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UNITED STATES P-058300
<br />DEPARTMENT OF THE INTERIOR set>rntanber
<br />,,~cxe.
<br />BUREAU OF LAND M?.NAGEh1ENT
<br />~~p~ Seotember 11. lc_
<br />COAL LF1t5E READJUSTMFPIT
<br />PART t !.EASE RIGNTS GRANTED
<br />Thu lease, entered into by and between the UNrrsD S7KI49 oy AttEIUC.t, hereinafter called lessor, through the Bureau of Load Management, ac
<br />National King Coal, Inc.
<br />P.O. Box 2905
<br />Durango, Colorado 81302
<br />hereinafter called lessee, is teatgttwed.'effective September 11 , 1991 for a period of 10 yeah and [ar so Iona thereafter as coal :-
<br />oroduced in commetdal gaantitles from the leased Lnds, aubjaet to readjmtment of lease terms at the end of eerb 10•yaac lease uriod.
<br />Sea 1. Thu Iraaa is issued puntttint and aubjed m the terms snd provuiom of eha:
<br />® Mineral Lands Lauiag Aet of 1920, Ad of February 2S, 1920, u amended, 41 Slat. 437, 30 US.C. 181-ZS7, hereinafter referred to as the .act:
<br />^ Mineral Leasing Aa for Acquired Lando, Act o[ August 1, 1947, BI Stat. 91'3, 30 US.C. 3SI:L59;
<br />cad m the ngttutune and formal order of the 9emetary of the Interior which an now or heneRer io fom, when not incronsuteac with the expre:
<br />sad apadfie proviaioas herein.
<br />Sea 2 Lasaor, is eonsidsrsdon of say rents, sad royalties to M Daid, and the mnditiom sad mveaanu to be observed u herein eat forth. hen=
<br />grants m lessee the a:dusive right and privilege m drill [or, mina a:tnet, rsmova, or othanries process and dtspoes of the rnal depwits in, upor.
<br />or ender the following deseibed laadc
<br />T. 35 N., R. 11 W., N.M.P.M.
<br />sec. 31, SEt-4NEly;
<br />sec. 32, W!~NW% and SEt-tNWi
<br />wnnining 160 saes, mon or leas, together with the right to ttnetroctaueh works, buildings, plonu, stroctutrs, equipment and applianr_
<br />and the right to use each on•leue riabtsot-way which may be neeauary and convenient in the a:eedsa o[ the riQltts end privileges Granted, subject ;c
<br />the mnditiom herein provided.
<br />PART K TEAMS ANO CONOITONS
<br />Sea 1. (al RENTAL RATE - Lesses shall pay leswr rental annually and
<br />u advance for.sach acts or fraction thereof during the rnntinuantt of
<br />the leave at the nta of 3 3.00 --- [or each Isase Ysar.
<br />(bl REMAL CAEDITS Rental shall not be aeditad against either
<br />production or advance royalties for any year.
<br />9x 2. lal PRODUCTION ROYALTIES • Tha royalty shall be (surfs
<br />12~ percent and (underground) 8.0 per.
<br />rant of the valuaoltha coal u est forth in the nguudonL Royalties ors
<br />dw to IeMOr the final day of the month suttesding the calendar month
<br />u which the royalty obligation accrues.
<br />(bl ADVANCE ROYALTIES -Upon request by the lasses, the suthorisad
<br />oStear may accept, for a fatal of not mon than I O yeah, the psymant of
<br />advance royalties in lira of rontinued opentioa eonsisteot with the
<br />regulations. The advance royalty shall be hoed on a percent of the
<br />value of a minimum Dumber of mm determined in the manner
<br />established by the advance royalty regulatiom is effect at the time the
<br />lessee taquesu approval to pay sdvanra royalties in lieu of rnn[inued
<br />opentioa
<br />See. 3. SONGS-Lessee shall maintain in theproperofficeelease bond
<br />in the amount of f 5 , 000 . 00 .. Tha authorized office may rcquira an
<br />increase in tius amount when additional coversge u deurminad
<br />', R/1r(1nr,Ale
<br />Sea i. OIUGENCE • Thu lases is subject m the mnditiom of diligen .
<br />dwalopment and continued open[ion, except that these tronditiona are
<br />excused when opanuons under the lease are is corrupted by strikes, th z
<br />elements, or caeualues not attributable m the lessee. Ths lessor, m tr. -
<br />puhlie interest, may suspend thetrondition ofeontinuad operanon upo:.
<br />payment of advmtt royalties is attordenca with the regulations ir.
<br />ezutentt at the time of the auspemion. Lnsee'a failure to pradutt con.
<br />is mmmerdal quaaddes +t.Jt-~wi-aii0.yeew shall terminate c::.
<br />lease.
<br />is-epee
<br />rtlrer
<br />The lessor reserves the po+er to want to or order the suspension of th e
<br />firms and conditions of thu lessa is eccordentt with, ingr alia.
<br />Section 39 of the Miturd [seeing Act, 30 US.C. 208.
<br />Sea 5. LOGICAL MINING UNR IlA4U) -Either upon approval by the
<br />lessor of the lessee's application or at the direction of the lessor, thu
<br />!cane shall battms an LMU or part of an LMU, subject m the provisior.7
<br />set forth ie the ragttledont
<br />The edpulatiom establuhad u an LMU approval in effect sc the dme o i
<br />LMU approve! will supersede the nlevent inttnsistent terms of this
<br />lease so long u the Issas remains crommitted m the L\tU. If the LN U o!
<br />which [his lease is a part is dieaolved, the lease shall then be subject ::.
<br />the lease terms which would have been applied if thr leasehad not beer
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