|
Part H. TERMS AND CONDITIONS
<br />Sec. 1.(a) RENTAL BATE-Lessce shall pay lessor rental annually and in
<br />advance for each acre or frmction thutof during thecontinuance of the lease
<br />az the raze of 53.00 for each lease year.
<br />(b) RENTAL CREDI'T'S - Rental shall not be credited against tither
<br />production or advance royalties for any year.
<br />Sec.2.(a) PRODUCTION ROYALTIES-The royalty shall be8.Opercent
<br />of the value of the coal as su forth in the regulations. Royalties are due to
<br />Lessor the final day of the month succeeding the caleadaz month in which
<br />dre royalty obEgation accntes.
<br />(b) ADVANCE ROYALTIES -Upon request by the Irssee, the
<br />authorized offiar may accept, for a mmt of not more than 10 years, the
<br />payment of advance royalties in lieu of continued operation, consrstw[ with
<br />the regulations. The advance royalty shall be based on a percent of the
<br />value of a minimum number of tonsdetermined in the manner estabfished-
<br />by the advance royalty regulations in effect az the time the Lessee requests
<br />approval m pay advance royalties in lieu of continued operation.
<br />Sec. 3. BONDS - L.essce shall maintain in the properoffice alease bondin
<br />Ote amount of 5~1, 39Yp:.rThe authorized offiar may require ae inueasein
<br />this amount wnen addiflo»al wverage is determined appropriate.
<br />Sea 4. DILIGENCE -This lean is subject tu the eo~itions of diligem
<br />development and continued apemtion, except that these conditions are
<br />excused when opera[ions tender the lease are inturupted by strikes, the
<br />elements, or cawalties not attributable to the Lessce. The Lessor, in the
<br />--=public nteres4 maysuspend the condifion of confirmed operation upon
<br />payment of advance royalties in accordance with the regulations m
<br />existence a[ the time of the suspension. Lessee=s failure m produce coal in
<br />commcroial quantities by October 1,2008, shall terminate theleasa Lessee
<br />shall submit mm amended operation and reclamation plea pursuant to
<br />Seaton 7 of the Aa (30 U.S.C. 207(c) within 3 years of the daze of
<br />modificazion ar prior m approval m cotnmeace mining operations.
<br />The tarot reserves the power m assem m or order the suspension of the
<br />terms and co~itions Of this lease in aceordance with, intg Ig_t'a S«tion 39
<br />of the Minerd Leasing Act, 30 U.S.C.209.
<br />Sec. 5. LOGICAL MWINO UNIT (IItfU) - Eithu upon approval by the
<br />Lessor of the Lessees appligtion or az the direaioa of the Lessor, this
<br />lease shall become anLMU orpart of an I.MU, subject m the provisions set
<br />foAhintheregula~ions. ThestipulaflonsesmblislredmanLMUapprovalin
<br />effect at the time of LMU approval. a f modificarion wIIl supersede the_
<br />relevant inconsistent toms of this lease so Song as the Itax remains
<br />committed m the I.MIT. If the C.MU of which this lease is a part is
<br />dissolved, the lease shall then be subject m the lease terms which would
<br />have been applied R the lease had not hew included in an 1-h4U.
<br />Sec. 6. DOCUMENTS, EVIDENCE AND WSPECTION - At sari[ times
<br />and in such form as I.cssor may prescribe, Lessee shall furnish detailed
<br />statemems showing the amounts and quality of all products removed and
<br />sold from the lease, the proceeds therefrom, and Ute amount used for
<br />pmduaive purposes or unavoidably loo
<br />lessee shall keep opw az all reasonable times for the inspective of any duly
<br />authorized officer of Lessor, the teased premises and all surface and
<br />underground improvemwrs, works, machinery, ore stockpiles, equipment,
<br />and aBbooks, accounts, maps, and records relative to operatives, surveys,
<br />or investigations on m under the leased lands.
<br />Iessce shalt allow f.essor aceess m and copying of documents reasonably
<br />necessary to verify Lessee compliance with terms and conditions of the
<br />lease.
