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UNTIED STATES Serlel Number
<br />DEPARTMETiT OF THE RlTERIOR
<br />BUREAU OF LAND MANAGF1~E74i I C- 3 7? 10
<br />• COALIFASE ~
<br />71da kn4 h entVed Inro m APR 19 1584 . M ere unwed Steeea d Anrerkrt the kaaa through tl,e Bureau d
<br />Lad Marrsparrert are
<br />Colorado Westmoreland Inc,
<br />P. 0. Box "E"
<br />Paonia, CO 81428
<br />and e'"' be~11e e~ °^ MAY 1 198'1
<br />lsll~eNea data/.
<br />,the ksxe.
<br />See. 1. STATUES ANDREGULATIONS - Thta ksse b lowed pvfrrarlt aril sub)ed m the eetrr and ptoMdae d the P1trrVd Lesdng Act d February 2S.
<br />1920.41 San. 477, a arrrVded. 70 USC 181 a seq, hereefee tdesred to a the Act end d the Surhte fMirg Contld and Redenrwlon Att~d 1977.70
<br />US.C. SeeEm 1201 et seq., end the M6rerd Leedrrg Attla Aegtied larm dAugust 7, 1917, r wrrerded 70 U ^sC 7SI et aeq Thb kax b subkct eo dl
<br />regrdaionsdtlre Sevetrydthe treelor fMudYg butrrd4rrleedto70CFR ChepeerVl ad13CFROrorg34001dtleh se rowlnlacea(eeepta e~sN
<br />Indeed haelnl heredee ti larc4 ad r atsdr regdwlau w soda • pat (reed.
<br />See.2 RIGHTS OF LESSEE-7helnaor.ln canaWetaOOndarry bourn pddlor eo be paidndderredl,rerra adroyehks and other condltbroherelnaM set
<br />Baer, hereby gra,ea and kasnmdre ksaee ere arcMUlsa rkfa aril pdNkge to mire end dspoxd coal recoverable by underground
<br />mining methods .from the D Seam and any overlying seams in the follovinF lands located
<br />in Delta County, Colorado:
<br />• T. 13
<br />sec.
<br />sec.
<br />sec.
<br />sec.
<br />sec.
<br />S_,
<br />6,
<br />7.
<br />8,
<br />17,
<br />18,
<br />R. 91 [J,
<br />lots 5,
<br />lots 1,
<br />W~;
<br />N'1NId%:
<br />NEItfIElt,
<br />6th P.M.,
<br />6, 7, SW'-[NEB, SE!;NWt,;, E!_SiJ!;, SEk;
<br />N'~NW'-r,!]ESt, SEItNW~:NEl:.
<br />T. 13 S., R. 92 W„ 6th P.M.,
<br />sec. 1, 5=1;
<br />sec. 2, SE's;
<br />sec. 10, lots 10, 11, 14, 15, 16;
<br />sec. 11, E~-~, S~SWly;
<br />u • .i .
<br />u
<br />~,
<br />~•
<br />_;
<br />sec. 12, lots 1 to 8, inclusive, lots IO co 14, inclusive, STd!:SFII--;;
<br />sec. 13, lots 2, 1 to 10, inclusive, NWIr;;
<br />sec. 14, (All);
<br />sec. 15, lots 1, 2, 3, 6 to 11, inclusive, 14, 15, and lr,;
<br />sec. 22, lots 1, 2, 3, 6, 7, and 8;
<br />sec. 23, lots 1 to 8, inclusive.
<br />candrdrg 4 , 998.85 attes, more a lev erxt wbject to the rnndltlons, Ilmitatlona end prohlbhiona pro+aderl In tMs Iwo aril Ir.
