|
- THIS COAL MINING LEASE (the "Lease") is made this _ day of
<br />1990 ("effective date"), by and between
<br />whose address is ("Lessor,' whether
<br />one or more), and NEW CASTLE ENERGY CORPORATION ("Lessee"), whose address
<br />is 7625 Eazt Napa Place, Denver, Colorado 80737, Attn: President.
<br />Lessor and Lessee agree az follows:
<br />D fi ition~
<br />Whenever used in this Lease, the following terms will have the following
<br />meanings:
<br />"Coal" means all fortes of coal, including lignite and subbituminous coal, as
<br />well az gazeous substances naturally occurring in combination with coal deposits. It is
<br />not the intent of the patties, by including gaseous substances within this definition, to
<br />require that Lessee capture, gather and market such gaseous substances where it is not
<br />technically and economically feasible to do so, but only to provide that it will and may
<br />be dove if such activity is, in the sole opinion o[ Lessee, feasible.
<br />"Commercial Quantities" means a quantity of Coa! produced and sold from
<br />the Unitized Premises sufficient to allow Lessee to realize a profit, after deducting all
<br />expenses attributable to production from We Unitized Premises, other than depreciation
<br />and initial development costs.
<br />"Continuous Basis" means, with respect to Mining Operations, so long as
<br />all such Mining Operations do nol cease [or a total of more than three hundred sixty-
<br />five (365) coruecutive days, in the absence of the existence of Force Majeure.
<br />"Current Market Value' means the price paid for Coal in comparable
<br />current arms-length sales at other mines, adjusted to account for variances in mining and
<br />processing methods and the grade, quality and composition of the Coal from that mine
<br />and the Coal mined on the Unitiud Premises, for differences in the terms of the
<br />respective sales contracts and brokerage Costs, and for trantportation costs to the point
<br />of sale.
<br />"Force Majeure' means the occvrtence and continuation of any o[ the
<br />following conditions beyond the reasonable rnntrol of the Lessee, which, during its
<br />occurrence prevents Lessee Gom carrying out its obligatiotu under this Leaze: lightning,
<br />earthquake, storm, &re, flood, windstorms, and other damage Gom the dements; strikes,
<br />lockouts, or other labor disturbance; war, irtsurtection, mob violence, riots; interference,
<br />action, legislation, or regulation by legislative, administrative, judidal or other
<br />governmental or military authority; inability to obtain permits or licenses; acts of God
<br />or acu of the public enemy; breakdown of equipment, machinery or facilities which are
<br />not readily replaceable; snrcity or unavailability of equipment, material, power, fuel or
<br />water; failure of carriers to transport or furnish facilities for tratuportation; or any other
<br />Tike cause beyond Lessee's control,
<br />'Mining" means deep shaft, hydraulic, incline, and/or adit mining, and an}~
<br />other underground mining method presently or in the future in commercial use or
<br />developmental testing in the worldwide coal mining industry.
<br />'Mining Operations" means: the production oC Coal in Commercial
<br />Quantities; operations for opening, reworking, deepening, or extending a mine reasonably
<br />calculated to facilitate the produnion of Coal in Commercial Quantities; and other
<br />operatiorss moducted on the Unitized Premises in an effort to obtain or reestablish the
<br />commercial production of Coal.
<br />"Premises" means the surface (if appliezble) and mineral (az recited)
<br />interests of Lessor as set forth in Schedule I, which is attached to and made a part of
<br />this Lease.
<br />
|