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ruling upholding such an ordered modification, any reserves Icft unmined (wasted) under that <br />plan will be subject to damages as described in the first paragraph under this section. <br />D. Subject to the right to appeal hereinafter set forth, payment of the value of the royalty <br />on such unrunined recoverable coal reserves have been rendered unmineable or at such time that <br />the operator /lessee has demonstrated an unwillingness to extract the coal. <br />E. The BLM may enforce this provision either by issuing a written decision requiring <br />payment of the MMS demand for such royalties, or by issuing a notice of non - compliance. A <br />decision or notice of non - compliance issued by the lessor that payment is due under this <br />stipulation is appealable as allowed by law. <br />Resource Recovery and Protection <br />A. Notwithstanding the approval of a resource recovery and protection plan (R2P2) by <br />the BLM, lessor reserves the right to seek damages against the operator /lessee in the event <br />1. The operator /lessee fails to achieve maximum economic recovery (MER) (as <br />defined at 43 CFR 4380.0 -5 (21)) of the recoverable coal reserves or <br />2. The operator / lessce is determined to have caused a wasting of recoverable coal <br />reserves. Damages shall be measured on the basis of the royalty that would have been payable on <br />the wasted or unrecovered coal. <br />B. The parties recognize that under an approved R2P2, conditions may require a <br />modification by the operator /lessee of that plan. In the event a coal bed or portion thereof is not <br />to be mined or is rendered unmineable by the operation, the operator /lessee shall submit <br />appropriate justification to obtain approval by the authorized officer (AO), such coalbeds or <br />portions thereof shall not be subject to damages as described above. Further, nothing in this <br />section shall prevent the operator /lessee from exercising its right to relinquish all or a portion of <br />the lease from exercising its right to relinquish all or portion of the lease as authorized by statute <br />and regulation. <br />C. In the event the AO determines that the R2P2, as approved, will not attain MER as the <br />result of changed conditions, the AO will give proper notice to the operator/lessee as required <br />under applicable regulations. The AO will order a modification if necessary, identifying <br />additional reserves to be mined in order to attain MER. Upon a final administrative or judicial <br />ruling upholding such an ordered modification, any reserves left unmined (wasted) under that <br />plan will be subject to damages as described in the first paragraph under this section. <br />D. Subject to the right to appeal hereinafter set forth, payment of the value of the royalty <br />on such unmmined recoverable coal reserves have been rendered unmineable or at such time that <br />the operator/lessee has demonstrated an unwillingness to extract the coal. <br />E. The BLM may enforce this provision either by issuing a written decision requiring <br />payment of the MMS demand for such royalties, or by issuing a notice of non - compliance. A <br />decision or notice of non - compliance issued by the lessor that payment is due under this <br />stipulation is appealable as allowed by law. <br />N <br />O <br />t <br />A <br />G7 <br />2-- :i <br />O.0 <br />cn <br />10 <br />;C <br />IZI <br />(/y rJ. <br />L� <br />Z�w <br />