+ UNITED STATES
<br />DEPARTMENT OF THE INTERIOR Serial Number c-ounez
<br />BUREAU OF LAND MANAGEMENT
<br />COAL LEASE READJUSTMENT
<br />Lease Date June 1. 1965
<br />PART1. LEASE RIGHTS GRANTED
<br />This lease, entered into by and between the UNITED STATES OF AMERICA, hereinafter called lessor,
<br />through the Bureau of Land Management, and
<br />Mountain Coal Company, LLC
<br />One City Place Dr., Ste. 300
<br />St. Louis, Missouri 63141
<br />hereinafter called lessee, is readjusted, effective .Tune 1, 2005, for a period of 10 years and for so
<br />long thereafter as coal is produced in commercial quantities from the leased lands, subject to
<br />readjustment of lease terms at the end of each 10-year lease period.
<br />Sec.l. This lease readjustment is issued pursuant and subject to the terms and provisions of the
<br />Mineral Lands Leasing Act of 1920, Act of February 25, 1920, as amended, 41 Stat. 437, 30 U.S.C. 181-
<br />287, hereinafter referred to as the Act;
<br />and to the regulations and formal orders of the Secretary of the Interior which are now or hereafter in
<br />force, when not inconsistent with the express and specific provisions herein.
<br />Sec.2. Lessor, in consideration of any rents, and royalties to be paid, and the conditions and
<br />covenants to be observed as herein set forth, hereby grants to lessee the exclusive right and privilege
<br />to drill for, mine, extract, remove, or otherwise process and dispose of the coal deposits in, upon, or
<br />under the following described lands:
<br />T. 13 S., R. 90 W., 6`°P.M.
<br />sec.19, lots 6, 7, 11 to 14, inclusive, 19 and 20;
<br />sec.20, lots 1 to 10, inclusive, NWNE, NENW, WNW, and WSW,
<br />excepting and excluding all the "C" seam coal
<br />contained in lot 1, NWNE, NNW (more Specifically
<br />described as beginning at the SW corner of sec. 17,
<br />thence southeast to a point 300 feet due south of
<br />the southwest corner of the SE of sec. 17, thence
<br />along a line 50 feet north of the present Bear Coal
<br />Company mine workings to the east boundary line of
<br />Sec. 20, thence north along the east boundary line
<br />of sec. 20 to the common corner of secs. 16, 17, 20
<br />and 21, thence west along the north boundary line of
<br />sec. 20 to the point of beginning.)
<br />containing 923.49 acres, more or less, together with the right to construct such works, buildings,
<br />plants, structures, equipment and appliances and the right to use such on-lease rights-of-way which may
<br />be necessary and convenient in the exercise of the rights and privileges granted, subject to the
<br />conditions herein provided.
<br />PART I Z TERMS AND CONDITIONS
<br />Sec.l. (a) RENTAL RATE - Lessee shall pay lessor
<br />rental annually and in advance for each acre or
<br />fraction thereof during the continuance of the
<br />lease at the rate of $3.00 for each lease year.
<br />ib) RENTAL CREDITS - Rental shall not be
<br />credited against either production or advance
<br />royalties for any year.
<br />Sec.2. (a) PRODUCTION ROYALTIES - The royalty
<br />shall be 12'h percent of the value of the coal
<br />produced by strip or auger methods and 8.0
<br />percent of the value of the coal produced by
<br />underground mining methods as set forth in the
<br />regulations. Royalties are due to lessor the
<br />final day of the month succeeding the calendar
<br />month in which the royalty obligation accrues.
<br />(b) ADVANCE ROYALTIES - Upon request by the
<br />lessee, the authorized officer may accept, for a
<br />total of not more than 10 years, the payment of
<br />advance royalties in lieu of continued
<br />operation, consistent with the regulations. The
<br />advance royalty shall be based on a percent of
<br />the value of a minimum number of tons determined
<br />in the manner established by the advance royalty
<br />regulations in effect at the time the lessee
<br />requests approval to pay advance royalties in
<br />lieu of continued operation.
<br />Sec.3. FONDS - Lessee shall maintain in the
<br />proper office a lease bond in the amount of
<br />$5,000. The authorized officer may require an
<br />increase in this amount when additional coverage
<br />is determined appropriate.
<br />Sec.4. DILIGENCE - The 1e55ee is Subject to the
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