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<br />UNITED STATES
<br />DEPARTMENT OF THE 1\TER10R
<br />BUREAU OF LAID ~fANAGE6fENT
<br />COAL LEASE
<br />Serial Number
<br />C-27432
<br />7hm lease, a enured o on 1979 by the U tail States of Amenu, the leawq Through the Bureau of
<br />Lend Management. aril ~Ol OradO Westmoreland, Inc., a De~aware Corporation,
<br />the lessee,
<br />and shall become effective on frflr recur darn.
<br />Sec. 1. STATUTES AND REGULATIONS -This lease is rssued pure u•nt and atrblect to the terms and provisions of the Mineral
<br />Lees ing Act of February 25, 1920, 41 St ai. 437, as amended, 30 U.S.C. Sections 181-263. hereafter referted to as the Act. This
<br />lease is also eublect to all re gulp ioro of the Secretary of the Interior fine ludiitg, but not limited to. 3U CFR Pan 211 and ~3 CFR
<br />Group 3000) which are now m hereafter in face and which are made • part hared, eaceP that no amendment to the regulations
<br />made sub sequ~ t to the effective date o1 this lease shall alter the rental and production royalty requirements in Section 5 and 6 of
<br />tit,. Ir.ar. continued on page 3)
<br />a~tT NE 55 ET N:
<br />Sec. 3. RIGHTS OF LESSEE -The lessor, in tons ideration of the bonus, rents. and copal[ tea and other conditions here inalter
<br />set forth hereby grants and Ie saes Io the lesser the ezclus ive riCht and privilege to mine and dispose of ~}o~a~'xCpa
<br />YS.3~X~tA4:ltliGS?:S9t1G4e)C}1J(~LOC7(KtiO[A3:}h`07~9,J~aCA7[':5,600,000 tons of coal from the "D" seam in the
<br />following described lands (leased lands) in the State of Colorado:
<br />T. 13 S., R. 92 W., 6th P.H. (Delta County)
<br />• Sec. 12: Lots 9, 15
<br />Sec. 13: Lots 1, 3, 4, 5, 6, 11, 12
<br />T. 13 S., R. 91 W., 6th P.M.
<br />Sec. 7: Lots 3, 4, EI~SW~
<br />Sec. 18: Lots 1, 2, 3, 4, E~181
<br />c ones siting 854.03 acres, more a less. together with the right to construct all works. buildings, structures, equipment.
<br />end eppliences which may be nes es sery and convenient !or the mining end p.rpantion of the cwt for market, and, sable ci to the
<br />conditions herein pr Ovid ed, to use so much of the su:(ace ac may tea sonably be re9uired in the ezerc tae of the rights and privileges
<br />herein granted far • period of 20 years and eo long there after •c the condition d coot uiued operation is met.
<br />Sec. 3. •~1LIGENCE -The lessee shall engage in the dil•
<br />~• de••e lapment of the coal resources sable ct to the lease.
<br />diligent dev_Iop:ne nt is nth ie wed, the lessee shall
<br />• m canunued oprr•lion of lhr mine or r.u nes on the
<br />lands. The terms dinge n: Crvelopme nt and cool mur2
<br />.lion are defined in the regal altona.
<br />Sec. 4 BONO -The lessee shall tilt with the appropriate
<br />Sure au of Land Management office a lease bond in the amount
<br />o! s 25,DOD. DD for the use and benefit o! the Unn ed
<br />Sires. w insure papmrm of renuls and royalties antl to
<br />msurr cor..plianre with all other terms of this lea sr. ^
<br />the regulations anA the Act.
<br />Ac increase in ihr amount of Ihr lease bond meat M raga ued
<br />by the lessor
<br />at an}.
<br />other tine dieing the file o! t'ne lease to reflect 1ch•ngrd
<br /><onhuon c.
<br />Sec. 5. RENTAL - An annual rental of j3. ~0 for each
<br />sere or lun~on iherrof shill br pad m advance on or before
<br />tF ..r crrsary deer of this lease The anniversan~ date is
<br />^niver stn of Ina elle dive date of This le•ee.
<br />Sec 6 PROOUCTIOn' ROY ALTV -The lessee shall p•v
<br />roduction rordty of f~(S:d'i7S}; X~RX}iA liXiiV(~A:i A•T•RR'~X~
<br />~:L:~c2~•:~_':RYiris3.z~i:~-~~1:=~ii~_=:d0:3~i.`:T1i~ 4 percent of
<br />toe .'slur of coal produced br underground c.tntng e.eihods
<br />Thr vlur of coal shill br der mnined es sit forth m ihr
<br />n CUly ions Pruduca un row alt irs paid fur • calendar month
<br />shall br reduced Fp the amount of anv adrantt roc oft u•s
<br />('ad undo: This iraar tro the eztml that such aCvance wc~
<br />sties ha~.r not hero used ip reduce production ruv~llas in
<br />• previous month. Y)owever, Deal action ro}•a !ties Payable
<br />alter ihr TQh yew of the lease shall not be reduced by ad-
<br />vance royalties pad dunnp the first 20 yurs of the lease.
<br />Pr oductioo coy alt ms eh•I! be payable ihr final day of the
<br />month succeed mg the eaendu month in which the cod u
<br />stored
<br />Sec %. ADVANCE ROYALTY - Upon req ur s: Dv the lesser
<br />the mining supen~isor may accept. for • total of not more
<br />than 10 vets, the payment of advance rovah ma m Iuu of
<br />the condition of Continued oprntion for an)' part scaler year.
<br />Ana pavmet of advance roy•h ms m heir of conunuetl ofier-
<br />auon shill be pursuant to an aprrement. signed by the lessee
<br />and lessor. s~hith shall br c.adr a part of this lease. The
<br />agrerme nt shall include a schedule of p•pm ants and shall
<br />he sutije[t to [hY advance roya lip conditions set forth m
<br />tnr regu:ationa. **(continued oD pale 3)
<br />Sec B V.ETn OD OF PAYMENTS - The lessee shell make
<br />renal pry•or nes to the eppropri ale Bureau of Land l:ar.ape-
<br />mrnt office until either production royalties or ails ante
<br />royalties bet one pn'abl<. Thereafter. all renuls, produce on
<br />ro.vlttrs avd ads tote r~edlits shall Fe paid tv the c.inmp
<br />superctsor. All re nttunrrs to bureau of L•nil M:n ages en:
<br />shall Dr -ode pauble Ic the Bureau of Land A:anapeme n;.
<br />rouse to Ihr Geological Surves shall be c.adr pa vable to
<br />the I'nued Su1es Geologic a] Survev.
<br />Sec. o. ErPLp MATION PLAN - As apenLed m [he resv•
<br />Im ions. 1K lessee shall suborn or •n
<br />c, plo~an oa Dlon before contluctmg any esplor•tion on the
<br />It•vd !acids. ezrept raaud use. between Ihr e(f er uvr Antr
<br />t m tore iraar seal Ihr der o! apPr ovd of the mump plan
<br />Tr- _... -. .. ,. _..ee espl oration
<br />~ •-~ - rzp!or at ion PLn. Thereah er
<br />-....... - - ::ulY 19:71 Uo.m.rlr ,uo-u
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