PERMFILE100256

• Permit No: C1981018A
• IBM Index Class Name: Permit File
• Doc Date: 5/13/2002
• Section_Exhibit Name: Section I Legal, Financial, Compliance & Related Information
• Media Type: D
• Archive: Yes

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... ._Fe .'. _ . .__ _. tees ._ .- :. _. .`tea.: :e.' _... '..
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C'nee-c :he :ea•e2 :ands. .'Lase ...Fen: _ nlt[nc _c.
ce: are_ v apF _: ab:<nreFclr sown c., C__.o ... _. •c. -- c.nxhe ieee~c.
Fmr. al Regu:aa oas.
Sec. :. BC`_ - - e lessee shat: !Sle v- a •_. _...a:e &-r eau e! Lnd :aF-: c.:
:ease `-.._ _n the amour.: c! -- ~ r-. .. -.. ''>e-.z !:.
..the L_.:eL L-a:es [n a e Fa''ami v `ce'E:re- oc nor - - .liar aa,'•
\el:l ea ant \__t. a .. _. _casE. [. reFC-a :: cv::
ant :he ACL IexC eFnafC[ - noon a-....- :SE ,a. _.. ~ -_ __. _'.F - --.
ued under the yeru reFcia :on par !. - - - a: p^:au. Cri]'av-.
aporoprvate. : the F?o-~ec tl or. o' c - rs Ce:. c. xm rx o. - _
:ants. we vncease vn the m uvt o: n[he naeese bond e e be renuir eL by :ne .es. na ac
:She duc:v6 the life of the lease cv ze_.er c`a nF e[ ve nLlciov s.
Sec. 5. R=\./,1 - An emwl rental o' S 7.00 ter wch acre ar trot von :ncea
shall be paid in advavice w v: before the amiv e: sarv' dare o: chic lease. :TVs
aeccl ov dull no: be subject co revision except vn the ceu:ee v! lease reaL`us:vac:.
Sec. b. PAODL'CTIO\ ROYAL.^.' - The lessee slu l' pay a clot. ro~alry o t>_` - -.
o[ the value v[ cwl yroduced by scr1F or auR er Cviv6rmeci.nda •nL A pence n;~~ .
the value of coal produced br mdergrvm2 e;ning methods. The value o. ca] s:. __
^eterminetl • sec loch is zne regulazions in 3C CFF 111_ Prolucci ac r va eves a:
wlmLar mve:.`. sru:: be :ed uceL by the ioua c! uv •Lc ence rv-~a Lvez pavL c _ rc:bas
e IC Ch! ex:ev: Chi: a adranca S v sad LC Seduce procec ::vr
•alti es lc • precious mon ch. Hovey ex e`•r ovur ova rv~alcves parable otter tht -'D:r
ve ax of [he lose shall vo: be reduced by edv m ce rogelti es Fa1L d ing the tyre: 1C
veers of [he lease. Produ ¢ion toy altlea shall be parable the !SVal dq~ o[ the van;M1
utteedivg the calendar month iv which the coal Ss sold, u-_esa n:he n'i se s ._
30 CfR 111. Tne reyaltr rases pr or Sded v. ;his section shell no[ be subjec~ety :ec~lsn or.
except in the course vt lease readjYZtnenc.
Sec. ]. AppA.Y CE ROYALTY - Cym: request br the lessee the DSStrict Yi nln6 6upe n'i sot
my accept, for • tv u] of vot more thaw ID v era, the pnvevt of advance royalu es
1v lieu of the cvvditivn of cvviivued operation consvstevt z[h the re6ulativnz iv e3
CFR 34]) avd JO [FR 231. The atlvance z val;~~ shall be base[ on a percent of the
value of • mivtmux vim bar of tons which she l] b< tletermvned Sv the unn ec es:ablvsned
by the reguLtlow In 4l QR ]4]J.
Sec. B. lLr2H00 OF PAYlffFIg - The lessee shall make reveal pgven cs co the :pprncraate
Buruu of ]avd Y vg®ent (BEY.) ottl<e un e11 produr von rCV aloes become Ga-able.
Theredcex, al] revula. Drodur ion r val:i es apd advancr rvya]tles shall be void cc
the •ppr mp[Sate office of the Lka cad Su [es GeoloFlcel Survey.
Sec. 9. F~[PLDIUTIDN FLAB - The lessee shall not c ence a explvrativv, except
cases] use, av the leased Lauds .z [bout av approved exylorativv p Lv. Exnioraclvn
playa [vr lasted lauds covered by av approved a iv6 permit shall be subvvttetl :o the
Regio w] pireccor of [he Ottice of Surface Y,l vi ng in a yr dance with the :egularlvns
iv l0 CFR Chapter V13. Exp]or ati on plans Sor lesseE Ca ntls nor ceve:ed by a -- wed
miving permit shall be su by itt ed zo the Dis lra cc 8vnin6 SY perva or Sn accerLancerv; :h
the rag ulatlvns iv JO CFR 211.
Sec. 10. ]fi h1 NO PLAN - Iv acroxdan ce wi [h the regulations in 30 CFA 211 and Chapter
VII, [he lessee shall submlC a miving and reclama tiov glen not more [ban three v ors
•f[er [he effec clue dace o! this ]ease. FL'ving v uci vns shall not c ence un ul
•f ur the min ivg avd reclamation pLn L •pprvv etl ne The ¢Snang and roc lasarivn shell
be conducted So accordance uY th [he approved mvning avL reclau:ion F]an. ExPloratlon
m [SV ]flee which were not Included So [he approved mining and reclama n on Plan require
mbvle[al of exploractvm Plans iv accordance with Sec[iov 9 v[ chts ]ease.
Sec. Il. LCG1 V,1 MISIFG URII (EMU) - This lease is ac:ora ucaliv considered to be a
EMU. Thus LML' car be en la rF ed, adjusted or dlmvnished is ace nrdance with the appllcat le
re6uLtfvos iv Tltlo 10, 10 and 4J of the Code of Pede.-al Regulation s. The m nvng
plan tvr the L`1U shall require chat the reserves of [he EMI: oil] be cln ed vi:hln
p evY Vd of 40 veers vn accordance with ]0 CFR 711 and 43 CFA 3400.0-5. The de(ivinon
of LMp and 111U race ryes avd ocher appli able condlcfvns are set forth Sn the raga la eons
in 4) CFR J400. Q) and J4 ]5, 30 CFA 211, and TS Ile 10 v! the Code o/ Federe] Regulariohs.
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