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tam United States Department of the Interior BUREAU OF LAND MANAGEM1fENT ~ COLOR,M1DO STATE OFFICE ~ ~ 2850 SOUNGFIELD STREET LA REN'OOD. COLORADO 80'?15-7076 CO-921B(ALW) 3451 D-056724 Coal JUN 1 1990 CERTIFIED MAIL D E C I S I O N Western Slope Carbon, Inc. c/o Blue Norizon Mining, Inc. Attention: Mr. Collins 112 Albright Road Oak Ridge, Tennessee 37830 Notice of Readjusted Lease Terms and Conditions Monies Due Coal lease D-056724 was issued effective December 1, 1950. The lease vas assigned to Western Slope Carbon, Inc., effective May 1, 1970. Readjustment of federal coal lease D-056724 in 1978 vas vacated as untimely by the Interior Board of Land Appeals in Raiser Steel Corp. et al., 63 IBLA 363 (1982). Federal coal lease D-056724 is next subject to readjustment of its terms and conditions on December 1, 1990. Notice of intent to readjust coal lease D-056724 vas given to the lessee, Western Slope Carbon, Inc., November 28, 1988. As provided in the Mineral Leasing Act of 1920, as amended, (41 Stat. 437, 30 U.S.C. 181 et seq•), the regulations, and Sec. 3 of the lease, ve are hereby readjusting the terms and conditions of lease D-056724. A copy of the readjusted lease is enclosed. The readjusted lease terms shall become effective December 1, 1990, unless the lease is relinquished by the lessee prior to that date. The annual rental rate vill be increased to ~3 per acre or fraction thereof as provided in the current regulations. The royalty rates, established by law and by regulations at 43 CFR 3473.3-2, will be increased to 12'~ percent of the value of the coal removed from a surface mine and 8 percent for coal removed from an underground mine. There currently are no underground operations being conducted, and no valid mining permit pursuant to the provisions of the Surface Mining Control and Reclamation Act of 1977 (SMCRA) exists. Therefore, there are no adverse geologic or mining