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reclamation procedures. Lessor reserves to itself the right to
<br />lease, sell, or otherwise dispose of the surface or other mineral
<br />deposits in the lands and the right to continue existing uses and to
<br />authorize future uses upon or in the leased lands, including
<br />issuing leases for mineral deposits not covered hereunder and
<br />approving easements or rights -of -way. Lessor shall condition
<br />such uses to prevent unnecessary or unreasonable interference
<br />with rights of Lessee as may be consistent with concepts of
<br />multiple use and multiple mineral development.
<br />Sec. S. PROTECTION OF DIVERSE INTERESTS, AND
<br />EQUAL OPPORTUNITY - Lessee shall pay when due all
<br />taxes legally assessed and levied under the laws of the State or
<br />the United States; accord all employees complete freedom of
<br />purchase; pay all wages at least twice each month in lawful
<br />money of the United States; maintain a safe working environment
<br />in accordance with standard industry practices; restrict the
<br />workday to not more than 8 hours in any one day for
<br />underground workers, except in emergences; and take measures
<br />necessary to protect the health and safety of the public. No
<br />person under the age of 16 years shall be employed in any mine
<br />below the surface. To the extent that laws of the State in which
<br />the lands are situated are more restrictive than the provisions in
<br />this paragraph, then the State laws apply.
<br />Lessee will comply with all provisions of Executive Order No.
<br />11246 of September 24, 1965, as amended, and the rules,
<br />regulations, and relevant orders of the Secretary of Labor.
<br />Neither Lessee nor Lessee's subcontractors shall maintain
<br />segregated facilities
<br />Sec. 9. (a) TRANSFERS - This lease may be transferred in
<br />whole or in part to any person, association or corporation
<br />qualified to hold such lease interest
<br />Transfers of record title, working or royalty interest must be
<br />approved in accordance with the regulations.
<br />(b) RELINQUISHMENTS - Lessee may relinquish in
<br />writing at any time all rights under this lease or any portion
<br />thereof as provided in the regulations. Upon lessor's acceptance
<br />of the relinquishment, lessee shall be relieved of all future
<br />obligations under the lease or the relinquished portion thereof,
<br />whichever is applicable.
<br />Sec. 10. DELIVERY OF PREMISES, REMOVAL OF
<br />MACHINERY, EQUIPMENT, ETC. - At such times as all
<br />portions of this lease are returned to lessor, lessee shall deliver
<br />up to lessor the land leased, underground timbering, and such
<br />other supports and structures necessary for the preservation of
<br />the mine workings on the leased prermses or deposits and place
<br />all workings in condition for suspension or abandonment.
<br />Within 180 days thereof, lessee shall remove from the premises
<br />all other structures, machinery, equipment, tools, and materials
<br />that it elects to or as required by the authorized officer. Any such
<br />CrJ ;stir
<br />structures, machinery, equipment, tools, and materials remaining
<br />on the leased las(rfs'beyohil I8014y! ,ofi9)proved extension
<br />thereof, shall become the property of the lessor, but lessee shall
<br />either remove any or all such property or shall continue to be
<br />liable for the cost of removal and disposal in the amount actually
<br />incurred by the lessor. If the surface is owned by third parties,
<br />lessor shall waive the requirement for removal, provided the third
<br />parties do not object to such waiver. Lessee shall, prior to the
<br />termination of bond liability or at any other time when required
<br />and in accordance with all applicable laws and regulations,
<br />reclaim all lands the surface of which has been disturbed, dispose
<br />of all debris or solid waste, repair the offsite and onsite damage
<br />caused by lessee's activity or activities incidental thereto, and
<br />reclaim access roads or trails.
<br />Sec.11. PROCEEDINGS IN CASE OF DEFAULT -If lessee
<br />fails to comply with applicable laws, existing regulations, or the
<br />terms, conditions and stipulations of this lease, and the
<br />noncompliance continues for 30 days after written notice thereof,
<br />this lease shall be subject to cancellation by the lessor only by
<br />judicial proceedings This provision shall not be construed to
<br />prevent the exercise by lessor of any other legal and equitable
<br />remedy, including waiver of the default. Any such remedy or
<br />waiver shall not prevent later cancellation for the same default
<br />occurring at any other time
<br />See. 12. HEIRS AND SUCCESSORS -IN- INTEREST -Each
<br />obligation of this lease shall extend to and be binding upon, and
<br />every benefit hereof shall insure to, the heirs, executors,
<br />administrators, successors, or assigns of the respective parties
<br />hereto.
<br />Sec. 13. INDEMNIFICATION - Lessee shall indemnify and
<br />hold harmless the United States from any and all claims arising
<br />out of the Lessee's activities and operations under this lease.
<br />Sec. 14. SPECIAL STATUTES - This lease is subject to the
<br />Federal Water Pollution Control Act (33 U.S.C. 1151 - 1175);
<br />the Clean Air Act (42 U.S.C. 1857 et M.), and to all other
<br />applicable laws pertaining to exploration activities, rmning
<br />operations and reclamation, including the Surface Mining
<br />Control and Reclamation Act of 1977 (30 U.S.C. 1201 et sM.)
<br />Sec. 15. SPECIAL STIPULATIONS (a) All stipulations
<br />concerning compliance with the requirements of the Surface
<br />Mining Control and Reclamation Act will be included in the
<br />document approving the mining plan.
<br />(b) Lessee shall be required to mitigate for mule deer,
<br />elk, antelope, and sharp -tail grouse habitat loss where applicable
<br />and the resultant loss or displacement of these species, as key
<br />indicator species, due to surface coal mining operations.
<br />Concurrently, with the filing of its mine plan, lessee shall submit
<br />for approval to the BLM, a habitat recovery and replacement
<br />plan for protection or enhancement of mule deer, elk, antelope,
<br />Exhibit 1, Item 1 -6 Revision Date: 12/28/12
<br />Revision No.: RN -06
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