<br />.. 1
<br />While this lease remains in effect; infermatign ebtained under this section
<br />shall be closed to iespectioa by the~publiciriaccoid'ence with the Freedom of
<br />Information Action (5 U.S.C. 552).
<br />Sec. 7. DAMAGESTOPROPERIYANDCONDUCTOFOPERATTONS-
<br />Lessee shall comply az its own expense with all reasonable orders of the
<br />Se¢etary, respecting diligent opemtions, prevention of waste, and protection
<br />of other resources.
<br />Lessee shall not conduct exploration operations, other than casual use,
<br />without an approved exploration pion. All exploration plans prior~m the
<br />commencement of mining opemtions within an approved mining permit area
<br />shall be submitted to the authorized officer.
<br />Lessee shall [:arty on all opemtions in aceordance with approved methods
<br />and practices as provided in the operating regulations, having dot regard for
<br />the prevwtion of injury m Efe, health, orproperty, and prevwtioa ofwaste.
<br />damage or degradation any ]and, aii, water, wltuml, biological, visual, and
<br />other resources, including mineral deposits and formations of miners]
<br />deposits not leased hereundu, and to other land uses of useis. Irssee shall
<br />take measures deemed necessary by Lessor to accomplish the intent of this
<br />lease rum. Such measures may include, but not limited ro, modification to
<br />proposed siting or design, of facilities, timing of operations, and
<br />specifications of interimamlfinalredamationpmcedmes. Lessorr~servesm
<br />itself the right m lease, seB, or odietwise dispose of the surface or other
<br />mineral deposits in the lands and the right to cvetinue existing ttses and m
<br />authorize future uses upon or in the leased lands, including issuing leases for
<br />minual deposits not oove[ed.h^.,,,;Arr acrd approving easements orrights-
<br />of-way. ~ I,eswt shag cmtditive such uses to prevent unnecessary or
<br />unreasonable interference with rights of Ies§ce as may be conststwt with
<br />concepts of multiple use and multiple mineral development
<br />Sec. 8. PROTECTION OF DIVERSE ih17'ERES15, AND EQUAL
<br />OPPORTUNITY -Lessee shall: -pay when due all taxes legally assessed and
<br />kviedunda the laws of the Stateor the United States; axord all employees
<br />complete freedom of purchase; pay ell wages az least twice eatb month in
<br />lawful money of the United States: maintain a safe working environment in
<br />accordance with standard industry practices: restrict the workday to uotmeae
<br />than 8 hours in anY one day for unduground workers, except in emergences:
<br />and take measures necessary m protect the health and safety of the public.
<br />No person order the age of 16 years shall be employed in any mute below the
<br />surface. To the extent that laws of the State in which the lands are situated
<br />are more restrictive than the provisions in this paragraph, then the State laws
<br />apply.
<br />Lessee will wnrply with all provisions of Executive Ordu No. 11246 of
<br />September 24, 1965, as amended, and the roles, regulations. and relevant
<br />orders of the Secretary of Labor."Neithu I.assee nor Lessee's subcontmaors
<br />shall maintain segregazed facilities.
<br />Sec. 9.(a) TRANSFERS -This lease maybe transferred in whole or in part
<br />to any person, associazion or ctuporation qualified to hold suchlease interest
<br />Transfers of record title, working or royalty interest must be approved in
<br />aanrdance with the regulations. ',
<br />(b) RE[.WQUISfAdENTS -The Lessee may relinquish in writing az
<br />any time all rights undo this lease or any portion thereof as provided in the
<br />regulations. Upon Lessor's acceptance of the relinquishment, Lessce shalt be
<br />iefieved of all future obligations undo the lease or the relinquished portion
<br />therwf, whichever is applicable.
<br />Sec. ]0. DELIVERY OF PREMISES, REMOVAL OF MACHINERY,
<br />EQUIPMENT, E1'C. - A[ such times as all portions of this ]ease are remmed
<br />to I-error, lessee shall deliver up to Lessor the land leased, underground
<br />timbering, and such othu supports and structures necessary for the
<br />preservation of the mine workings oa the leased premises or deposits and
<br />place all workings in condition for suspension or abandonment Within 180
<br />1
<br />
|