PERMFILE136854

• Permit No: C1981023
• IBM Index Class Name: Permit File
• Doc Date: 12/11/2001
• Section_Exhibit Name: EXHIBIT 1 FEDERAL LEASE C-34886
• Media Type: D
• Archive: No

• _~ 1 II - - ` .COAL LcASE~ l ... -
THIS INDENTURE OF LEASE, made and entered into this ~S
day of November, 1975, by and between Frank Martinez, life
• '
• tenant, and Benjamin R. Munoz and his wife, Genevieve Hunoz~
• and D:el T;artinez and his wife, Lucy Martinez, remainder man,
hereinafter referred to as Lessors, and C. and F. Coal ~CO., Inc.
a Colorado Corporation, hereinafter referred to as Lessees.

WITNESS£TH:
Whereas, Lessors are the owners of and have the right to
mine and remove the coal underlying the following described real
estate:
II ~ ~ ~ SW ~ NW ~ of S.e e. 29 and SE ~ NE it of
See. 30, TWP. 34 North, Aange 4 Hest,
South of the Vte line.
WHEREAS, Lessee desires to mine and remove the coal under-
lying said real estate upon the teens and conditions hereinaft
set forth and Lessors desire to lease the same to Lessee for
said purpose: ,
NOW, THE REFOftr, in .consideration of One Dollar ($1.00) and
• other valuable considerations, the receipt and sufficiency of
which is hereby acknowledged, Lessors hereby grant and Lease to
Lessee the eaclvsive right to slope, shaft, deep mine, strip an
remove coal from the real estate described herein upon the
following terms and conditions:
1. This lease shall be in full force and effect for a
period ten (10) years from and after the date hereof,
and as much longer as coal may be profitable produced.
2.. Lessee agrees to pay four thousand dollars t$4,000) .
~ per year beginning January 1, 1976 on the described lands
as minimum royalty, and yearly thereafter or until this
lease is terminated as hereinafter set forth. Said minima
shall be credited with regular monthly royalty payments
of fifty cents ($.50) per ton of coal mined and delivered.
1 3. Vnon payment of the foregoing lease amounts by Lessee
~ for all herein described real estate, Lessor hereby grants
to Lessee permission to explore by drilling or any other
acceptable method in order to evaluate the coal reserved
on any or all of the described property.
4. Lessee shall pay to Lessors a production royalty of
fifty cents per ton (based upon 2,000 pounds per ton)
for all merchantable coal mined and shipped from the real
,estate described herein or shipped from storaoe on propert
adjacent thereto. Such production royalty shall be pay-
. ~ able no later than the 20th day of the month following the
calendar month in which such coal is mined removed and
i ~ shipped. Sn~determining the royalties payable hereunfier,