|
r Form 34W-12 UNITED STATES
<br />(January 1995)
<br />DEPARTMENT OF THE INTERIOR
<br />BUREAU OF LAND MANAGEMENT
<br />COAL.LEASE
<br />FORM APPROVED
<br />OMB NO. 1004-0073
<br />Expires; Lune 30, 1997
<br />Serial Number
<br />COC 67011
<br />PART L LEASE RIGHTS GRANTED
<br />Thin leoac, antergd into by and bdwcen the Uxtreo Srnres oe Araamcw, hercinnftor rolled ]eaeor, through the Bumnu of Lnnd Mnmgemont, and
<br />Ark Land Company
<br />CityPlace One, Ste. 300
<br />St. Louis, Missouri 63141
<br />•
<br />1r~
<br />u
<br />hereinafter called lessee, ie effective SCI" "' CUUq , fos a period of 20 years end for so long thereafter ab coal ie produced in tommerciel
<br />quantities from the leased lands, subject to readjustment of lease te:me at the end of the 80th lease year and each 10-year period thereafte;-
<br />Sec. 1. This tease is issued pursuant and subjec[ to the terms and provisions of the:
<br />~j Mineral Lands Leasing Act of 1920, Act of Febr¢ary 25, 1920, ae amended, 41 Star. 437, 30 U.S.C. 181.287, hereinafter referred to as the Act;
<br />^ Mineral Leaning AM for Acquired Lando, Act of August 7; 1947, gl Slat. 913, 30 U.S.C. 351-359;
<br />and to the regulations and formal orders of the Secretary of the Interior which are now or hereafter in force, when not ineoneiatent with the express
<br />and specific provisions herein.
<br />Sec. 2. Censor, in consideration of any bonuses, rents, and royalties to be paid, and the conditions and rnvenants to be observed sa herein net forth,
<br />hereby Brenta and lessee m lessee the exclusive righ[ and priv(lege m drlll foe, m1ne, extract, remove, or otherwise process and dispose of the uual
<br />deposits ia~pen:o~adertho-feHewiaged-leads. limited to the-coal recoverable by undergrou~ mining
<br />methods in the B seam in the following described lands: ~ n
<br />
<br />
<br />T. 13
<br />S., R. 90
<br />W., 6th P.M. G
<br />I^ U ~ ,-
<br />__ J
<br />sec. 12, lots 8 to 10, inclusive; N -~~
<br />sec. ~13, lots 2 to 7, inclusive, and w r•n Go
<br />- lots 10 to 15, inclusive; ~ i'-_:--
<br />sec. 24, lots 4 and 5. ~ -n
<br /> ..
<br /> .c ;.I
<br />
<br />rontaixSng 690.95 sans, morn or leas, together with the right to construct each works, buildings, plants, etructurm, equipment and appliances
<br />and the right to useauch on-leaserightabf--way which may benerxasaryand convenient in the exercise of the rights and privileges granted, subject to
<br />the condition herein provided.
<br />PART II.7ERMS ANO CONDITIONS
<br />Sec. 1. (a) RENTAL RATE -Lessee shall pay lessor rental annually and
<br />in advance for each acre or fraction thereof during the continuance of
<br />the lease at the rate of E 3.00 for each lease year.
<br />(b) RENTAL CREDITS -Rental shall not be credited against either
<br />production or advance royalties for any year. 8 20 ~Z
<br />Sec. 2. (a) PRODUCTION ROYALTIES -The royalty shall bed-2-31aerf
<br />cent of the valne of the rnal sa awl forth in the regulatinna. Royalties ore
<br />due to lessor the ftnal day of the month succeeding the calendar month
<br />in which the royalty obligation accrues.
<br />(b) ADVANCE ROYALTIES -Upon request by the lessee, the authorized
<br />officer may accept, for a total of not more than 10 years, the payment of
<br />advance royalties in lieu of continued operation, consistent with the
<br />regulations. The advance royalty shall be based on a percent of the
<br />value of a minimum number of tone determined in the manner
<br />established by the advance royalty regulations in effect at the time the
<br />lessee requests approval to pay advance royalties in lieu of continued
<br />operation.
<br />Sec. 3. BONDS-Lessee shall mainmin in Ehepropez offices lease bond
<br />in theamount of$ 156,000 .The authorized officer may require an
<br />increase in this amount when additional coverage is determined
<br />appropriate.
<br />Sec. 4. DILIGENCE •'l;hie lease ie subject to the conditions of diligent
<br />development and continued operation, exceptthat these conditions are
<br />excused when operations under the lease areinterrupted by strikes, the
<br />elements, or casueltiea not attributable to the ]eases. The lessor, in the
<br />pu6fieintereat, may suspend the condition of continued operation upon
<br />payment of advance royalties in accordance with the regulations m
<br />existence at the time of the suspension. Lessee's failure to produce coal
<br />in commercial quantities at the end of 30 yeare shall terminate the
<br />lease. Lessee shall submit an operation and reclamation plan pursuant
<br />to Section 7 of the Act not later then 3 years offer lease iosunnee.
<br />The lessor reserves the power to assent to.or order the suspension of the
<br />terms and conditions of this tease in accordance with, inter alia,
<br />Section 39 of the Mineral Leasing AM, 30 U.S.C. 209.
<br />Sec. 5. LOGICAL MINING UNIT (LMU) -Either upon approval by the
<br />lessor of the lessee a application or at the direction of the lessor, this
<br />lease shad became an LMU or part ofan LM[l, subject to the provisions
<br />net forth in the regulations.
<br />The stipulations established in an LMU approval in effect at the time of
<br />LMU approval will supersede the relevant inconsistent terms of this
<br />lease eo long as thelease remains rnmmitted to the LMU. Ifthe LMU of
<br />which this lease is a part is dissolved. the lease shall then be subject to
<br />the lease terms which would have been applied if the lease had not been
<br />included in en LMU.
<br />
|