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~. E%TENSION 6Y PRODUCf1OY-Aleex may na be helONperpetuity;IUwevcr,•leue willmminrc vl effm for so longucoel isproduretl
<br />to paying quanurses. Ceuaion of pmducuon for • penal N e..•.. of 180 consuvlive days wdl wmmalinlly rtmove Ne lose from producing
<br />sums unless aherwix agreed to in writing by Lcswr. l<stm shell ratify leswr o(nch ceatian of production, the rtuow dxrcfoc ud Ne time
<br />period during wbich producsion will ordd tux. "Paymg glramrtin"mans pmdunion wlficiem ra rcmm royilues m Ne Sux equil brhe sdvanm
<br />miNmum royJry but na las dun kit dogars per acre per year.
<br />5. PRODUCTION RO1'ALTk' - Lcswr hereby rexrve W Lesu agrees to p.y m Lessor u pmdudon myilry dse !allowing:
<br />• Far cwt rcmov W by uldergrouM minmg methods a aura equal to eight percent (8%) of the grow axle prim st dr fuss point of rile; for cml
<br />removed 6y strap coming meNWS a sum equal m twelve and ore-half percea (135} %) ofdre grow tale pace ar she lust pouu of wile; ud for IigNx
<br />removed by nrip muung medlods s smn equal m sIa and orcyuener percent fb'A %) of the gross ale price at dx Tim point of sale, !or ueh W
<br />every con (7IX10 lbs.) of cad or ligmx rmrlW from Nc loud prtmixs, or, N Ne event the coal or Ilgrdx mmW by either urdergrwrd or snip
<br />mimng meNads is sold on a caplrvc marks, a sum rqual b Ne same rcspmive percenu of Ne reawruble marku value of coil or IigNx of Ne
<br />ume quality Irom Ne same general area and minW under the same general coldisiou, whichever is grout. All Gums paid u production myilry
<br />shall h sublen Io revvw upon demand made by nNer Inrry. In no case shag dx production royilry m Ne Sum be less than forty anu (40c) per
<br />Ion. "L~6NIe" mr,n. coil hanng en avenge donOc value o(7,700 he's or less per paud. This value maybe rcgoualW between Ieuee and Lassa,
<br />If rcquesvd by Leswr. I<ssm shall furnish proo(of price received for W coal wld. Such royilry shall be due end payable on or before N<
<br />Iwenry-fdN f75N1 day of nth tale War monN during drc corm of Nis Imse for coal min W, removal, and sold by !cosec during dx precW ing nlerv
<br />der monN.
<br />Leswr reserves the right Io renxubly adjust Ne Production royalty nx et Ne end of ech remyeu period of Ilse lease provided Ne IeasW
<br />premise art held by production.
<br />6. ROk'ALTY Pl IOND - At Ne apion of lessor and wiN sia months' rtiaice so I....., Lever may tote iu myalry coal H kind, in whirN event
<br />lessee shall dcbver such royilry coal to Lessor an Ne IeasW prtmtise, cola slurry pipel'urs or omo smnge p0u dnigrutW by lessor, end 1<asee
<br />shall lmr msuch cast be rcyuired so provide fine rrongeor payslurtypipelirxchargu lousy ouch aW con omo smrage pile or imoalurtypipelinu.
<br />7. OVERRmgv'C ROYALTY LQsRTAT1ONS - II is agreed that dtis lax a any subsequmt azsignmem hereof dull M he bunlerlW wiN wen
<br />riding myilties Ne aggregate of wNch exceeds 3% of Ne gross vaue of Ne coal ss Ne fuss paint of sale. Lessor must be naifi W of W overriding
<br />royaltin accmmg m Nrs lux. Violation of Ne above may subject this base m nnagetim by 4swr. The ImdrW overriding myalue shall be
<br />caclutlW fmm Ne autigunent couitlentiou es xt font N the following Article M1edW ASSIGNMENT order paragraph hndW Assignmeu
<br />Conudcnuon.
<br />B. ASSICNh1ENT-Lesee, with wrinen conxm o(leswe cosy assign this leaxuro Ne leaxhold imertst of such lessee Nall or (err of the lads
<br />corerW hereby; na less, however, Nan sncu ar approtimaxly lorry (40) ecru or Govemmenul loo corrupotding ro a quarxryuaner setion
<br />for any pantiil assignment.
<br />U en auignment of a pan of Nis leae is approval, • clew leax wdl ix issuW m Ne usigrlm covering dtie lands essigrrW for the balsa of
<br />Ne lean of the box leax an Ne mil mutiutig lease form N ux at dx tirrtie of esstigmrcnt and IimilW ss to arm u said leax u IhNred, std auignor
<br />will be rtlraud ersd disdurgW fmm W further obligetiou, ud shall be held to have rcleaxd W dghu and bercfiu Uxrufter emming wiN rtapas
<br />to Ne autignW IoW, az d IhC acme had rcver been a pan of Ne subject maser of this leax.
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<br />No azsignmenl o(urdividW mrereu or rruention or rtxrvationofoverriding royaltiu wgl be rrxognved or apProvW by Lessor, std Ne eRm,
<br />deny, of any such azsigunenu or rtservadons will fX srnnly and oNy as bctwun Ne panin Neruo, and outride Ne xmu odds base. Na dispux
<br />Mween panto to any essigrunent or reservation shag openx to relieve Lesu from perfomunce o(sny lame or mMiriou hereof or [o postpone
<br />Ne umc Nerc(or. Lessor wdl at W time be rntidW to Imk solely to L<sxe or hu usignee shown on iu boats u being sole owner FermL ud
<br />!or Ne xMing of ill mtiscn required by This leax. (or Ne perfomunce of all emu and coMitiou berm!.