<br />applkabk stta end regtrletlons. the dgMm construct en works, bwkinga, swtturn. equipment and appllsncea whkh may be necessary and conseruent fa "rt
<br />mlydrg and preperetlon d the cael fa rtrerkel. aril. serb)eet to the condrtlom herein prosided to use so much d the wrlatr es mry rrosnnatdy br required In du
<br />asclse d the dglas end prkdkges herds granted !a • pelod d 20 yeas and so king tlrereeltV m the CdrWlUdll d contlnued opembon is met
<br />• Sec J. DgJGENi DEVFIOPMFM AND CgliTINUED OPERATION -
<br />The lessee shall engage M the dnlgere devebpmenr d the cod resources
<br />wb]ett b the ksae. ARV dlllgent devebpnrere Ia achieved, the leases Shen
<br />mdntdn corrtltaud operetbn d the mine amlrrla on ere kneed Isnds. The
<br />tenure dingerrt devebprrrera srd cmtlnrred aperetlon are donned In the 4
<br />piobM repulatlore H Title 17 d ea Coda d Failed Regtrletlara
<br />Sec 4. BONDS - The kaaee Shen file with arc epprapdate Bureau dLand
<br />Maregernmt dote a kex bad M the emaum d $ 20 , 000.00
<br />fa the nee aril benefhdtheUNted States. tolnwaepeymenrddderred bo
<br />sus peyrtlenta, rmtela artd royeltles end to insure mrrrPAence with all aNe
<br />bsma dthla lease. thereguletlans and theALt(aceplta reNenatlon wllhln
<br />the area cwVed by a wdece mining permit lowed urdV the pertnenM
<br />regulatory program by the rrqularay auttronry) and. N approprlse, for the
<br />praeetlon d the InternLt cf the surface owners on the leexd lands. M In•
<br />cow H era amOvnt ul tF:r Iwaa bond my l,a rapWrad by t!w haaor w sty
<br />Ume durarq Ure Isle of tn« ieey« to refllCl changed eordhlons.
<br />Sec. S. RENTAL -~ .,~, ai on,al reNal d $ 3, 00 la exh atte
<br />aheabn Nereol snarl be peril M edva+ceana bdore each mnlvVSSry doe
<br />d fhb Issas. I t.is sect/ on shah nor be wblecl to reision arcept In the courx
<br />d Itesf rlenju<ImenL
<br />Sec. 6. PRODUCTIOIt ROYALTY -The lessx shell pry a production
<br />roydy al zaecccNOdUtIR 7mWgt•*welmt7daAr#ba7107RA7C
<br />nxpmrnamorltan6K 8 pVCern d the value d coal pro
<br />doted by uMerr,Roud mtrdrg methods The vehx d coal she0 be deter
<br />rNned m ore )ath b 1.3 CFR J1B0. -rodtxtlon royeMn peld !a a calendar
<br />month shall 6e reduced by the amount d ery advance nryahles paid under
<br />tltla lease to the eseere that etrdt advance royehks have rot been used to r
<br />duce prodrrcean rvyelUes M a preMae month. However. production rgaF
<br />tle payable eRV the 20th yes d the lease siren not fx reduced bl advance
<br />royeltles peed durkrg the first 20 yeas d the lease. Producean royeltlee shed
<br />be payeWe the Ilnel day d the month succeeding the Lalerder month in
<br />wirlclr the coal b sold, redesaatlrew/x specified In 47 CFR 7480. The royaby
<br />rare proNded M tlrb sectlon dre0 nil be subJect to revblm eseept In the
<br />- codas d kax resd]ushnerL
<br />Sec 7. ADVANCE ROYALTY -Upon request by the lessee the AutlrateM
<br />Oflltlr nr0y xt1P'L !p a etlfal d nil moo! then 10 yeas, tlt! PeYme'rd of
<br />advance nsyahlea In neu d carrenued operetlon eonslsteN wdr the regula•
<br />tloro In 17 CFR 7477 and Yt80. Thor advance royahy shorn a bored on e
<br />percent d Ure vehre d • mlydmum number d lava which shell be deter
<br />mhxd M Ilre memV eeaNalred by ere rtgulwlora N 47 CFR 7480.
<br />Sec. B. METHOD OF PAYMF1iT5 -The Irsee shell make renral paymenL•
<br />to We appropriate Bureau d Lard Menegemem ofl1•;e anal Ixoducaon
<br />royeluea become payable. ThereehV. afl rentals praductlcn royehln and
<br />advance nryaltles shill be paid b the appropriste o81ce d the Unned Stores
<br />fNnerols Marregernent Servke
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