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"Unitized Premises" means the surface (if applicable) and mineral (as
<br />recited) interesu which have been unitized pursuant to Article III and as set forth on
<br />Sc',°atrle '', :vh~^!~ -s a"°.:hed ~°ret^ and made a pari of this Lease, acknowledging that
<br />Lessor only holds legal title in and to the Premises.
<br />ARTICLE I
<br />GRANT
<br />In consideration of the timely payment of each amount due under
<br />Article IV and of the other covenanu to be kept by Lessee that are contained in this
<br />Lease, and to the extent of Lessor's current legal right to do so, Lessor granu, demises,
<br />leases, and leu the Premises exclusively unto Lessee, iu successors and assigns, together
<br />with all reservations, easemenu, licenses, righu-of-way and other righu which pertain to
<br />the Premises and which aze owned by Lessor, for the purpose of exploring for,
<br />developing, Mining, treating, extracting, milling, storing, shipping, removing and marketing
<br />all Coa] from the Premises. To the extent applicable, Lessor reserves and excepts unto
<br />iuelf all oil and gas, and all other minerals except those specifically granted to Lessee
<br />under the provisions of this Article and the right to ]ease such minerals; provided,
<br />however, that subject to other mineral ]eases which are of record in Garfield County,
<br />Colorado, as of the effective date hereof, the right of Lessor or its successors or assigns
<br />to mine or drill for such reserved minerals shall always be subject to the terms of this
<br />Lease, and any operations undertaken by Lessor or iu successors or assigns to recover
<br />such minerals shall not in any way interfere with, impair or restrict Lessee's operations
<br />under this Lease.
<br />ARTICLE II
<br />LEASE TERM
<br />This Lease is granted for a primary term of five (5) years from the effective
<br />date, unless sooner terminated in accordance with other provisions of this Lease, and for
<br />so long thereafter as Mining Operations are being conducted on the Premises on a
<br />Continuous Basis or for so long as this Lease is maintained in force under any other
<br />provision contained in this Lease.
<br />ARTICLE III
<br />UNITIZATION
<br />3.1 Unitization of Lessor's Interests with Other Interests. The parties
<br />agree that Lessor's lands and interesu, as leased hereby and as described on Schedule 1,
<br />are declared and deemed to be unitized with the other lands and interesu described in
<br />Schedule 2 to form a logical mining unit for the conduct of Mining Operations by
<br />Lessee. The respective acreage, Coal reserves, and percentage interest of Lessor as
<br />recited in Schedule 2 are expressly accepted by Lessor for purposes of unitization of the
<br />Premises and of this Lease. Arty Mining Operations conducted on any portion of the
<br />unit, regazdless of where located therein, shall be deemed Mining Operations on the
<br />Premises.
<br />3.2 Use of Premises for Ooerations on Other Lands. In keeping with
<br />Section 3.1, Lessee shall have the right io construct and use any roads, tunnels, shafts,
<br />piu, ittclines, conveyances, utilities and utility lines upon the Premises for the purpose of
<br />Mining, removing, treating, and transposing Coal, slurries, and waste materials from the
<br />Unitized Premises, or for any purpose connected therewith.
<br />3.3 Wheelaee. In keeping with Sections 3.] and 3.2, Lessee shall have
<br />the right to transport over, under, across and through the Premises any Coal now or
<br />subsequently. owned, ]eased or otherwise acquired by Lessee and located upon the
<br />Unitized Premises, together with the right to process and market such Coal upon and
<br />from the Unitized Premises, to the same extent as if such Coal were included within the
<br />terms of this Lease.
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