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COAL.DOC STATE OF COLORADO
<br />Rrv. 08!2004 STATE BOARD OF LAND COMMISSTONERS
<br />Department of Natural Resources
<br />COAL MINING LEASF NO. CO 3388 '
<br />THIS COAL MINING LEASE ([he "Lease"), made in duplicate and entered into this 27th day of August 2004,
<br />by and between the State of Colorado, acting through its STATE BOARD OF LAND COMMISSIONERS, hereinafer
<br />referred to as Lessor, or the Board, and National 1Gne Coal LLC, 4424 CR 120. Hesperus, CO 81326, hereinafter
<br />referred to as Lessee:
<br />W1"fNESSE'tH: Lessor, for and in consideration of the sum of~~
<br />receipr of which is hereby acknowledged as payment o mg ee m t e amount o test
<br />year s rent m t z amount of and a bonus in the amount of and in further consideration of
<br />Lessee's agreement to pa Dollars per acre annua~tal in advance of dre anniversary
<br />date of this Lease so long as is ease s a remain in a act, and in further consideration of the terms, conditions and
<br />agreements herein and of the payments of aanua] rentals and royalties reserved herein, to be kept and perforated by
<br />Lessee, its successors and assigns, does hereby lease to Lessee the right and privilege of exploring and prospecnng tor,
<br />and training-oi and taking of coal from the lands herein described, situated in the County of La Plata, State of
<br />Colorado, to-wit:
<br />ACRL-S SUBDNISION SEC.TWP.RGE. PATENTS
<br />690,00 All 36-35N-12W NMPM None
<br />I •
<br />'I'O"1'AL ACRES 640.00
<br />FUND: School
<br />cunmining 640.OU acres, more or less (hereinafter called the "Leased Premises"), together with the right to use as morn
<br />oC the stu'face above the Leased Premises as may be reasonably required in the exercise of the right to mine, including
<br />snip mining and undergrotutd mining with the right to subside the surface, and with [he right [o enter upon the surface
<br />CU conduct subsidence monitoring and surveying, and to conduct surface subsidence remediation and repairs as
<br />requirzd by taw; the right to conduct environmental monitoring, surveying and assessments and the right to reasonable
<br />ingress and egress; the right~to construct buildings, snake excavations, stockpiles, dumps, drains, roads, railroads,
<br />power lines, pipzlines and other improvements as may be reasonably necessary in the mining and removal of said coal,
<br />[o [he extent Lessor has the authority to grarat such; subject, however, to all existing easements and rights-of-way of
<br />third partizs, and the rights of surfacz lessens and surface patentees, and further subject to the terms, conditions and
<br />agreements set out in this Lease. The above-mentioned rights tray be exercised in connection with development or
<br />mining on the Leased Premises, or with development or mining on other lands (hereinafter called "Mining Rights").
<br />Said "other lands" shall include such additional lands or interests in lands as Lessee may hold or acquire, from time to
<br />time, for the developmem and mining of coal in conjunction with Lessee's use and enjoyment of this Lease and thz
<br />exercises of its Mining Rights (hereinafter called "Adjacent Lands"). The above Mining Rights may be exercised so
<br />long as Lessee is no[ in default under the terms of this Lease and Lessee continues to pay to Lessor any and all
<br />royalties or rentals dun under the [eons of this Lease. The above rights to use the Leased Premises without mining on
<br />the Lraszd Yremiszs is subject to the exercise of the Mining Rights as set forth herein.
<br />RESERVING, however, to the State of Colorado:
<br />A. All rig!us and privileges of every kind and nature, except as are hereir. specifically granted.
<br />B. 1'he right m use or Izase the Leased Premises or any part dtereof at any time for any purpose, including
<br />the right to explore and prospect the Leased Premises for minerals other than coal. The use and leasing of
<br />chr Leased Premises shall he for purposes other titan and not inconsistent with the rights and privileges
<br />herein specifically granted. -
<br />C. The right [o dispose of or lease the surface above the Leased Premises where Lessor is the surface owner.
<br />D. "the right a[ all times during the life of this Lease ro go upon the Leased Premises and every part [hereof
<br />for the purpose of inspecting same, and the books of accounts and records of mineral workings fierein,
<br />and of ascertaining whether or no[ Lessee and those holding thereunder by and from it, are carrying out
<br />the terms, covenants and agreements of this Lease. .
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