|
Form 34(N) -i2
<br />(Sepleniber 2013) UNITED STA rES
<br />DEPARTMENT OF THE INTERIOR
<br />BUREAU OF LAND MANAGEMENT
<br />COAL LEASE
<br />PART I. LEASE R1G11TS GRANTED
<br />Nunitx r
<br />FORM AI111RO VEI)
<br />uMB NU W044073
<br />0073
<br />Expaws June 30, 2016
<br />COC75916
<br />This lease, entered into by and between the UNITED STATES OF AMERICA, hereinafter called lessor, through the Bureau of Land Management IBLM). and
<br />(Name card Address)
<br />Bowie Resources. LLC
<br />225 N. 5'x Street. Suite 900
<br />Grand Junction, CO 81501
<br />hereinalicr called lessee. is effective (dare) /0/ / /W %r a period of 20 years and for so long thereafter as coal is produced in commercial quantities from the
<br />leased lands. subject to readjustment of lease terms at the end of the 20th lease year and each 10 -year period 11wrealter.
<br />Sec. L'rhis (case is issued pursuant and subject to the lcrms and provisions of the:
<br />The Mineral Leasing Act of 1920, as amended. 30 U.S.C. 181 - 287, or
<br />The Mineral Leasing Act for Acquired Lands, 30 U.S.C. 351 - 359;
<br />and to the regulations and formal orders of the Secretary of the Interior which are now or hereafter in force, when not inconsistent with the express and specific
<br />provisions herein.
<br />Sec. 2. lessor. in consideration ofany bonuses, rents. and royalties to be paid, and the conditions and covenants to be observed as herein set lirth, hereby grants and
<br />leases to lessee the exclusive right and privilege to drill for, mine. extract, remove, or otherwise process and dispose of the coal deposits in, upon, or under the
<br />following described lands:
<br />Containing 1,790.20 acres, more or less, together with the right to construct such works, buildings, plants, structures, equipment and appliances and the right to use
<br />such on -lease rights -of -way which may be necessary and convenient in the exercise of the rights and pnvilcges granted, subject to the conditions herein provided.
<br />PART II. TERMS AND CONDITIONS
<br />Sec. 1. (a) RENTAL RATE - Lessee must pay lessor rental annually and in
<br />advance for each acre or fraction thereof during the continuance of the lease at the
<br />rate of S3.00 for each lease year.
<br />(b) RENTAL CREDITS - Rental will not be credited against either production or
<br />advance royalties for any year,
<br />Sec. 2. (a) PRODUCTION ROYALTIES -'fhe royalty will be 8%percent of the
<br />value of the coal as set forth in the regulations. Royalties arc due to lessor the
<br />final day of the month succeeding the calendar month in which the royalty
<br />obligation accrues.
<br />(b) ADVANCE ROYALTIES - Upon request by the lessee, the BLM may accept.
<br />for a total of not more than 20 years, the payment of advance royalties in lieu of
<br />continued operation, consistent with the regulations. The advance royalty will be
<br />based on a percent of the value of a minimum number of tons determined in the
<br />manner established by the advance royalty regulations in effect at the time the
<br />lessee requests approval to pay advance royalties in lieu of continued operation.
<br />Sec. 3. BONDS - Lessee must maintain in the proper office a lease bond in the
<br />amount of S 2,315,133.00 . The BLM may require an increase in this amount
<br />when additional coverage is determined appropriate.
<br />Sec. 4. DILIGENCE - This lease is subject to the conditions of diligent
<br />development and continued operation, except that these conditions are
<br />excused when operations under the lease are interrupted by strikes.. the
<br />elements, or casualties not attributable to the lessee. The lessor, in the
<br />public interest, may suspend the condition of continued operation upon
<br />payment of advance royalties in accordance with the regulations in
<br />existence at the time of the suspension. Lessee's failure to produce coal in
<br />commercial quantities at the end of 10 years will terminate the lease.
<br />Lessee must submit an operation and reclamation plan for the BLM's
<br />approval pursuant to 30 U.S.C. 207(c) prior to conducting any
<br />development or mining operations or taking any other action on a
<br />leasehold which might cause a significant disturbance of the environment.
<br />The lessor reserves the power to assent to or order the suspension of the
<br />terms and conditions of this lease in accordance with, inter alia. Section 39 of
<br />the Mineral Leasing Act. 30 U.S.C. 209.
<br />5. LOGICAL MINING UNIT (LMU) - Either upon approval by the lessor of
<br />the lessee's application or at the direction of the lessor, this lease will become
<br />an LMU or part of an LMU, subject to the provisions set forth in the
<br />regulations.
