Mineral Lands Leasing Act Amendments of 1985

Mineral Lands Leasing Act Amendments of 1985 - Amends the Mineral Lands Leasing Act to repeal the provision that an entity holding a Federal coal lease for ten years without producing coal in commercial quantities is prohibited from acquiring future Federal leases under such Act.

Repeals the requirement that lands in a logical mining unit must be contiguous.

Directs the Secretary of the Interior to promulgate regulations regarding experimentation with the negotiated sale of leases for bypass and maintenance tracts.

Repeals the requirement that an approved mining plan must include production and operation standards which assure that the entire unit reserves will be mined within 40 years. Allows the Secretary discretion to designate a production period.

Amends coal leasing conditions to continue a coal lease term beyond 20 years for so long as the condition of continued operation and diligent development is met. Requires termination of a coal lease at the end of ten years if coal is not being produced in commercial quantities. Permits such lease to be extended beyond the tenth lease year through the payment of advance royalties. Prescribes the escalating basis upon which such advance royalties will be assessed.