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UNTTED STATES
<br />DEPARTMENT OF THE INTERIOR
<br />BUREAU OF LAND MANAGEh1ENT
<br />COAL LEASE REAQIUSTME7IT
<br />SerW IYunear D-04147R
<br />Lease Dsy Ma~• fi- 19't (;
<br />PART I. LEASE RIGHTS GRANTED
<br />This lease, enured into by and between the Urttre:n STATES or Aweal[A. hereinafter called lessor, through the Bureau of Land Management, and
<br />Chevron U.S.A. Inc.
<br />c/o The Pittsbur,q 5 }Iidtany Coal 'lining Co.
<br />6vOC South Fiddler's Greer. Circle
<br />Englewood, Colorado SC 111-4991
<br />herciaafur called lessee. is readjusted effective flay 6, 1990 , for a period of 10 yesn and for so long thereafrer as coal is
<br />orodueed in commercial quantum from the leased (ends, subject m readjustment oC lease arms et the end of each 14year lease Penna.
<br />Sec. 1. This lease u issued punudnt and subject to the arms and provtatons of the:
<br />® Mineral Lands Leasing Act of 1920, Act of February 25. 1920, u emended, 41 StaL 437, 30 U.S.C. 191-267, hereinafter reiemd to as the Act;
<br />^ Mineral Leasing Act for Acquired Lands, Act of August i. 1947, 61 Stat. 913, 30 U.S.C. 351-,i59;
<br />and u the regulations and formal orders of the Secretary of the Inurior which are now or hereafter in torn, when no[ inconeiatent with the ezpresa
<br />and spedfic provisions herein.
<br />See. 2. Lessor. in consideration of any reran, and royalties to be paid. and the conditions and covenants to ba observed v herein set forth. hereby
<br />graau to lessee the ezcluaive right and privilege to drill for, mine, extract, remove, or otherwise process and dispose of the coal deposits in, upon.
<br />or under the following described lands:
<br />T. 4 N., R. SS 4;.,.6th P.?:.
<br />sec. 18, lot 2.
<br />T. 4 ~., R. 86 ld., 6th P.P1.
<br />sec. 13, SE'~NEz
<br />containing 80.06 art's, more or less, mgether with the right u construct such works, buildings, plants, structures. equipment sad appliances
<br />sad the right to use such on-lease rights-of•way which may be neteseary and Convenient is the ezerciee of the rights and privileges gianud, sublact [o
<br />the conditions herein provided
<br />PART 11. TERMS AND CONDITIONS
<br />See. 1. la) RENTAL RATE • Lessee shall pay lessor rental annually and
<br />in advance for each acre oc fraction thereof during the trontinuanre of
<br />the lease ar the nu off 3.00-----tor each lease year.
<br />Ibl RENTAL CREDITS -Rental shall not be credited against either
<br />production or advance royaltin for any year.
<br />See. 2 lal PRODUCTION ROYALTIES • The royalty shall be (Surf a
<br />12.5 percent and (underground) 8.0 par.
<br />ant of the value otthe roal u set forth in the regulatiom. Roysltiee are
<br />due to lessor the final day of the month succeeding the calendar month
<br />in whirb the royalty obligation arxruea.
<br />(b) ADVANCE ROYALTIES - Upoo requnt by the lessee, the authorized
<br />officer may acrept, for a tool of not more than 10 yea: e, the payment of
<br />advance royalties in lieu of continued operation, mmisunt with the
<br />rcgulatioas. The advanre royalty shall be based on a perrent of the
<br />value of a minimum Dumber of tore deuxmined W the manner
<br />eatabiiahed by the advance royalty regulations in effect at the time the
<br />lessee requnu approval to pay sdvanre royalties in lieu of continued
<br />operation
<br />See. 3. BONDS -Lessee scull maintain is the Draper office a lease bond
<br />io the amouatoft5, 000.00. •Theautborized officer tray regmre an
<br />increase W this amount when additional ooversge is deurmined
<br />appropriate.
<br />Sae. 4. DILIGENCE • This lease is subject m the trondiuom of diligent
<br />development and continued operation, exrept that these Conditions are
<br />ezeused when operacione under the lease are interrupted by strikes, the
<br />elements, or cusualtia not attributable to the insee. The lessor. in the
<br />public inureaL may suspend the condition of continued operation upon
<br />payment of advance royaltin in accordance with the regulations in
<br />ezisunce at the time of the euspenstoa. Lessee's failure u produce coal
<br />in commarrial quantities at the end of 10 yeah shall terminate the
<br />lease. Lessee shall submit an operation and reclamation plan punuent
<br />m Settiop 7 of the Aet sot Isar than 3 yesn after the efleNte date of
<br />Otis tmu readjumrtnit.
<br />The lessor resrrves the power m assent to or order the suspension of the
<br />arms end mndiuone of thu lease in aecordanre with, inter alias,
<br />Section 39 of ~~te Mineral Leasing Act, 30 U.S.C. 209.
<br />Sec. 5. LOGICAL MINING UNR (LMU) -Either upon approval by the
<br />lessor of the lessee's application or at the direction of the lessor, Chu
<br />lease shall become an LMU or pen of an LMU, subject to the provisions
<br />set forth is the regulations.
<br />Thestipulations ntabluhed N an IMU approval W effect ac the dmeof
<br />LML' approval will supersede the relevant intronsiaunt urine of this
<br />lease so long ss the lease remains committed m the LAtU. If the L.A7[I of
<br />which this taste is a part u dissolved, the lease shall then he subject to
<br />the lease terms which would have been applied if the lease had not been
<br />included in an LMU.
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