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8 <br />' However, the lease rental and royalty accounts must be in good standing prior <br />to approval of a suspension of operations and production. Since royalty <br />~ payments are based on production and day-today transactions, if coal or solid <br />minerals are ordered to be mined for safety reasons after a suspension of <br />operations and production becomes effective, the obligation to pay the royalty <br />owed on that production still eaiats and is not affected by the suspension of <br />~ operations and production. Additionally, the obligation to pay royalties for <br />coal mined prior to the effective date of the suspension of operations and <br />production and sold during the suspension period continues. <br />Suspension Duration. A auapenaion of operations and production shall be <br />approved for the duration of the conditions or circumstances that required the <br />protection of the resource in the interest of conservation. <br />If a suspension of operations and production is approved for mote than 1 year, <br />the lessee must certify prior to the end of each successive 12-month period <br />following the effective date of the suspension that the conditions upon which <br />the suspension of operations and production was justified continue. The <br />requirement for lessee recertification that the lease(s)/LMU must remain <br />suspended in the iatereat of conservation ensures periodic review of any <br />suspension of operations and production that has been granted. <br />Termination or Ezpiration of Suapenaion. A auapenaion of operations and <br />production ends on: <br />1. The date beneficial use of the lease recommences; <br />2. The date the situation determined to be in the interest of conservation <br />ceases; <br />3. The date that annual recertification of continuing conditions is due <br />but has not been filed by the lessee; or <br />4. The ezpiration of the approved suspension period, whichever occurs <br />first. <br />The suspended lease terms and conditions are once again in full force and <br />effect on the date the auapenaion terminates or ezpirea. The eztension of <br />applicable lease terms and conditions, or IMU approval stipulations, <br />terminates on the date the auapenaion terminates or ezpires. The eztension is <br />for period of time equal to the total period of time that the lease or ItN was <br />suspended. <br />For coal, the obligation to pay rental and royalty resumes on the first day of <br />the lease month in which operations or production resumes. For solid <br />minerals, the suspension of rental and minimum annual production eada on the <br />first day of the lease month in vhich operations or production is resumed, or <br />upon ezpiration of the auapenaion, whichever occurs first. <br />Attachment 1-11 <br />~- <br />