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<br />Form 3400.12 UNITED STATES Serial `lumber
<br />IApni 1984)
<br />ao—wrlr 3520.1' DEPARTMENT OF THE INTERIOR COC 54558
<br />BUREAU OF LAND MANAGEMENT
<br />COAL LEASE
<br />PART 1. LEASE RIGHTS GRANTED
<br />This lease, entered inw by and between the UNITED STATES of AMEIUCA, hereinafter called lessor. through the Bureau of Land Management. and
<br />(Name and Address/ Atlantic Richfield Company
<br />555 Seventeenth Street
<br />Denvcr, Colorado 80202
<br />hereinafter called lessee, is effective (dateJAN 1 19N, for a period of 20 years and for so long thereafter as coal is produced in commercial
<br />quantities from the leased lands. subject tq 3iLdjustment of lease terms at the end of the 20th lease year and each 10 -year period thereafter.
<br />Sec. 1. This lease is issued pursuant and subject to the terms and provisions of the:
<br />91 Mineral -Lands Leasing Act of 1920, Act of February 25, 1920, as amended, 41 Stat 437, 30 U.S.C. 181-287, hereinafter referred to as the Act:
<br />O Mineral Leasing Act for Acauired Lands, Act of August 7, 1947, 61 Stat. 913,30 U.S.C. 351-359;
<br />and to the regulations and formal orders of the Secretary of the Interior which are now or hereafter in force, when not inconsistent with the express
<br />and specific provisions herein.
<br />Sec. 2. Lessor, in consideration of any bonuses, rents, and royalties to be paid, and the conditions and covenants to be observed as herein set forth,
<br />hereby grants and leases to lessee the exclusive right and privilege to drill for, mine, extract, remove, or other onse process and dispose of the coal
<br />deposits in, tipen, or ander the fellsm4a@ "ancriu^4 deposits limited to the coal recoverable by underground
<br />mining methods in the B seam in the following lands:
<br />cont ' ' 91, 0 11. 64 acres, more or less, together with the right to construct such works, buildings, plants, structures. equipment and appliances
<br />and the right to use such on -lease rights-of-way which may be necessary and convenient in the exercise of the tights and privileges granted, subject to
<br />the conditions herein provided.
<br />PART 11. TERMS ANU CUNUI I IUN5
<br />Sec. 1. (a) RENTAL RATE - Lessee shall pay lessor rental annually and
<br />in advance for each acre or fraction thereof during the continuance of
<br />the lease at the rata of S 3.00 for each lease vear.
<br />(bl RENTAL CREDITS - Rental shall not be credited against either
<br />production or advance royalties for any year_
<br />Sec. 2. (a) PRODUCTION ROYALTIES - The royalty shall be 8 , 0 per-
<br />cent of the value of the coal as set forth in the regulations. Royalties are
<br />due to lessor the final day of the month succeeding the calendar month
<br />to which the royalty obligation accrues.
<br />(b1 ADVANCE ROYALTIES - Upon request by the lessee. the authorized
<br />officer may accept, for a total ofnot more than 10 years, the payment of
<br />advance royalties in lieu of continued operation, consistent with the
<br />regulations. The advance royalty shall be based on a percent of the
<br />value of a minimum number of tons determined in the manner
<br />established by the advance royalty regulations in effect at the time the
<br />,essee requests approval m pay advance roya,tiea in lieu of ;==msec
<br />operation.
<br />Sec. 3. BONDS - Lessee shall maintain in the proper officea lease bond
<br />mtneamountolS 6L.5,000 •Tneauthor..zedoMcermay,e--uirear,
<br />increase in :cis amount when additiona. coverage :s cetent net
<br />appropr: ate
<br />Sec. 4. DILIGENCE - This lease is subject to clic conditions of diligent
<br />development and continued operation, except that these conditions are
<br />excused when operations under the lease are interrupted by strikes, the
<br />elements, or casualties not attributable to the lessee. The lessor, in the
<br />public interest, moy •uapend the condition of continued operation upon
<br />payment of advance royalties in accordance with the regulations in
<br />existence at the time of the suspension. Lessee's failure to produce coal
<br />in commercial quantities at the end of 10 years shall terminate the
<br />lease. Lessee shall submit an operation and reclamation plan pursuant
<br />to Section 7 of the Act not later than 3 years atter lease issuance.
<br />The lessor reserves the power to assent to or order the suspension of the
<br />terms and conditions of this lease in accordance with, inter alia.
<br />Section 39 of the Mineral Leasing Act. 30 U.S.C. 209.
