PERMFILE120318

• Permit No: C1996083A
• IBM Index Class Name: Permit File
• Doc Date: 5/11/2004
• Section_Exhibit Name: Exhibit 01 Coal and Water Rights
• Media Type: D
• Archive: Yes

condition, as hereafter described. If Grantee, its successors
or assigns, {1) fails to make any payment of Production
Royalty or Minimum Royalty when due and such payment, with
interest thereon as herein provided, is not made within ten
days after receipt by Grantee, its successors or assigns, of
written notice from Grantor, or (2) fails to put the Assets
into Commercial Production (as defined below) on or before
January 1, 2000, then Grantor shall be entitled to a
reconveyance of the Assets and delivery of exclusive
possession thereof, free and clear of all claims, liens,
encumbrances, and royalty interests and other payments on or
measured by production, to the extent created by, through or
under Grantee or its successors or assigns. In the event that
the amount of any such payment is disputed by Grantee in good
faith in writing within such ten-day period, such right of
reentry shall not be exercisable by Grantor unless and until
such dispute is resolved and Grantee fails to pay any amount
found owing to Grantor within ten days after such dispute is
finally resolved. At any time after the occurrence of either
of the above conditions, Grantor, its successors or assigns,
may exercise its right of reentry by notice to Grantee, its
successors or assigns, and Grantee, its successors or assigns,
and thirty days after such notice is given, Grantee, its
(~ successors and assigns shall be automatically divested of
title to and possession of the Assets and title thereto and
exclusive possession thereof shall be reverted automatically
in Grantor, its successors or assigns. Grantee, its
successors and assigns, agrees to confirm such automatic
divesting and reverting by reconveying the Assets, with
special warranty as provided above, and delivering exclusive
possession thereof to Grantor, its successors or assigns,
within thirty days after receipt of such notice. "Commercial
Production" shall mean having equipment and facilities in
place on the Assets necessary to extract a minimum of 310,000
tons of coal annually from the coal fee interests included in
the Assets in accordance with good coal mining practices and
having obtained all material permits, authorizations and
approvals necessary to so develop and operate the Assets and
sell coal therefrom.
Grantee shall remain liable for all Production
Royalties and Minimum Royalties that have accrued hereunder
through the time that Grantor elects to exercise its right of
reentry, but Grantee shall have no liability for any
Production Royalties or Minimum Royalties accruing after such
time. For purposes of the preceding sentence:
(i) Production Royalties on coal shall be deemed to
accrue when the coal on which the same are
payable has been mined but not necessarily yet
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