PERMFILE73047

• Permit No: C1980004A
• IBM Index Class Name: Permit File
• Doc Date: 7/11/2002
• Section_Exhibit Name: APPENDIX C
• Media Type: D
• Archive: Yes

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workers; except in cr of en 'ncy;,,~ employ no
boy under the age of eixteen i no gr.. or woman,
without regard to age, in any mine below the sur[ace;
unless the laws of the State otherwise provide, in which
case the State laws control,
(m) Taxes. To pay when due, all taxes lawfully
assessed and levied under the laws of the State of the
United States upon improvements, output of mines, or
other rights, property, or assets of the lessee.
(n) Overriding royalties. Not to create, by assign-
ment or otherwise, en overriding royalty interest in
excess of 50 percent of the rate of royalty first payable
to the United States under this lease or an overriding
royalty interest which when added to any other out-
standing overriding royalty interest exceeds that per-
centage, excepting, that where an interest in the lease-
hold or in an operating agreement is assigned, the
assignor may retain an overriding royalty interest in
excess of the above limitation if he shows to the
satisfaction of the Bureau of Land Management, that he
has made substantial investments for improvements on
the land covered by the assignment.
(o) Delivery o/ premises in case of /ar/eiture. In
case of forfeiture of this lease, to deliver up to the
lessor in good order and condition the land leased, in-
cluding all buildings, and underground timbering end
such other supports and structures as are necessary for
the preservation of the mine or deposit.
$ec. 3. The lessor expressly reserves:
(a) Rigbrs reserved. The right to permit for joint
or several use such easements or rights-of-way, in-
cluding easements in tunnels upon, through, or in the
land leased, occupied, or used as may be necessary or
appropriate to'the working of the same or other lands
containing the deposits described in the act, end the
treatmenl~ and shipment of the products thereof 6y or
under authority of the Government, its lessees or
permittees, and for other public purposes.
(b) Disposition o/ sur/ace. The right to lease,
sell, or otherwise dispose of the surface of the leased
lands under existing law or laws hereafter enacted, in-
sofar as said surface is not necessary for the use of the
lessee in the extraction and removal of the coal therein,
or to dispose of any resource in such lands which will
not unreasonably interfere with operations under this
lease.
(c) Monopoly and Jair prices. Full power and
authority to promulgate and enforce all the provisions of
section 30 of the act to insure the sale of the production
of said leased lands to the United States and to the
public at reasonable prices, to prevent monopoly, and
to safeguard the public welfare.
(d) Readjustment o/ germs. The right reasonably
to readjust and fix royalties payable hereunder and other
terms and conditions at the end of 20 years from the
date hereof and thereafter at the end of each succeeding
20-year period during the continuance of this lease
unless otherwise provided by law et the time of the ex-
piration of any such period. Unless the lessee files
objections to the proposed terms or a relinquishment of
the lease within 30 days after receipt of the notice of
proposed terms fora 20-year period, he will be deemed
to have agreed to such terms.
(e) Waiver o/ conditions. The right to waive any
breach of the conditions contained herein, except fhe
breach of such conditions es are required by the act,
but any such waiver shall extend only to the particular
breach so waived and shall not limit the rights of the
lessor with rest ~ to an' a breach; nor shall the
waiver of a par .tar ca~.,e of todeiture prevent can-
cellation of this lease for any other cause, or for the
same cause occurring at another time.
$ec. 4. Relinquishment o/ lease. Upon a satisfactory
showing that the public interest will not be impaired,
the lessee may surrender the entire lease or any legal
subdivision thereof. A relinquishment must be filed in
duplicate in the appropriate land office. Upon its
acceptance it shall be e[fective es of the date it is
filed, subject to the continued obligation of the lessee
and his surety to make payment of all accrued rentals
and royalties and to provide for the preservation of any
mines or productive works or permanent improvements
on the leased lands in accordance with the regulations
and terms of the lease.
Sec. 5. Prorccrlon o/ the svr/ace, natural resources,
and improvements. The lessee agrees to take such rea-
sonable steps as may be needed to prevent operations,
including operation of operating plants on the Jeased
premises, from unnecessarily: (1) causing or contrib-
uting to soil erosion or damaging any forage and timber
growth on the leased lands or on Federal or non-Federal
lands in the vicinity; (2) polluting air and water; (3)
damaging crops, including forage, timber, or improve-
ments of a surface owner; (4) damaging improvements
whether owned by the United States or by its permittees
or lessees; or (5) destroying, damaging, or removing fos-
sils, historic or prehistoric ruins, or artifacts; and upon
any partial or total relinquishment or the cancellation
or expiration of this Sease, or at any other time prior
thereto when required and to the extent deemed neces-
sary by the lessor to Eill any sump holes, ditches, and
other excavations, remove or cover ell debris, end, so
far as reasonably possible, restore the surface of the
leased land and access roads to its former condition,
including the removal of structures as and if required.
The lessor may prescribe the steps to be taken and res-
toration to be made with respect to the leased lands
and improvements thereon, whether or not owned by the
United Slates.
$ec. 6. Removal of equipment, etc., on termination of
lease. Upon termination of this lease, by surrender or
forfeiture, the lessee shall have the privilege at any
time within a period of 90 days thereafter of removing
from the premises all machinery, equipment, tools and
materials, except underground timbering placed by the
lessee in or on the leased lands, which are necessary
for the preservation of the mine. Any materials, tools,
appliances, machinery, structures, and equipment,
subject to removal as above provided, which are allowed
to remain on the leased lands shall become the property
of the lessor on expiration of the 90-day period or such
extension thereof es may be granted because oEadverse
climatic conditions, but the lessee shall remove any or
all of such property where so duected by the lessor.
$ec. 7. Proceedings in case of default. If the lessee
shall not comply with any of the provisions of the act
or the regulations thereunder or default in the perform-
ance_or_ observance of any of the _provisions of this __
lease, and such default shall continue (or a period of
30 days after service of written notice thereof by the
lessor, the lessor may institute appropriate proceedings
in a court of competent jurisdiction for the forfeiture
and cancellation o[ this lease as provided in section 31
of the act. If the lessee fails. to take prompt and nec-
essary steps to prevent loss or damage to the mine,
property, or premises, or danger to the employees, the
lessor may enter on the premises and take such meas-
ures as may be deemed necessary to prevent such loss
or damage or to correct the dangerous or unsafe con-
dition o[ the mine or works thereof, which shall be et
the expense of the lessee. However, the lessee shall