2020-06-25_REVISION - C1981035 (52)

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Office Manager, as appropriate. iv. The cost of any required salvage of such fossils shall be borne by the United States. v. These conditions apply to all such fossils of significant scientific interest discovered within the lease area whether discovered in the overburden, interburden,or coal seam or seams. (c)RESOURCE RECOVERY AND PROTECTION (1) Notwithstanding the approval of a resource recovery and protection plan (R2P2) by the BLM, lessor reserves the right to seek damages against the operator/lessee in the event (i) the operator/lessee fails to achieve maximum economic recovery (MER) (as defined at 43 CFR 3480.0-5(21) of the recoverable coal reserves or (ii) the operator/lessee is determined to have caused a wasting of recoverable coal reserves. Damages shall be measured on the basis of the royalty that would have been payable on the wasted or unrecovered coal. (2) The parties recognize that under an approved R2P2, conditions may require a modification by the operator/lessee of that plan. In the event a coalbed or portion thereof is not to be mined or is rendered unmineable by the operation,the operator/lessee shall submit appropriate justification to obtain approval by the(AO)to leave such reserves unmined. Upon approval by the AO, such coalbeds or portions thereof shall not be subject to damages as described above. Further,nothing in this section shall prevent the operator/lessee from exercising its right to relinquish all or portion of the lease as authorized by statute and regulation. (3) In the event the AO determines that the R2P2,as approved,will not attain MER as the result of changed conditions,the AO will give proper notice to the operator/lessee as required under applicable regulations. The AO will order a modification if necessary, identifying additional reserves to be mined in order to attain MER. Upon a final administrative or judicial ruling upholding such an ordered modification, any reserves left uninined(wasted)under that plan will be subject to damages as described in the first paragraph under this section. (4) Subject to the right to appeal hereinafter set forth,payment of the value of the royalty on such unmined recoverable coal reserves shall become due and payable upon determination by the AO that the coal reserves have been rendered unmineable or at such time that the operator/lessee has demonstrated an unwillingness to extract the coal. (5) The BLM may enforce this provision either by issuing a written decision requiring payment of the MMS demand for such royalties,or by issuing a notice of non-compliance. A decision or notice of non-compliance issued by the lessor that payment is due under this stipulation is appealable as allowed by law. (page 5)