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<br />UNITED STATES 999
<br />DEPARTMENT OF THE INTERIOR Senelnames C-038199
<br />BUREAU OF LAND MANAGEMENT
<br />Lease Oara July 1. 1963
<br />COAL LEASE RE~D.IUSTMEM
<br />PART I. LEASE RIGHTS GiiANTED
<br />This laau, entered into by and between the UtvtTao SiATE9 of ANEatCA. hereinafter called lessoe, through the Bureau of Land Management, aad
<br />Peabody Coal Company
<br />1300 South Yale
<br />Flagstaff, Arizona 86001
<br />hereinafter called lessee, is readjttned~etfeetive July 1 , 1993 , for a period of 10 yeah and for so long thereafter es coal i9
<br />produced in rnmmeSCial quantities from the leased lands, subject m reedjuetment of lame terms at the end of each 14year lease period.
<br />See. 1. This lease u issued pursuant and subject m the terms and provsions of the:
<br />~ Mineral Lando Leasing Act of 1920, Att of February 25. 1920, as amended. 4I StaL 437, 30 U.S.C. 181-287, heretnaftei referred m ae the Act:
<br />^ Minaret Leasing Act for Acquired fends, Act of August 7, 194 7, 61 Stat 913, 30 U.S.C. 351-3:.9,
<br />and to the regulations end [ormsl orders of the Secretary of the Interior which are now or hereafter ih force, when not inconsistent with the expreae
<br />and spedfic provisions herein.
<br />Sec. 2 Lessor- in consideration of any renu. and royalties m be Deid, and the tonditons and covsnaau to bs observed sa herein sat forth. hereby
<br />grants to lessee the ezcluaive nght and privilege to dnll for, mina, eztntt, remove, or otherwise protects and dispose of the coal depoeit+ ia, upon.
<br />or under the following described lands:
<br />T. 6 N., R. 87 [d., 6th P.M.
<br />sec. 21, E`~NWZ and SW 4;
<br />sec. 22, E'~E'~;
<br />sec. 27, W!~E'gNEZ, N4ISLNEty, W'~NW'~, and SE'~SE`~;
<br />sec. 28, E`~NEZ, SW'a,NEt-L, W!~, and W~SE`~;
<br />sec. 32, E~NEZ;
<br />sec. 33, N~, E~SWZ, and SEk;
<br />sec. 34, NE1,NE%, NWt1,NW~, S~NW34, SW;G, and W!~SE'~;
<br />sec. 35, NE1tNW% and W~NW~,
<br />containing 2280 acres, more or leas, mgether with the right m construct such works, buildings, plants, structures, equipment and appliances
<br />and the right to use such on•lease rights-of way w hick may be neceaeary and convenient in the ezerciee of the righu and privileges granted, subject to
<br />the conditions herein provided.
<br />PART II. TERMS AND CONDITIONS
<br />Sec. 1. fel RENTAL RATE -Lessee shell DaY lessor rental annually and
<br />in advance for each acre or fraction [hereof during the continuance of
<br />the lease at the rate of s 3 .00 --- for each lease year.
<br />1,61 RENTAL CREDITS -Rental shall not be credited against either
<br />production or advance royalties for any year.
<br />Sec. 2. (al PRODUCTION ROYALTIES -The royalty shall be (surfal
<br />12.5 percent and (underground) 8.0 per-
<br />cent of thavalue ofthe coal ea set forth in the regulations. Royalties are
<br />due to lessor the final day of the more th succeeeing the calendar more th
<br />in which the royalty obligation accrues.
<br />tbl ADVANCE ROYALTIES -Upon tequeet by the lessee, the authorized
<br />officer may accept, for a total of not more than 10 yea: a, the payment of
<br />advance royalties in lieu of continued operation, consistent with the
<br />regulations. The advance royalty shell be based on a percent of the
<br />value of a minimum number of tone determined in the manner
<br />eetnbiiahed by the advance royalty regulations in effect at the time the
<br />leaeee requesw approval to pay advance royalties N lieu of continued
<br />operation.
<br />Sec. 3. BONDS-Lessee shall maintain in the proper officeslease bond
<br />in the amount ofE 6,800.00. The authorized officer may require an
<br />increase in this amount when additional coverage ie determined
<br />appropriate.
<br />Sec. 4. DILIGENCE -This lease is subject to the condiciona of diligent
<br />development and continued operation, except that these conditions ere
<br />excused when operations under the lease are in terrupted by strikes. the
<br />elements, or c;isualties not at[nbutable to the lessee. The lessor. in the
<br />public interest, may suspend the condision of con timed operation upon
<br />payment of advance royaities in accordance with the regulations in
<br />existence at the time of [he suspension.
<br />ssfttattetet ~ C~
<br />d
<br />Theleesor reserves the power to accent 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 Leasing Act. 30 U.S.C. 209.
<br />Sec. 5. LOGICAL MINING UNIT (LMUI Either upon approval by the
<br />lessor of the lessee's application or at the direction of the lessor, this
<br />lease shall become an LMU or part of an LMU, subject m the provisions
<br />set forth in the regulations.
<br />The stipulations eetabluhed in an LMU approval in effect at the time of
<br />LMU approval will supersede the relevant inconsistent terms of this
<br />lease so long ae the lease remains committed to the L.AtU. If the L\1lI of
<br />which this lease is a pan is dissolved, the lease shall then be subject to
<br />the lease terms which would have been applied if the lease had not been
<br />included in an L\1U.
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