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<br /> Part II. TERMS AND CONDITIONS reYJa8nt`{ft� 9stehf'cAs4(P this lease so long as the lease
<br /> remains committed to the LMU. If the LMU of which this lease
<br /> Sec, 1. (a) RENTAL RATE-Lessee shall pay lessor rental is a part is dissolved,the lease shall then be subject to the lease
<br /> annually and in advance for each acre or fraction thereof during terms which would have been applied if the lease had not been
<br /> the continuance of the lease at the rate of$3.00 for each lease included in an LMU.
<br /> year.
<br /> Sec.G. DOCUMENTS,EVIDENCE AND INSPECTION-At
<br /> (b)RENTAL CREDITS -Rental shall not be credited such times and in such form as Lessor may prescribe, Lessee
<br /> against either production or advance royalties for any year. shall furnish detailed statements showing the amounts and quality
<br /> of all products removed and sold from the lease, the proceeds
<br /> Sec.2. (a) PRODUCTION ROYALTIES -The royalty shall therefrom, and the amount used for production purposes or
<br /> be 8 percent of the value of the coal as set forth in the unavoidably lost.
<br /> regulations. Royalties are due to Lessor the final day of the
<br /> month succeeding the calendar month in which the royalty Lessee shall keep open at all reasonable times for the inspection
<br /> obligation accrues. of any duly authorized officer of Lessor,the leased premises and
<br /> all surface and underground improvements, works, machinery,
<br /> (b) ADVANCE ROYALTIES - Upon request by the ore stockpiles, equipment, and all books, accounts, maps, and
<br /> Lessee,the authorized officer may accept,for a total of not more records relative to operations, surveys, or investigations on or
<br /> than 20 years, the payment of advance royalties in lieu of under the leased lands.
<br /> continued operation, consistent with the regulations. The
<br /> advance royalty shall be based on a percent of the value of a Lessee shall allow lessor access to and copying of documents
<br /> minimum number of tons determined in the manner established reasonably necessary to verify Lessee compliance with terms and
<br /> by the advance royalty regulations in effect at the time the Lessee conditions of the lease.
<br /> requests approval to pay advance royalties in lieu of continued
<br /> operation. While this lease remains in effect, information obtained under
<br /> i
<br /> this section shalt be closed to inspection by the public in
<br /> Sec. 3. BONDS - Lessee shall maintain in the proper office a accordance with the Freedom of Information Action (5 U.S.C.
<br /> lease bond in the amount of$418,000. The authorized officer 552).
<br /> may require an increase in this amount when additional coverage
<br /> is determined appropriate. Sec.7. DAMAGES TO PROPERTY AND CONDUCT OF
<br /> OPERATIONS -Lessee shall comply at its own expense with
<br /> Sec.4. DILIGENCE-This lease is subject to the conditions of all reasonable orders of the Secretary, respecting diligent
<br /> diligent development and continued operation,except that these operations, prevention of waste, and protection of other
<br /> conditions are excused when operations under the lease are resources.
<br /> interrupted by strikes,the elements,or casualties not attributable
<br /> to the Lessee. The lessor,in the public interest,may suspend the Lessee shall not conduct exploration operations, other than
<br /> condition of continued operation upon payment of advance casual use, without an approved exploration plan. All
<br /> royalties in accordance with the regulations in existence at the exploration plans prior to the commencement of mining
<br /> time of the suspension. Lessee shall submit an amended operations within an approved mining permit area shall be
<br /> operation and reclamation plan pursuant to Section 7 of the Act submitted to the authorized officer.
<br /> (30 U.S.C. 207(c) within 3 years of the date of modification or
<br /> prior to approval to commence mining operations. Lessee shall carry on all operations in accordance with approved j
<br /> methods and practices as provided in the operating regulations,
<br /> Lessor reserves the power to assent to or order the suspension of having due regard for the prevention of injury to life,health,or
<br /> the terms and conditions of this lease in accordance with, inter property, and prevention of waste, damage or degradation any
<br /> alia,Section 39 of the Mineral Leasing Act,30 U.S.C. 209. land,air,water,cultural,biological,visual,and other resources,
<br /> including mineral deposits and formations of mineral deposits
<br /> Sec.S. LOGICAL MINING UNIT(LMU)--Either upon not leased hereunder, and to other land uses or users. Lessee
<br /> approval by the lessor of the lessee's application or at the shall take measures deemed necessary by lessor to accomplish
<br /> direction of the lessor,this lease will become an LMU or part the intent of this lease term. Such measures may include,but not
<br /> of an LMU,subject to the provisions set forth in the limited to,modification to proposed siting or design of facilities,
<br /> regulations. timing of operations, and specifications of interim and final f
<br /> reclamation procedures. Lessor reserves to itself the right to
<br /> The stipulations established in an LMU approval in effect at the lease, sell, or otherwise dispose of the surface or other mineral
<br /> time of LMU approval or modification will supersede the deposits in the lands and the right to continue existing uses and to
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