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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. <br />