Article 33. Provisions of Article 5, first half of main clause of Paragraph 2 of Article 9, Articles 12, 15, 16, 38, 39, 43-(3) to 46 inclusive, 49 to 70 inclusive, 72 to 74-(15) inclusive, Article 92, Paragraphs 1 to 3 inclusive and Article 93 of the Mining Industry Law shall apply, with necessary modifications, to mining carried out by leaseholders of minefield. However, in Article 74, Paragraph 1 and Article 74-(2), Paragraph 1, of the Mining Industry Law, "extinction of owner of mining right" shall read "extinction of lease of minefield due to extinction of owner of mining right" ;in Article 74-(2), Paragraph 1 of the said Law, "at the time of extinction of mining right" shall read "at the time of extinction of lease of minefield due to extinction of mining right" ;in Article 74-(2), Paragraph 2 of the said Law "owner of mining right of two or more minefields" shall read "Leaseh older or owner of mining right with respect to two or more leased minefields or two or more minefields or leased minefields" ;in Article 74-(2), Paragraph 3 of the said Law, "In case where an owner of mining right assigned his mining right, the owner of the mining right at the time of occurrence of damage or that of the said right after the occurrence of the said damage" shall read "In case where lease of minefield was assigned, created or extinguished, a leaseholder of minefield or owner of mining right at the time of occurrence of damage and a leaseholder of the said minefield or owner of the said mining right after the occurrence of the said damage" ;in Article 74-(3), Paragraph 2 of the said Law, "assignees of mining right" shall read "assignees of lease of minefield in the case of assignment of lease of minefield, leaseholders of minefield in the case of creation of lease of minefield and an owners of mining right in the case of extinction of lease of minefield" and "owner of mining right" shall read "owner of mining right or leaseholder of minefield;and in Article 74-(6) of the said Law," in case where an owner of mining right assigned mining right held by him "shall read" leaseholder of minefield assigned lease of minefield hold by him or extinguished it, "and" assignees "shall read" assignees or owners of mining right."
In case there exists lease of minefield, the provisions of Articles 43-(3) to 46 inclusive, 50 to 70 inclusive, 72 to 74-(15) inclusive, Article 92, Paragraphs 1 to 3 inclusive and Article 93 of the Mining Industry Law shall not apply to mining carried out by an owner of mining right to the same extent the same provisions apply, with necessary modifications to mining carried out by a leaseholder of minefield.
Article 34. In case where an owner of mining right permitted other persons than a leaseholder of minefield to exercise mining right, Chief of Coal Bureau may, consulting with the Local Coalmine Control Committee, cancel mining right.