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T. <br />I <br />Saptember 26, 1984 <br />Mr. David C. Shelton <br />Page Three <br />(7) Sublease Agreement, dated March 25, 1980, as <br />amended, between Northern Minerals Company and Northern <br />Coal Company covering United States of America Coal <br />Lease Serial No. C-076713 granting to Northern Coal <br />Company all the mining rights and privileges thereunder, <br />approved by the Department of Interior, Bureau of Land <br />Management on February 17, 1981, effective March 1, 1981. <br />(8) Bond Under Lease for Mining Deposits No. 867282 in the <br />amount of $25,000.00 filed with the Department of Interior, <br />Bureau of Land Management covering United States Coal Lease <br />Serial No. D-044240 naming Northern Minerals Company and <br />Northern Coal Company as obligee. <br />(9) Bond Under Lease for Mining Deposits No. 867283 in <br />the amount of $50,000.00 filed with the Department of <br />Interior, Bureau of Land Management covering United <br />States of America Coal Lease Serial No. C-076713 naming <br />Northern Minerals Company and Northern Coal Company as <br />obligee. <br />(10) Reclamation Bond No. 844136 in the amount of <br />$323,890.00 and No. 867251 in the amount of $105,000.00 <br />covering the Rienau No. 2 Mine site filed with the Colorado <br />Mined Land Reclamation Division and the Office of Surface <br />Mining and Enforcement naming Northern Coal Company as the <br />obligee. <br />As an explanation of the above-referenced statute and <br />documents, Northern Coal Company would point out that the <br />property, i.e., both the surface and mineral estates, encompassed <br />by the D-044240 and C-076713 leases was originally owned by the <br />United States. The surface estate was severed and patented for <br />homestead purposes under the Stock-Raising Homestead Act of <br />December 29, 1916. Section 299 of the Act provides: <br />"All entries made and patents issued under the <br />provisions of this Act shall be subject to and contain a <br />reservation to the United States of all the coal and <br />other minerals in the lands so entered and patented, <br />together with the right to prospect for, mine and remove <br />the same. The coal and other mineral deposits in such <br />lands shall be subject to disposal by the United States <br />in accordance with the provisions of the coal and <br />mineral land laws in force at the time of such <br />disposal...Any person who has acquired from the United <br />States the coal or other mineral deposits in any such <br />land, or the right to mine and remove the same, may <br />re-enter and occupy so much of the surface thereof as <br />may be required for all purposes reasonably incident to <br />the mining or removal of the coal..." <br />