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unt I t u ., 1 ~, 1 r.~ bcrlal Number
<br />DEF'ARThtL:":1' 0>^ TIIl: ItiTCI:IOR
<br />BUREAU OP LAfiD .,.A;:AGC;,1E~'T C-25079
<br />COAL LEaSE
<br />ase, is entered into on 1~!.t.:t•~ =~• » ~ ~ , by the United States of
<br />• a, the lessor, through the Bureau of Land Management, and Colorado 1Jesemorelard
<br />c., a Delaware Corporation, the lessee.
<br />d shall become effective on March 1. 1978 (effective date).
<br />c. 1. STATUTES AND RECULATI01:5 -This lease is issued pursuant and subject to the
<br />rms and provisions of the Hineral Leasing Act of February 25, 1920, 41 Stat. 437, as
<br />ended, 30 U.S.C. Section 181-263, hereafter referred to as the Act and [he Department
<br />Energy Organization Act of August 4, 1977, 91 Stat. 565, 42 U.S.C. 7101. This lease
<br />also subject to all regulations of the Secretary of the Interior (including, but not
<br />sited to, 30 CFR Part 211 and 43 CFR Group 3000) vhich are now or hereafter in force
<br />d which are made a part hereof, except that no amendment to the regulations made sub-
<br />quent to the effective date of this lease shall alter the rental and production
<br />7alty requirements in Sections 5 and 6 of this lease.
<br />_. 2. RIGHTS OF LESSEE -The lessor, in consideration of the bonus. rents, and
<br />,alties and other conditions hereinafter set forth hereby grants and leases to
<br />.lessee the exclusive right and privilege to mine and dispose of 1,966,667
<br />zs of coal from the "D" Seam, as described in U.S. Bureau of~Mines Technical Paper
<br />. 721, 1949. In accordance with the order in 1~atural P.esources Defense Council
<br />Royston C. Hushes, CA 75-1749, decided September 27, 1977, production of coal
<br />1c :his lease shall not exceed the annual rate of production that. the lessee
<br />required to produce in the contract attached as Appendix I or the annual
<br />•_ion rate of the existing sine taken on September 27, 1977, as specified in
<br />Iclluix II. The coal to be mined will be mined only on the advance in accordance
<br />:}1 an approved mining plan. The mine to_ be located in the following described
<br />Ict situated in the State of Colorado:
<br />T. 13 S., R. 92 tit., 6th P.M.
<br />Sec. 24: Lots 1, 2, 3, 4, 5. 6, 8 ~ 9
<br />ltaining 310.51 acres, more or less, Logether with the right to construct all works,
<br />.ldings, structures, equipment, and appliances which may be necessary and convenient
<br />the mining and preparation of•the coal for market, and, subject to the conditions
<br />~ein provided, to use so much of the surface as ray reasonably be required in the
<br />~rcise of the rights and privileges herein granted for a period of 20 years and so
<br />Ig thereafter as the condition of continued operation is met.
<br />.: IILIGENCE - 7•he ]essee sha 11 enga~t In the dil-
<br />d •lopme nt of the coal resources subject to the lease.
<br />Cent dcvela Gr..e nt is achlewed. the lessee shall
<br />~~continucd opera Lion of Ihr mine or nines on [he
<br />.c., .ands. The terms diligent development and continue)
<br />'anon are defined in the re .Litt ations.
<br />. 4. DOND -The lessee shall file rrnh the appropriate
<br />tau of Land 1.lanayemenl o!lrce • lease bond m the .mount
<br />SD,OD0.00 for the use and beneirl of the Unrted
<br />rs, to insure payment of rt nl als and toys ltres• end to
<br />rte compliance-with-'all-•othrr-len~s"ef-thrs""lease, the
<br />'or al ion and mmm[ plans, the reculallOnt and Ihr Ael.
