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'Unitized Premises' means the surface (if applicable) and mineral (as
<br />. recited) interests which have been unitized pursuant to Article III and as set forth on
<br />Sch ^dulo-" :v='^ is = °:hen t-reiz and made a part of this Lease, acknowledging that
<br />Lessor only holds legal title in and to the Premises.
<br />ARTICLE I
<br />GRAM'
<br />In consideration of the timely payment of each amount due under
<br />Article N and of the other covenants to be kept by Lessee that are contained in this
<br />Lease, and to the extent of Lessor's current legal right to do so, Lessor grants, demises,
<br />leases, and lets the Premises exclusively unto Lessee, its successors and assigns, together
<br />with all reservations, easements, licenses, rights-0f -way and other rights which pertain to
<br />the Premises and which are owned by Lessor, for the purpose of exploring for,
<br />developing, Mining, treating, extracting, milling, storing, shipping, removing and marketing
<br />all Coal from the Premises. To the extent applicable, Lessor reserves and excepts unto
<br />itself all oil and gas, and all other minerals except those specifically granted to Lessee
<br />under the provisions of this Article and the right to lease such minerals; provided,
<br />however, that subject to other mineral teases which are of record in Garfield County,
<br />Colorado, as of the effective date hereof, the right of Lessor or its successors or assigns
<br />to mine or drill for such reserved minerals shall always be subject to the terms of this
<br />Lease, and any operations undertaken by Lessor or its successors or assigns to recover
<br />such minerals shall not in any way interfere with, impair or restrict Lessee's operations
<br />under this Lease.
<br />ARTICLE If
<br />LEASE TERM
<br />This Lease is granted for a primary term of five (5) years from the effective
<br />date, unless sooner terminated in accordance with other provisions of this Lease, nod for
<br />so long thereafter as Mining Operations are being conducted on the Premises on a
<br />• Continuous Basis or for so long as this Lease is maintained in force under any other
<br />provision contained in this Lease.
<br />ARTICLE III
<br />UNITIZATION
<br />3.1 Unitization of Lessor's Interests with Other Interests. The parties
<br />agree that Lessor's lands and interests, as leased hereby and as described on Schedule 1,
<br />are declared and deemed to be unitized with the other lands and interests described in
<br />Schedule 2 to form a logical mining unit for the conduct of Mining Operations by
<br />Lessee. The respective acreage, Coal reserves, and percentage interest of Lessor as
<br />recited in Schedule 2 are expressly accepted by Lessor for purposes of unitization of the
<br />Premises and of this Lease. Any Mining Operations conducted on any portion of the
<br />unit, regardless of where located therein, shall be deemed Mining Operations on the
<br />Premises.
<br />32 Use of Premises for Operations on Other Lands. In keeping with
<br />Section 3.1, Lessee shall have the right to construct and use any roads, tunnels, shafts,
<br />pits, inclines, conveyances, utilities and utility lines upon the Premises for the purpose of
<br />Mining, removing, treating, and transponing Coal, slurries, and waste materials from the
<br />Unitized Premises, or for any purpose connected therewith.
<br />33 Whe lase. In keeping with Sections 3.1 and 3.2, Lessee shall have
<br />the right to transport over, under, across and through the Premises any Coal now or
<br />subsequently owned, leased or otherwise acquired by Lessee and located upon the
<br />Unitized Premises, together with the right to process and market such Coal upon and
<br />from the Unitized Premises, to the same extent as if such Coal were included within the
<br />• terms of this Lease.
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