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C <br />• <br />_.,. - Brent •cc&. :esc:::e• e_:•t•: .:e _talc. Al:e.- c_ :.t trt <br />li1•:l:r .t^ .5 i:'_fyet. Lne :ts*ee a :�a .: = i :� :i'.: •r era :iOt e: :ne �_. rr <br />canes r: :he :+alai :ands. :he terms "d:::Fe a• ceyt :r' =e: s• and '•c encinued e,t: a o :' <br />art c6 -tine! _ne sppa cable teFuia:ienr -t __t ea __ au -3 c; the Coot Cf <br />race:&: ke :c :a :ions. <br />Sec. bC "• ant lesser ohs:: i11e rite. ;here art::— ,t &,* S•_rea•i of :.and ."anaFe-cn- <br />e!f:ce a lease S :n! :n the smoue: c! 5 - _9��yr- for tha use a ❑d he- ..t.f:: <br />of :be t'aited States to insure ra'.sent 0! trkfe :red oenvs =a*- me=;s, rer.:a /s, ant <br />re.el:fes cad tc inscre cos :. : :anCt __-h A­ :: e_•s of tL,is _east, the rtF_ :a :: n" <br />ant the At. (ex :apt for ret :a =anon area c.—&-ec `•' a s.r`_a:e F :e -' <br />issued under zS& par. men: regulator, r, the re,-- icier•: actherit:, and. :- <br />apotopriate, !o: the pro;ectior. of the tr. ;a:ests cf :ne aLrlact c_•tters or. the :ea,ec <br />lands. AC tncraaae in tht amount of the i&Asa bond ear' be re :aired by ;he :assn: A: <br />an•• tins* du-:at the life of the lease to ra %ect changed cend;tlons- <br />Sae. S. R.MM - At annual rental o! S !or each acre or frac :lor, :he reoC <br />*hall be paid in advance os o: before the aimiversary date of this lease. :his <br />section shall not be subject to revision except _n the course of lease readtusteert. <br />Sec. 6. PRODL'CTI01 ROYALTY - The lessee shall pay a oroductior, revelry of hr: ^trier.: <br />of the value of coal produced by strip or akige- eiping merhods and x percent of <br />the value of coal produced by underground M. nine netbods. The value of coal zero =: of <br />determined as sat forth Jr. the regulations In 30 C17 :I]. Productioc roval:irs talc for <br />a calendar mac :` snall be reduced by the count cf acv advance ro :a:cles paid cn:er -his <br />lease to the u:ed: the; sac`. a!r•snce raval:ies cave cot :ten used tp reduce procuc::or <br />royalties it a previous month. However, srthauct_ot royalties payable after the <br />Year of the Issue shall not be reduced by advance royalties paid during the l /rs: 21 <br />years of the lease. Production royalties shall be savable the final day of the month <br />sueceedipg the calendar month in which the teal is sold. um'_es& otherwise aced! :ed in <br />30 CFR 211. The royalty rates provided Jr. this section shall not be subject to :evls:or. <br />except in the course of lease readjustment. <br />Sec. 7. ADVA:NU ROYALTY - Vpot request by the lessee the wis:rict YSning Supe n•iaor <br />guy accept, fot a total of not more than ID years, the pa�seot of advance royalties <br />to lieu of the condition of continued operation consistent with the regulations in 43 <br />CFA 3473 and 30 CTR 711. Thu advance royalty shall be based on a parcent of the <br />value of a minimum number of tons vhlcb shall be determined in the canner es :ablisned <br />by the regulations in 43 CFR 3473. <br />Sec. B. ILeTHOD OF PAY`ff1.TS - The lessee shall cake rental PEFcent■ to the apprev:iate <br />bureau of Land Management (bLM) office until production royalties become payable. <br />Thereafter, all rascals, production royalties and advance royalties shall be paid to <br />the appropriate offics of the United States GeOloeical SurVCF, <br />Sec. 9. EXPLORATION PLAN - The lessee shall not commence any exploration, except <br />casual use, on the leased lands without 00 approved exploration plan_ Exploration <br />Plant for leased lands covered by an approved mining parmit shall be submitted to the <br />Regional Director of the Office of Surface ?lining in accordance with the regulations <br />in 30 CPR Chapter VII. Exploration plans !br leased :ands not coveted by an a;croved <br />mining permit shall bt submitted to the District Mining Supervisor in accordance with <br />the regulations is 30 CFR 211• <br />Sec. 10. MINING PLAN - In accordance with the regulations in 30 CFR 211 and Chapter <br />VII, the lessee shall submit a mining and retlamation plan not more than three years <br />after the effective data of this lease. Itlming operations shall not cozmence uncll <br />after the mining and reclamation plan Is approved. The mining and reclamation shall <br />be conducted to accordance with the approved mi.ning sod reclamation plan. Exploration <br />activities which ware not included So the approved Lining and reclamation clan require <br />submittal of exploration rlsns in accordance with Section 9 of this lease. <br />Sec. 11. LOGICAL MINING UNIT (L`fU) - This Jesse is aucorat:cally considered to be an <br />_NU. This L`17 oav be enlarged, adjusted Or diminished Jr. accordance with the applicable <br />regulations in Titles 10, 30 and 43 of the Code of Feder. -al Regulations. The mining <br />Plan for the L`ft shall require that the reserves of the L`X will be tined within a <br />period of 40 vears in accordance with 30 CrR 211 and 43 CFR 3400.0 -5. The definition <br />of L'fD and LM reserves and other applicable conditions are sat forth In the regulations <br />in 43 CFR 3400.0 -5 and 3475. 30 CFR 211, and Title 10 of the Code of Federal Regulations. <br />'Cl <br />