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<br />DF7ARTMFJ'IT Of THE INTERpR
<br />Bt1REAU OF LViD MAriAGEMENT ~ C-37210
<br />Colorado Westmoreland Inc.
<br />P. 0. Box "E"
<br />Paonia, CO 81428
<br />aw shatl arm m MAY 1 19¢4
<br />reyAcHve da,d.
<br />
<br />' COAL LEASE ~
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<br />Thla kae n enered Ono on APR 1 9 1984 . q. Ne United slain d Amedca Ina Iasor Nmugh Ne Burcau d
<br />land r'tam9eme4 and
<br />Ne kaset
<br />See 1. STATUES AND REGfRA710NS - Thla lame n lavred ptaulam eId wb(edb Ne tame am proNslona dNe y4bvN lsaslrg Aa dFebuary 25.
<br />1920.41 Stec 437. n arterded, b (I.SG I81 a ae9. headier rdertel b m U,e Aa, erd d tlse Sudce f4b4ry Comrel end Redamtlm Aa d 1477.30
<br />(LSC SeNm 1201 d xq, and NelNnerd lsalrgAR faAcquUed lends d August 7, 1947, n armNed, JO715C.357 w x4 Thn kw n wblecl b eb
<br />arrdted hercNl haeeRtt b lace, a.Id ~ such reguktlma re rude a pmt heed.
<br />WTMFS.SEfH: _ _ ~ --
<br />Sect RgffTSOFLFSSFE-the boor, lncondderatlm daq bmmpaidlortobe pad gddenedl,r,mn arW myaltlesarM she caMMOaherdm4tttaec
<br />lapl. hereby grerW and kaxsb Nelesaee Ne achs+ive rlgln and priviltgebrtJm and dbpoxd coal recoverable by underground
<br />mining methods from the D" Seam and any overlying seams in the following lands located
<br />in Delta County, Colorado:
<br />T. 13 5., R. 91 SJ., 6th P.M.,
<br />sec. 6, lots 5, 6, 7, SlJ!yNEti, SEl,,N[J!„ EzSIJ'y SE!~;
<br />sec. 7, lots 1, 2, NB'y, E'~N[J'Z, SE'Z;
<br />sec. 8, W~;
<br />sec. 17, PI"hNIdZ; ~'
<br />sec. 18, NE`-,NE!i, N~NW'a,NE%, SE~NW'~NE'..
<br />T. 13 S., R. 92 W., 6th P.PL,
<br />sec. 1, Sq;
<br />sec. 2, SES4;
<br />sec. 10, lots 10, 11, 14, 15, 16;
<br />sec. 11, E"~, S"hSWZ;
<br />sec. 12, lots 1 to 8, inclusive, Iota 10 to 14, inclusive,
<br />sec. 13, lots 2, 7 to 10, inclusive, NWy;
<br />sec. 14, (All);
<br />sec. 15, lots 1, 2, 3, 6 to 11, inclusive, 14, 15, and 16;
<br />sec. 22, lots 1, 2, 3, 6, 7, and 8;
<br />sec. 23, locs 1 to 8, inclusive.
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<br />mmNNn9 4 , 998.85 even. n,orc a Iev and wbfecT b the mMPoan tlnUntlw and pmN6mona prodded m UUS lase ed b
<br />appllca W e acv end agulatlarts. Me ngM b consuuct al wor W. builNnga. aaucturo, equipment and eppllencn u1Ndr may De necnaary ar W cameNent fa Ne
<br />mking arM prepamtim d the cml fa market. and. auged b Ne condltlma herdn provided. b uu so much d Ne wdxe m may rcexnabry be required In Ne
<br />exercix d the n9hn and prMkga hvdn granted fa a pedal d 20 yeah and x b^9 NtteeRa m the condltlm d mntlnr,ed apeatlm Is met.
