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-C <br />~PP4~ENT OFT~y uawxmrmane.nem <br />uwuoww.~norv <br />m United Stat~:es Department of the Interior <br />' ~ BUR}EAU OF LAND MANAGEMENT <br />y4~ a ae Colorado State OfFce <br />2850 Youngfield Street <br />in uEr,.vxEF~ero: Larkewood, Colorado 80215-7093 www.co.blm.gov <br />FEB 2 8 2002 co-933(ICM> <br />RECEN E® 3451 <br />C-8424 <br />MAR 0 4 2d~'~ c-84zs <br />Coal <br />., ,, „coloBV <br />Certified Mail plva~u~~ ~~ ~ ' . - <br />DECISION <br />Blue Mountain Energy, Inc. <br />10714 South Jordan Gateway #300 <br />South Jordan, Utah 84095 <br />Lease Terms and Conditions Readiusted <br />Coal leases C-8424 and C-8425 were issued effective June 1, 1982, and become subject to readjustment <br />of their terms and conditions on June 1, 2002. <br />Notice of intent to readjust the coal leases was sent to the lessee, Blue Mountain Energy, Inc., on <br />August 29, 2000. The leases are in the Deserado Logical Mining Unit. This action has been reviewed <br />for conformance with the Bureau of Land Management's public land health standards adopted <br />February 12, 1997. The readjustment will not adversely affect achievement of the public land health <br />standards. As provided in the Mineral Leasing Act of 1920, as amended (41 Stat. 437, 30 U.S.C. 181 et <br />sec .), and the regulations at 43 CFR 3451, we aze hereby readjusting the terms and conditions of the <br />leases. Copies of the leases are enclosed. The readjusted terms and conditions shall become effective <br />June 1, 2002. <br />The annual rental remains at $3 per acre or fraction thereof as provided in the current lease. The royalty <br />rate shall remain at 8.0 percent of the value of the coal removed from an underground mine as described <br />in the readjusted lease. The value of the coal shall be determined in accordance with the regulations. <br />Currently, the royalty rate for these two leases is reduced to 2.0 percent and the rental is waived for a <br />period of two yeazs, effective August 1, 2001. The reductions of royalty and waiver of rentals are subject <br />to the stipulations listed in the Decision dated June 12, 2001, granting Royalty Rate Reductions and <br />Waiver of Rentals. <br />The adequacy of the lease bonds is reviewed periodically and adjusted when necessary to reflect changed <br />conditions. The lease bonds are currently $25,000 for each lease. The existing lease bond is no longer <br />adequate for C-8424. You must file an increased replacement bond or a rider to the existing bond in the <br />amount of $398,000 within 30 days of receipt of this decision. The lease bond for C-8425 may be <br />reduced to $15,000 either by filing a rider to the existing bond or by filing a replacement bond. <br />Payments of rentals and royalties must be submitted to the Minerals Management Service in accordance <br />with that agency's regulations in Title 30, Code of Federal Reeulations. In accordance with the <br />