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s[Ii 2374 (arT1)
<br />yRcv. JT, Jlal, /d5)
<br />STATE OF COLORADO
<br />S TE BOARD OF LAND COMMISSIONERS.
<br />COAL MINING LEASE NO. 585/13-5
<br />ISSUID IN LIEU OF EXTENSION OF COAL MINING LEASE N0. 460/13-5.
<br />Containing 80.00 ~crcs, more or less: Land Fund: School
<br />THIS COAL MINING LEASE, Made in duplicate and entered into this 4th day of December Ig 84 ,
<br />by and between the State of Colorado, acting through its STATE BOARD OF LAND COMMISSIONERS, hereinafer referted to az Lessor,
<br />and Get Minerals Marketin Inc.
<br />Routt ounty Oak Creek. CO 7
<br />hereinafter referred to az Lessee
<br />WITNESSETH: Lessor, for and in consideration of the sum of Ninety-two and 75/100 - - - - - - - - - - - -
<br />---------------------------- --- Dollars (5 92.75 ).
<br />receipt of which is hereby acknowledged az payment of filing fee in the amoum of S 12.7 ,first year's
<br />rent N the amount of S 80.00 , and a bonus N the amount of S -0- ,and N
<br />further consideration of Lessee's agreement to pay One and No/100 - - - - Dollar(s) (S 1.00 )
<br />per acre annually az rental in advance of the anniversary date of this lean so long az said lease shall remain in effect; and in funkier wnsideration
<br />of the terms and conditions hereinafer stated, and of the payments of royalties reserved herein, to be kept and performed by Lessee, ita successors
<br />and assigns. does hereby lease w Lessee the right and privilege of exploring and prospecting for, and mining of and taking coal from the lands hereinafter
<br />described, situate, lying and being in the County of Routt ,State of Colorado. to-wil:
<br />ACRES SUBDNISION
<br />SEC. TWP. RGE.
<br />PATENTS
<br />80.00 NE/4NW/4; NW/4SE/4 12-SN-86W 3643
<br />Lessee shall have the right to use az much of the surface (hereof az may be reasonably required in the exercise of the right to rttine coal, including
<br />,trip mining, and the reasonable right to ingress and egress: the right to conswct 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, ro all existing easements
<br />and rights-0f-way of third parties, and the rights of surface lessees and surface patentees, atd further subject to the tetras, conditions and royalties
<br />set out in this lease. The above-mentioned rights may be exercised in connection with the mining of coal from other or adjacem lands only when mining
<br />on such lands is carried on in conjunction with the actual mining of coal on the land herein leased.
<br />RESERVING. however, to the State of Colorado:
<br />A. All rights and privileges of every lord and nature, except az are herein specifically granted.
<br />B. The right to use or lease said premises or any pan thereof at any time for any purpose, including the right to explore and prospect said premises
<br />other than the locating of coal deposits, which use and leasing of said premises shall be for purposes other than and not inconsistent with
<br />the rights and privileges herein specifically granted.
<br />C. The right to dispose of or lease the surface.
<br />D. The right at all times during the life of this lease to go upon said premises and every pan thereof for the purpose of inspecting same, and
<br />the books of accounts and records of mineral workings therein, and of ascertaining whether or not said Lessee and those holding thereunder
<br />by and from it, are carrying our the terms, covenants and agreements in this lease contained.
<br />TO HAVE AND TO HOLD The abovedescnbed premises, with the appurtenances, unto Lessee, its heirs, successors, assigns, or legal representa-
<br />tives from Twelve O'clock noon on the 4th day of December 191-, for tM full term of
<br />ten ( 10 )years, and urail Twelve O'clock noon on the 4th day of December 19~~, and,
<br />except as hereinafer stated, az long thereuker as coal h being produced in paying quantities from said premises, and the royalty and rents provided
<br />for herein, or by any extension hereof, are being paid, subject to the following terms, conditions and agreements, to-wil:
<br />I . AD VANCE MIIYIMIJM ROYALTY - As minimum and advance royalty, without relation to the amount of coal mined from the leased prcmtises,
<br />Lessee shall pay to Lessor the following amounts:
<br />LEASE YEAR ADVANCE MINIMUM ROYALTY LEASE YEAR ADVANCE MINIMUM ROYALTY
<br />1st S10/acre 6th S10/acre
<br />2nd 7th
<br />3~~ 1 acre 8th 10 acre
<br />4th "lU acre 9th 10 acre
<br />5th 10 acre 10th. 10 acre
<br />Acreage changes resulting from surrender or partial assignment may reduce the advance murimum royalty proportionately.
<br />Further, at the end of each five-year period, Lessor tray change the rate or amount of advance minimum royalty b be paid by Lessee. In the
<br />event Lessee shall no[ extract coal from the leased premises sufficient to remm to the Stare the minimum amounts above specified, it is nevertheless
<br />understood that the above sums of money are due and payable to Lessor whether or not coal is mined, but that such advance minimum royalty
<br />shall be credited upon the first royalties due az hereinafter provided for coal actually prodttad from said premises.
<br />2. FORFEITURE OF ADVANCE MINDNUM ROYALTY - N the absence of production of coal in continuous paying quantHies 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 the best imerest of the State, under one or more of the following wrdidons:
<br />A. An advance rtdnutwm royalty, the amount m be negotiated before expiration of the lease, will be continuous until the end of the secondten-year
<br />term of the (case, or until the expuatiom of the new lease. This amount may be adjusted at tlu erd of each five-year period of the lease.
<br />B. Lessee shall krrttislt to Lessor satisfactory evidettee of plain for resting during the record teo-year term ordutingtheten-year term of a rtew lease or;
<br />C. Furnish adtxptate geological evidentx to Lessor that the actwge Rased is in fact an integral pan of and contains reserves in a logical mining
<br />unit. Final n^~•~~tition as ro whether the acreage is or is not s pan of a logical tnhring unit will be made by Lessor.
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