<br />rncrrose in the amount of the Icase bond may be recurred
<br />the lessor upon ayprov al of the etploralron or mrnrnC
<br />• or uyon apVruval of a change to eLLher pbn, or at any
<br />-r time during the IJe of the lesae to reneet changed
<br />:Ilion s.
<br />. S "2ENTAL - An annual tritest of 53_DD for each
<br />- a action Ihna•of ehoil br par) m adr arrr en or before
<br />ar. rrwwrv duly of Inn Ivowc. Thr annvera try Jrlt la
<br />annlvrrwary of Ihr effecu ve dale of this Irua.
<br />. 6. PRODUCTION ROYALTY -The lease. shall p+y •
<br />!action royalty of 12ll.crc onl of the r~lue of coal Pro•
<br />-d by strip nr aul'.rr minlnl! nrr lhnrlr and A terse nl of
<br />value u( c.,nl Paoduced Lr umlr•n•rounA mlw,np mt16DJ..
<br />value u( t unl whull br Jrl,•rmlurd • sl h•ril. -,. ,..,
<br />'lallun r, I'ruJ urlrun r,w ulnrw pull 1,•r r t.lrn,l rr m..n.i,
<br />'1 1•u M1•ducrJ by Ihr ummud u( any .J.rr.'r ..... _.
<br />unJ,'r Ihur lease lu ILr ealrnl 11.r1 rueh ...r-.. .._
<br />• previous month. However, proJoetion royalties payable
<br />after the 201h year of the lease shall not be rrduced by ad•
<br />vartce royalties paid during the first 20 years of the Icase.
<br />F~oductron toyalt,ea shall be payable t1.e frost day of the
<br />month succeedinC tits quarter la vhich the coal is
<br />mined.
<br />See. ~. ADVANCE ROYALTY -Upon rer•uest by the lessee
<br />the corning su perv rsor may accept, for • total of not more
<br />Ihan 10 years, the Oarmenl of advance royalties ,n Ireu of
<br />the eondrLOn of continued eper anon for any pore rcular year.
<br />Anr pawr..ent of advance row alt res ,n Irtu of coot rnutd opcr-
<br />aben shall be pursuant to an aereemrnl, trgnrd by Ine lesser
<br />and lessor, vhich shall Dr made a parr of This lease. The
<br />agreement than incluJt a schedule of payments and shop
<br />be tobiect to the ad ranee royalty eondnrora set forth an
<br />the rcCulatrons.
<br />SeC. b. METHOD OF PAYMENTS -Thr les see shop make
<br />rental payments to the approprr ale nu.rau of L.nd Ftrn.re-
<br />menl off rcr until either prod act ton row olUUt or rJv.nCt
<br />toy ahres 1.ecome paysblr. Thereall rr, all rent uls, rr oJucnun
<br />rovaluet end wJrwnce my nlUea shall IY Mid lo• the nunrn rt
<br />tuperr nor. All rcmlllrncea to Lureau u( Land M.nnvr.rnl
<br />shall be maAe pawhit to Ins Ilureeu of LrnJ Mun ai •'mm~l,
<br />Ihoae to the Groloylral Survey shall he made pryrblc to
<br />the Unrted Soma Geoluglc al Survey.
<br />Sre. 9. E%Pl_ONA T1011 PLAN - Aa spetlfleJ In tlrr rtl•u•
<br />..,„cow, fi,t Ir wire abwl{ wuhmN to the mlmnl( wuP„rvrwur rn
<br />rr. ,-•• ^!-•^ 1•r tart rnn•lurling rnY rtl~lunnr„n a Ihr
<br />,. •.•. .. .•.... .rel l'awuul uar, 1¢Iwrru Ibr• •'llrr'llrr„d„Ir
<br />.. ...- ... - n Jrlr ul wl•pn.ral u( Ihr n,..,,up, Plnn.
<br />.. _ .. _.. _..r.. •, (nmmr nce eydurrllnn uNll 16,. wO,nq•,
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