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,. v - United States Department of the Interior BUREAU OF LAND MANAGEMENT Colorado State Office 2850 Youngfield Street Lakewood, Colorado 80215-7076 IN Nfa'lY ItLfClt TQ FE3 0 2 ?006 R~~~~iVED FEB 08 2006 Certified Mail Blue Mountain Energy, Inc. 10714 S. Jordan Gateway, Ste. 300 South Jordan, UT 84095 www.co.blm.gov co-921 ~xz> 3451 D-047201 Coal DOCISIOr~I IviOgn o(Minerels and Geology Lease Terms and Conditions Readjusted Coal lease D-047201 was issued effective July 25, 1936, and was last readjusted effective July 25, 1996. It becomes subject to readjustment of its terms and conditions on July 25, 2006. Notice of intent to readjust the coal lease was sent to the lessee on July 15, 2004. As provided in the Mineral Leasing Act of 1920, as amended (41 Stat. 437, 30 U.S.C. 181 et seq.), and the regulations at 43 CFR 3451, we are hereby readjusting [he terms and conditions of the lease. A copy of the lease is enclosed. The readjusted terms and conditions shall become effective July 25, 2006. This action has been reviewed for conformance with the Bureau of Land Management's public land health standards adopted February 12, 1997. The readjustment will not adversely affect achievement of the public land health standards. The annual rental remains at $3 per acre or fraction thereof as provided in [he current lease. The royalty rotes establi:,hed by law and by regulation at 43 CFR 3473.3-2 remain at 12'/z percent of the value of the coal removed from a surface mine and a[ 8 percent for coal removed from an underground mine. The value of the coal shall be determined in accordance with the regulations at 30 CFR 206, as amended. The adequacy of the lease bond is reviewed periodically and adjusted when necessary to reflect changed conditions. The required bond amount remains at $5,000. Payments oi'rentals and royalties must be submitted to the Minerals Management Service in accordance with that agency's regulations in Title 30, Cade of Federal Regulations. In accordance wiCh the regulations at 43 CFR 3451.2(b) and (e), this decision constitutes the final action of the Bureau of Land Management on all the provisions contained in the readjusted lease. The effective date of the readjusted lease shall not be affected by the fi]ing of any appeal of, or subsequent civil suit regarding, any of the readjusted terms and conditions. Within 30 days of receipt of this decision, you have the right of appeal to the Board of Land Appeals, Office of the Secretary, in accordance with the regulations at 43 CFR 4.400. If an appeal is taken, the