<br />ASS1CNAfEM CONSLDERATION -The nonsidendon for approval of rrSrigMtenl by Lesxr ahW be 10% of the value of any mruidention
<br />tendered to Ne Assignor by Ne Assignee for Ne esstigunent. Divulgerre of the vdue of Nee coruidentions shall be mardarory, in affiNvir form,
<br />whvh form shall be prexmW to Lesxr along wiN Ne other auignmem imsnrmenu N order m oboes Lewr's approval for Ne azstignmem. An
<br />asstignmrnl does na conniux s new leax but is a cinWUatian of Ne box Irax. My anempl m withhold Ibis tinfomaton shW be muwW az
<br />an anempt to defraud Ne Suu of Colorado and shW renter Ne leex nog, void and norcxivxnt, and W moNn pod m lessor shall be forfeited
<br />m Lesor. In addition, Ne cunem asautory fms wdl be paid at the time Ne azsignmen record form is subminW.
<br />9. H'EIGNf OF COAL-IS isagreW rhetWcoN rrtiinW ant rstkm fmm NeleasW prcmue shW beweighW and the weigh NercolshW be enured
<br />in due form in weight records kept for such purpoxa by Lessm. It is agreed Nat Ne term "ton" es used hertin meam • con of 1000 pouMS of
<br />merchanuble coal es shown by mircri payroll check numbers or o(firial rW rand 6®le uckeu, or by weight determirod at the mine uppel. ar by
<br />xeightomeler, provdW Ihal where lessor demmtinn dot it is not posssble m dexmdne aavnxly the weight by mch muse it trey, by iu duly
<br />aurhorizW egem or agenu, elm to compux a tan of coal ar 17 rubtic fat of tml N Ne solid or by Ne meuurtmenu of dx apa¢ from wNch Ne
<br />roil is corn W, deducing Nerefrom W space occupied by slate or other impurities, W N such tax Ne said compuusion shall be firW and Girding
<br />upon Lesr<
<br />10. REPORTS -After opentiou ue Gages, n is agreed that on or before Ne 25N day of euh W eery monN during Ne term of this leax Lessee
<br />will make a swom capon to Lessor. in wldch rcpon shW be enxrW end us down Ne cosec amount N weight of W rml rtdrcd end removal fmm
<br />Bald prermses and Ne pntt ar rh Mr pumr of sat for which the coil wss sold durysg de preceding nnnrh, wheh report shW show dx amount
<br />of work perfarmW during Ne pmcWmg monN; L<sxe shW alw, during Ne term of Nis lease, make •swom autemem m Lessor dsxlosing Ne
<br />number of tom of all cwt ndnW from Ne premises during Ne prmW ing year ud such orate! mterrcnu may coircide wiN lessee's fiscal scan
<br />or wiN officiilulendar years during Ne Ielm of dos leax. Fuller, Lessee ehW fumfsh s mapumually showing W workings, deplN W Nickrraxs
<br />o(coal wiN location o(same ti W to s comr esublishW by UNtM Susrs survey, umifiW by a IicensW surveyor. Mvps fumidrd m Ne Colorado
<br />Drvistion of Mine may vtisry Nis requirement.
<br />lessre muu provde Io Lessor, upon rtqum, a complue report on prospecting end esplontion opentiolu, incltidNE 8edogic inxryrclatiau
<br />aW recoverable rtxrve nlwlation, end maps end emu xetiou showing location of any cad eutcmps, drill holes, rrctlrNa, mil bathe ens
<br />other prospecting atiW eaplontion acttivitin. The records rcquirc0 so be mainrainW by lasso end PravidW so Lesor upon nqurat include log!
<br />of all svau penwalW and all gmlogic and hydrologic conditioru ercmnserW, ell topic: of N-hole surveys-Nis iNormation m h cogmue
<br />and preparW under Ne supervision of a quilifiW gmlogisr, gmlogicel engineer or miNng enginur. Other qualified pcrwm may mums me
<br />prepare Nrs dau d agreW to in writing betwen l,eusm cad Lesmr.
<br />Any regent m kup unam information confidmlril shmld be N writing Io l.emr citing Ne provision o(Ne law which mquue confideotiiliry
<br />of Ne inforiusian.
<br />ONer dwumenu penatimng so Ne leax which cosy be esxniil b Lessor in making decisions cortiatNng the leax may be requetod by Lesor
<br />I I. OPERATION PLAN -All plans for explonuon ant mtining shall he subrmn W m Lesxr for approvil by lessor before Ibex openuoru begN
<br />11. ENVIRONTiENfAL ANALYSIS -Submmal o(en env'votiurcrWl erulysis may be requuW for approval by leswr before any uplonuon o.
<br />mining bcgms an IwsW premtixs. '
<br />11. RECLAMATION -All plan for rnrontion ell rmlametion of IeasW prtmsses ahW 6e aubminW m Leswr for Leuor's prtlinsuwy approve
<br />before rmluruuon and rmornim begins. Rule and rtgulatiom u x1 (ant by Ne Maud lard Ralartution ItoW of Colorado for rerovery w
<br />rcssonticn of minW lard wdl apply where appbrable so Nis leax cad lards lased hertwiN. Variauou may be gnntW oNy wiN approvil of Lexr
<br />14. OTIfER SPATE AGENCOS- Wwmcnu and dommew requimd by oNer Sux agcncin may unify urtein rcquuemenu of Nu leex. li
<br />Ne event Nm lessee rs regvaW ro fib inswmenu and dmrmerxs wiN ocher Sux agerticxr, such u Rx Mined lard RmluneYOn Bwrd.SUn
<br />Drvisim of Mines, ac., lessee shNl nails Lexr of acid !ding cad Luwr reserve Ne right to reyuev cad obuin copies of such uutnurcnu an
<br />docummu
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