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;- - <br />r <br />COAL MINING LEASE <br />THIS COAL MINING LEASE (the "Lease") is made this ~~ day of <br />1990 ("effective date"), by and between Tll'IT[,E FAMILY INTREST <br />whose address is 4_49 F CANYON ROAD MANTT UTAH 84642 ("Lessor," whether <br />one or more), and NEW CASTLE ENERGY CORPORATION ("Lessee"), whose address <br />is 7625 East Napa Place, Denver, Colorado 80237, Attn: President. <br />Lessor and Lessee agree as follows: <br />Definitions <br />Whenever used in this Lease, the following terms will have the following <br />meanings: <br />"Coal" means all forms of coal, including lignite and subbituminous coal, as <br />well as gaseous substances naturally occurring in combination with coal deposits. It is <br />not the intent of the parties, by including gaseous substances within this definition, to <br />require that Lessee capture, gather and market such gaseous substances where it is not <br />technically and economically feasible to do so, but only to provide that it will and may <br />be done if such activity is, in the sole opinion of Lessee, feasible. <br />"Commercial Quantities" means a quantity of Coal produced and sold from <br />the Unitized Premises sufficient to allow Lessee to realize a proft, after deducting atl <br />expenses attributable to production from the Unitized Premises, other than depreciation <br />and initial development cosu. <br />"Continuous Basis" means, with respect to Mining Operations, so long as <br />all such Mining Operations do not cease for a total of more than three hundred su;ty- <br />five (365) consecutive days, in the absence of the existence of Force Majeure. <br />"Current Market Value" means the price paid for Coal in comparable <br />current arms-length sales at other mines, adjusted to account for variances in mining and <br />processing methods and the grade, quality and composition of the Coal from that mine <br />and the Coal mined on the Unitized Premises, for differences in the terms of the <br />respective sales contracts and brokerage costs, and for transportation costs to the point <br />of sale. <br />"Force Majeure" means the occurrence and continuation of any of the <br />following conditions beyond the reasonable control of the Lessee, which, during its <br />occurrence prevenu Lessee from carrying out its obligations under this Lease: lightning, <br />earthquake, storm, fire, flood, windstorms, and other damage from the elements; strikes, <br />lockouts, or other labor disturbance; war, insurrection, mob violence, riots; interference, <br />action, legislation, or regulation by legislative, administrative, judicial or other <br />governmental or military authority; inability to obtain permits or licenses; acts of God <br />or acts of the public enemy; breakdown of equipment, machinery or facilities which are <br />not readily replaceable; scarcity or unavailability of equipment, material, power, fuel or <br />water; failure of carriers to transport or furnish facilities for transportation; or any other <br />like cause beyond Lessee's control. <br />"Mining" means deep shaft, hydraulic, incline, and/or adit mining, and any <br />other underground [Wining method presently or in the future in commercial use or <br />developmental testing in the worldwide coal mining industry. <br />"Mining Operations" means. the production of Coal in Commercial <br />Quantities; operations for opening, reworking, deepening, or extending a mine reasonably <br />calculated to facilitate the production of Coal in Commercial Quantities; and other <br />operations conducted on the Unitized Premises in an effort to obtain or reestablish the <br />commercial production of Coal. <br />"Premises" means the surface (if applicable) and mineral (as recited) <br />interests of Lessor as set forth in Schedule I, which is attached to and made a part of <br />this Lease. <br />