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Thence north 47 degrees 3 minutes 30 seconds east a distance of 150.0 feet to a point; <br />Thence south 73 degrees 42 minutes 31 seconds east a distance of 1,128.0 feet, more or less, to <br />the east section line of Section 32; <br />Theace south 1 degree 23 minutes 39 seconds east a distance of 798.0 feet along the east section <br />line of Section 32 to a point; <br />Thence north 78 degrees 25 minutes 34 seconds west a distance of 1,447.1 feet to a point; <br />Thence north 61 degrees 7 minutes 16 seconds west a distance of 338.2 feet to a point; <br />Thence north 26 degrees 4 minutes 33 sewnds east a distance of 147.0 feet to a point; <br />Thence north 47 degrees 3 minutes 30 seconds east a distance of 587.1 feet, more or less, to the <br />point of beginning. <br />FUND: School <br />containing ],439.54 acres, more or less, together with the right to use as much of the surface as may be <br />reasonably required in the exercise of the right to mine, including strip mining; and the right to reasonable ingress <br />and egress; the right to construct buildings, make excavations, stockpiles, dumps, drains, roads, railroads, power <br />lines, pipelines and other improvements as may be reasonably necessary in the mining and removal of said coal; <br />subject, however, to all existing easements and rights-of--way of third parties, and the rights of surface lessees and <br />surface patentees, and further subject to the terms, conditions and agreements set out in this lease. The <br />above-mentioned rights may be exercised in connection with mining on other or adjacent lands only when mining <br />on such lands is carried on in conjunction with the actual mining of coal on the land herein leased. The above <br />right to use state lands without mining on the lands herein leased will be at the discretion of Lessor. <br />RESERVING, however, to the State of Colorado: <br />A. All rights and privileges of every kind and nature, except as are herein specifically granted. <br />B. The right to use or lease said premises or any part thereof at any time for any purpose, including <br />the right to explore and prospect said premises for minerals other than coal. The use and leasing <br />of said premises shall be for purposes other than and not inconsistent with the rights and privileges <br />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 part thereof <br />for the purpose of inspecting same, and the books of accounts and records of mineral workings <br />therein, and of ascertaining whether or not said Lessee and those holding thereunder by and from <br />it, are carrying out the terms, covenants and agreements in this lease contained. <br />Page 2 of 11 <br />