Sl9 ]37d IBmI • STATE OF COLORADO
<br />t~• am, anat. vast
<br />STATE BOARD OF LAND COMMISSIONERS
<br />~~:_.
<br />COAL MINING LEASE NO. saa/13-s
<br />ISSUED IN LIEU OF EXTENSION OF COAL MINING LEASE N0. 465/13-5.
<br />Containing 600.00 acres, more or less:
<br />THIS COAL MINQJG LEASE, Made in
<br />by and between the State of Colorado, actin
<br />and Arness-McGriffin Co.
<br />hereinafter referred to as Lessce:
<br />Land Fund: School
<br />and entered into this 14th day of January 19 8~_,
<br />its STATE BOARD OF LAND COMMISSIONERS, hereinafter referred to as Lessor,
<br />WITNESSETH: Lessor, for and in consideration of the sum of Six hundred seventeen and 25/100 - - - - - -
<br />- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dollars (S 617 2 S ).
<br />receipt of which is hereby acknowledged as payment of (ding fce in the amount of 3 ,first year's
<br />rent in the amount o(S ~n(l,nn and a bonus in the amount of S - - ,and in
<br />further consideration of Lessee's agrcemem to pay OnP anA Nn/100 - - - - DollaKs) (E 1 -00 j
<br />per acre annually as rental in advance of the anniversary date of this lease so long as said lease shall remain in effect; and in further consideration
<br />~~( the terms and conditions hereinafter stated, and of the payments of royalttes reserved herein, to be kept and performed by Lessee, its successors
<br />and assigru, does hereby lease [o Lessee the right and privilege of exploring and prospecting (or, and mining of and raking coal from the lards hereinafter
<br />described, situate, lying and being in the County of La Plata ,State of Colorado, to-wit:
<br />ACRES SUBDIVISION SEC. TWP. RGE. PATENTS
<br />600.00 NW/4NE/4; S/2NE/4; NW/4; S/2 16 35N lOW idone
<br />Lessee shall have the right to use as much o(the surface thereof as may be reasonably regmred in the exercise of the right to mine coal, including
<br />rnp nuning, and the reasonable right to ingress and egress; the right to conswet buildings, make excavations, stockpiles, dumps, drains, roads, railroads,
<br />power lines, pipelines and other improvements as may be necessary in the mining and removal of said coal; subject, however, to all existing easements
<br />and rights-0(-way of third parties, and the rights of surface lessees and surface patentees, and further subject to the terms, conditions and royalties
<br />cet nut in this le7se. The above-mentioned rights may be exercised in conneciinn with the mining o(coal from other or adjacent lands cnly when mining
<br />nn such lands is carried on in conjunction with the actual mining of coal on the land herein leased.
<br />RESERVING. however. m the State of Colorado
<br />A. All nehts and prn~ilcgcs of every kird and nature, ezccp as arc herein specifically grzntcd.
<br />B. The right to use or lease said premises or any pan thcreo(at any time for any purpose. including the right to e.zplorc and prospect said premises
<br />other than the locating of co,d deposhs, which use and Icavng of said premises shall t+e (or purposes other than and not inconsistem with
<br />the rights and privileges herein specifically granted.
<br />C. The nght to dispose of or lease the surface.
<br />U. The right at all times during the Ide of this Icase to go upm said prenuses and every pan thereof (or the purpose of inspecting same. and
<br />the books of amounts and records n( mineral workings therein, aril of ascertaining whether or not said Lessee and those holding thereunder
<br />by and from it, are carrying out the terms. covenants aril agreements m this lease contained.
<br />TO HAVE .4ND TO HOLD The above-0escribed premises, with the appurtenances, unto Lessee, its heirs, successors ssigns. or legal representa-
<br />tives from ik~elve O'clock noon on the 14th day of January 19 $~ ,for the full term of
<br />tom., ( t n )years, and until Twelve O~clock noun tin the 14th day of January 19 95 ,and.
<br />except as hereinafter stated. as long thereafter as coal is being produced in paying quantities from sad premises, and the royalty and rents provided
<br />for herein. or by any extension hereof, are being paid. subject io the following terms, conditions and agreements. to-wit:
<br />1. ADVPu\CE M1NLt1tUM ROYAh7Y - As minimum and advance royalty, without relation to the amount of coal mined from the leased premises-
<br />Lessee shall pay to Lessor the (allowing amounts:
<br />LEASE YEAR ADVA
<br />1st 10
<br />2nd S10
<br />3rd ~h0~
<br />4th ~~1-S
<br />5th alV
<br />VCE MINIAfUM ROYALTY LEASE YEAR ADVANCE MINIMUM ROY'A LTY
<br />lacre 6th S10/acre
<br />acre 7tE
<br />acre Rrh 10/,ere
<br />acre ~~ ~~o
<br />acre trrh[~ /']l`TP
<br />Acreage changes resulting from surrender or partial assignment may reduce the advance min'unum royalty proportionately.
<br />Further, at the end of each fiveyear period, Lessor may change the rate or amount of advance minimum royalty to be paid by Lesser. In the
<br />event Lessce shall not extract coal from the leased premises sufficient to remm to the State the minimum amounts above specified, it is nevertheless
<br />understood that the above sums of money arc due and payable to Lessor whether or not coal is mined, but that such advance minimum ro}alty
<br />shall be credited upon the first royalties due as hereinafter provided for c. al actually produced from said premises.
<br />2. FORFEITURE OF ADVANCE MINIMUM ROYALTY-In the absence of produnion of coal N continuous paying quantities before the
<br />expiration date of the lease, all advance minimum royalties and all rentals shall be forfeited to the State.
<br />3. EXTENSION -Lessee may have a preferential right to renew the lease or to receive a new lease, whichever may be determined by Lessor to
<br />be N tM best interest of the State, under one or more of the following conditions:
<br />A. An advance minimum royalty, the amount to be negotiated before expiration of the lease, will be continuous until the end of the second ten-year
<br />term of the lease, or until the expiration of the new lease. This amount may be adjusted at the end of each five-year period of the lease.
<br />B. Lessee shall furnish to Lessor satisfactory evidence of plant for mining during the record ten-year term or during the ten-year term of a new lease or;
<br />C. Furnish adequate geological evidence to Lessor that the acreage leased is in fact an integral pan of and contains reserves in a logical mining
<br />unit. Final delenniration as to whether the acreage is or is not a pan of a logical mining unit will be made by Lessor.
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