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<br />Form 3400-12 UNITED STATES
<br />(January 1995)
<br />DEPARTMENT OF THE INTERIOR
<br />BUREAU OF LAND MANAGEMENT
<br />FORM APPROVED
<br />OMB NO. 1004-0073
<br />Expires: June 30, 1997
<br />Serial Number
<br />=COAL LEASE ~ COC 67011
<br />PART I. LEASE RIGHTS GRANTED
<br />This Jeaee, entered into by and between the UNlrgn STATes oe Atagltlcn, hereinafter called lessor, through the Bureau of Land Management, and
<br />Ark Land Company
<br />CityPlace One, Ste. 300
<br />St. Louis, Missouri 63141
<br />hereinafter called lessee, ie effective ~~~~pp rr~~~~pp for a period of 20 years and for so long thereafter as coal ie produced in commercial
<br />quantities from the leased lands, subject Yd~eadjua~mdi4tVlt lease terms at the end of the 20th lease year and each 10-year period thereafter.
<br />Sec. 1. This ieaee is issued pursuant end subject to the terms and provisions of the:
<br />Mineral Leads Leasing Act of 1920, Act of February 25, 1920, u amended, 41 Stat. 437, 30 U.S.C. 181-287, hereinafter referred to u the Act;
<br />^ Mineral Leasing Act for Acquired Lando, Act of August 7; 1947, 61 Stat. 913, 30 U.S.C. 351-359;
<br />and to the regulations and formal orders of the Secretary of the Interior which are now or hereafter in force, when not inconsistent with the express
<br />aad specific provisions herein.
<br />Sec. 2. Lessor, in consideration of any bonuses, rents, and royalties to be paid, and the conditions and rnvenants to be observed 88 herein set forth,
<br />hereby grants aad lessee to lessee the exclusive right end privilege to drill for, mine, extract, remove, or otherwise process and dispose of the coal
<br />depoeitaie-nyenbrw,dert6e-feNewing~xde' limited to the coal recoverable by underground mining
<br />methods in the B seam in the following described lands:
<br />T. 13 S., R. 90 W., 6th P.M.
<br />sec. 12, lots 8 to 10, inclusive;
<br />sec. 13, lots 2 to 7, inclusive, and
<br />lots 10 to 15, inclusive; 8 ~
<br />sec. 24, lots 4 and 5. ~
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<br />containing 690.95 scree, more or leas, together with the right to construct such works, buildings, plants, structures, equipment and appliances
<br />and the right to use such on-lease rights-of--way which may be necessary and cronvenient in the exercise of the rights and privileges granted, eubjeM to
<br />the mnditiona herein provided.
<br />PART II. TERMS AND CONDITIONS
<br />Sec. 1. (a) RENTAL RATE - Leeaee shell pay lessor rental annually and
<br />in advance for each acre or fraction thereof during the continuance of
<br />the lease at the rate of $ 3 .00 for each lease year.
<br />(b) RENTAL CREDITS -Rental shall not be credited against either
<br />production or advance royalties for any year. ~~e 1{L]
<br />Sec. 2. (a) PRODUCTION ROYALTIES -The royalty shall be 12s5per-
<br />cenl ofthe value of the coal as set forth in the regulations. Royalties are
<br />due to lessor the final day of the month succeeding the calendar month
<br />in which the royalty obligation accrues.
<br />(b) ADVANCE ROYALTIES -Upon request by the lessee, the authorized
<br />officer may accept, for a total of not more than 70 years, the payment of
<br />advance royalties in Lieu of continued operation, consistent with the
<br />regulations. The advance royalty shall be based on a percent of the
<br />value of a minimum number of tone determined in the manner
<br />established by the advance royalty 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 officealease bond
<br />in the amount of$ 156,000 .The authorized officermay require en
<br />increase in this amount when additional coverage is determined
<br />appropriate.
<br />Sec. 4. DILIGENCE -This lease is subjeM to the conditions of diligent
<br />development and continued operation, except that these conditions are
<br />excused when operations under the lease are interrupted by strikes, the
<br />elements, or casualties not attributable to the lessee. The lessor, in the
<br />publiointereet, meysuspend the condition of continued operation upon
<br />payment of advance royalties in accordance with the regulations in
<br />existence at the time of the suspension. Lessee's failure to produce coal
<br />in commercial quantities at the end of 30 years shall terminate the
<br />lease. Lessee shall submit an operation and reclamation plan pursuant
<br />to Section 7 of the Act not later than 3 years after lease issuance.
<br />The lessor reserves the power to assent to.or order the suspension of the
<br />terms and conditions of this lease in accordance with, inter alia,
<br />Section 39 of the Mineral Leasing Act, 30 U.S.C. 209.
<br />Sec. 5. LOGICAL MINING UNIT (LMU) -Either upon approval bX the
<br />lessor of the lessee's application or at the direction of the lessor, this
<br />lease shall become an LMU or part of an LMi`., subject to the provisions
<br />set forth in the regulations.
<br />The stipulations established in an LMU approval in effect at the time of
<br />LMU approval will supersede the relevant inconsistent terms of this
<br />lease eo long as the lease remains committed to the LMU. If the LMU of
<br />which Chia lease is a part is dissolved, the lease shall then be subject to
<br />the lease terms which would have been applied if the lease had not been
<br />included in an LMU.
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