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<br />COAL MTNIN : L.RASF.
<br />THIS COAL MINING LEASE (the "Lease") is made this stn day of
<br />May , 1990 ("effective date"), by and between ROBERT E. ZIMMERMAN. JR. ,
<br />whose address is P.O. BOX 8753, DENVER, COLORADO 80201 ("Le550r," Whether
<br />one or more), and NEW CAS'T'LE ENERGY CORPORATION ("Lessee"), whose address
<br />is 7625 East Napa Place, Denver, Colorado 80237, Attn: President.
<br />Lessor and Lessee agree as follows:
<br />-- .~ III IIIIIIIIIIIIIIII
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<br />CQAL MTN7NG LEASE
<br />~~ THIS COAL MINING LEASE (the "Lease") is made this lnrh day of
<br />MAY , 1990 ("effective date"), by and between MICHAF.T. IJ. (l' SHATI(:HNRSCY TRfiST
<br />whose address is P. 0. BOX 29, DENVER, coT,oRADO 80201-0029 ("1-essor;'whether
<br />one or more), and NEW CASTLE ENERGY CORPORATION ("Lessee"), whose address
<br />is 7625 East Napa Place, Denver, Colorado 80237, Attn: President.
<br />Lessor and Lessee agree as follows:
<br />Definitions
<br />Whenever used in this Lease, the following terms will have the following
<br />meanings:
<br />"Coal" means all forms of coal, including ]ignite and subbituminous coal, as
<br />well as gaseous substances naturally occurring in combination with coal deposits. It is
<br />not the intent of the parties, by including gaseous substances within this definition, to
<br />require that Lessee capture, gather and market such gaseous substances where it is not
<br />technically and economically feasible to do so, but only to provide that it will and may
<br />be done if such activity is, in the sole opinion of Lessee, feasible.
<br />"Commercial Quantities" means a quantity of Coal produced and sold from
<br />the Unitized Premises sufficient to allow Lessee to realize a profit, after deducting al]
<br />expenses attributable to production from the Unitized Premises, other than depreciation
<br />and initial development costs.
<br />"Continuous Basis" means, with respect to Mining Operations, so long as
<br />all such Mining Operations do not cease for a total of more than three hundred sixty-
<br />five (365) consecutive days, in the absence of the existence of Force Majeure.
<br />"Current Market Value" means the price paid for Coal in comparable
<br />current arms-length sales at other mines, adjusted to account for variances in mining and
<br />processing methods and the grade, quality and composition of the Coal from that mine
<br />and the Coal mined on the Unitized Premises, for differences in the terms of the
<br />respective sales contracts and brokerage costs, and for transportation costs to the point
<br />of sale.
<br />"Force Majeure" means the occurrence and continuation of any of the
<br />following conditions beyond the reasonable control of the Lessee, which, during its
<br />occurrence prevenu Lessee from carrying out its obligations under this Lease: lightning,
<br />earthquake, storm, fire, flood, windstorms, and other damage from the elements; strikes,
<br />lockouts, or other labor disturbance; war, insurrection, mob violence, riots; interference,
<br />action, legislation, or regulation by legislative, administrative, judicial or other
<br />governmental or military authority; inability to obtain permits or licenses; acts of God
<br />or acts of the public enemy; breakdown of equipment, machinery or facilities which are
<br />not readily replaceable; scarcity or unavailability of equipment, material, power, fuel or
<br />water; failure of carriers to transport or furnish facilities for transportation; or any other
<br />[ike cause beyond Lessee's control.
<br />"Mining" means deep shaft, hydraulic, incline, and/or adit mining, and any
<br />other underground mining method presently or in the future in cornmercia] use or
<br />develnnmental testine in the worldwide coal mining industry.
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