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<br />RECEIVED
<br />UN_TED sTa,ES JAN 1 ~ 20
<br />Dc?A=Ti^.E:dT OE Td- LiIT E?:3?. Sg~ial No. COC 53"_0
<br />9CP.?=.. Oc LP.[ID .~±=.nrce,~e;,? Division of MineraM,I i£ CVF7gr
<br />Da_e of Lease: November '_. 199<
<br />MODIe IED COAL LEASE
<br />PART I.
<br />r:~a- ttc_~T_s:e0 ccP.L :._ae r .,t=_rsd _r,_o en JAN ~ I ~ by and bet•~een Cne uPISTSD
<br />5:=. ~S OP :~I~i'.ICA, he___r.a'.er ca_'ed ~h? Lesacr, through the Bureau of Lanc Management,
<br />anG
<br />~:{SOW M_n'nq Inc.
<br />7901 South Park P'_aza, Ste. 202
<br />Littleto^., Colorado 80120
<br />hereinafter ca'_led Lessee.
<br />Th_s modified lease shall reta i.^. the effective date of November 1, 1992, of the origina'_ CQAL LEASE
<br />COC X3510, and is effective for a period of 20 years therefrom, and for so long thereafter as coal is
<br />orodcced in commercial quantities from the leased lands, subject to readjustment of lease to ins at the
<br />end cf the 20tn lease year (November 1, 2012), and each 10-year period thereafter.
<br />Sec. 1. This lease is issued pursuant and subject to the terms and provisions of the Mineral Lands
<br />ieas:ng Act of 190, as amended, ,_ Stat. 437, 30 C.S.C. 181-287, hereinafter referred to as the Act;
<br />and .o the regulations and formal orders of the Secratar_i of the Interior which are now or hereafter in
<br />force, when nor inccnsister.t with the express and specific provisions herein.
<br />Sec. 2. Lessee as the holder of Ccal Lease CCC 535:0, issued effective November 1, 1992, was granted trte
<br />exc 1~_s_v=_ right and privi'_ege t rill for, mine, extract, remove or cthe r.+ise process and dispose of the
<br />teal deposits limited to the con l+reccverable by underground miring methods in the B and C coal seams in
<br />the fp llowing lands described below as
<br />r_c. 1:
<br />T. 13 S., R. 90 W., 6th P.M.
<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, NEkSE4;
<br />sec. 11, a*_s 1 to 8, lac lusi ve;
<br />sec. '_2, lots 2 to 4, inclusive, SWHNWk, and those
<br />portions of SWtiNEM and SEgNWti lying north
<br />of the North Fork of the Gunnison River.
<br />1335.50 acres, Gunniso r. County, Colorado.
<br />The Lasso: ' consideration of fair market value, rem*_s and royalties to be paid, ana the co raitions and
<br />covenants co-be cbse reed as herein set forth, hereby grants and leases to Lessee the exclusive right and
<br />o rivi'_ege to dri 11 for, mine, extract, remove, or otherwise process and dispose of the coa'_ deposits
<br />1imi:=_d to L:n2 coal recoverab ie by undergrcu.-,d m'_ning methods in the 8 coal seam in the following lands
<br />described be'_ow as Tract 2:
<br />T. 13 S., P,. 90 W., 6th P.M.
<br />sec.2, lots 10 to 12, lac lusive.
<br />127.73 acres, Gunnison County, Colorado.
<br />ctnt_i ping '_,407.35 acres, more or less, tocether wit:`. the right to construct such works, buildings,
<br />plants, structures, ecui pment and apoliance_ and the right to use such on-lease rights-of-•.+ay w:ticft may
<br />be necessary and cor.•iei_er.t in the exercise of the rights and privileges granted, subject to the
<br />conditions herein prosided.
<br />Part II. TERMS AND CONDITIONS
<br />Sec. 1. (a) RENTAL RATE - Lessee sha'_1 pay
<br />L2aa0. rentdl 2.^: nually dnd iR ad!'3 nC2 fJr each
<br />acre cr traction Cher=_of during the Con__rua.'.ce
<br />of t..a lease ac the rate of 53.00 for each lease
<br />ya_d C.
<br />(b) RENTAL CREDITS - Rental sha_1 not
<br />be credited a3a_nst either pradu r_tion or advance
<br />royalties for any year.
<br />Sec. 2.(a) PRODUCTION ROYALTIES - The royalty
<br />shall be 8.0 percent of the value o` the coal as
<br />set forth in the regulations. Royalties are due
<br />to Lessor the final day of the month succeedirq
<br />the calendar month in which the royalty
<br />ob'_igacion accrues.
<br />(b) ADVANCE ROYALTIES - Uppr. request
<br />by the Lessee, the authorized officer may accep C,
<br />far a total of not more than 10 years, the
<br />payment of advance royalties in lieu of continued
<br />
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