PERMFILE128594

• Permit No: C1981011
• IBM Index Class Name: Permit File
• Doc Date: 12/11/2001
• Section_Exhibit Name: RULE 2.03.6 RIGHT OF ENTRY INFORMATION
• Media Type: D
• Archive: No

UNIT°_D STATES
DE°ART~IENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT
COAL LEASE REAp,1USTMETf~
LEASE RIGHTS GRANTED
Serwnunur.r D-046544
~D~ December 3. 1937
Thu Isaw. enured into by and between the U~tTLD STATES of AettaleA. hereinafur nlled lessor, through the Bunau of Land Msnagemtnt and
Sunland Mining Corporation
P. 0. Box 55
Oak Creek, Colorado 80467
hetaiaafut called leash. u teadjteed. effeetivt December 3, 1987 for a period of 10 yeah and for so long thereafter as coal is
orodueed in eommercul quannnea tram the leased lands. wbjaet to nadjuatmeat of lease terms at the end of each 10-year lent perod.
SK. 1. Tb.u least resdjuetment u issued punu~nt and subject m the canna and Drowtons of the:
~ Mineral Lands Lwtng Aa of 19~. Aet of February ^S. 19:0, u amended. el Sut. e3-. 30 U.S.C. 161.2ST, heninafui nferred to u the Aet,•
^ Mjneral Lwmg Aet for Acquired Lands, Act of August 7, 19e7, 61 Suc 913. 30 U.S.C. 331•J59;
and to the reguletiona sad formal orders of the Secntary of the Inurior which an now or hereatur in force, when not ineonaiatent with the expnaa
and speaftc prowtona henia
Sae. ^_ Luaor. in ornaiderauod of any nnu, and royaltln m be Daid, and the eonditiotu and trovenaau to be observed as herein set tortFt. henby
granu to levee the ezelustve nght and pnvilege w drill [or, mine, e:tratt remove, or otnernae process and diaposs of the coal deDoatu ia, apon.
or under the tollowmg deaaibad innda:
T. 4 N., R. 86 W., 6th P.M.
Sec. 21, NE~SEIt;
Sec. 22, W~SWt~;
and
all the coal reserves in the Pinnacle No. 1 Bed and Pinnacle No. 2 Bed
in the following described lands:
T. 4 N., R. 86 W., 6th P.H.
Sec. 22, SW1yNW3y
containing 160.00 acre. moo or less, together with the right to construct such works, buildings, plane, awcum. equipment and appliantea
sad the ngntto use such on•leax ngnu•oi~way which may be necessary and tronventeet m the eaerefse of the rjghu and Driviiegea grantor, aubjte: to
the eonaitioea hertin provided
PART a. TERMS AND CONDITONS
Sec. 1, (a) RENTAL RATE • Lessee shall pay lessor Hotel annually and
in advanet for each acre of iractton thereof during the tronttnuanee of
the (ws ar the nu of i 3.00 -- for earn lease year.
Ibt RENTAL OAEDITS -Renal shall not be rsedited agatnat either
producnon or advance royalua for any year.
Sea:. tat PROCUCTION ROyAlTES -The royalty shall be (surfac
12.5 percent and (underground) 8.0 per.
cent of the valueotthe~oalaesetfonhintheregula~ions.Royaltieaan
due to lessor the final day of the month succeeding the calendar month
in whjdb the royalty obligation accrues.
(bt ADVANCE ROYALTIES -Upon request by the lessee. the authorised
offinr may accept for a wul of not more than ! 0 years. the pa yment of
advance royalcia in lieu of mnnnued operation, consistent with the
n ulauons. The advance royalty shall be beard on a percent of the
of a minimum Dumber of Iona deurmined in the manner
had by tht advanu royalty ngulattons in effect at the time the
I requuu approval m DaY advance royalun in lieu of tonunued
openuoa
Saes 3. BONDS - L.easee ehalJ mainuin is the proper office a leue bond
is the amount of S 20, 000.00 • The authonzed officer may req uirc an
inerEase id this amount when additional eoverege is deunntned
appropriau.
Sea e. DILIGENCE - This leue is aubjea to the rnoditiona of diligent
development and connn card o Deranon. except that these ttindidom az
excused when operations under the lease an inurrupted by smkn, the
eiemenu. or e:tsualun not attnbutablr to the lysee.'.'he iessor. m the
pubite tnurest may sus Dend the rnndition of eon Hoard operation anon
payment of advance royalnes in aetroroanee with the ngulauona to
e:utena at the dme of the suaxnston. Lessee's failun m produce coal
in tommtraal quantitip at the tad of 10 yeah shall urmtnuu the
lease. Lessee shall suomit an operation and reelamanon Dlan pursuers[
m Section 7 0[ the Aet not later than 3 years afar the edceote sae of
tNs 4ase resdaawrten.
The Ivor mervea the power m assent m or Drier she auapenaion of the
arms and tronditiona o[ this leue in accordance with- inter alia,
Secnon 39 of the Mineral Leanng Aet, 30 US.C, 209.
See. S. LOGICAL MINING UNIT IlAaln -Either upon approval by the
lessor of the lessee's application or at the dimtion of the lessor, this
lease shall bernme as LMU or pan of an LMU, subject to the provutona
set forth is the tegulationL
The stipttlaoons eaubliahed in an LtifU approval in effect at the tulle of
LNU aDProval will supersede the relevant imm~a,sunt terms of the
lame w long m the lame remains rnmmittor to the [.MU. If the LNU of
which this lease is a Dan u dissolved. the lease shell then be auhjeet to
the Itsae urma which would nave been applied if the lease iiad not been
included in an LNIi.
1c ~1 O p 6 , I trev 2- 8B