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<br />
<br />MaR 1 7 1978
<br />LEASE
<br />THIS AGREEMENT, made and entered into this 6th
<br />by and between BOGLE FARMS, INC., an Arizona Corporation,
<br />L~il~~°. Gz. (~m ID. ~ l (a ~~ hereinafter colle
<br />as "Lessor, or Party of the First Part, and CONSOLIDATED
<br />CONSOLIDATED ENERGY, of P.0. Box 2867, Steamboat Springs,
<br />referred to as "Lessee", or Party of the Second Part:
<br />WITNESSETH:
<br />MINED LAND RECLP~I!","'"~J
<br />Cofo. Dept. of Natura~ ~:~ ~..- •~'~
<br />of htarch, 1978,
<br />o. ,073
<br />:lively referred to
<br />FUELS, INC., d/b/a
<br />Colorado, hereinafter
<br />That, for and in consideration of One Thousand and no/100 Dollars
<br />($1,000.00) paid to Lessor by Lessee, the receipt of which is hereby acknowledged,
<br />and in consideration of the covenants and agreements herein set out to be kept
<br />and performed by both of the parties, the parties hereto have agreed and do
<br />hereby covenant, each with the other, as follows, to-wit:
<br />Lessor does hereby grant, demise, lease and let unto Lessee all
<br />coal and coal deposits lying in, upon or under those lands located in Routt
<br />County, Colorado, as described in Exhibit A, attached, together with the
<br />right to use so much of the surface thereof as may be reasonably required
<br />in the exercise of the right to mine coal, including stip mining, angering
<br />and the reasonable right to ingress, egress and regress, to and from said
<br />property, subject however, to all existing easements and rights-of-way of
<br />third parties across said lands and to any and all other burdens and leases,
<br />if any, of record. Lessor also grants to Lessee those additional rights
<br />enumerated in paragraph 14, below. For all these purposes, t#~e rights granted
<br />to Lessee are exclusive.
<br />Said lands are hereby exclusively leased, let and demised to Lessee
<br />for the purpose of prospecting, removing, extracting, processing, mining and
<br />recovering coal in, upon or underlying the above described lands, irrespective
<br />of and without regard to the number of separate veins of coal and said substances
<br />underlying said lands and without regard to the depth beneath the surface
<br />at which such vein may be found.
<br />Lessee shall have the right to use such portion or portions of the
<br />leased premises as may be reasonably necessary for conducting its operations
<br />upon said leased premises, including by way of illustration, and not by way
<br />of limitation, the right to operate machinery and equipment that are either
<br />necessary or convenient for the mining, removal, haulage, storage, processing,
<br />preparing for market and marketing of coal, to build offices and other mine
<br />buildings of all kinds; to build and maintain haul roads; and to generally
<br />mine, remove and prepare for market and market coal. Provided the acreage
<br />so used exclusive of haul roads and reclaimed lands shall not exceed 35 acres
<br />at any one time during the term hereof.
<br />Lessor does not warrant either its title, if any, to leased substances
<br />or its rights, if any, to grant any rights to Lessee hereunder and these granted
<br />rights are limited by whatever right, title and interest the Lessor has in order
<br />to grant the same. The Lessee, as stated above, has the right to broad uses
<br />of the surface hereunder, and may effect irreparable damage or destruction
<br />thereto, subject however, to those duties of reclamation appearing below and as
<br />required by State and Federal Law. As limited hereby and in the exercise of
<br />prudent and good mining practices, the Lessee is entitled to strip mine,
<br />auger, cave or subside the surface, and as such, the rights to surface support,
<br />both lateral and subjacent, is waived by Lessor.
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