PERMFILE48399

• Permit No: C1991078
• IBM Index Class Name: Permit File
• Doc Date: 12/11/2001
• Section_Exhibit Name: EXHIBIT 01 COAL MINE LEASES
• Media Type: D
• Archive: No

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ASSIGNMENT
•
THIS ASSIGNMENT AGP.EEMENT is made and entered into this
~~ ~" day of October, 1991, by and betr;een Lilly-
lands, Inc. a Colorado corporation (hereinafter referred
to as "Lillylands") and Spottswood Coal Company, Inc., a
Tennessee corporation (hereinafter referred to as Spotts-
wood).
WITNESSETH
THAT WHEREAS, by Option Agreement dated July 10, 1990,
(hereinafter, the "Option Agreement") Lillylands gr=_nted
ar. cption to Canyon Coals, Inc., or its designee, to
acquire by assignment or sublease two certain coal leases
more particularly described as follows:
1) The William E. Bray lease dated March 3, 1989;
and
2) The Roy M. and Betsy Davis lease dated February
22, 1988 (which leases are attached hereto as
Exhibit A and hereinafter jointly referred to
as the "Coal Leases"); and,
WHEREAS, in said Option Agreement the parties agreed to
enter into a more definitive agreement; and,
• WHEREAS, by Agreement Dated July 25, 1990, (hereinafter,
the "Agreement") Lillylands and Canyon Coals of Colorado,
Inc., (hereinafter "Canyon"), as the designee of Canyon
Coals, Inc., entered into a more definitive option agree-
ment; and,
WHEREAS, Canyon has previously exercised the option to
acquire the Coal Leases as set forth in the terms of the
Option Agreement and Agreement more particularly described
above; and,
WHEREAS, Canyon now designates Spottswood as its designee
under the Option Agreement and Agreement; and,
WHEREAS, as in accordance with the terms of the Agreement
(as modified herein), Lillylands now wishes to assign its
entire right, title, and interest in the Coal Leases,
except as specifically adressed in paragraph 3 of this
assignment, to Spottswood, and Spottswood wishes to acquire
the same by Assignment; and,
WHEREAS, Spottswood and Lillylands wish to amend the roy-
alty rate in the Agreement to ensure that the coal from
the Coal Leases is competitive on a cost-delivered basis;
• NOW THEREFOP,E, for and in consideration of payment made
in accordance with the terms of the Agreement, and other
good and valuable consideration including the terms set