<br />Sec. 3. DBJGFIIT DEVFIOPMFliT AND CONNIVED OPF11A110N -
<br />The lessee shall engage In the dillgeM devebpmenl d Ne <gd resources
<br />fubject b the lease. AM dtlgeN devebpment Ia achieved. Ne kasa shill
<br />mdn W n cmEnued operaUOn d the mim or mino on the leased lends. The
<br />terms dlllgem devebpmed erd coMnued cpttatlort ue defined In Ne ep
<br />plmde reguktlom N Title 43 d Ur Cade d Fedvd Regulatlaras
<br />Sec d. BONDS-Thelaxeshatlflle wiN Ne appropdde Burcsu dLand
<br />MenagermN oflke a lease band In tle ammN d $ 20, 000.00
<br />f a Ne ux and benefit d Ne United SIatH, to inwre paymeN c(dderted bo
<br />ntv peymenn. rennls and myeltla and N Inwre compliance wiN all othtt
<br />lemudthblenae, thereguktlansaM NeACt(acept(orreckmetlm within
<br />Ne area cwtted by a surface MNng perMt Issued under Ne permama
<br />regulatory program M Ne regulatory euthanry) and d appropnate. 7a Ne
<br />protection d the Imttan d Ne audace owners an the leaned lends. An In
<br />rnw M Ne artquN dNe law barW mry M nqubad by Bw Newr at arty
<br />Ume dunr,g Ne Ule d Ne lease to roes changed condltlms
<br />Sec 5. RENTAL - An annml rcraal d $ 3.00 (or each acre
<br />a Raobn tlwed shall be add b adve,ce on or bdwe each annlvesary date
<br />of Nb lease. This seNOn shall not be sublM b redsim ucept In Ne courx
<br />d lease rcedlustmenc
<br />Sec. 6. prtODUCTON ROYALTY -The lessee shell pay a praduNOn
<br />rgdryd up¢c~spsAMR>u+al~[almad~tgAdOnmc
<br />estIX $ percent of Ne value d cwt pro
<br />laced M undergramd rrtWng meNods The vdue d cod shaft be rider
<br />mined n sra toll b 43 t'>:R 3480. PraduNm toyeltln pall la a cakrdar
<br />monN shatl be reduced by Ne amount d arty advance myamn paid uMer
<br />NIa lease b Ne eduaUw such advertro myama nave rot been used b to
<br />duce Droductlm mydUn b s prMom momtl. Moweva, praductbn toyai
<br />tla payable aRe me 20N year d Ne kex shall riot be reduced W advance
<br />roydtln paid during Ne first 20 yeen d Ne leax. ProduNm royamn shall
<br />be payable Ne Mal day d the manN sutteeding Ne olerdar monN In
<br />which Ne cod la xld, lxJna atltervbx spelled In 47 CFR 3480. The rrayelty
<br />rata Provided In Nis seetlm altag rwe De sub(erd b rMalon except N Ne
<br />coax d kax nadKeaneN.
<br />Sec 7. ADVAH~ f10VALT/ -Upon requeri by Ne lessee Ne ANhoMed
<br />Officer mry accept fa a toil d not rterc Nen 10 yens. Ne payment of
<br />adwr,ce royedea In tltts d emtlnued opemtlon vwntM wiN Ne rcguk~
<br />tlom In 43 tTR 74]7 and 3180. Thor sd+enee royally sMU be bored en a
<br />percent d Ne value d a MNmum numbs d Inns wfikh ahdl be deter
<br />Mned In Ne menmr anb9alwd by Ne regubtlona N 43 ffR 3480.
<br />Sec. B. METNODOFPAVMFJiTS -The lessee shall make renal prymencs
<br />to Ne appropriate Bureau of Land Menegemmt office and producmn
<br />rgelUa become payable. ThereeR<c ell renWa. produNm rgeltla all
<br />advance nryaltlex shall be paid to Ne apprapdate offltt tithe United Slates
<br />Mlnttala Marsagemenl Semce.
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