|
Form 3400-12
<br /> (September2013) UNITED STATES I r FORM APPROVED
<br /> UMBNDEPARTMENT OF THE INTERIOR I:vpur5 N11M 1004-0073
<br /> Jun+:30,24i6
<br /> BUREAU OF LAND MANAGEMENT 'crawl Noudml
<br /> COAL LEASE . aif f/�� �
<br /> f \ 1;I' COC78825 i
<br /> r
<br /> PART 1.LEASE RIGHTS GRANTED
<br /> This lease,entered into by and between the UNITED STATES OF AMERICA,hereinafter called lessor,through the Bureau of Land Management(BLM),and
<br /> (Name and Address)
<br /> GCC Energy LLC
<br /> 6473 County Road 120
<br /> Hesperus,CO 81326
<br /> 1�
<br /> hereinafter called lessee,is eflcclive(date) G(r1 C"/ 2-4 tiltr3
<br /> a period of20 years and For so long theremicr as coal is produced in commercial quantities from the
<br /> leased lands,subject to readjustment of lease terns at the end orlhe 20th lease year and each 10-year period lhercalter.
<br /> Sec. 1 This lease is issued pursuant and subject to the terms and provisions of the
<br /> M The Mineral Leasing Act of 1920,as amended,30 U.S.0 181-287;or
<br /> ❑The Mineral Leasing Act for Acquired Lands,30 U S C.351-359;
<br /> and to the resgi6tions and formal orders of the Secretary of the Interior which are now or hereafter Ili force,when not inconsistent with the express and specific
<br /> provisions twicin.
<br /> Sec 2 LV4S.Mn,Ill c u>ilh r ati+in�+i any hlnuscs,nlnis.aotl royalties to be p9id,imd tlu:Conditions and covenants to be observed as herein set kuih,hereby grants and
<br /> I['01e�to IC SCV the C\C1LNJ%'e u:'L[:uul Inn dare i-dad!f+,r,ndne,extract,remove,orcithenvise process and dispose of the coal deposits in,upon,ar tutder the
<br /> fol]c t intr,dcsciillcd Loiul,
<br /> ,'cx+ %I,:,.-,I'rlrtcihle M+ridiml,('oloraido
<br /> T.35N,R.II W,
<br /> sec 18, lots 2 thru 5,8,9,and 10,SEI/4NW 1/4,and NEl/4SW 1/4;
<br /> see 19, lots 1,2,6,and 7,NE1/4NW1/4,and NI/2SE1/4NW1/4
<br /> T 35 N,R 12 W.,
<br /> sec 13, S1/2NF1/4,SEl/4NW1/4,SI/2SW1/4,NEl/4SE1/4,and SI/2SE1/4;
<br /> see 14, S1/2NEl/4SW1/4,S1/2NWl/4SW1/4,S1/2SW1/4,S1/2NW1/4SE1/4,and S1/2SE1/4;
<br /> sec 15, SEIASWl/4 and S1/2SE1/4;
<br /> sec 22, Nl/2NE1/4,NIP-W IMNEIM..SMASWIANFI/4,SEI/4NEI/4,E1/2NE1/4NW1/4,NEIASEIANW1/4,and E1/2NW1/4SE1/4;
<br /> sec 23, N1/2NEl/4,SEI/4Ni IA,Nli3NW1/4,SE1/4SW1/4,andSEI/4;
<br /> see 24, N1/2,SWIM andNWI/4SE1/4;
<br /> sec 26, Ni/2NE1/4NE1/4,SW1/4NE1/4NEl/4,NW1/4NE1/4,N1/2NW1/4,N1/2SW1/4NW1/4,SE1/4SW1/4NW1/4,and SEl/4NW1/4;
<br /> sew ?7, NI:.1/lltil'.114 and Sl`li,IN%'F4NF 4
<br /> ccmtaining 2 4G;07 lcrea.mole:or leas,together mili fhc riglot to construct such%varks,buildings,plants,structures,egaiq+nl,ral Ulld,sl+tllialkeS-)nd the right
<br /> (u use such on lease righis-nt-,vay which nl;ly be luccseai t artd con erlient in the exercise of the ri;tu.and privileges granted,sallicrt to the.;nndilwn:liefein
<br /> piovtd d
<br /> PART II.TERMS AND CONDITIONS
<br /> Sec. I.(a)KFNTA1.RATE-Lessce must pay lessor rculal annually and in .+ller uperauons ondcr the lease are iulreruptcd by strik",the elements,or
<br /> advance for cacti acre or fraction dicrcot dunog the continuance of the[case at the :asoahies not altributohlc to the lessee Ilic lessor.In the public interest,may
<br /> rate of$3 IX Inc C;rcll lcatie year• sraspcnd the condahon of caatimlud aperatirin tiplin pay'rnent of;ulvarlcn
<br /> royallaeti Ira a1: orttime vvilll 111c re[ukmions In c istence.11 the little of the
<br /> (b)RENTAL CREDITS-Rental will not be credited against either production or sospCII%ion fndufc to produce coal in Conuncrcial goautih(cs al the
<br /> advance royalties for any year cod of 10 years will tctrllucttc the base.Lessee soul submi!an ollkg111411I and
<br /> ru loan tton plats for IIIc,21.M's apprnval pursuant to 30 11 S C.21J7(c)print
<br /> Sec 2 (a)PRODIJCTION ROYALTIE'S-11w rovalty will hr 8% percent of 1u conducling any development or mining operattious or taking,aru_v other
<br /> the value of file coal as set fotut in(lie rcgolalions Royalties are clue to lessor the .action on a temcliold which might e aU,cC a siguific 11i dtsiurhaoce of 111c
<br /> tinut day of the month+ucccr+lmg the calcildar month in which the royally environment
<br /> obligation accrues.
<br /> The lessor reserves the pottier to assent to or order the suspension of the
<br /> (b)ADVANCE RnYAl.TIES-I Iflon request by the lessee,I11c tit A11 Inay accept, terms and conditions ollltis lease Ili ciecordance with,inter alia,Section 39 of
<br /> for a total of nor more Illan 20 years,the Payment of,advxncc royalties ill lieu of the Mineral Leasing Act,30 U.S.0 209
<br /> contnued operalion,euosislcnt u;tll the tckolatians ille advance royalty will be
<br /> based on a percent of the value ol'a nlinontun number of inns determined in the 5.LOGICAL MINING UNIT(LMIJ)-Either upon approval by the lessor of
<br /> manner established by the advance royalty regulations in effect at the time the the lessee's appl ication or at the dircelion of the lessor,this lease will be:conte
<br /> lessee requests approval to pay advance royalties in lieu of continued operation. an LMU or part of an LMU,subject to the provisions set forth in the
<br /> regulations
<br /> Sec.3.BONDS-Lessee must maintain ill the proper office a Ielisc hand in the
<br /> amount of$3,434,400 . The f3L.M mljy rcallin-all increase ill Lhie The stipulations established in an LMU approval in effect at the time of LMU
<br /> amount when additional coverage is determined appropriate. approval will supersede Ilse relevant inconsistent terms of this lease so long
<br /> as the lease remains committed to the LMU.If the LMU ofwlticll this[case
<br /> See.4 DILIGENCE-This lease is subject to the conditions of diligent is a part is dissolved,the lease will then be subject to the lease terms which
<br /> Cleve to mcut and continued o xaation,exec it that these conditions are excused would have been a rlicd if the[ease had not been included in an LMU
<br /> (Continued on page 2)
<br />
|