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<br />Rev. 12/93 STATE OF COLORADO <br />STATE BOARD OF LAND COMMISSIONERS <br />Department of Natural Resources <br />COAL MINING LEASE NO. CO 3234 <br />DUPL[CATE -FIRST SET LOST <br />THIS COAL MINING LEASE, Made in duplicate and entered into this 23rd day of February , 1994 , <br />by and between the State of Colorado, acting through its STATE BOARD OF LAND COMMISSIONERS, <br />hereinafter referred to as Lessor, and Kerr Coal Company <br />1200 17th St.. Ste 2500. Denver. CO 80202 <br />hereinafter referred to as Lessee: <br />WITNESSETH: Lessor, for and in consideration of the sum of four thousand one hundred eighty and <br />no/100 - Dollazs ($ 4.180.00 ), receipt of which is hereby acknowledged as payment of filing fee in the <br />amount of $ 20.00 ,first yeaz's rent in the amount of $ 1.280.00 , and a bonus in the amount of $ 2.880.00 , <br />and in further consideration of Lessee's agreement to pay two and 00/100 Dollars ($ 2_00 )per acre annually <br />as rental in advance of the anniversary date of this lease so long as said lease shall remain in effect; and in further <br />consideration of the terms, conditions and agreements herein and of the payments of annual rentals and royalties <br />reserved herein, to be kept and performed by Lessee, its successors and assigns, does hereby lease to Lessee the <br />right and privilege of exploring and prospecting for, and mining of and taking of coal from the lands herein <br />described, situated in the County of ackson ,State of Colorado, to-wit: <br />ACRES SUBDIVISION SEC.TWP.RGE. PATENTS <br />640.00 All 16-9N-78W Yes, Except <br />for S/2SW/4 <br />FUND: School <br />containing 640.00 acres, more or less, together with the right to use as much of the surface as may be reasonably <br />required in the exercise of the right to mine, including strip mining; and the right to reasonable ingress and egress; <br />the right to construct buildings, make excavations, stockpiles, dumps, drains, roads, railroads, power lines, <br />pipelines and other improvements as may be reasonably necessary in the mining and removal of said coal; subject, <br />however, to all existing easements and rights-0f-way of third parties, and the rights of surface lessees and surface <br />patentees, and further subject to the terms, conditions and agreements set out in this lease. The above-mentioned <br />rights may be exercised in connection with mining on other or adjacent lands only when mining on such lands is <br />carried on in conjunction with the actual mining of coal on the land herein leased. The above right to use state <br />lands without mining on the lands herein leased will be at the discretion of Lessor. <br />RESERVING, however, to the State of Colorado: <br />A. All rights and privileges of every kind and nature, except as are herein specifically granted. <br />B. The right to use or lease said premises or any part thereof at any time for any purpose, including <br />the right to explore and prospect said premises for minerals other than coal. The use and leasing <br />of said premises shall be for purposes other than and not inconsistent with the rights and privileges <br />herein specifically granted. <br />C. The right to dispose of or lease the surface. <br />