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f~~ Rev. 12/93 STATE OF COLORADO STATE BOARD OF LAND COMMISSIONERS Department of Natural Resources COAL MINING LEASE NO. CO 3235 DUPLICATE -FIRST SET LOST THIS COAL M[NING LEASE, Made in duplicate and entered into this 23rd day of February , 1994 , by and between the State of Colorado, acting through its STATE BOARD OF LAND COMMISSIONERS, hereinafter referred to as Lessor, and Kerr Coal Comoanv 1200 17th St.. Ste 2500. Denver. CO 80202 hereinafter referred to as Lessee WITNESSETH: Lessor, for and in consideration of the sum of four thousand eight hundred twee and nol100 - Dollars ($ 4.820.00 ), receipt of which is hereby acknowledged as payment of filing fee in the amount of $ 20.00 ,first year's rent in the amount of $ 1.280.00 , and a bonus in the amount of $ 3.520.00 ,and in further consideration of Lessee's agreement to pay two and 00/100 Dollars ($ 2_00 )per acre annually as rental in advance of the anniversary date of this lease so long as said lease shall remain in effect; and in further consideration of the terms, conditions and agreements herein and of the payments of annual rentals and royalties reserved herein, to be kept and performed by Lessee, its successors and assigns, does hereby lease to Lessee the right and privilege of exploring and prospecting for, and mining of and taking of coal from the lands herein described, situated in the County of ackson ,State of Colorado, to-wit: \ ACRES 640.00 SUBDIVISION All SEC.TWP.RGE. 36-9N-78W PATENTS FUND: School No containing 640.00 acres, more or less, together with the right to use as much of the surface as may he reasonably required in the exercise of the right [o mine, including strip mining; and the right to reasonable ingress and egress; the right to construct buildings, make excavations, stockpiles, dumps, drains, roads, railroads, power lines, pipelines and other improvements as may be reasonably necessary in the mining and removal of said coal; subject, however, to all existing easements and rights-of--way of third parties, and the rights of surface lessees and surface patentees, and further subject to the terms, conditions and agreements set out in this lease. The above-mentioned rights may be exercised in connection with mining on other or adjacent lands only when mining on such lands is cazried on in conjunction with the actual mining of coal on the land herein leased. The above right to use state lands without mining on the lands herein leased will be at the discretion of Lessor. RESERVING, however, to the State of Colorado: A. All rights and privileges of every kind and nature, except as are herein specifically granted. B. The right to use or lease said premises or any part thereof at any time for any purpose, including the right to explore and prospect said premises for minerals other than coal. The use and leasing of said premises shall be for purposes other than and not inconsistent with the rights and privileges herein specifically granted. C. The right to dispose of or lease the surface.