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J
<br />7
<br />COAL LEASE AGREEMENT
<br />THIS COAL LEASE AGREEMENT ("Lease") is entered into and made effective
<br />J as of the 1st day of November, 1995 by and between MGP Enterprises, a Colorado
<br />Limited Partnership ("MGP"-, whose address is 10050 W. 29th Avenue, Denver, Colorado
<br />80215, F. R. Hill, Jr., d/b/a F. E. Hill Company, whose address is P. O. Box 226, Fairfield,
<br />-i Texas 75840 and B. F. Hill d/b/a Hill Ranch, whose address is Route 1, Box 238C, Glen Rose,
<br />J Texas 76043 (collectively, the "Hills") (the Hills and MGP are collectively referred to herein
<br />as "Lessor" or "Lessors"), and A. P. Maxwell Development Company, LLC, an Indiana limited
<br />1 liability company ("Maxwell"), whose address is 1311 Bentwood Drive, Evansville, Indiana,
<br />47711.
<br />-1 RECITAL
<br />WHEREAS, Lessor and Maxwell wish to enter into an agreement by which Maxwell will
<br />lease from Lessor the rights set forth in this Lease to the lands icncwn generally as the
<br />Lorencitc Property, located in Las Animas County, Colorado described on Exhibit A hereto (the
<br />"Leased Lands") and containing approximately 17,861.84 acres; whereas pursuant to those
<br />deeds recorded in the real property records of Las Animas County in gook 906 at Page 745,
<br />Book 906 at Page 759, and Book 912 at Page 924, the Hills are the owners of an undivided
<br />46.54°~ of all minerals, including coal, in or upon the Leased Lands, and an undivided 46.54%
<br />interest in certain surface use rights appurtenant to such mineral interest, and 100°k of the
<br />surface estate; and whereas MGP is the owner of an undivided 53.46% of all minerals,
<br />including coal, in or upon the Leased Lands, and an undivided 53.46% interest in certain
<br />surface use rights appurtenant to such mineral interest.
<br />NOW, THEREFORE, for and in consideration of the promises and agreements contained
<br />J herein, and other good and valuable consideration, the receipt of which is acknowledged, the
<br />parties agree as follows:
<br />1 . Grant of Lease
<br />Lessor hereby leases and lets the Leased Lands unto Maxwell, for the purpose of exploring,
<br />developing, mining, removing, preparing and loading all of the coal from the surface to a depth
<br />of 5,000 feet above mean sea level lying in, under and upon the Leased Lands, during the
<br />term of this Lease and subject to the limitations and conditions herein provided. Maxwell shall
<br />have the following rights and privileges associated with the leasehold granted herein:
<br />a. To take and appropriate to its own use and purposes all the coal from the
<br />surface to a depth of 5,000 feet above sea level lying in, under and upon the
<br />`~ Leased Lands by any and all mining methods (except that large scale dragline
<br />J surface mining shall be prohibited on the Leased Lands).
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