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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Arness to Energy c:a pital no less than fifteen ua}~s prior to
thc date the same arc due and payable under the terns of the
Lca scs, and Lncryy Caprtal, acting for Arncns as ag cnt,
shall promptly pay such payments to the lessors or otl~e rs as
specified in the Leases, so as to male all payments necessary
to keep the Leases in full force and ef.`.ect as relates to
the Sublease Tarts.
4.2 Term iration. Subsequent to execution of this
agreement, Arness may relinquish, surrerd er or permit
,expiration of all or any part of any leasehold interest of
40 acres or more, held by it under this Sublease provided
that Arness shall first notify Energy Capital, in writing,
not less than 30 days prior to the anticipated date of
termination of the interest involved, and Energy Capital
shall have a period of 30 days after receipt of such notice
. in which to elect by written notice delivered to Arness to
receive the interest proposed for relinquishment, surrender
or terminaticn, and i` E. ercy Capita'_ does so elect, P.r Hess
shall assign to Energy Capital all of its interest in the
properties to be surrendered. If Energy Capital does not
make such election within 30 days, the interest described in
Arness' notice may be relinquished by Arness or permitted to
terminate free of all further obligations to Energy Capital
hereunder or other~.aise with respect to the interest so
terminated except chat Arness' obligation to Energy Capital
for advance minimum production royzlty payments due Energy
Capital hereunder shall remain the same as described in
Section 2.3 a, b and c hereof only, and Arness shall continue
to be obligated with respect to any obligation to Energy
Capital under 2.1 hereof arising pursuant to coal produced
prior to such tcr~nination or rclinqu isivn ent.
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