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<br />.,rc. 3~ D1L1G1'.;:'I' UI~:\'P;Llll'rlh:?:'I' ,1KU C(+rl'fIIJU ha) UI'h:R:\'I'Itt`; - 'I'hr. lessee shr+ll vul;;if;c in
<br />the di 1.J±;ont dewlupute•nl of Lltr coal to:,uurcr:: •~•uh j,:ct to U+c lc:+sc. .lf for di]ip,cnC
<br />dcvr7.upmonC ]u achicvc.i, the Ir^:r.co ::h:+11 m:ri nl nin rout inuod npc ration of ch~~ mi.nc ur
<br />winrs nn ch~~ 1~_a::cd ].utds. ~fl+r form:. ",IiJi;;rnl dr•"r•luh+nr.•nl" and "r~untinucd opct'al.ion"
<br />n.-~• a„P~~,,:..I ;n h„ ,nnlirnl,l,• r,,,, i+l .i l~i anti in 'I'il I,~., lll, '10 and 43 of the (:udi•. of.
<br />Federal Itegul.atiuns.
<br />Sec. 4. llOivU -'1'hc ]rsseo shat] Tile w]lh the npprupr into hurcou of 1„'tad hlanagcuu_nt
<br />o[fi.cc a ].case band in Chc mm~uul. uP S2,SOO,000L(lU lur the use ^ud benr:fiC. oC the
<br />llniCCd States to ~i.tisuti: I,n,; meat of Jef erred hnnu:; pa}men tr~•, ren to ls, and royal tics
<br />and to i.nsurc compl~iancu ::ith a]1 other items of this lease, Chc rcP,ulation:: and the
<br />,1ct (except for recLunation within tLe area covered by ;+ surface mining permit issued
<br />under the perm:mr.•nt trogulstory I,tro;;ram by chc rep,ulatcr}• :tuthor.ity) Hart, if
<br />appropriate, for the luotecC~ion of Chc inLcreatu of Chc :;urfacc ot~;ners on tl+e leased
<br />lands. Au increaw in chc .unuuut of the lease b:,nd may hr• required by the lcasor aC
<br />any time during the life of rho lease to rcf.lect chnn±',cd coudi.tions.
<br />Sec. 5. faiNTAL - :\n annual renr.al of. $3.00 for each Here or fraction LhereoL sha11
<br />Ue paid i.n advance on or before the nuuJ.versary dnLC of Lh.is lease. Phis section
<br />sha11 not be subject. to rovision C•::%cpt in Chc• cn+n"se of ]rase readjustment.
<br />Sec. G. 1'ROllUCT70\' GO'i 1L'1'1' - 7'hc lessee shat]. p.:y n prr,dt+cCion royalty of 12.5
<br />percent of the v:]ue of cua] produced by strip ut au;;c•r !nCning methods lrom the
<br />follo;:ing described lands:
<br />r. 4 la. , >`. SG 12. , Gen r.rl
<br />Sec. 19: t~'_iJls';.NL".:, !'ili'~;:1•:':.i•!I;',;, rl';5!:iJl';!,,Pll:'r•, Pll"r; ,'tad S'::'--:; of Lo[ ,u, rJ'; and S6P~
<br />of Lot 10, and ch.tt parC of Chr G4"'JI;"r.t•!F:'.,, and those parts of Lot: 1,
<br />6, 7 and N4",; of Lul. a, ;ntd the I(', of Lot 11 1. }'J ag sou LL of a J ittc
<br />dcscrJbcd as lulluws::
<br />:Sc~,imtiug, n( the suutlttdr::L rutn~~r of the tJ'_~',Sl:',::1:'',, of ti~•r. ?4, l'. 4 Al., It. 87 IJ.,
<br />6t1+ J'.:9., Co]urado, Chcnce t.. S9` 54' 1:. apprn:<imatily 3,'i(i0 ft. in nc~. snuth':cst
<br />corner of the. i:~,i!!_SU':.SB!;, Chance R. 63~ 1Ci' li. nhl,ru:.:i~:+nLCly 1,/,7:5 It. Lo the norCh-
<br />cast corucr of the S!;5!_1dlC!:;tih:'~ nl ;;aid sort inn, Ih^nr,• N. (I° .i0' IJ„ anprn:!imr+rc.ly
<br />G3 Pt. along Chc li^q,;c '_inc Lrc'.~e~n !:augc: 86 ,end t;? l!., nCl+ !'.r!., G:•]•.:. Co tl+u soutn-
<br />west corner of i..oL 12 of tics. 19, 'J'. 4 N., R. Si, !d., Grl+ 1'.ii., Colo., thcucc N. 5'3`
<br />29' 1. apnro::ilnatc].v 6,651 ft. Cu the nortben•:t rnro+•r .rf thv ld',ril2'-r,:~r:':: of Src. 19,
<br />'1'. 4 !`. , ". 56 h. , 6th )'. ti. , Cnlnrado cunt: inin,c 156.?~ acres.
