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U~iITED ST RTES <br />DE°ARTtitENT OF TFiE IYTERIGR <br />BURE?tU GF i~,YD M?.N.~tGE14E`I'T <br />COAL LE~15E R.aD.1U5TME"1T <br />5e~ Iytmt,e C-021601 <br />I .... Dais June 1 1962 <br />PAgT L LEASE RIGHTS GRANTED <br />T. his leue, entered into by and between the U~tT£D ~tATFS Ot' AMEntC.~ heretnaftar called lessor, cheough the Bursau of land Managemen[, and <br />Chevron U.S.A. Inc. <br />c/o 6400 South Fiddler's Green Circle <br />Englewood, Colorado 80111-4991 <br />hereinafter called lesate. is teaapaned, effeeave June 1, 1992 . for a penod of 10 yeah end for so long thereafter u coal is <br />produced in rommernal quanann from Ne leased lands, aubjett m itidlus[ment of lease tetrna at the end of earls 10•year leans penod. <br />Sea. 1. Thu lease readjustmen[~u issued punueat and subject m the canna and provtaions of the: <br />~ Mineral Lanus Leaning .sec of 19.'0. Att of February .S, 19.'0, u amended, it Stat L3., 30 [,'.S.C.:81•?.97, hersmafter referred m as the Ar• <br />^ :.(ineni Leasing Act for Acquired Lama. Aex of August 7, 1947, 61 StaL 915. 30 U.S.C. 38l•559; <br />and m the reguleaona and formal omen of the Secretary of the Ipcerior which are now or hereatur in force, when sot inconsistent with the ezpreas <br />sad apec[ie prowiona herein. <br />Sec. 2. Lessor, it tromiderauon of any renu. and royalties m be Daid, sod tha tronditiona and eovenaqu m be observed sa herein set forth, hereby <br />grans w lessee the ezciustve nght and pnviiege m drill for, mine, ezttatt. remove, or oxhervnae process sad diaposa of the coal depoatta ia, upon. <br />or unaar the foilowtng dnrsibed leans: <br />T. 5 N., R. 85 W., 6th P.M. <br />Tract 142 in secs. 19, 20, and 30; <br />sec. 30, lot 6 in Tract 161. <br />T. 5 N. , R. 86 W. , 6th P. M. <br />sec. 25, E~ and SW~. <br />rnn[aipipg 826.94 acres. more or leas. together with the right to mnstrvet aurh works, buildings, plants, stivcurea. equipment and apPiiances <br />spa [ne rgnt to use such on-lease ngnrsoi•way which may be geceasary ana convenient in the ezercise of the rigors and pnvtieges gianted, subject to <br />the cantiiuons hereto provided. <br />PART II. TERMS ANO CONOITION$ <br />Sec.:. iai gENTAI RATE • Lessee shall pay lessor rental annually and <br />in advance for each acre or irac[ion thereof dunng [he continuance of <br />the lease ar the rate of S 3.00 for earn lease year. <br />Ibl RENTAL CAEDIT$ Rental shell not be cedited agamu ei[her <br />producuon or aavance rovaiciea for any year. <br />Sec. =. Cal PROCUCTION ROvALTIE$ • The royalty shall 6e(surface <br />]2.5 percent and (u nder~round) 8.0 per• <br />cent of the value o`the coal as set forth in [ e regula!iona. Royalties are <br />due to ieswr me viral day of the muntn aucceeaing the calendar moncit <br />in worth the royalty obiigauon accrues. <br />fbl ADVANCE ROyALTIE$ • Upon reoueax Sy the lessee. the authorized <br />officer me y accept, for a torsi of not more loan l0 yenrs. the payment of <br />advance royaittes in lieu of conxtnued ooerauon, consistent wt[h the <br />reauiauons. The savants royalty snail oe based on a percent of ins <br />value of a minimum pumoer of tone detertnined in the manner <br />estaolshed by the advance royally regulations in effect ac the dme the <br />lessee requests approval to pay savants rayaitin in lieu of conunued <br />opecauon. <br />Sec. 3. BOND$•Lasee shall maintain in theproper of5cealease bond <br />in the amount of5 223,000 .The authorized officer may require an <br />incrense in tiro smoun[ wnen addittonel coverage is gecermined <br />approona[e. <br />Sec. 4. DILIGENCE -This lease u subject m the eondidona of diligent <br />development and Continued operation. ezcept tha[ xnesecundiuons are <br />ezcuaed wnen operations under the iesae arc interrupted by stokes. [lie <br />dements. or eaauainea not annbutable [o the lessee. The lessor. m the <br />public interest. may suspend :he mndidon of connnuea ooentton u pon <br />payment of savants royalties in accoraance with the reguiauona in <br />eztstenca ax the came of the ausoension. Lessee's failure to oroauce coal <br />in commeresal auanuxies ax ins ens of 10 years snail terminate the <br />lease. <br />tr <br />K: g <br />The lessor reaer~ea xhe power to easent to or Drier th e s uspenaion of the <br />terms end trondiuons of this lease in eceordance wicn. inter alia, <br />Secuon 59 of the Minetal Leasing Act, 70 U.S.C. 209. <br />See. 5. LOGICAL MINING UNIT II.MUI <br />Leas ual~ac^~^ ~ r ur .,r.,., I nn~ . <br />t(P/dcwt <br />The scipulauona established in an L~SU approval in effec[ a[ the [imeof <br />LNU approval will supersede the relevant rotors>isunc tenns of tnia <br />lease so long as cne lease remains commicua m the L`tU.1f the L~tU of <br />whim [his iesae is a part a dissolved, the lease anall then be subject m <br />[he tease terms which would nave been apPiicti if the lease had not been <br />inciuaed in an L~1L'~. <br />