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<br />Scc. J: DiLICIiNI' DIiV h:L01'hlLt:'f A::I1 C'.1;:'fiGll Cf~ t%I'I:!'.!,'I Ic`C - 'I hr. lc'.': o.c ~; h.tll cnp,ay.c !n
<br />Chu uiligcnt devciopmcut o. tl~~ ..tai rc:,uurc... :.cL;t~::. ,. ~hc ._~nsc. Altur d11i;,cnt
<br />development is achieved, the les.sce shall m;iintair. cuatinucd npr.ration of the r..lne nr
<br />mines on the leased lands. The Cl'Cal:: ~ dllljlellt dry:'rir~;,mer.c" and "continued operation"
<br />are defined in [he applicable re$;ulntlons in Titl!~n lG, 30 and 43 oC chc Code of
<br />Federal Regulations.
<br />Sec. 4. BOND -The lessee shall f.ilc with tlv: al~prupriace Curr.au of Land hlnna~emenC
<br />office a lease bond in [h~~ amount of ~ rr~,,~l1f1.,!lfi_`_ f~tu chc use and benefit
<br />of the United States to insure payment oC dcicrrrd ut~nus pn~'-icn,y, ren[aL., and
<br />royalties and to insure compliance with all uthe: iu~r.::, r,f [his lease, the :erulations
<br />and [he Act (except for reclamation within thu nrcA ccoorr: b;~ a surface -.inin~ permit
<br />issued under the permanent rc$;u].~COr: pragr.r,s by the .-o; ulatnry authnrit) and, if
<br />appropriate, for [he protection uC the tncenrsu~. or, t.f•.~• ::uriat^ owner; or. the .leased
<br />lands. An increase in the amount of chc lca::e baud r,.ny be required by chc lessor n[
<br />any time during the life of [he lease to reflect chanted conditions.
<br />Sec. 5. RENTAL - An annual rental of $ 3.n0 _ :or each acre or traction thereof
<br />shall be paid in advance on or bciorc the anniver::Ar: cote of this lease. This
<br />section shall no [- be subject co revision e::cept in ,hc course o.' lease readjustment.
<br />Sec. 6. PRODUCTI0;7 ROYALT'( - The lessee shall pay a production royalty of 12. percent
<br />of the value of coal produced 6,; strip or ou;,cr mittla;, r..cthods.uud;cxzz%%z;c;crprr:~a-~w5c
<br />sh8xask~Ytrx>it$xQr,,yac2criYrv~y,}'~r~rdr~:rU{iiiiit~-ri~4iiif/Tiir~lt:~ ri:~<~;:3;iii! The value o` coal shall be
<br />determined as se[ forth in the. rcUulatiuas to 3U i;Fi? 2!l. Production ro;•,alties paid For
<br />a calendar month shall be reduced b;' the nmonnt of and; advance ro,altic; ,aid under this
<br />lease to the extent that such advance royn)ticr. nave no[ be~•^ u:;ed to reduce production
<br />royalties in a previous mooch. liowever, production re;'a1ti es payable after the 20th
<br />year of the lease shall not be rr,duccd b}' advance ru,nl[ics poi? durinh t'nc [last 20
<br />years of [he lease. Production rc~yaltia:: e.ho] L L~.: }~n:•ablc the Einnl day of thr: month
<br />succeeding the calendar month in •.:iiicb the r.n:~l i:; :.old, unless otherwise ::pccrfiud in
<br />30 GFR 211. The royalty rates provided .in this, cect;un ;:hall no[ be subject to revision
<br />except in the course of lease ruad3uc:tmgnt.
<br />Sec. 7. ADVANCE ROYcU,TY - Upon request by chc lc-acc th<: ULstrict '11nin~ Supervisor
<br />may accept, for a total of no[ more than 10 Years, tiV` (,a.:Ir,nnC of advance rat:~lties
<br />in lieu of the condition of cen[innr_d operatieu con:u,tent with chc regulations, in 43
<br />CFR 3473 and 30 CFR 211. The ac{vancc royalty s'nAll be based on .~ percent of the
<br />value of a minimum munber oC tons which shall be determined in [he manner established
<br />by Che regulations in 43 CFR 3473.
<br />Sec. 8. METHOD OF FAYNGtJTS - The lrn;sue shall maL.e r:~ntnl pA_:n:encs to chc appropriate
<br />Bureau of Land Cfanagement (ULF7} office until production ro•:nlties become pa~~able.
<br />-...ThereaE[~r, all rentals, production rnaalti~•s :u;c: advance royalties ::hall be paid to
<br />the appropriate office of the United States (.cological Survey.
<br />Sec. 9. GRPLORATION FLAN - The le::see shall nut r.onimence .-,r} c:zplora[ion, czcc:pt
<br />casual use, mi the leased lands without an nnp~ov~•d rpluracJnn plan. @xplora r on
<br />plans for leased lands covered by nn approved m~nin$; permit shall be submitted co [hc
<br />Regional Director of the Office of Surface ~1Liln,, i.n accordance with the regulations
<br />in 30 CFR Chapter VII. L:tploration plans fur leased lands nn[ covered by an approved
<br />mining permit shall be submitted to the District tlin ing Supervisor in accordance with
<br />the regulations in 30 CFR 211.
<br />' Sec. 10. NININC PLAN - In accordance with tiro re$;ulntions In 30 CFR 211 and Chapter
<br />'~ VI1, the lessee shall submit a mining, and reclamation plan not more than three vears
<br />after the effective date of this Lca-;c. CtininC operntio;a shay. not ce^:acnec until
<br />after Che mining and reclamation plan is approved. 'I~h,~ minLi$; and reclamation sh,lll
<br />be conduc Ced in adcordnnee with Che approved minin{: and roc lamaclon plan. E?:p1o:;,Lion
<br />activities which were no[ included in the approve:d miniut;;md recla~nacinn plat: require
<br />submittal of exploraclon plans in accordance with Scctiou 7 of tills loose.
<br />Sec. 11. LOGICAL hlINI11C UNIT (Lt1U) - This len:c is auto:aatic.ally considered to be an
<br />LPRI. This LMIS may be en larf;ed, Adjusted or diminichcd in accordance with chc applicable
<br />regulations in Titles 10, 30 and 43 0[ the Cndr. n( ho.urnl Ito ,;ulatlons. "tile coining
<br />plan for the 1.PfU shall require that the reserve:; of the Ltll' ••-i11 be mince: within a
<br />period of 40 years in accordance with 3U CFi? 211 aid ~'•3 CFft 3400.0-5. 1'he definition
<br />of LMU and LPIU reserves and other appllwble condition:, Arc set forth In the n•$JUlations
<br />1- - .... .. ~ ... _ -.. .. _ _ _
<br />., ~.. u,n r~...v. u-~ .olio w/5r u~ ...n ~1a, •Illu .auC .u .u ui~ .,v..c ua reUCCai ;~cgu au ul.ua.
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