<br />The baianee cf the. lands in the ]ease (1,789.70 m rr:.) is. subject. Co a rov:+]Cy race
<br />of ]S.3 pcrcenC of Lhc va]ur of coal pruduc •d I!v r•trip r,r aup•,•r utJnin~~ mctbod:: c..
<br />provic!ed in SecCious 2 f. b of the original ]~.•:u~.c. 'I'hr vnJur• ul coal sha11 be
<br />determined as set forth in the r~p,ulaciun; in 0 !a'I: ?11. 1'rod++cCJon royalties paid
<br />for a calendar month sha].1 ne reduu~d by the amuunC nf. anv advance rovo].ties paid
<br />under this le,t.,e. co Chc catanC thnC such c!dvanr~c r~~v:i~ILies have not Lr•c~n used to
<br />n:dur.e roduccion re;altics 'in a previous raontl+. II„o-:ever, production rnyalt!r:
<br />p.-.;nlile af. ter nc~ 20th ye.+r of the lc•nr.e sb:+ll nut L~• +rJnrrd by ad v:inco tnynlt ic:;
<br />paid durit:S thc.f.irst 2G years of the le.asc. 1'roduccion ruyalCic:: shall be payah].c
<br />[h~ final day uC the month succcedim; the calendar inrntCh inlahic'h Ute coal is sold,
<br />unl.css othcr'.:]sc specified in :SG CI'It '.11. '1'hr rn~•::IL•, r,+t,•:; provido,l in tl+is
<br />sec Ci un shall not 1-.e sub.jecC to rCVi Si, ut e>:crpL i+i the cuu!se of le,+se rc•adjus tn~ent.
<br />Sec. 7. i•.D\',V:CF F.OS:d,T1' - Upon rc•r!uu~t b~~ the ]e~ssce tl~e U.istrict rtinin}~, Supervisor
<br />•s.av accept, for a tot;, .l of nor mnt,~ than 10 .'oar:., t~nr n;r:mr•nt of advanr, rn~:alcics
<br />in lieu of the condition o[ cuntinu.:d nl,era;~Jon coo:.i•~•tent with the regulations in 43
<br />CFE; t<;73 and .i0 Ci R 311. '1'nc odvani c rovalt:c ~~~'naJ h,~ unsrd on a percent o. tLe
<br />va].:+c of a nti.nir+urt uumhcr o' +nns ;;hick shall b,~ ci,~t,~+nu ucd it+ th.• maunr~r cstnh'~ia.hrd
<br />h}• the regulati uns to a3 C1'f. 3'.rj.
<br />Scc. S. rICTIIOn 0?' P?.'iNLi:TS - The ]o~r.ee rna]] r+nCr~ rrntel pa_;munt~: to the appropriat!•
<br />lturcnu of l.;:nd Ff.: Hat:cmcnt (L'L).) nflicc until I,ruduct iun rnr:+ltics bucomo p:n~ab.l c.
<br />The: da(tcr, all rcn rota, proil',+c~]oa ro,'a]CJ.•:: and n~ie:into rnc:tl Li cs e•I+a l] Lc paid to
<br />the apnropria t,- office of chc Uni;.ed States Geelr~r.icni ::urv~~v.
<br />Sec. 9. li!:PLOILITIO": PL?d: - Titc lc>scc chill ur,t rumncncc• mt~' cxplmatinn, e>'cc,~C
<br />casuel use, on the lrascd lands wi; Lnut an approv ed ,~;:~i,lntetion I,lou. E::ploraUon
<br />p].aus fm' lcasud lands co vered b~~ ,u + approvcri m+n iur, p%•rstit shall be ::uinnitled to the
<br />Rcl;imtnl Ui.recr.nr ni cLr Ofi]:c o+ Surf;icr tlinin;~, in :~rrnrrl:+ncu with the rul;nln[inn::
<br />iu 30 CPR Chaptc+ \'I1. 1~: :~:plurati.,n I•I.nt:: fn: J,~.i •.cd 1,+nd:: not covcrrd b~: ^u approvrd
<br />rti.ninp, p,,nniC sL;+ll he so h:vi~lyd cn r.h~• Ui::tr]cJ ;;fining tiul•trvtt~.or in accordance with
<br />the rcL~,ul:+tious in 30 Ci~R :111.
<br />~i~li I
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