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<br /> With the filing of acceptable lease bonds, Trapper Mining Inc. meets all
<br /> conditions for approval of the assignments of the five leases and the
<br /> sublease. Since none of the leases appear on the latest available Minerals
<br /> Management Service list of delinquent accounts, we assume the lease account
<br /> is in good standing.
<br /> Therefore, in accordance with 43 CYR 3453.3, the assignments of C-07518,
<br /> C-07519, C-079641, C-813, and C-25948 and of the sublease of these leases to
<br /> Trapper Mining Inc. are approved effective July 1, 1990, the first day of
<br /> the month of approval as requested by the assignee, and are approved subject
<br /> to the following conditions, notwithstanding any agreements to the contrary:
<br /> 1. As of July 1, 1990, Trapper Mining Inc. , as lessee, and its surety shall
<br /> be responsible for all lease obligations including liability for, and
<br /> payment of, all delinquent rents and royalties that the Minerals
<br /> Management Service discovers through its audit of lease accounts.
<br /> 2. The sublease from Utah International Inc. to Trapper Mining Inc.,
<br /> approved March 31, 1983, created non-participating minimum royalty and
<br /> overriding production royalty interests exceeding the limitation set
<br /> forth in 43 CFR 3473.4(c). Accordingly, any request for relief through
<br /> reduction of federal royalties and/or rentals pursuant to 30 D.S.C. 209
<br /> shall be accompanied by a certified statement with a copy of the
<br /> agreement(s) between the lessee and the holder(s) of non-participating
<br /> minimum royalty, overriding royalty, or production payments to reduce
<br /> the total royalty interests and production payments in accordance with
<br /> 43 CFR 3485.2(c)(2)(iii) (1989) to one-half of the federal royalties.
<br /> The Colorado State Office considers the sublease to have merged with the
<br /> record title interest of all five federal coal leases as a result of these
<br /> assignments.
<br /> Appeals of the readjustment of leases C-07518, C-07519, and C-079641 remain
<br /> pending before the federal courts. These appeals are shown in our records
<br /> as General Electric Holdings, Inc. v. Hodel, No. 87-Z-979 (D. Colo. filed
<br /> July 2, 1987) , for readjustment of lease C-079641 and Trapper Mining Inc. v.
<br /> Lu an, No. 89-1732 (loth CSr, filed Dec. 8, 1989), for readjustment of
<br /> leases C-07518 and C-07519.
<br /> With acceptance of assignee' s bonds, the period of liability on the following
<br /> bonds with General Electric Holdings, Inc. , as principal and Federal Insurance
<br /> Company (Paul Salmon, Attorney-in-Fact, 100 Williams Street, New York,
<br /> New York 10038) as surety may be terminated as of July 1, 1990:
<br /> Lease Number Bond Number Bond Amount
<br /> C-07518 8110-04-55 $1,179,045
<br /> C-07519 8110-04-54 15,000
<br /> C-079641 8110-04-53 15,000
<br /> C-813 8110-04-52 10,000
<br /> C-25948 8110-04-51 15,000
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