PERMFILE61853

• Permit No: C1984067
• IBM Index Class Name: Permit File
• Doc Date: 12/11/2001
• Section_Exhibit Name: EXHIBIT 1 DEEDS AND LEASES
• Media Type: D
• Archive: No

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b. 1. OZ of the "Gross Proceeds of Mini ny" (as deCincd
in Section 2.5 bel o•.+) from all coal mined, produced
and sold pursuant to the Coal Interests gr•~n t~~d in
the Sublease Tract on which live State of Colorado
is tlvc Lessor named in the Lcasc.
2.2 Arn c•ss is hereby given credit against production
royalty payments first accruing as provided for in Section
2.1 above in the amount of $70,000, which sum has been paid
by Arness prior to the execution of this agreement.
2.3 Additional advance minimum production ro}•a lty
payments shall be payable by Arness as follows:
a. Concurrent with the ex ecvtion of this agreement,
the scva of $150,000, $138,850 of which shall be an
advance minimum production zcyalty.
b. Commencing on the anniversary date of the execution
hereof (herein called the "Anniversary Date") and
on the Anniversary Date in subsequent years as
below provided, Arness shall pay to Energy Capital
. the following amounts:
For the year commencing on the
First Anniversary Date $50,000
For the year commencing on the .
Second Anniversary Date $60,000
For the year commencing on the
• Third Anniversary bate 560,000
For the year commencing on the
Fourth Anniv ersazy Date $60, D00
e>:c epting that if any amounts have been paid by
Arness to Energy Capital prior to execution of
this ag reeinent in excess of tlve 570,000 receipted
in Section 2.2 abovq (which payments may have been
paid by Arness to Energy Capital as sublca se
op lien extension fees), then the ad vancc minimum
~~ production xo}•a lty C•:..~ro_nt provided above for flue
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