<br />Sec. 5. LOGICAL MINING UNIT (LMU) - Either upon approval by the
<br />lessor of the iessee's application or at the direction of the lessor. this
<br />iease shall become an LMU or partof an LMU, subject to the provisions
<br />set forth in the regulations.
<br />i aestipulanona established in an LMU approvai in effect at the timeof
<br />:_W; approval will supersede the relevant inconsistent terms of tnis
<br />tease so long as the lease remains committed to the LMU. If the Li4U of
<br />which this lease is a part :s dissolved, Use ieaae shall then tee subject to
<br />the :ease terms which would have been applied if the lease had not been
<br />rc:uded in an "SIT
<br />fV
<br />Sixth
<br />Principal Meridian
<br />ao
<br />T. 13
<br />S., R. 90 W_,
<br />x'
<br />sec.
<br />19, lots 15 to 18, inclusive;
<br />_
<br />sec.
<br />30, lots 7 and S.
<br />fv
<br />3-
<br />13
<br />S., R_ W.,
<br />='
<br />sec.
<br />23, s1Sv, ESFr'zSGt, and SEs;
<br />LO
<br />- sec.
<br />24, S�S�Nz, and Sli;
<br />SeU.
<br />23, 1ULS 1 w 4, iu��.usive;
<br />�—
<br />Sec.
<br />26,�y���t.
<br />cont ' ' 91, 0 11. 64 acres, more or less, together with the right to construct such works, buildings, plants, structures. equipment and appliances
<br />and the right to use such on -lease rights-of-way which may be necessary and convenient in the exercise of the tights and privileges granted, subject to
<br />the conditions herein provided.
<br />PART 11. TERMS ANU CUNUI I IUN5
<br />Sec. 1. (a) RENTAL RATE - Lessee shall pay lessor rental annually and
<br />in advance for each acre or fraction thereof during the continuance of
<br />the lease at the rata of S 3.00 for each lease vear.
<br />(bl RENTAL CREDITS - Rental shall not be credited against either
<br />production or advance royalties for any year_
<br />Sec. 2. (a) PRODUCTION ROYALTIES - The royalty shall be 8 , 0 per-
<br />cent of the value of the coal as set forth in the regulations. Royalties are
<br />due to lessor the final day of the month succeeding the calendar month
<br />to which the royalty obligation accrues.
<br />(b1 ADVANCE ROYALTIES - Upon request by the lessee. the authorized
<br />officer may accept, for a total ofnot more than 10 years, the payment of
<br />advance royalties in lieu of continued operation, consistent with the
<br />regulations. The advance royalty shall be based on a percent of the
<br />value of a minimum number of tons determined in the manner
<br />established by the advance royalty regulations in effect at the time the
<br />,essee requests approval m pay advance roya,tiea in lieu of ;==msec
<br />operation.
<br />Sec. 3. BONDS - Lessee shall maintain in the proper officea lease bond
<br />mtneamountolS 6L.5,000 •Tneauthor..zedoMcermay,e--uirear,
<br />increase in :cis amount when additiona. coverage :s cetent net
<br />appropr: ate
<br />Sec. 4. DILIGENCE - This lease is subject to clic conditions of diligent
<br />development and continued operation, except that these conditions are
<br />excused when operations under the lease are interrupted by strikes, the
<br />elements, or casualties not attributable to the lessee. The lessor, in the
<br />public interest, moy •uapend the condition of continued operation upon
<br />payment of advance royalties in accordance with the regulations in
<br />existence at the time of the suspension. Lessee's failure to produce coal
<br />in commercial quantities at the end of 10 years shall terminate the
<br />lease. Lessee shall submit an operation and reclamation plan pursuant
<br />to Section 7 of the Act not later than 3 years atter lease issuance.
<br />The lessor reserves the power to assent to or order the suspension of the
<br />terms and conditions of this lease in accordance with, inter alia.
<br />Section 39 of the Mineral Leasing Act. 30 U.S.C. 209.
<br />Sec. 5. LOGICAL MINING UNIT (LMU) - Either upon approval by the
<br />lessor of the iessee's application or at the direction of the lessor. this
<br />iease shall become an LMU or partof an LMU, subject to the provisions
<br />set forth in the regulations.
<br />i aestipulanona established in an LMU approvai in effect at the timeof
<br />:_W; approval will supersede the relevant inconsistent terms of tnis
<br />tease so long as the lease remains committed to the LMU. If the Li4U of
<br />which this lease is a part :s dissolved, Use ieaae shall then tee subject to
<br />the :ease terms which would have been applied if the lease had not been
<br />rc:uded in an "SIT
<br />
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