<br />The stipulations established in an LMU approval in effect at the time of LMU
<br />approval will supersede the relevant inconsistent terms of this lease so long
<br />as the lease remains committed to the LMU. If the LMU of which this lease
<br />is a part is dissolved, the lease will then be subject to the lease terms which
<br />would have been applied if the lease had not been included in an LMU.
<br />tV
<br />O
<br />Sixth Principal Meridian
<br />T 12 S., R 91 W., 6th P.M.,
<br />sec. S. lots 2, 3, 4, 10, and 11. E' /:SW' /.NE' /.t�
<br />..A
<br />1 r
<br />sec. 31, lots I t to 26, inclusive,
<br />N'IANW'/.SW %NE%, Nv,N'% Sl?' /. NW V., NC'(�t31E'hNG�'/
<br />%M
<br />'
<br />� 4
<br />sec. 32, lots 10 to IS, inclusive
<br />NE' /.NW' /.NE` /SE' /., WV W /2NE' /.SE'/., E'A'/.S s�j I
<br />T 12 S., R. 92 W., 6th P.M.,
<br />see 6, lots I to 4, inclusive. ea-
<br />- 3 C'
<br />r
<br />sec 36, SYi.
<br />1. 13 S., R 92 W. 6th P.M.,
<br />T 13 S., R. 91 W., 61h P.M.,
<br />sec. 1, lots 5 to S. inclusive,
<br />Containing 1,790.20 acres, more or less, together with the right to construct such works, buildings, plants, structures, equipment and appliances and the right to use
<br />such on -lease rights -of -way which may be necessary and convenient in the exercise of the rights and pnvilcges granted, subject to the conditions herein provided.
<br />PART II. TERMS AND CONDITIONS
<br />Sec. 1. (a) RENTAL RATE - Lessee must pay lessor rental annually and in
<br />advance for each acre or fraction thereof during the continuance of the lease at the
<br />rate of S3.00 for each lease year.
<br />(b) RENTAL CREDITS - Rental will not be credited against either production or
<br />advance royalties for any year,
<br />Sec. 2. (a) PRODUCTION ROYALTIES -'fhe royalty will be 8%percent of the
<br />value of the coal as set forth in the regulations. Royalties arc due to lessor the
<br />final day of the month succeeding the calendar month in which the royalty
<br />obligation accrues.
<br />(b) ADVANCE ROYALTIES - Upon request by the lessee, the BLM may accept.
<br />for a total of not more than 20 years, the payment of advance royalties in lieu of
<br />continued operation, consistent with the regulations. The advance royalty will be
<br />based on a percent of the value of a minimum number of tons determined in the
<br />manner established by the advance royalty regulations in effect at the time the
<br />lessee requests approval to pay advance royalties in lieu of continued operation.
<br />Sec. 3. BONDS - Lessee must maintain in the proper office a lease bond in the
<br />amount of S 2,315,133.00 . The BLM may require an increase in this amount
<br />when additional coverage is determined appropriate.
<br />Sec. 4. DILIGENCE - This lease is subject to the conditions of diligent
<br />development and continued operation, except that these conditions are
<br />excused when operations under the lease are interrupted by strikes.. the
<br />elements, or casualties not attributable to the lessee. The lessor, in the
<br />public interest, may suspend the condition of continued operation upon
<br />payment of advance royalties in accordance with the regulations in
<br />existence at the time of the suspension. Lessee's failure to produce coal in
<br />commercial quantities at the end of 10 years will terminate the lease.
<br />Lessee must submit an operation and reclamation plan for the BLM's
<br />approval pursuant to 30 U.S.C. 207(c) prior to conducting any
<br />development or mining operations or taking any other action on a
<br />leasehold which might cause a significant disturbance of the environment.
<br />The lessor reserves the power to assent to or order the suspension of the
<br />terms and conditions of this lease in accordance with, inter alia. Section 39 of
<br />the Mineral Leasing Act. 30 U.S.C. 209.
<br />5. LOGICAL MINING UNIT (LMU) - Either upon approval by the lessor of
<br />the lessee's application or at the direction of the lessor, this lease will become
<br />an LMU or part of an LMU, subject to the provisions set forth in the
<br />regulations.
<br />The stipulations established in an LMU approval in effect at the time of LMU
<br />approval will supersede the relevant inconsistent terms of this lease so long
<br />as the lease remains committed to the LMU. If the LMU of which this lease
<br />is a part is dissolved, the lease will then be subject to the lease terms which
<br />would have been applied if the lease had not been included in an LMU.
<br />
|