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ASSIGNMENT OF RECORD TITLE <br />TO FEDERAL COAL LEASE C-29225 <br />COLOWYO COAL COMPANY ("Assignor"), a Delaware general <br />partnership between Gracoal, Inc., a Delaware corporation <br />("Gracoal"), and Gracoal II, Inc., a Delaware corporation <br />("Gracoal II"), both wholly-owned subsidiaries of Grace Energy <br />Corporation, a Delaware corporation, hereby quitclaims, <br />transfers, and assigns to COLOWYO COAL COMPANY L.P. ("Assignee"), <br />a Delaware limited partnership, having its principal office at <br />5731 State Highway 13, Meeker, Colorado 81641, effective <br />August 9, 1993, all of Assignor's right, title, and interest in <br />that certain Federal coal mining lease described as follows (the <br />"Lease"), insofar as the Lease covers and relates to the <br />following land: <br />Lease <br />Serial No. <br />C-29225 <br />Section 5: <br />Section 7• <br />Section 8: <br />Section 17• <br />Section 18• <br />Land Description <br />Effective <br />Date <br />June 1, 1983 -' <br />c� <br />0 <br />Township 3 North, Range 93 West, 6th P.M. <br />Lots 1, 2, S1/2NE1/4, SE1/4; <br />NEI/4NE1/4, S1/2NE1/4, SE1/4; <br />All; <br />All; <br />Lots 3, 4, E1/2, E1/2SW1/4; <br />in Moffat County, Colorado, containing 2,367.78 acres, more or <br />less, subject to the overriding production royalty reserved in <br />that certain Assignment dated August 18, 1988 from BHP -Utah <br />International Inc., a Delaware corporation, to Assignor. <br />Assignee expressly agrees by execution and acceptance <br />of this Assignment to pay, discharge, or fulfill all of <br />Assignor's liabilities and obligations as lessee under the Lease, <br />and all liabilities and obligations of Assignor under previous <br />assignments of the Lease. Further, Assignee accepts the <br />assignment contained herein subject to all rights reserved by the <br />UNt1ED WATER OF AMERICM <br />ASSIGNMENTAPPROVEOEFFECTM_,y,,AR_i 1994 <br />BY: x "� <br />so ate State Director <br />Exhibit 1, Item 12-3 Revision Date: 12/28/12 <br />Revision No.: RN -06 <br />