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described 52 acres (Parcel A) for the surface rights and associated improvements on about 160 <br />acres of land (Parcel B) situated in: <br />Section 25. T47N_ R16W_ N_M.P_M_ <br />(I) E1/2 SWI/4 a.k.a. San Miguel property, conditional on its sale to the Lessee by San <br />Miguel Power Assoaa6on. <br />(Ii) W1/2 SW1/4 a.k.a. Nee Trac, owned by Lessee but subject to waiver of the 'first <br />right of refusal to purchase' from Don and Mariana Rice. <br />Details of this trade are included in the Coal Mining Lease and Contract to Exchange Real Property. <br />3. Royalties. Lessee shall pay to Lessor, as total payment for all of the benefits <br />secured by Lessee under or In connection with the Lease, production royalties as stated in the <br />Lease and Contract to Exchange Real Property. <br />4. ,modal Rights of t as=. In addition to whatever rights Lessee may have by <br />Implication of law or by the transfers of property hereunder, Lessor specifically grants to Lessee the <br />following exclusive rights rRights j. These Rights shall be In effect immediately on the execution <br />of the Lease and Contract by the parties: <br />(a) to drill, take core samples, survey, map and otherwise evaluate the Coal, and <br />to perform environmental and cultural resource studies, all without liability, except for the destruction <br />of growing crops and held improvements In the growing season in which the Property trade occurs. <br />(b) to mine, extract, remove, process, own, market or otherwise use the Coal, <br />including mining by the strip, auger and/or any other methods now or hereafter in existence, without <br />any lability to Lessor for any current or future damages (Including surface support and damage or <br />loss to other minerals or strata) to Lessor's estate; <br />(c) in the event that sand or gravel are found on Parcel A during Lessee's mining <br />activities. Lessee shah have the right to use or sell such, however, Lessor will be due a royalty rate <br />of 6% of the revenues realized from any safe of this material. Lessee shall be entitled to use sand <br />or gravel without additional payment. <br />(d) Lessor may use the surface of the property for farming or any other use until <br />Lessee elects to exercise its Rights stated above. No provision of the Lease shall be construed to <br />deprive Lessee of the exclusive right to determine the uses to which the property is to be put after <br />mining, or the crops, R any, to be raised, or the methods to be employed and the costs to be <br />incurred as part of such after -mining uses. Before Lessee commences to exercise the Rights <br />Attachment 2.03.6-1 Page 35 <br />