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<br />STATES rot Number C-023703
<br />DEPART~OF THE MTERIOR
<br />BUREAU OF LAND MNYAGEMFM
<br />Leax Dete March 1 ] 9f,3
<br />COAL LEASE READJUSTMEJ'1T
<br />This lease between the United States d Americo, the lessor through the Burrau d Land MarogemenL end
<br />Western Fuels -Utah, Inc.
<br />700 Jefferson Building
<br />1225 - 19th Street, N. W.
<br />Washington, D.C. 20036
<br />fs readjusted, eRecvve ns d July 15. 1983
<br />the ksxe,
<br />Sec 1. STATUTES AND REGULA710N5 - Thls kme Ls issued purwant end subject to the terms end provisions d the Mineral Leasing Act d February 25,
<br />1920.41 Stet 437, as emended, 30 U.S.C. Sections 181-287 and 90 Stet 10831092, hveaher referred to es the Act end d the Sudatt Mlnlrg Control and
<br />Reclamation Act of 1977, 30 US.C Section 1201 n seq., and the Mlnenl Leasing Act feAcquircd Lends of August 7,1947, es amended.30US.C.351.359 n
<br />crag. This lease Is subject to e0 regulations of the Sevetery of the Interior (including but na limited to 30 CFR Pen 211 and Chapter Vii end 43 CFR Group 3400)
<br />which ere now in force or (uttpl es expressly limited hercln) hveefler in face, end ell such regulations arc made a part hued. No amendment to Me regulations
<br />made subsequent to the eRective date hared shell ahv the rcrMl end production nryallyrequircments in Sections 5 end 6 dthls kese until the acre readjustment
<br />d this kax
<br />WffTiESSETH:
<br />Sec 2. RIGFiTS OF LFSSF~ -The lessor, in consideration d rents end royalties end other conditions hveiroftv sd forth, hereby grerss to the lessee the ex-
<br />clusive rght and prhrilege b mine end dispox d ag cool In the fdlowing dexribed tracts (leax (ands) s'rhraled in the Stated Cn 1 nradn
<br />T. 2 N., R. 101 W., 6th P.M.,
<br />sec. 1, lots 3, 4, S'dNW'~, SW'y;
<br />sec. 2, lots 1, 2, 3, 4, S'~N'~, SE's;
<br />sec. 3, lots 1. 2, 3, 4, S'~N'~, SWt~;
<br />sec. 4, lots 1, 2, 3, 4, StZN'~, S'~.
<br />T. 3 N., R. 101 W., 6th P.M.,
<br />sec. 32, S'~SE)t;
<br />sec. 33, S'~S'~;
<br />sec. 34, S~S'~;
<br />sec. 35, S~S'~;
<br />sec. 36, S'~SW'~.
<br />containing 2 , 557.22 ayes, more or less and, logeUxr with the right to consWd ell works, bugdugs,
<br />swcturcs, equipment, end appliance which may be rxcasary and convenient for the mining end preparation of the coal for market end, subject b the coed,
<br />Dons herein provided, to use so much of the sudace es may reasonably be required in the exertise d the rghls and pdvileges herein granted for so long es this
<br />leax remains kr full force and eRerd under arty provisions d the ltw end the appfrtabk regulations Ihvetrrrdv.
<br />Sec 3. DIL1GFliT DEVFJ_OPMFJYi AND CONTINUED OPERATgN -
<br />The lessee shall engage in Ne diligent development d the tool resources
<br />subject to the lease. After diligent development is achieved, the lessee shall
<br />maintain continued operation of the mine or mines on the leased lands The
<br />terms diligent development and continued operation are defined in Ore
<br />applicable regulations inTltie 30 end 43 of the Code of Federal Regutatiorta
<br />Sec.4. BONDS-Thelessee shall file with the eppropdate Buruud Land
<br />MarogemeM once a kax bad in the amount d $15 , 000.00
<br />for the use end beneFt of the Unittd Steles, to insure payment d rcraals end
<br />royalties end to insure compfarrtt with ell other terms d the kale, the ngu
<br />blions end the Act (uttpt for reclamation within Ux area covered by a sur•
<br />face mining permit issued undo the permanent regulatory progmm by the
<br />regulatory authority) end, if appropriate, for the prdectiar d the interest d
<br />the sudece owners txt the leased lands. M Inaeex In the enaunt d the
<br />lean bond may be required by the kssa et arty time during the fde d the
<br />kese to reflect charged caditions
<br />Sec 5 REMAL - M annual rental d. $3.OU for each acre
<br />e fraction thereof shall be pad In advance on a befee each ennhersary dale
<br />d this lease. Rentals paid la arty lease year commencing prior to the eftrr
<br />live dale d this reedjusaneM shag lx credited against royalties la flat year.
<br />Rentals due arrd payable le any lease year commencing on or eher the d-
<br />feciive dale d this readjustment may nal be credited against royaka (43
<br />CFR 347331).
<br />Sec 6 PRODUCTION ROYALTY -The lessee shall pay a production
<br />royalty d 12.5 percent d the value d coal produced by strip e
<br />eugv methods end 8 percent d the value of coal pro
<br />duced by underground mining methods. The value d coal shall be dely-
<br />mined es sal forth in 30 CFR 211. Production royalties paid (or a calendar
<br />month shall be reduced by the amount d arty edventt royalties paid undo
<br />this leax to the extent that such advance royahie have nd been used to rr
<br />duff production royahies in a previous mordh. Howevv, production loyal
<br />Ga payable after the 20th year d the kese shall not be reduced by advantt
<br />royalties paid dudng the first 20 years d the lease. Production royalties shag
<br />be payable the final day d the month succeedrg the calendar rnonUr ht
<br />which the coal h sold. wiles e+Jrvwise specdred in 30 CF7t 211.
<br />Seel ADVANCE ROYALTY-Upon request bytM lessee the Dislric7Mio
<br />Irg Supervise may accept, for a total d not nwre Than 10 years, the pay
<br />rrrcnt d edvante royahia In geu d continued operation consistent with the
<br />regulations N 43 CFR 3473 end 30 CFR 211. The advance toyahy shag be
<br />based on a pvttnl d the value of a minlmum number d tonswhlch shag be
<br />dMertttined h the mannv established by the regulations M 30 CFR 211.
<br />Sec.B METHODOF PAYMENTS-Thekssee shag make rental payments
<br />to the appropriate Baeau d Lard Marogemert oRitt until production
<br />royalties become payable. Thveeftv, eg rentals, production n>yeltin end
<br />advance royalties Shen be geld to the eppropriarc olfitt d the United Stets
<br />Minerals Marogement Service
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