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JAN. -06' 04 (TUE) DB; 29
<br />P. 003
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<br />I•_J
<br />Part II. TERMS AND CUNUITIUNS
<br />Sec. I. (a) RENTAL RaT>r -Lassen shall pqy lessrn' rental
<br />annually and in advance I'nr each acre or fraction thereof dtuing
<br />the cantinunnce of the lease at the rate of $3.00 I'nr vacit Icasc
<br />year.
<br />(h) RENTAI. CREDITS -Rental shall oar be a•edited
<br />against either production or advance royalties Inr any year.
<br />whialt would hove been uppliad if the lease had not been inoludud
<br />in an 1-M U.
<br />Sec.fi. DOCUMENTS,EVIUENCLtANDINSPECT]ON-A[
<br />such times and in such form as Lessor may prescribe, I-essee
<br />shall flu•nish demi led stuemenls showing the amounts and quality
<br />of all products removed and sold from the ]ease, the proceeds
<br />rheretl•c,m, and the amount axed for production purposes or
<br />unavoidably lust.
<br />Sec. 2. (a) PRODUCTTON RUYALTILIS -The royalty shall
<br />he B.U percem of the value of [he rapt as scr forth in the
<br />regulations. Royalties ore due to Lessor the final day of the
<br />month succeeding the calendar month in which the royalty
<br />obligmion accmes.
<br />(h) apvalVCG ROYALTIL+S' - Upan request by the
<br />Lessee, the nuthnrizud officer may accept, for a total of nut mart
<br />shun lU yeah, the payment of advance royalties in lieu of
<br />continued operation, consistent with the ret,+ulntiotts. The
<br />advance royalry shall he based on a percunl of the value of a
<br />minimum number of tans determined in the manner established
<br />by the advance royalry t•egn Minns in effect n[ [hc time the I-essee
<br />rzgn[ >-s approval to pay advance royahies in lieu of continued
<br />operation.
<br />Soc. 3. DONDS - Lasser sltnll maintain in the proper ofhce a
<br />leuso bond in the amount of $3,533,000. The authorized ollicer
<br />may require an increase in [his amount when additional coverage
<br />is daterminui appropriate.
<br />Sec, q, Df LIC;ENCE -This lease is suhjcet to lhz conditions of
<br />diligent development and roof inucd opera[ien, except drat these
<br />conditions are excused when opemtions under the Icase are
<br />interrupkd by so-ikes, the elements, of casualtien nut attributable
<br />rn the Lessee. The lessor, in the public interest, nwy suspend the
<br />uutdirion of continued operation upon payment of advance
<br />royalties in accordance wish the regulations in existence nt [he
<br />lime of the suspension. Lessee shall submit an amended
<br />operation and reclamation plan pursuant to Section 7 of the Ac[
<br />(3U U.S.C. 2U7(c) within 3 years of the date of modincutiun ur
<br />prior ro approval to commence mining operarinns.
<br />Lcssar reserves the power to assent to or order dte suspension of
<br />the [cans and conditions oFthis lease in aceardance with, lllLC
<br />olio, Section 39 of the Mineral Leasing Act, 30 U.S.C. 209.
<br />Sec. 5. LOFICAI, MINING UNIT (LM11U) - Either upon
<br />ap(,rnvul by the lessor of chc lessee's application or at the
<br />direction uC the lessor, this Itase 5ha11 beatmc par[ of an L.NILI,
<br />subject w [he provisions set forth in the regulations. 1'he
<br />stipulations esWblixhed in nn LML1 approval in el'fecl m the Lima
<br />of LMU sppraval ur maditicution will supersede dte rctcvan[
<br />inuonsistem terms of dtis lease so lonb ~ the louse remains
<br />committed to the LMIJ. If dte T-MU of which this lease is a pan
<br />is dissolved, [he IL[ISC .hall then be subject to rite Icase [eons
<br />Lessee shall keep open al all rcasongble times for the inspection
<br />of any duly nuthrn'ized officer nl'Lussor, the tensed premises and
<br />all surface and underground itnptnvements, works, machinery,
<br />ore stoc6piles, equipment, and ell books, ncconn[s, maps, and
<br />records rclglive lu uperallnnR, surveys, or investigations on rn•
<br />under the !cased Innds.
<br />l.eesee shall allow lessor access to and copying of documents
<br />reasonably necexsary m verify Lessee compliance with terms and
<br />conditions of the lease.
<br />While this Icnse remains in effect, information obtained under
<br />this section shall be closed In inspection by the public )n
<br />accordance with the Frccdom of Information Aedon (5 U.S.C.•
<br />552).
<br />Sec. 7, DAMAGFiS TO PROPERTY AND CONDUCT OF
<br />OPERATIONS -Lessee shall comply at its own expense wish
<br />all rcusonahle orders of the Suretary, respecting diligent
<br />operations, prevention of waste, and protection of other
<br />feanuree9.
<br />Lessee shall not conduct exploration npcrauons, other than
<br />casual use, withnut nn approved explnra[inn plan. All
<br />exploration plans prior m the cortunencement of ruining
<br />operations within an approval mining permit area shall he
<br />submitted w the auchurizcd officer.
<br />Lessee shall carryon all opemrions in ncmrdance with approved
<br />methods and practices as provided in the operating regulations,
<br />having due regard fur the provencien of injury [n life, health, or
<br />prnpurty, and prevcmion oC waste, damage nr dugradntinn any
<br />land, air, water, cultural, biological, visual, and other resources,
<br />including mineral deposit: and formations ni' mincntl deposits
<br />nor leased hereunder, and to other land uses ur users. LeRSee
<br />sltnll take measures deem[>i ne«ssary by lessor to accomplish
<br />lheintemufdtislcuseretmt. Suehmea»u•esmayindudc,hutnol
<br />limited to, modification ro proposed siting or design nl' Ihril logs,
<br />timing of aperacigns, and speeifica[inns of interim and final
<br />reclamniinn prcucdures. Leeaor rd6arvo: to itsull the ril{hr [o
<br />lease, sell, or otherwise dtspoae of the surface nr other rninera~
<br />deposits in the lands and the right to coutinuu existing uses and t
<br />authorize future u;es upon or in the Iwsed tends, including
<br />issuing leases Fnr mineral deposits oat covered hereunder anti
<br />approving easements ur rightsrof--way. Lesser shall condition
<br />suuh aces to prcvanl unnecessary or unreasonalale interference
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