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Sec 6 DOCUMENTS,EVIDENCE AND INSPECTION-At such times and in Sec 9 (a)TRANSFERS-
<br /> such form as lessor may prescribe,lessee must furnish detailed statements This lease may be transferred in%vhole or in part to any person,
<br /> showing the amounts and quality of all products removed and sold from the association or corporation qualified to hold such lease interest
<br /> lease,the proceeds therefrom,and the amount used for production purposes or This lease may be transferred in whole or in part to another public body
<br /> unavoidably lost or to aperson who will mine coal on behalfof,and for the use of,the
<br /> Lessee must keep open at all reasonable times for the inspection by BLM the public body or to a person who for the limited purpose of creating asecurity interest in favor of a lender agrees to be obligated to mine the
<br /> leased premises and all surface and underground improvements,works, coal on behalfof the public body
<br /> machinery,ore stockpiles,equipment,and all books,accounts,maps,and J
<br /> records relative to operations,surveys,or investigations on or under the leased This lease may only be transferred in whole or in part to another small
<br /> lands, business qualified under 13 CFR 121.
<br /> Transfers of record title,working or royalty interest must be approved in
<br /> Lessee must allow lessor access to and copying of documents reasonably accordance with the regulations,
<br /> necessary to verify lessee compliance with terns and conditions of the lease (b)RELINQUISHMENT-The lessee may relinquish in writing at any time all
<br /> rights under this lease or any portion thereof as provided in the regulations
<br /> While this lease remains in effect,information obtained under this section will Upon lessor's acceptance of the relinquishment,lessee will be relieved of all
<br /> be closed to inspection by the public in accordance with the Freedom of future obligations under the lease or the relinquished portion thereof,
<br /> information Act(5 U S C 552). whichever is applicable.
<br /> Sec 7 DAMAGES TO PROPERTY AND CONDUCT OF OPERATIONS- Sec 10 DELIVERY OF PREMISES,REMOVAL OF MACHINERY,
<br /> Lessee must comply at its own expense with all reasonable orders of the EQUIPMENT,ETC.-At such time as all portions of this lease are returned to
<br /> Secretary,respecting diligent operations,prevention of waste,and protection of lessor,lessee must deliver up to lessor the land leased,underground timbering,
<br /> other resources and such other supports and structures necessary for the preservation of the
<br /> mine workings on the leased premises or deposits and place all workings in
<br /> Lessee must not conduct exploration operations,other than casual use,without condition for suspension or abandonment Within 180 days thereof,lessee
<br /> an approved exploration plan All exploration plans prior to the commencement must remove from the premises all other structures,machinery,equipment,
<br /> of mining operations within an approved mining permit area must be submitted tools,and materials that it elects to or as required by the BLM Any such
<br /> to the BLM structures,machinery,equipment,tools,and materials retraining on the leased
<br /> lands beyond 180 days,or approved extension thereof,will become the
<br /> Lessee must carry on all operations in accordance with approved methods and property of the lessor,but lessee may either remove any or all such property or
<br /> practices as provided in the operating regulations,having due regard for the continue to be liable for the cost of removal and disposal in the amount
<br /> prevention of injury to life,health,or property,and prevention of waste,damage actually incurred by the lessor.if the surface is owned by third parties,lessor
<br /> or degradation to any land,air,water,cultural,biological,visual,and other will waive the requirement for removal,provided the third parties do not object
<br /> resources,including mineral deposits and formations of mineral deposits not to such waiver Lessee must,prior to the termination of bond liability or at any
<br /> leased hereunder,and to other land uses or users,Lessee must take measures other time when required and in accordance with all applicable laws and
<br /> deemed necessary by lessor to accomplish the intent of this lease temu Such regulations,reclaim all lands the surface of which has been disturbed,dispose
<br /> measures may include,but are not limited to,modification to proposed siting or of all debris or solid waste,repair the offsite and onsite damage caused by
<br /> design of facilities,timing of operations,and specification o£interim and final lessee's activity or activities incidental thereto,and reclaim access roads or
<br /> reclamation procedures Lessor reserves to itself the right to lease,sell,or trails
<br /> otherwise dispose of the surface or other mineral deposits in the lands and the
<br /> Tight to continue existing uses and to authorize future uses upon or in the leased Sec. 11 PROCEEDINGS IN CASE OF DEFAULT-if lessee fails to comply
<br /> lands,including issuing]eases for mineral deposits not covered hereunder and with applicable laws,existing regulations,or the terms,conditions and
<br /> approving easements or rights-of-way.Lessor must condition such uses to stipulations of this lease,and the noncompliance continues for 30 days after
<br /> prevent unnecessary or unreasonable interference with rights of lessee as may be written notice thereof,this lease will be subject to cancellation by the lessor
<br /> consistent with concepts of multiple use and multiple mineral development only by judicial proceedings This provision will not be construed to prevent
<br /> the exercise by lessor of any other legal and equitable remedy,including
<br /> Sec 8 PROTECTION OF DIVERSE INTERESTS,AND EQUAL OPPORTU- waiver of the default Any such remedy or waiver will not prevent later
<br /> NITY-Lessee must:pay when due all taxes legally assessed and levied under cancellation for the same default occurring at any other time
<br /> the laws of the State or the United States;accord all employees complete
<br /> freedom of purchase;pay all wages at least twice each month in lawful money Sec. 12,HEIRS AND SUCCESSORS-IN-INTEREST-Each obligation of this
<br /> of the United States;maintain a safe working environment in accordance with lease will extend to and be binding upon,and every benefit hereof will inure
<br /> standard industry practices;restrict the workday to not more than 8 hours in any to,the heirs,executors,administrators,successors,or assigns of the respective
<br /> one day for underground workers,except in emergencies;and take measures parties hereto.
<br /> necessary to protect the health and safety of the public No person under the age
<br /> of 16 years should be employed in any mine below the surface.To the extent Sec 13,INDEMNIFICATION-Lessee must indemnify and hold harmless the
<br /> that laws of the State in which the lands are situated arc more restrictive than the United States from any and all claims arising out of the lessee's activities and
<br /> provisions in this paragraph,then the State laws apply, operations under(his lease.
<br /> Lessee will comply with all provisions of Executive Order No 11246 of See. 14,SPECIAL STATUTES-This lease is subject to the Clean Water Act
<br /> September 24,1965,as amended,and the rules,regulations,and relevant orders (33 U.S C.1252 et seq.),the Clean Air Act(42 U.S.C.4274 et seq),and to all
<br /> of the Secretary of Labor Neither lessee nor lessee's subcontractors should other applicable laws pertaining to exploration activities,mining operations
<br /> maintain segregated facilities and reclamation,including the Surface Mining Control and Reclamation Act of
<br /> 1977(30 U.S C. 1201 et seq)
<br /> Sec 15 SPECIAL STIPULATIONS-
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<br /> (Continued on page 3) (Form 3400-12,page 2)
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