2006-06-15_PERMIT FILE - C1981035A (10)

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Premises during the preceding calendar month. Lessee agrees to keep and to have in possession complete and • acemate books and records showing [he production and disposition of any and all coal produced from [he Leased Premises and to permit Lessor at all reasonable hours, to examine the same o: to furnish copies of same to Lessor within fi0 days following writter. request along with purchasers Suppon documentation. All said books and records shall be retained by Lessee and made available in Colorado to Lessor for a period of not less than 6 years. If any such examination shalt` reveal, or if either party shad discover any error or inaccuracy in its own or [he other party's staLment, payment, calculation, or dete[tnina[ion, then, proper adjustment or corcection thn'eof shall be madz as promptly as practicable thereafter, except that no adjustment or correcrion shall be made if more than 10 years have elapsed between the time the error or inaccuracy occurred and the discovery by either party of said eaor or inaccuracy. It is fur8ter agreed that during alt proper hours atad at all times during the continuance of this Lease, Lessor or its duly authorized agent, is hereby authorized to check scales as to their accuracy, to go on any par[ of the Leased Premises to examine, inspect, survey and take measurements of the same, and that all conveniences necessary for said 'aspection, survey, or examination shall be furnished to Lessor. Lessee shall submit, if required'uy Lessor, such additional reports, records, or documents regarding Lessee's opcmtions un the Leased Premises as necessary for *:» purpose of determining compliance with lease provisions. Upon written fequest by Lessee, Lessor shall keep all information submitted to Lessor confidential, as consistent with State law. U. BN VIRONMF,NTAL ANALYSIS -- Lessor may require [hat Lessee submit an environmental analysis for review by Lessor bZ-fore any exploration, development, or mining begins. ' 16. EXPLORATION -- M exploraEo;t Notice of Intent submitted to and approved by the Division of Minerals and Geology is required and must be obtained before any field work of any type or kind is undertaken. A restoration bond with the Division of Mineral and Geology is required in conjunction with this Notice of Intent The bond required by the Dh~ision of Minerals and Geology for exploration activities shall be the sole bond required, unless a change it5~applicable laws, rules or reguladons requires an increase in or additional bonding; in which case the appropriate bonding Hilt be implemented. The proposed type asd method of exploration shall be outlined on the app:ication for a:; exploration permit. Lessee is required tb !.cep an accurate log or record of all sw'ftce and subsuciace expierar`::i-.. This exploration work shall be tied :o a comer established by an official USGS survey. AC such lags ar.;:~cr records may be requested by Lesscd _ t a.:y time, but Lessor agrees that • during the term cf [his Leese, ~ I( such information so supplied by Lesec shall remain confidential and unoublis!tcd insoLr as it is a: nsis'.an[ within [he law. 17. OPF,RA'I'lON PLAN -- Al: I:!acs ror mining may be requested by Lessor for review and approval before these operations begin to deters ir.-_ d';a, the maximum economically recoverable coal will be mined. Such approval will not be urueasm:ably v.:^.'. ie!:~ nd if not given within 90 days shall be corned to have been approved. 18. UEVELOYMENT ND MININit ~- M application for a mining permit nsr be submitted for reviety [o Lessor and approved by f±<Division of Y'. ,:nerals and Geology before any develo;..;: Pot or mining of any type or kind is undertaken; provided that Lessr, '•, review of the application for mining'p°_tmi[ is limited to [hirry days. A reclamation bond ~r.i[h the Divisiu-re of Minerals and Geology is required inconjunction with this approval ol'the mining permit. Thr, bond requi_t~! by the Division of Minerals and Gectegy for the devriopmen[ and mixing activities shall be ":e sole bond required, uNess a change in applicable ;rws, rules or regulations requires an increase in or add~'ional bondin_q; ':n which case, the appropriate banding r~-ill be implemented. The proposed type one ::ie[hod ct mining shali~': ~.; outlined in the application for minin@ ;:~_rmit. Lessee s required to comply with the loons and conditions id:;_iled in the approved mining permit by tr' Division of Minerals and Geoiugy. 19. OTHER STATE ;•.i iE CIEs -- ': -:. trumen[s and documents required by c:ter State agencies may satisfy certain requiremrnL, oY'ths Lease. In tt:- event that Lessee is required to file i:-: ruments and documents with aher State agencies, such as the Divtei..-, of Minerals and Geology, etc., Lessee s:~:all notify Lessor of said filing and Le>sor reserves th_ right to requi~; :and obtain copies of such instruments e::d documents from Lessee. 20. MINING IvIETHGDS -- Only n8r.~ng methods that will insure the extracdtin of the greatest possible amount of coal consistent within the laws :.;:d with prevailing good mining practice shall be used. lessee also agrees [o reasonably protect the coal beds above and below the coal bed being mined° ~' • 6:, Page 5 of 8 : ~.. .. :