77-3-307. Improvements of former lessee. (1) When a coal mining lease is applied for on land where mining operations have been carried on by a former lessee and there are surface or underground improvements on the land used at the former operations, disposition must be made of the improvements satisfactory to the board before a new lease is issued. If the owner of the improvements desires to sell the improvements to the new lessee, the new lessee shall pay the owner the reasonable value of the improvements as far as they are suitable for the new mining operations. If they fail to agree on the value of the improvements, the value must be ascertained and fixed as provided in 77-6-306.

(2) Before a new lease is issued, the applicant shall show to the satisfaction of the board that the applicant has paid the owner for the improvements as agreed on between them or as fixed under the provisions of 77-6-306, that the applicant has tendered payment as fixed, or that the owner desires to remove the owner's improvements.