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<br />Form 3400.12 I Serial Namber
<br />[April 19941 UNITED STATES
<br />'F^^TM"ruaal~ DEPARTMENT OF THE INTERIOR
<br />BUREAU OF LAND MANAGEMENT
<br />COAL L,FJ-SE
<br />COC 51551
<br />PART I. LEASE RIGRTS GRANTED
<br />This lease. entered into by and between the Unlreo SrAres or' ANr:atc~. hereinafter called lessor. through the Fiureau of land Mnnagement..rm~
<br />IName and Addressr
<br />Western Fuels-Utah, Inc.
<br />405 Urban Street, Ste. 305
<br />Lakewood, Colorado 80228
<br />hereinafter called lessee, is effective fdatel , (or a period oC 20 years and for su lung thereafter as coal is produced in commercial
<br />quantities Fos the leased lands, subject to readjustment of Itase teens at the end of the 20[h lease year a,td each ]O~yeer period therenfter.
<br />Sec. 1. This Jesse is issued pursuant and subject to the terms and provisions of the:
<br />~] Mineral Lands tossing Act oC 1920, Act of February 25. 1920, as amended. 4l Scat. 43 i. 30 U.S.C. 181=28.. hereinafter referred to us the .act:
<br />^ Mineral Leasing Act for Acquired Lands, Act of Augua[ 7, 1941, 61 Stat. 915.:30 U.S.C. 351.559:
<br />and to the regulations end formal orders of the Secretary of the Interior which are now or hereafter in force, when nut inconsistent with the express
<br />end specific provisions herein.
<br />Sec. 2. Lessor, in consideration of any bonuses, rents, and royalties to he paid, and the conditions and covenants w be observed as herein set forth.
<br />hereby grants and leases to lessee the exclusive right and privilege to drill for, mine. extract, remove, or otherwise process and dispose of ihr cos I
<br />~taltmt~mtxad~~Natmtpc8mt~ttreml~mticlc deposits limited to the coal recoverable by undergrounc
<br />mining methods in the following lands:
<br />Sixth Principal Meridian
<br />T. 3 N., R. 101 W.,
<br />sec. 25, S'~;
<br />sec. 26, SEtiSE%;
<br />sec. 34, S'~NElt and N~SEIL;
<br />sec. 35, NE3sNEk, S'~N~, and NZS~;
<br />sec. 36, N!i and N'~S'~.
<br />containing 1360 acres, more or less, together with the right to construct such works, buildings, plants, structures, equipment and appliance-
<br />and the right to use such on~lease rights-of-way which may be necessary and convenien t in the exercise of the nghts and pri v ilrges gran[ed. suh3ect to
<br />the conditions herein provided.
<br />PART II. TERMS AND CONDITIONS
<br />Sec. I. lal RENTAL RATE -Lessee shall pay lessor rental annually and
<br />in advance (or each acre or fraction thereof during the continuance of
<br />the lease et the rate of S 3 .00 -- for each lease year.
<br />Ibr RENTAL CREDITS -Rental shall not be credited against either
<br />production or advance royalties for any year.
<br />Sec. '_'. lal PRODUCTION ROYALTIES -The royalty shall be a per
<br />cent of the value of [he coal asset torch in the regulations. R. ~ ~: al rtes a re
<br />due to lessor the fi nal day of the month succeeding the calendar mun th
<br />in which the royalty obligation accrues.
<br />(bt ADVANCE ROYALTIES - L'pon request by the lessee. the authorized
<br />offs car may accept. for a to[al of not more than 10 years. the payment of
<br />advance royalties in lieu aC continued operation, consistent wnh the
<br />regulations. The advance royalty shell be based on a percent of the
<br />value of a minimum number of tons 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 - Lesseeshall maintain in the proper office a lease bond
<br />in the amountuf5 563 > 000 .The authorized officer may require an
<br />increase in this amount when additional rnver~¢e is dererm inrri
<br />Sec. J. DILIGENCE -'I'hrs lease is subject to the conditions ut Jihernt
<br />development and cuntmurd opera ion, except that theseamditiun~ an
<br />excused when operations under the lease arc interrupted by stoke.. the
<br />elements, or casualties not at[ributable to the lessee.'I'he lessor, in th~~
<br />public interest. may suspend the condition of rontin ued operation up~~n
<br />payment of advance nn attics in attordancr wvth the reKulenons in
<br />existence a[ the time of the suspension. lessee'. failure to proJure cos i
<br />in commercial quantities ut the end n( 10 years shall termmatr th.
<br />lease. Lessee shall submuan operation and reclamaunn pl:m Pursuant
<br />to section T n(the Act nut later than 3 veers alter Irasr w..uance.
<br />The lessor reserves the power to assent to nr order the suspensu~n nl the
<br />terms and conditions ~,f this lease in accordance wuh. imrr .dlu
<br />Section :39 of the Mineral Leasng Act. :}U I1.S.C. "119.
<br />Sec. ~,. LOGICAL MINING UNIT ILMU) ~ Either upon approval by the
<br />lessor o(the lessee's application or at the direction of the Ie>~ur. this
<br />lease shat l become an I _M U or part of a n LM U, su bject to the proviswn s
<br />se[ forth in the regulations.
<br />The stipulations established in an LMU approval in effect atthe timrut
<br />LMU approval will supersede the relevant inconsistent terms of this
<br />lease so long as the lease remains tommttted co the LMU. If the LMI~ ul
<br />which this lease is a part Is dissolved, the lease shall then be ~uhlect to
<br />,Fn lea co m.me.u6:..1. .... ~.la 6ovo 6~,.., ~nnllnrl i(.V,n la~.e 6vr~ nm Fw~
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