PERMFILE108463

• Permit No: C1981020A
• IBM Index Class Name: Permit File
• Doc Date: 5/13/2002
• Section_Exhibit Name: APPENDIX E
• Media Type: D
• Archive: Yes

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Grand Valley Coal Comoanv
McClane Canyon and Hunger Canyon Hines Loo ical Hininc Unit
d. ADVANCE ROYALTY: The number of years for which advance royalty may
be paid in lieu of continued operation is ten. Advance royalty may be paid in
lieu of continued operation only until May 1, 2008. No advance royalty paid
prior to that date may be credited against production royalty after that date.
e. REPORTING PERIOD: The rental amount for each federal coal lease is
to be prorated to the effective date of the LMU. Thereafter, the LMU rentals
for all federal coal leases within the LMU will be due in lump sum on each
annual anniversary of the effective date of LMU approval. Upon approval and
for the duration of this LHU, no federal rentals may be credited against
production royalties for any federal coal lease contained in the LHV, the
federal coal lease terms of which allowed for such credits prior to the
effective date of the LHU.
Royalties for federal recoverable coal reserves produced within the LHU will
be paid in lump sum, identified by individual federal coal lease on the
appropriate forms specified by the Minerals Management Service.
The LHU royalty reporting period will be on a monthly basis beginning the
royalty reporting period after the date that coal is first produced from the
LMII, following the effective date of LMU approval. Since all production
within an LMU is credited to the entire LMU, a'certified record of all
nonfederal LMU coal production must be provided to the Resource Area Manager
on an annual basis. Progress maps and reports required by 43 CFR 3482.3 shall
show all federal and nonfederal production from anywhere within the LMU.
f. RECOVERABLE COAL RESERVES EXHAUSTION: The 40-year LMU recoverable
coal reserves exhaustion period commences the date that coal is first produced
from the LMU, following the effective date of LHU approval.
g. OTHER: If the LMU, of which federal leases C-0125439, C-0125515,
and C-0125516 are a part, fails for whatever reason, federal leases C-0125439,
C-0125515, and C-0125516 will automatically be subject to the diligence
provisions that otherwise would have applied had the federal coal leases not
been included in an LHU.
Grand Valley Coal Compan: r
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