<br />Sodium Lease C-0118329
<br />See. 4, pRO7ECTTON OF OIL SHALE DEPOSITS. (a) Iiuspt u
<br />~ulY Provided in wtrseedons (b), (c), and (d} below, the lessee
<br />ill not
<br />(1) utilize process solutions N aces: of 300 degrees Fahretdteit for
<br />in riot solution nursing of sodium tmrtpounds without the express
<br />permission of the wtharired ofCteer,
<br />(2) mine, czuact retort process, use, or dispose of any oil shale, tx
<br />organic matter or the produce thereof contained N or derived from
<br />artytnrrh oil :haler, Situatedafrnveor below theSalineZone in the lands
<br />dteraibed in Sec. 2 above;
<br />(3) mine, extract retort process, use, or dispose otany 25 g.p.e. oil
<br />",.~ t., or organic maoa or the products therrnf contained in ordt7ived
<br />from any such 25 g.p,t oil shale. siuwted in the Saline Zone: or
<br />(a) use. remove from the leased premises, or dispose of any oil
<br />shale, or organu maua or the products thereof contained in or derived
<br />from any such oil shale, averaging mote than 10 gallons of shale oil
<br />pa ton from the Saline Zone, such average to be dettarttiaed by
<br />modified Filches assays.
<br />(5) It is expressly understood and agreed the the lessee shall not
<br />haveany right to, and shall not bum orothuwise use forfuel or energy
<br />production Purposes any oil stole siutttted in or undo the lands
<br />described in Sec. 2 above.
<br />TTe lt:ssee shall have the right acrd privilege to:
<br />(1) mine and eztrut oil shale or other material located above the
<br />Saline Zone for the sole purpose of emplacing shafts or other enures
<br />u arc necessary, and are wthotirrd by the wthorized offices. to gain
<br />access m the leered deposits tot milting, eztrution, and removal
<br />operations, and
<br />(Z) mine, extract and process bynon-retorting methods, which are
<br />chemical or mechanical and do notregttire the use of heat 25 g.p.t oil
<br />Stut1C 171tarrlL'1g:eC with the lensed deposiu. but only W dte CxleiLL
<br />necessary for and u an incident to the mbtipg, exaaedoh, processing,
<br />bmeficiadon and removal of the leased deposits, provided that the
<br />authorized officer determines these is no sigttifitant extraction or
<br />ranoval oC 25 g.pt oil shale and determines the 25,gp.t oil shale is
<br />not rendered unfit or signifieactdy lowtYed in qualiry for reaming
<br />purposes by sorb mining. eztnctiam. prrcessatg, and Ls~^•~~ '~•~
<br />(c) As required by the tams of this lease or u directed by the
<br />authorized officer. rite lessor shall have the tight and the duty to stare
<br />aM to protect all ZS g.pt oil :bale which hu hem tnincd and all other
<br />oil tthale which. after mining. has become 25 g.p.t oil shale u a ct:stt![
<br />of processing or bmefuiadon
<br />(]) Except as otherwise provided herein or unless otherwise wtho-
<br />d in writing by the ,,,,t.,,,:,,,t offioa, the lessee :half. prior m
<br />rL,position, process or betreFidate any leased deposits in mined
<br />material to extract sodium eompotmds thereSrom where thaz material
<br />crrisins oD,shale averagL~g more than 10 gr" ~s of shale oil pa tort
<br />
<br />BDDK 4~~ PACE C~5
<br />of rods mined, but less than 25 gallons of shale oil pa ton, t®
<br />average to be determined by modiCudFisrhaamys. Tae ltsseesbo:
<br />perform any processing or treneficiadon in such a manna that apes
<br />rates from the leased deposits the quanury of mnucted orga+i
<br />matte necessary to limit the shale oil contort if any, to no[ more the
<br />as average of 10 gallons per ton in the auterial removed form th
<br />lased premises.
<br />(2) The lesm stall core or dispose of. u determined and tlitt~
<br />by the tuuhorized trtfitrr, residue and/or waste tnataials wttirh ltav1
<br />bom separated from the leased deposiu or produar thereof during o
<br />u a rtsttlt o[ mining. ptttaedon, procsssing, bercCicia»on, retrtsuq
<br />or other operations conducted under this Iwe. where the doreat
<br />stmge or disposal is rot otherwise provided for err wthaiad b;
<br />Sec a(c) err Sa. 4(d), Part 1, of this lase ..
<br />(311e is expressly understood dui the prr.:.sxd 25 g.pz oil :bole
<br />orotha proctssrd oil stuleand, upon the ttnrtination of this ltase.ar
<br />sodium compounds intermingled thaevnth, shall retrain the sot
<br />property of the lessor and shall be subject w disposition u any timeb•
<br />thekssoruprovidrd in Sec.7 ofthis leaseoru otherwiseaetetmitn
<br />by the audorized office.
<br />,=
<br />(d) In the event the tetortittg or processing of the ltxsed deptttta
<br />results in the produedon otany shale oil whaLSOeves, all such shales
<br />shall be and shall resrtain the rxclttsive ptnpeny of the lasat ttc
<br />provision in this lease to the contrary notwithstanding, and shag b
<br />disposed of by the lesser.
<br />(1) Ai Iessar's option, and at the dirtxdon of the authorized ttt~t:
<br />given widen a reasonable time suer its producdon, the lessee ttbi
<br />dispose of such shale oil, if any, on taro dot ate just and tessao>bd
<br />and do nor esquire lessee to bear the r~srs of disposing of the shales
<br />It is understood the, if lessee is required by lessor m sore sorb shat
<br />oil, dte costs of such storage shall be initially home by lessor bmlb
<br />lessor shall ctcdii such costs againu royalties payable larder thisltas
<br />by the lessor u those myalda become due and payable
<br />(2) My contract or other agteemem entered into by the ksseeQi
<br />sueetswrs in interest for the salt:, rrutsfu, or disposal aC all ,aFac
<br />the leered deposits or rite products thereof :lull spetYfically ptovid
<br />the the purehaw or sansfaee, and its tatceessors in dde, realtc
<br />ImmdS m, roe Shall product, Shale 011 therefrom. The lessee fha
<br />make ro further ale or tt9asfe of any leased deposit or any ptttdtta
<br />Utrseof to anypttrchasa, a wY of its sttcxssas in tide. otany lrs
<br />dt~xit a the prodtta thereof who has violated web emtoatm
<br />provision. Moreover, the lass shall take wfuta'a ttaior ~y b
<br />rtteesstoy either to canoes for the lessor any shale oil so produced i
<br />atry signifiratu quandry whiGt is rhea still in ~•:~••,,.• m w retvnc
<br />damages which shall be payable ro the lessor it any aurh sgttifit~
<br />qn++,e,~.< o[ shale oil have hem produced and ace no kagc i
<br />u;e.,.~., ~ -
<br />PART II. IERINS AND CONDITIONS
<br />Sec 1. (a) RFrTI'AL RATE • lessee shall pay lessor rental armttall
<br />and in advance Carr ~h ttaear (racoon dtertwf during the tbantintttmc
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