|
,, ~ •
<br />Form 3x00-12 I Serial Number
<br />(April 19841 UNITED STATES
<br />~F'nrmerly~5Ppi1 DEPARTMENT OF THE INTERIOR
<br />BUREAU OF LAND MANAGEMENT COC 53510
<br />COAL LEASE
<br />PART I. LEASE RIGHTS GRANTED
<br />This lease, entered into by end between the UNITED STATes ot~ A:n r.atcA. hereinafter called lessor. through the Hureau of Land Management. ;uw
<br />/Name and Addressi
<br />Somerset Mining Company
<br />P.O. Box 535
<br />Somerset, Colorado 81434
<br />hereinafter called lessee, ie effective ~~V + ~9~2 , for a period of 20 years and fur su lung thereafter as coal is produced in commercial
<br />quantities from the leased lands. subject to readjustment of lease terms at the end of the YOth lease year and each IU~year period thereafter.
<br />Sec. 1. This lease is issued pursuant and subject to the terms and provisions of the:
<br />® Mineral Lands Leasing Act of 1920, Act of Febraary 25. 1920, as amended, 41 SLaL 437, 30 U.S.C. 181-2tiT, hereinafter referred to as the Art.
<br />^ Mineral Leasing Act for Acquired lands. Act of August 7, 1947, 6l Stac. 9I3. :i0 U.S.C. 351-:15g;
<br />and to the regulations and formal orders oClhe Secretary of the Interior which are now or hereafter in torte, when not inconsiatenl with the express
<br />and specific provisions herein.
<br />Sec. 2. Lessor, inconsideration of any bonuses, rents, and royalties to be paid, and the conditions and covenants to be observed as heroin set Girth,
<br />hereby grants and leases to lessee the exclusive right and privilege to drill for. mine, extract, remove, or otherwise process and dispose uC flit coal
<br />deposits limited to the coal recoverable by underground mining methods in the B and C coal seams
<br />in the following lands in Gunnison County:
<br />Sixth Principal Meridian
<br />T. 13 S., R. 90 W.,
<br />sec. 1, lots 14 to 19, inclusive;
<br />sec. 2, lots 13 to 20, inclusive;
<br />sec. 3, lots 13, 14, 17, and 18;
<br />sec. 10, lots 1 and 2, and 17E'~SE'~;
<br />sec. 11, lots 1 to 8, inclusive;
<br />sec. 12, lots 2 to 4, inclusive, SWStNW%, and those
<br />portions of SWStNEt-L and SE~2NW'~ lying north
<br />of the North Fork of the Gunnison River,
<br />containing 1339.56 acres, more or less, together withthe righ[to construct such works, buildings,plants, structures, equipment end appliances
<br />and the right to use such on-lease rights-of-way wh ich may be necessary and convenient in the exercise of the rights end privileges granted, subject [u
<br />the canditione herein provided.
<br />PART II. TERMS AND CONDITIONS
<br />Sec, 1. (a) RENTAL RATE -Lessee shall pay lessor rental annually and
<br />in advance for each acre or traction thereo[during the continuance of
<br />the lease at the rate of S 3 .00 -- for each lease year.
<br />(bl RENTAL CREDITS -Rental shall no[ be credited against either
<br />production or advance royalttee for any year.
<br />Sec. L. (a) PRODUCTION ROYALTIES -The royalty shall be $ per-
<br />cent ofthe vat ue of the coal as set forth in the regulations. Royalties are
<br />due to lessor the final day o(the month succeeding the calendar month
<br />in which the royally obligation accrues.
<br />(bl ADVANCE ROYALTIES -Upon request by the lessee, the authorized
<br />officer may accept. for a total of not more than IO years. the payment of
<br />advance royalties in lieu of continued operation, consistent wish she
<br />regulations. The advance royalty shall be based on a percent of the
<br />value oC a minimum number of tons determined in the manner
<br />established by the advance royal [y regulations in effect at the time the
<br />lessee requests approval to pay advance royalties in lieu of continued
<br />operation.
<br />Sec. 3. BONDS-Lessee shall maintain in the proper offices lease bond
<br />in theamount ofS $25,00n .The authorized officer may require an
<br />increase in this amount when additional coverage is determined
<br />appropriate.
<br />Sec. 4. DILIGENCE -'Phis lease is subject to the conditions o(diligcnt
<br />development and contin ued uperetian. except th at these cnndiuuns a m
<br />excused when operations under the lease are Interrupted by slri kea, the
<br />elements, or casualties not a[tnbutable to the leesee.'I'he lessor, in the
<br />public interest, may aunpend the condition of umunued operauun up~m
<br />payment of advance nrvalUes in xccordance wah the regulauuns m
<br />existence at the time o(the suspension. Leasee'x failure to produce cool
<br />in commercial quantities at the end of III guars shall lermtwd• flit
<br />lease. Lessee shall submit an operation and reclamation plan pursuam
<br />to Section 7 of [he Act nut later than 3 vears after lease ixsuance.
<br />The lessor reservesthc power to assent to nr order the suxpcnsinn ul'the
<br />terms and conditions of this lease in accordance with, ind•r ;dia.
<br />Section 39 of the Mineral Leasing Act. 30 U.S.C. 209.
<br />Sec.:I. LOGICAL MINING UNIT ILMUI - I•:ither upon approval by the
<br />lessor of Che lessees apphcauon or at thu direction of the lessor. this
<br />lease shall become an I.MU or part of an I.MU, subject to the provisions
<br />set forth in the regulations.
<br />The stipulations established in an LM U approval in effect at the ti me of
<br />LMU approval will supersede the relevant incunaietent terms of thi..
<br />lease so long as the lease remains committed UI the LM U. 1 C the LM LI of
<br />which this lease is a part is dissolved. the lease shall Chen be subject to
<br />the lease terms which wnu Id have been applied if the lease had nut been
<br />included in en LMU.
<br />
|