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UNITED STATES
<br />DEPARTMENT OFTHE INTERIOR Stwl1'htmbw December 1. 1950
<br />BUREAU OF LAND MANAGEMENT D-056724
<br />Lew Ones
<br />COAL LEASE READJUSTMEET'f~
<br />PART 1. LEASE RIGHTS GRANTED
<br />This lease. entered 3nm by and between the UNtrga SrArra a-Ateealca hereinafter called laaeor, through the Buruu of Lnd htmagammL and
<br />Western Slope Carbon, Inc.
<br />112 Albright Road
<br />Oak Ridge, Tennessee 37830
<br />hereinafter tilled leases, is nesgttnstl'effecdva December 1, 1990 for a period o[ 10 yttsrs and for so long thereafter a. coal u
<br />oroduead 3a commettil gvaatltiee from the leased lands. sabjact to nadjustmmt o[ lases tarma at the end of each 10•yasr lease oariod.
<br />Sea 1. This lases is issued pureuint and subject to the terms sad prov3stoae of the:
<br />Mlnersl Lands Lasing Act of 1920, Act of February 2S, 1920, u emended,ll Stet. ~7, 30 UB.C. 181.287, 6areinafter referred to u the Act;
<br />^ Mineral Luiag Aet for Acquired lands, Ad of August T, 1917, 8194L 913, 30 U.S.C. 351;359;
<br />sad to the regtdations sad formal order of the 9etxatary of t!u Interior which ere vow or 6areeRar 3a fortro, when not inconsutmt with the express
<br />and spedfic Drovisioaa 6ersin.
<br />Sea 2 Lssor, in conaideredm of any emv, and royaltir to by paid, and the covditioas sad covepan[a to by observed u herein sat forth. hereby
<br />grenu~ to lessee the asrluaive right and privilege to driL fw, mine, a=fret, remove, or otherwise prtttxas end dupaw of the coal depoun in. uDun•
<br />or ender the following dtwsibed Lends:
<br />T. 13 S., R. 90 W., 6th P.M.
<br />sec. 10, lots 1 and 2, NE'ZSE'~;
<br />sec. 11, lots 4 and 5
<br />contaiairtg 189.24 at~ae, more or less, together with the right to coastrod each works, buildings, plmu, etuetum, iquipmmt and appliances
<br />sad ehs right to use each m-lases righteof•way which airy ba ostsnsary and convenient is the sxaeise of the rights and privileges grmted, aubiect to
<br />the conditions herein provided.
<br />PART IL TERMS AND CONOITONS
<br />See. 1. la) RENTAL RATE - [asses shall pay lessor rental annually and
<br />in advance for.saeh acre or fraction thereof during the continuance of
<br />the lease at the rata of ~ 3.00---- for each lease year.
<br />(b) RENTAL CREDITS -Mental shall not bs credited agaiaat either
<br />production or edvmce royaltin for my year.
<br />gee. 2. la) PRODUCTION ROYALTIES - Tha royalty shall be (surfa~
<br />12.5 percent and (underground) 8.0 par
<br />cent o[ths valueof the coal a. eat forth io the regulations Royalties ere
<br />due to lessor the final day of the month succeeding the calendar month
<br />is which the royalty obligation atsntes.
<br />(b) ADVANCE ROYALTIES -Upon request by the lessee, the authorized
<br />officer may acceDR for a total of not more than IO years, the payment of
<br />advance royalties in lieu of continued operation, consistent with the
<br />regulations. Tha advance royalty shall bs 6aeed on a~percent of the
<br />value of a minimum number of tofu determined in the manner
<br />earn hliehed by the advance royalty regulations in effect at the time the
<br />leases requests approval to pay advance royalties in lieu of continued
<br />operation
<br />Sec. 3. BONDS - lessee shall maintain in the properoffice a lease bond
<br />in the amount of i 5 , 000.00 .The authorized officer may rtyuire m
<br />inueaae in this amount when additional coverage is determined
<br />appropriate.
<br />Sea 1. DILIGENCE -This lease is subject to the coaditioaa of diligent
<br />development and continued operation, except W et these conditions are
<br />excused when operations under the lases are interrupted 6y strikes, the
<br />alemenu, or casualties oot attributable to the lessee. The lessor. in the
<br />public ivtervst, cosy euspand the condition of contiauad operation upon
<br />payment of advance royalties in accordance with the regulations in
<br />existence at the time of the suapenaioa lessee's failure to produce coal
<br />3n commerdal quantities at the end o[ 10 yeah shall terminate the
<br />lease Lessee shall submit an operation and mlemation plan punuant
<br />to Section 7 of the Act not Ister than 3 year after the e3letbva date d
<br />arb keaa resdjtsm,ea,
<br />The lessor reserves the power to meant 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 Lasaing Act, 30 U.S.C. 209.
<br />Sec. 5. LOGICAL MINING UNIT (LMU) -Either upon approval by the
<br />lessor of the lessee's application or at the direction of the lessor, thu
<br />lease shall become an LM U or part of as LMU, subject to the provisions
<br />set forth in the regulations.
<br />The stipulations established in an LMU aDProve I in effect et the nme of
<br />LMU approval will supersede the relevant inconeietent terms of this
<br />lease so long as the lease remains committed m the LAt U. If the L.~I U oC
<br />which this lases ie a part u dissolved, the lease shall then be subject to
<br />the lease terms wh ich would have been applied if the lease had rat been
<br />included in an L~iU.
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