Amanda McBride/Staff

Members of the Choctaw County School Board discusses the formative lease, to lease a portion of their 16-section land for mining, before adopting the lease and approving to advertise for bids on the land.

The Choctaw Plaindealer

The Choctaw County School Board approved a formative lease to lease a portion of their Sixteen-Section land for mining, then approved to advertise for bids on the land.

Before approving the formative lease, the board wanted to table the lease to next months' meeting to study it more and thought they had plenty of time to adopt the lease.

"We have waited as long as possible. If you wait, we will make plans to put our facilities elsewhere," said Mike Thomas, manager of land, government and public affairs for Red Hills Mine, stating the board will not lose anything by approving the lease.

Dr. Arlene Amos, superintendent, reminded the board that they still have control of the land and timber until the coalmine is ready to use the land.

"Don't miss the opportunity for this district. Get this money for this district, please," said Amos.

Kevin Null, board attorney, said the next step is to advertise for bids on the Sixteen-section land, but they do not have to accept the bids at that time. After accepting bids to mine the land then the board would sign the mining lease.

The board's decision to adopt the formative lease came after a special board meeting, Oct. 29 when Bill Cheney, senior attorney for the Public Land's Division in the Secretary of State's Office, carefully explained the formative lease, that he created the lease, section by section.

Cheney added a provision requiring anyone who bids on the lease to prove they are financially stable to mine the coal.

An extra bookkeeping provision was added to help Choctaw County keep each money category separate.

The school board does not have the ability to set royalty amounts, that is up to the leaseholder, according to Cheney.

Monies received from surface rent, delay rent and interest from coal royalties may be spent when received.

The mining lease between the Choctaw County School Board and the highest bidder will be the first in Mississippi so the board is taking extra precautions to make sure future school districts will receive the maximum benefits.