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2.03.6 Right of Entry and Operation <br />Information <br />(1) The source of the legal right to enter and begin underground <br />mining activities and associated surface activities is <br />contained in Federal leases AI's D-046544 and C-0127592 <br />(see exhibit "0"). <br />Lease 11 b-046544: Issued to George Steele Dec. 3, <br />1937. <br />Assigned to Sunland Mining Cor- <br />poration June 22, 1976. <br />Readjusted effective December 1, <br />1979. <br />This lease is between the United States of America (the <br />lessor) through the Bureau of Land Management {BLM) and <br />Sunland Mining Corporation (the lessee). <br />The following "Rights of the Lessee" are quoted verbatum: <br /> Sec. 2. RIGHTS OF LESSEE. The lessor, in consideration <br /> of the rents and royalty and ot her conditions hereinafter <br /> set forth, hereby grants to the lessee the exclusive <br /> right and privilege to mine and dispose of all coal in <br /> the following described trac ts (lease lands) situated in <br /> the State of Colorado: <br />T. 4N., R 86W., 6th P.M., Routt County <br />Sec. 21: NE1/4 SE1/4 <br />Sec. 22: W1/2 SW1/4 <br />and all the coal reserves in Pinnacle No. 1 Bed and Pinnacle <br />No. 2 Bed in the following described tract: <br />T. 4N., R 86W., 6th P. M., Routt County <br />Sec. 22: SW1/4 NW1/4 <br />containing 160.00 acres, more or less, together with the <br />right to construct all work, buildings, structures, equip- <br />ment, and appliances which may be necessary and convenient <br />for the mining and preparation of the coal for market, and <br />subject to the conditions herein provided to use so much <br />of the surface as may be reasonably be required in the <br />exercise of the rights and privileges herein granted for <br />so long as this lease remains in full force and effect <br />~~ under any provisions of the law and the applicable reg- <br />ulations thereunder. <br />5 <br />