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FOrrtDJ40&1~3:
<br />(November 1998) UNITED STATES
<br />DEPARTMENT OF THE INTERIOR
<br />BUREAU OF LAND MANAGEMENT
<br />COAL LEASE
<br />PART 1. LEASE RIGHTS GRANTED
<br />Serial Number
<br />COC 66514
<br />This lease, entered into by and between the L)NITED SrwTeS Ot' AM6aiCA. hereinafter called lessor, through the Bureau of Land Management,
<br />CAM Holdings LLC
<br />Wexford Plaza
<br />411 West Putnam Avenue
<br />Greenwich, Connecticut 06830
<br />hereinafter called lessee, is effective , DEC 12004 , for a period of 20 years and for eo long thereafter as coal ie produced in comma
<br />quantities from the leased lands, subjeM to readjustment of lease terms at the end of the 20th lease year and each 30-year period thereafter.
<br />Seca 1. This lease is issued pursuant and subject to the teens and provisions oC the:
<br />^ Mineral lands Leasing Act of 1920, Act of February 25, 1920, as amended, 41 Stat 437, 30 U.S.C. 181-287, hezeinaftei referred to u the A
<br />^ Mineral Leasing Ad for Acquired Lands, Act of Auguas 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 exl
<br />and specific provisions hernia. _ _ ,.
<br />Sec. 2. Lessor, inconsideration of any bonuses, rents, and royalties to be paid, and the conditions and covenants to be observed 88 herein set f
<br />hereby grants end leases to leases the ezclueive right and privilege to drill for, mine, extract, remove, or otherwise process and dispose of the
<br />deposits ia, upon, or under the following described lands:
<br />T. 7 S:, R. 102 W., 6th P.M.
<br />sec. 3, lots 22, 24, & Tr. 45, lots 21, & 23;
<br />sec- 4, lots 9, 11, 13 & Tr. 45, lots 10, 12, & 14,
<br />SEtkNWYa, SNP/, and NW'bSEtk; ~~, ' ~-~
<br />sec. 5, SEY.SEiG; - I'~
<br />sec. 8, ErfiE'h; ~ ~5 :'. ^'
<br />sec. 9, lots 2; 4, 5, 7, 10, 12, 13, 16, 17, 19, 22, & Tr. 4-5>'~,_;
<br />lots 1, 3, 9, & 11, Tr. 37, lots 6, 8, 14, 15, >rQ, 20 _&
<br />21, )`PhNNP1., SWifb7N'!., NW'h54taiG, and E'h5E'h; ~ _;~,
<br />sec. 10, lot 1, & Tr. 45, lot 2, SNPkD7WY•, and W'hSWrk. Y _ _ - _
<br />----' - _ - .~7 ~-~~
<br />-j
<br />ill
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<br />rnntaining 77 5 2© .1 /acres, more or leas, together with the right to construct such works, buildings, plants, atracturea, equipment and applie
<br />and the righ£tb use she on-lease rightaof-way which may be necessary and convenient intheezerciae of the rights and privileges granted, subj
<br />the tonditions herein provided.
<br />PART II. TERMS AND CONDITIONS
<br />Sec. 1. (a) RENTAL RATE -Lasses shall 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 .l)~ for each lease year.
<br />(bl RENTAL CREDITS -Rental shall not be credited against either
<br />production or advance royalties for any year.
<br />Sec. 2. (a) PRODUCTION ROYALTIES -The royalty shall be 8 ~ 0 per-
<br />cent 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 />officermay accept, for a total of nvtmore than 10 years, the paymentof
<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 />eatebliahed by the advance royalty regulations in effect at the time the
<br />leeece requests approval to pay advance royalties in lieu of continued
<br />operation.
<br />Sec. 3. BONDS-Ieaeee~shallmaintain in [he proper officealease bond
<br />in the amount of $1 , 65 ~ , 000 . The authorized officer may require an
<br />increase in this amount when additional coverage is determined
<br />aPPropria[e.
<br />FORM APPROVED
<br />OMS NO. 1004-0073
<br />Expires: Oe[ober 31.2000
<br />Sec. 9. DILIGENCE -This lease is subject to the rnnditiona of dill
<br />development and continued operation, except that these condition
<br />excused when operations under the lease are interrupted by strikes
<br />elements, or casualties not attributable to the lessee. The lessor, is
<br />public interest, may suspend the condition of continued operation
<br />payment of advance royalties in accordance with the regulatioi
<br />existence at the time of the suspension. Lessee's failure to produce
<br />in commercial quantities at the end of 10 years shall terminal
<br />Iesae. Lessee shall submit an operation and reclamation plan pars
<br />to Section 7 of the Act not later than 3 years after lease issuance.
<br />The lessor renervea the power to aseent to or order the suspension <
<br />terms and conditions of this lease in accordance with, inter
<br />Section 39 of the Mineral Leasing Act, 30 U.S.C. 209.
<br />Sec. 5. LOGICAL MINING UNIT (LMU) -Either upon approval b7
<br />lessor of the lessee's application ar at the direction of the lessor.
<br />lease shall become an LMU ar pert of an LMU. subject to the provii
<br />set forth in the regulations.
<br />Thestipulatione eetabliehed in an LMU approval in effect at theta
<br />LMU approval will supersede the relevant inconsistent terms of
<br />1 ease so long as the ]ease remains committed to the LMU. If the L:v
<br />which this lease is a part is dissolved, the lease shall then be~subi,
<br />the lease terms which would have been applied if the Iesae had not
<br />included in an LMU. '
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