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mine coal by surface mining methods and the reasonable right of ingress and egress to and from said premises as necessary. It is understood that certain portions of the leased property contain materials remaining from past coal mining operations. This lease grants to American Fuels the right to extract or process these materials with the understanding that recovered marketable product from such processing is subject to the payment of royalties as set forth in Paragraph 2. herein. C&U warrants that it is vested with merchantable title to the coal which may be contained in the tracts herein leased and that C&U shall defend American Fuels' rights hereunder to use said lands to explore, extract and market such coal pursuant to the terms of this lease. RESERVING, however, to C&U, its successors and assigns: A. The right to use or lease the demised lands or any parts thereof at any time for any purpose including, but not limited to, the right to prospect for and develop coal de- posits, which use shall not be inconsistent or interfere with the rights and privileges herein specifically granted. B. The right at all times during the life of this lease to go upon the demised lands and any part thereof, for the purpose of inspecting same, and of ascertaining whether or not American Fuels and those holding thereunder, by and from it, are carry- ing out the terms, covenants, and agreements in this lease con- tained. 1. TERM OF LEASE a) This lease shall be in full force and effect from and after the date first above written. b) The operational term of this lease shall be in full force and effect for five (5) years from and after the effective date hereof, unless sooner terminated pursuant to the provisions herein. c) American Fuels shall be entitled at its option, by giving written notice to C&U no less than thirty -2-