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Sec. 6. DOCUMENTS, EVIDENCE AND INSPEC"17ON - At such times and in <br />such form as lessor may prescribe, lessee must furnish detailed statements <br />showing the amounts and quality of all products removed and sold front the <br />lease. the proceeds therefrom, and the amount used fur production purposes or <br />unavoidably lost. <br />Lessee must keep open at all reasonable times for the inspection by BLM the <br />leased premises and all surface; and underground improvements. works. <br />machinery. ore stockpiles. equipment. and all books. accounts, maps. and <br />records relative to operations. surveys. or investigations on or under tlx: Ica. -cd <br />lands. <br />Lessee must allow lessor access to and copying of documents reasonably <br />necessary to verify lessee compliance with terms and conditions of the lease. <br />While this lease remains in effect, information obtained under this section will <br />be closed to inspection by the public in accordance with the Freedom of <br />Information Act (5 U.S.C. 552). <br />Sec. 7. DAMAGES TO PROPERTY AND CONDUCT OF OPERATIONS - <br />Lessee must comply at its own expense with all reasonable orders of the <br />Secretary, respecting diligent operations, prevention of waste, and protection of <br />other resources. <br />Lessee must not conduct exploration opctations, other than casual use, without <br />an approved exploration plan. All exploration plans prior to the commencement <br />of mining operations within an approved mining permit area must be submitted <br />to the BLM. <br />Lessee must carry on all operations in accordance with approved methods and <br />practices as provided in the operating regulations, having due regard for the <br />prevention of injury to life, health, or property, and prevention of waste, damage <br />or degradation to any land, air. water. cultural, biological. visual, and other <br />resources. including mineral deposits and formations of mineral deposits not <br />leased hereunder, and to other land uses or users Lessee must take measures <br />deemed necessary by lessor to accomplish the intent of this lease term. Such <br />measures may include, but are not limited to, modification to proposed siting or <br />design of facilities, timing of operations, and specification of interim and final <br />reclamation procedures. Lessor reserves to itself the right to lease. sell, or <br />otherwise dispose of the surface or other mineral deposits in the lands and the <br />right to continue existing uses and to authorize future uses upon or in the leased <br />lands. including issuing leases for mineral deposits not covered hereunder and <br />approving easements or rights -of -way. lessor must condition such uses to <br />prevent unnecessary or unreasonable interference with rights of lessee as may be <br />consistent with concepts of multiple use and multiple mineral development. <br />Sec. 8. PROTECTION OF DIVERSE INTERESTS, AND EQUAL OPPORTU- <br />NITY - Lessee must: pay when due all taxes legally assessed and levied under <br />the laws of the State or the United States; accord all employees complete <br />freedom of purchase; pay all wages at least twice each month in lawful money <br />of the United States; maintain a safe working environment in accordance with <br />standard industry practices; restrict the workday to not more than 8 hours in any <br />one day for underground workers, except in emergencies; and take measures <br />necessary to protect the health and safety of the public. No person under the age <br />of 16 years should be employed in any mine below the surface. To the extent <br />that laws of the State in which the lands are situated are more restrictive than the <br />provisions in this paragraph, then the State laws apply. <br />Lessee will comply with all provisions of Executive Order No. 11246 of <br />September 24, 1965, as amended, and the rules, regulations, and relevant orders <br />of the Secretary of Labor. Neither lessee nor lessee's subcontractors should <br />maintain segregated facilities. <br />Sec. 9. (a) TRANSFERS - <br />T his lease may be transl'etrred in whole or in part to any person. <br />association or corporation qualified to hold such lease interest. <br />'lids lease may be transferred in whole or in part to another public body <br />or to a person who will mine coal en behalf of, mid for die use of. the <br />public body or to a person who for die limited purpose of creating a <br />security interest in favor of a lender agrees to be obligated to mine the <br />coal on behalf of the public body. <br />This lease may only be transferred in whole or in part to another small <br />business qualified under 13 CFR 121. <br />Transfers of record title, working or royalty interest must be approved in <br />accordance with the regulations. <br />(b) RELINQUISI IMENT -The lessee may relinquish in writing at any time all <br />rights under this lease or any portion thereof as provided in the regulations. <br />Upon lessors acceptance of the relinquishment, lessee will be relieved of all <br />future obligations under the lease or the relinquished portion thereof. <br />whichever is applicable. <br />Sec. 10. DELIVERY OF PREMISES, REMOVAL 01= MACHINERY. <br />EQUIPMENT, ETC. - At such time as all portions of this base are returned to <br />lessor, lessee must deliver up to lessor the land leased, underground timbering, <br />and such other supports and structures necessary for the preservation of the <br />mine workings on the leased premises or deposits and place all workings in <br />condition for suspension or abandonment. Within 180 days thereof, Icmee <br />must remove from the premises all other structures. machinery. equipment. <br />tools. and materials that it elect.- to or as required by the BLM. Any such <br />structures, machinery, equipment, tools. and materials remaining on the leased <br />lands beyond 180 days, or approved extension thereof. will become the <br />property of the lessor, but lessee may either remove any or all such property or <br />continue to be liable for the cost ol'removal and disposal in the amount <br />actually incurred by the lessor. If the surface is owned by third parties, lessor <br />will waive the requirement for removal, provided the third parties do not object <br />to such ovaiver. Lessee must, prior to the termination of bond liability or at any <br />other time when required and in accordance with all applicable laws and <br />regulations, reclaim all lands the surface of which has been disturbed. dispose <br />of all debris or solid waste, repair the offsite and onsite damage caused by <br />lessee's activity or activities incidental thereto. and reclaim access roads or <br />trails. <br />Sec. 11. PROCEEDINGS IN CASE OF DEFAULT - If lessee fails to comply <br />with applicable laws, existing regulations, or the terms, conditions and <br />stipulations of this [case, and the noncompliance continues for 30 days after <br />written notice thereof, this lease will be subject to cancellation by the lessor <br />only by judicial proceedings. This provision will not be construed to prevent <br />the exercise by lessor of any other legal and equitable remedy, including <br />waiver of the default. Any such remedy or waiver will not prevent later <br />cancellation for the same default occurring at any other time. <br />Sec. 12. 1 1E1RS AND SUCCESSORS -IN- INTEREST - Each obligation of this <br />lease will extend to and be binding upon, and every benefit hereof will inure <br />to, the heirs, executors, administrators, successors, or assigns of the respective <br />parties hereto. <br />Sec. 13. INDEMNIFICATION - Lessee must indemnify and hold harmless the <br />United States from any and all claims arising out of the lessee's activities and <br />operations under this lease. <br />Sec. 14. SPECIAL STATUTES - This lease is subject to the Clean Water Act <br />(33 U.S.C. 1252 ct seq.), the Clean Air Act (42 U.S.C. 4274 et seq.), and to all <br />other applicable laws pertaining to exploration activities, mites operations <br />and reclamation, including the Surface Mining Control and ftlamation Act of <br />1977 (30 U.S.C. 1201 et seq.). <br />Sec. 15. SPECIAL STIPULATIONS — <br />Please see attached Bureau of Land Management Decision. RecorJ4ndJ;o'rest <br />Service appendix A. <br />(Continued on page 3) (f=orm 3400 -12, page 2) <br />