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16 <br />"Casualties" are those events [hat happen without design or without being <br />i foreseen. In ordinary usage, the term casualties is applied to accidents <br />which happen suddenly and unezpectedly, and not in the usual course of events <br />(Bennett v. Howard, 195 S. W. 117 (Ky. 1917)). "Casualties" moat be events <br />that could not be avoided by the ezerciae of reasonable diligence or skill <br />~ (i.e., something that prudence and sound judgment cannot prevent). Casualties <br />can be eztended to the conduct of other parties over which the leaeee has no <br />control. However, the lessee must have ezercised and be able to show due <br />' diligence. Aa operator is considered to be under the lessee's control, and <br />casualties attributable to as operator's actions or inactions would not <br />qualify for a force majeure suspension. Mine fires, as well as personnel <br />and equipment accidents, could be considered 'casualties" if not <br />lessee-attributable. Mechanical breakdows due to normal or abusive wear, <br />mine shutdowns far maintenance or Installation of new equipment as part of <br />normal operations, or failure to timely order and obtain supplies or equipment <br />are not casualties. Failure to obtain sales contracts or to make other <br />marketing arrangements for coal or solid minerals or the loan of a sales <br />contract is not considered to fall within the meaning of casualties. <br />b. Lease Suspension Criteria. The following conditions moat be met in <br />order fot a leaeee to obtain a force majeure suspension: <br />° The lessee moat demonstrate that operations or production under the <br />lease are or were interrupted by strikes, the elements or casualties; <br />° The lessee moat demonstrate that the casualties, if used as <br />If justification for a auapenaion, are not attributable to him; and <br />I' Leases included in a force majeure suspension application must have <br />received authorization to mine and onsite mine development must have <br />commenced for the mine Sa order to conform with the statutory use of <br />"interruption of operation(s)" or "production." <br />Additionally, for FCLAA coal leases and for LHII'e, the force majeure situation <br />moat prevent achievement of the: <br />° MLA Section 2(a)(2)(A) requirement for production is commercial <br />quantities; and <br />° MLA Section 7(b) requirement for achieving diligent development or <br />maintaining continued operation of FCLAA coal lessee or LlfO's that <br />have achieved diligent development. <br />A force majeure auapenaion may be granted for one or more leaeee that are <br />covered by an approved mine plan and included in the force majeure suspension <br />application. The determination of whether the lessee qualify for a force <br />majeure auapenaion will be made on a lease-specific basis. A lessee's failure <br />to timely file a mine plan to allow for processing time, including NEPA <br />documentation, does not qualify a lease for a force majeure suspension. <br />(, <br />\. <br />Attachment 1-19 <br />