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EXHIBIT C-I
<br />Form 31: J-t Land Office Serial Number
<br />(October [967) UNITED STATES
<br />DEPARTMENT OF THE INTERIOR
<br />BUREAU OF LAND MANAGEMENT C-0125515
<br />COAL LEASE
<br />This ]ease, entered into on F~FAY 1 1"58
<br />through the Bureau of Land Management, and
<br />Industrial Resources, Inc.
<br />P. O. Box 1008
<br />Glenwood Springs, Colorado 81601
<br />by the United States of America, the lessor,
<br />the lessee,
<br />pursuant and subject to the terms and provisions of the act of February 25, 1920 (41 Stat. 43~, es amended, herein-
<br />after referred to as the act, and to all reasonable regulations of the Secretary of the Interior now or hereafter in Eorce
<br />whirh are made a part hereof,
<br />WITNESSETH:
<br />• $ec. 1. Rigbts of Lessee. The lessor, in consideration of the rents and royalties to be paid and the conditions to be
<br />observed as hereinafter set forth does hereby grant and lease to the lessee the exclusive right and privilege to mine
<br />and dispose of all the coal in the following-described tracts of land, situated in the State of Colorado.
<br />T. 7 S.. R. 102 W., 6th P.K.
<br />Sec. 27: All
<br />Sec. 28: All (Cote 1-5 iacl.~
<br />B'~R4f'~, Ngk. ~!
<br />Sec. 33: All
<br />See. 34: All '
<br />containing 2559,98 acres, more or less, together with the right to construct all such works, buildings, plants,
<br />~ structures, and 'appliances as may be necessary and convenient [or the mining and preparation of the coal for market,
<br />1 the manufacture of coke or other products of coal, the housing and welfare of employees, and subject to the conditions
<br />herein provided, to use so much of the surface as may reasonably be required in the exercise of the rights and privi-
<br />leges herein granted.
<br />Sec. 2. In consideration of the foregoing, the lessee
<br />hereby agrees:
<br />(a) Bond. To maintain the bond furnished upon
<br />the issuance of this lease, which bond is conditioned
<br />upon ccmpliance with all the provisions of the lease,
<br />and to increase the amount or furnish such other bond
<br />~'7fs-mayitie-req'S'i'ted:~"- ~ ~----~ -- - --
<br />i (b) Rental. To pay the lessor annually, in ed-
<br />~ vance, (or each acre or traction thereof covered by this
<br />lease, beginning with the date hereof, the following
<br />rentals: 25 cents Cor the fast year; 50 cents for the
<br />second, third, fourth, and fifth years, respectively; and
<br />~'' i'~~ S1 for the sixth and each succeeding year during the
<br />con ~nuan e o t e lease, such rental for any year to be
<br />credited against the first royalties as they accrue under
<br />the lease during the year for which the rental was paid.
<br />30 days from the expiration of the quarter in which the
<br />coal is mined. See additional royalty on
<br />reverse side.
<br />(d) Minimum production. Beginning with the sixth
<br />year of the lease, except when operations are inter-
<br />rupted by strikes, the slams^tc: ^- v-~••=u%•~ ^^• .. _d
<br />~~attFibuta~le to the lessee, or un ass on applsation and `~
<br />showing made, operations shall be suspended when
<br />market conditions are such that the lessee cannot op-
<br />erate except at a loss or suspended for the other
<br />reasons specified in section 39 of the act, to mine coal
<br />each year and pay a royalty thereon to a value of S1 per
<br />acre or fraction thereof. Operations under this lease
<br />shalt be continuous except in circumstances described
<br />qr unless the lessee shall pay a royalty, less rent, on
<br />such minimum amount of the leased deposits, (or one
<br />year in advance, in which case operations may be
<br />suspended for that year.
<br />(c) Royalty. To pay the lessor a royalty of
<br />cents on every ton of 2,000 pounds of coal mined during
<br />the first 20 years succeeding the execution of this
<br />lease. Royalties shall be payable quarterly within
<br />(e) Payments. To make rental payments to the
<br />manager of the appropriate land office, except that
<br />when this lease becomes productive the rentals and
<br />~/ r /~ .n •
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