Natural Resource Partners L.P., a limited liability partnership, was established in April 2002 and completed its initial public offering in October 2002. The company's main business is to own, manage and lease mining rights in the United States. The company has coal reserves in three major coal-producing regions in the United States: Appalachia, the Illinois Basin and the Western United States, and lignite reserves in the Gulf Coast region. Royal enterprises mainly own and manage mineral deposits. As the owner of the mine, the company is usually not responsible for producing the mine, but forms a lease agreement with the coal developer, grants mining rights and sells the company's asset reserves in exchange for a royalty. A typical lease has a base term of 5-10 years, and the lessee can choose to extend the additional lease term. Leases may include the right to negotiate rent and royalties for extended periods.
