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<br />
<br />Form 3130-1 UNITED STATES I Land Office Serial Number
<br />(Qrtober ] 967)
<br />DEPARTMENT OF THE INTERIOR
<br />BUREAU OF LAND MANAGEMENT C-0125439
<br />COAL LEASE
<br />This lease, entered into on MAY 1 19613 , by the United States of America, the lessor,
<br />through the Bureau of Land 1rlanagemenl, and
<br />Industrial Resources, Inc.
<br />P. 0. Box 1008
<br />Glenwood Springs, Colorado 81601
<br />the iessee,
<br />•~ " pursuant and subject to the terms and provisions of the act of February 25, 1920 (41 Stat. 437), as amended, herein-
<br />after referred to as the act, and to all reasonable regulations of the Secretary of the Interior now or hereafter in force
<br />which are made a part hereof,
<br />NITNESSEiH:
<br />
<br />Sec. 1. Rights o/ 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._1O2 W., 6th P.H.
<br />Sec. .9: Lots 1-22 incl.. E~SE~,
<br /> NW}SW}. SW?,f;NW}. N'~NW}
<br />Sec. 15: NW}. NSW}, Lote 1-4 Incl.
<br />Sec. 16: Lots 1-24 incl.. ERNE},
<br /> NE~SE}~ SW'~SE}
<br />Sec. 21: Lots 1-18 incl., NWryNEI~,
<br /> S'~NBly, SE}
<br />Sec. 22: Lots 3-10, 15. 1 7. 19, 22
<br />
<br />
<br />~. _ rr., ~ysa,~,-
<br />containing 2482c54 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 for the mining and preparation of the coal for market,
<br />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 es 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 ]ease, which bond is conditioned
<br />upon compliance with ell the provisions of the_ lease,
<br />and to inciease the amount or furnish such other bond
<br />as may be required.
<br />(b) Rental. To pay the lessor annually, in ad-
<br />vance, for each acre or fraction thereof covered by [his
<br />lease, beginning with the date hereof, the following
<br />rentals: 25 cents for the first year; 50 cents fw the
<br />second, third, fourth, and fifth years, respectively; and
<br />SI for the sixth and each succeeding year during the
<br />continuance of the lease, such rental for any year to be
<br />credited against the first royalties as they accrue under
<br />the ]ease 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, excep[ when operations are inter-
<br />rupted by strikes, the elements, or casualties not
<br />attributable to the lessee, or unless on application and
<br />showing made, operations shall be suspended when
<br />market conditions are such that the lessee cannot op-
<br />erate except at a ]ass or suspended for the other
<br />reasons specified in section 39 of the act, to mine coal
<br />each year end pay a royalty thereon to a value of Sl per
<br />acre or fraction thereof. Operations under this ]ease
<br />shall be continuous except in circumstances described
<br />or unless the lessee shall pay a royalty, less rent, on
<br />such minimum amount of the teased deposits, fot one
<br />year in advance, in which case operations may be
<br />suspended [or 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, excep! that
<br />when this lease becomes productive the rentals end
<br />(~~rA^2C-!J
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