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$I~37A (am) STATE OF COLORADO
<br />- <v. m, Lat. Las) '
<br />STATE BOARD OF LAND COMMISSIONERS
<br />COAL MINING LEASE NO. s91/13-5
<br />ISSUED IN LIEU OF EXTENSION OF COAL MINING LEASE N0. 455/13-5.
<br />Containing 640.00 acres, more or less: Land Fund: School
<br />THIS COAL MINING LEASE, Made N duplicate and entered into this 18th day of June 198,
<br />by and betwcen the State of Colorado, acting through its STATE BOARD OF LAND COMMISSIONERS, hereinafter referred [o az Lessor.
<br />and Kaiser Steel Corporation
<br />hereinafter referred to az Lessee:
<br />tVITNESSETH: Lessor, for and N considerazion of the sum of Six hundred fifty-seven and 25/100 - - - -
<br />--------------------------------- Dollars ($657.25 ),
<br />receipt of which is hereby acknowledged az payment of fding fee N the amount of $ 17.25 ,first year's
<br />rent in the amount of $ 640-00 and a bonus in the amount of $ -0- ,and in
<br />further consideration of Lessee's agreement to pay One and No/100 Dollarfs) ($ 1.00 )
<br />per acre annually az rental in advance of the anniversary date of this lease so long az said lease shall remain in effect; and N further consideration
<br />of the terms and conditions hereinafter stated, and of the payments of royalties reserved herein, to be kept and performed by Lessee, its successors
<br />and assigns, does hereby lease to Lesser the right and privilege of exploring and prospecting for, and minting of and taking coal from the lands hereinafter
<br />described, situate, lying and being N the County of Huerf ano ,State of Colorado, to-wit:
<br />ACRES SUBDMSION SEC. TWP. RGE. PATENTS
<br />640.00 All 36-275-67W None
<br />Lzssce shag have the right to use az much of the surface thereof as may be reasonably required in the exercise of the right to mine coal, includ'mg
<br />strip mining, and the reasonable right to ingress and egress: the right to conswct buildings, make excavations, stockpiles, dumps, drains, roads, railroads,
<br />power lines, pipelines and other irnprovemcnts az may be necessary N the mining and removal of said coal; subject, however, to all existing easements
<br />and rightsof-way of third parties, and the rights of surface lessees and surface patentees, and further subject to the terms, conditions and royalties
<br />set out N this (ease. The above-mentioned rights may be exercised in connection with the mining of coal from other or adjacent lands only when muting
<br />on such lands is canied on N conjunction with the actual minting of coal on the land herein leased.
<br />RESERVING, however, to the State of Colorado:
<br />A. All rights and privileges of every kind and nature, except az are herein specifically granted.
<br />B. The right to use or lease said premises or any part thereof at any time for any purpose, including the right to explore and prospect said premises
<br />other than the locating of coal deposits, which use and leasing of said premises shall be for purposes other than and not inconsistent with
<br />the rights and privileges herein specifically granted.
<br />C. The right to dispose of or lease the surface.
<br />D. The right at all times during the life of this lease to go upon said premises and every part thereof for the purpose of inspecting same, and
<br />the books of accounts and records of mineral workings therein, and of ascertaining whether or not said Lessee and those holding thereunder
<br />by and from it, are carrying out the terms, covenants anti agreements in this (ease contained.
<br />TO HAVE AND TO HOLD The above-0escribed premises, with the appurtenances, unto Lessee, its heirs, successors,~ytigns, or legal representa-
<br />tives from 7Welve O'clcek noon on the 18th day of June 19 67 ,for the (III term of
<br />Ten ( 10 )years, and urxil Twelve O'clock noon on the t day of June Ig 95 and
<br />except az hereinafter stated, as long thereafter az coal is being produced in paying quantities from said premises, and the royalty and rents provided
<br />for herein, or by any extension hereof, aze being paid, subject m the following terms, conditions and agreements, to-wit.
<br />I . ADVANCE MWIDIUM ROYALTY - As minimum and advance royalty, without relation to the amount of coal mined from the leased premises.
<br />Lessce shall pay ro Lessor the following amourxs:
<br />LEASE YEAR ADVANCE MIMMUM ROYALTY LEASE YEAR ADVANCE MINGIUM ROYALTY
<br />lcr $10 nor ante 6th $10 per aCTe
<br />tad $1Q pez acres 7th S10 net acre
<br />Arh
<br />~rh 10 per ante 9th 10 er acre
<br />5th -3`10 ter acre ~t t -- $- per acre
<br />Acreage changes resulting from surrender or partial assignment may reduce the advance minimum royalty proportionately.
<br />Further, at the end of each five-year period, lessor may change the rate or amount of advance minimum royalty to be paid by Lessee. In the
<br />event Lessee shall not exwtt coal from the leased premises sufficient to remm to the State the minimum amounts above specified, it is nevertheless
<br />understood that the above sums of money are due and payable to Lessor whether or not coal is mined, but that such advance minimum royalty
<br />shall be credited upon the first royalties due az hereinafter provided for coal actually produced from said premises.
<br />2. FORFEITURE OF ADVANCE MIIVIM[JM ROYALTY - In the absence of production of coal N continuous paying quantities before the
<br />expiration date of the lease, all advance minimum royalties and all rentals shall be forfeited to the State.
<br />3. EXTENSION - Lessce may have a preferential right to renew the lease or to receive a new leax, whichever may be determined by Lessor to
<br />be in the best interest of the State, under one or more of the following conditions:
<br />A. An advance minimum royalty, the amount ro be negotiated before expvation of the lease, will be continuous until the end of the second ten-year
<br />term of the lease, or until the expiration of the new lease. This amoum may be adjusted at the end of each five-year period of the lease.
<br />B. Lessee shall furnish to Lessor sarisfactoryevidence of phmsfor ntinirtgduringthe semtdten-year term or during the trn-year rertn of a rcw lease or;
<br />C. Famish adequate geological evidence to Lessor that the acreage leased is in fact an 'uttegral part of and contains reserves in a logical mining
<br />unit.' Final deternnirnation az m whether the acreage is or is na a part of a logical mining unit will be made by Lessor
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