|
y... t .
<br />Form 340612 Serial Number
<br />(April 19841 UNITED STATES
<br />'F^^e~lY 11t01' DEPARTMENT OF THE INTERIOR
<br />' BUREAU OF LAND MANAGEMENT C-44693
<br />COAL LEASE
<br />PART 1. LEASE RIGHTS GRANTED
<br />Thie lease, enured into by and between the UNtreo STATES of AMERICA. hercinsfur tolled leeeor, through the Bureau of Land Management and
<br />!Name scut Address! Western Fuels-Utah, Inc.
<br />Magruder Building
<br />1625 M Street, N. W,
<br />Washington, D. C. 20036
<br />hereinafter called lessee; is effective SEP I ~9~ , for a period of 20 years and Cor so long thereafur as coal is produced in commercie!
<br />quantitieB from the leased lends, subject to readjustment of lease acme et the end of the 20th lease year and each 10.year period thereafter.
<br />Sec. 1. This lease is issued pursuant and subject u the arms and provisions of the:
<br />(rJ Mineral lands Leasing Act oT 1920, AM of February 25, 1920, ae amended, 4l Stat. 437, 30 U.S.C. 181.287, hereinafui• referred to ae the Att;
<br />~ Mineral Leasing Act for Acquired Lands, Aet of August 7, 1947, 61 Stet. 913, 30 U.S.C. 35]359;
<br />and to the regulations end formal orders of the Secretary of the Interior which are now or hereafur in force, when not inconeisunt with the express
<br />and specific provisions herein.
<br />Sec. 2. Lessor, in consideration of any bonuses, rents, end royalties to be paid, and the ronditions end rovenante u be observed as herein set forth,
<br />hereby grants and leases to lessee the exclusive right end privilege W drill for, mine, extract, remove, or otherwise process and dispose of the root
<br />derxaite:ncx~xeamtxxda~alez>ac~ta~t+mtrt~mf>mrdIX recoverable by underground mining methods from the D
<br />seam in the following lands:
<br />T. 2 N., R. 101 W., 6th P,M.
<br />Sec. 1, Lots 1, 2, S, and 6, SWt-[NE~t, W~SF}aN&ta and N'~SE'~;
<br />T. 3 N„ R. 101 W., 6th P.M.
<br />Sec. 36, SWtiSEly and W~SEtzSE~.
<br />containing 344.31 acres, more or less, together with the right to conetruM such worlu, bnildiags, plants, structures, equipment and appliances
<br />and the right b use such on-leaserights-of-way which may be necessary and convenient in the exetdae of the rights and privileges granted, subject to
<br />the ronditiooa herein provided.
<br />PART 11. TERMS AND CONDITIONS
<br />Sec. 1. (al RENTAL RATE - Lessee shall pay lessor rental annually end
<br />in advance for each acre or traction thereof during the continuance of
<br />the lease at the rau of 8 3, QD for each lease year.
<br />(bl RENTAL CREDITS -Rental shell not be credited against either
<br />production or advance royalties for any year.
<br />Sec. 2. (al PRODUCTION ROYALTIES -The royalty shall be $ per-
<br />cent ofthe value of the coal as set forth in the regulations. Royalties ere
<br />due to lessor the final day of the month succeeding the calendar month
<br />in which the royalty obligation eccruee.
<br />(bl ADVANCE ROYALTIES -Upon request by the lessee, the authorized
<br />officer may accept, tar a total of not more than ! 0 yeere, the payment of
<br />advance royalties in lieu of continued operation, consisunt with the
<br />regulations. The advance royalty shall be based on a percent of the
<br />slue of s minimum number of tone determined in the manner
<br />~tablished by the advance royalty regulations in eflect at the time the
<br />see requesto approval to pay advance royalties io lieu of continued
<br />operation.
<br />See. 3. BONDS - Leaeee shall maintain in the propero[fice a lease bond
<br />in the amountofi S 0(~O.OD The authorized officer may require an
<br />increase in this amours when additional coverage is deurmined
<br />appropriate.
<br />Sec. 4. DILIGENCE -Thie lease is subject to the conditions of diligent
<br />development and roatin ued operation, except that these ronditioas are
<br />excused when operations under the lease ere interrupted by etrikea, the
<br />elements, or eaeualtia sot attributable u the lessee. The lessor, in the
<br />public inureat, may suspend the condition otcontinued operation upon
<br />payment of advance royalties in accordance with the rcgulatioae in
<br />exiaunce et the time of the euapeneion. Lessee's failure to produce coal
<br />in commercial quantities at the end of 10 years shall urminau the
<br />lease. Lessee shall submit an operation and reclamation plan punaant
<br />to Section 7 of the Act not lour than 3 years slur lease issuance.
<br />The lessor reserves the power u aeeent u or order the auapensioa o[ the
<br />arms and conditioos of this lease in accordance with, inur alia.
<br />Section 39 of the Mioerel I.eesing Act, 30 U.S.C. 209.
<br />Sec. 5. LOGICAL MINING UNIT (LMU} - Eifher upon approval by the
<br />lessor of the leeaee i application or at the direction o[ the lessor, this
<br />lease shall become an LMU or pan of an LMU, subjectu the provisions
<br />set forth in the regulations.
<br />The etipuletione eatabliehed in m LMU approval in effect at the time of
<br />LMU approval will supersede the rclevent inroruisunt arms of this
<br />lease so long as the lease remains committed to the LMU. If the LMU of
<br />which this lame is a pert ie dissolved, the lease shall thm be subject to
<br />the lease arms which would have been applied if the lease had not been
<br />included in an LMU. ~ r-,C ti ~ t-
<br />~'lr..~ .. ~ t.
<br />
|