PERMFILE136891

• Permit No: C1981012A
• IBM Index Class Name: Permit File
• Doc Date: 12/11/2001
• Doc Name: ENVELOPE C-1
• Section_Exhibit Name: EXHIBIT 34 RIGHT OF ENTRY PART 2
• Media Type: D
• Archive: Yes

additional diversions of the 83CLV131 Water shall be limited to that amount of
water, when added to diversion under the Water Rights, necessary to provide
Pickettivire with a total of 250 acre feet during that year.
2. Term of Lease
a. This Agreement shall commence on the date first written above
and shall continue for a term of ten years, provided that Picketwire may
extend the term for two additional ten-year terms by giving notice to NCE
prior to the end of the then-current term, but such right to extend shall only
exist if Picketwire, or its successors and assigns, is operating the facility now
known as the New Elk coal preparation plant in Las Animas County,
Colorado (the "Prep Plant").
b. After June 30, 2001, this Agreement will terminate with no
further action required by NCE if Picketwire fails to conduct operations at the
Prep Plant for a period of 365 consecutive days. In calculating the 365
consecutive days, days on which Picketwire is prevented from conducting
operations by events of Force Majeure shall not be counted. Force Majeure
shall include all matters beyond the reasonable control of Picketwire,
including but not limited to, acts of God, riots, labor strikes, insurrection, war,
and floods. Should an event of Force Majeure arise, Picketwire will use good
faith efforts to eliminate said event as soon as reasonably practical.
c. Picketwire may elect to terminate this Agreement by giving NCE
written notice of termination within 180 days of the date of termination and
specifying the date of termination.
3. P~rnents to NCE. As fuli and complete compensation to NCE Eor the
rights granted Picketwire herein, Picketwire shall pay NCE the sum of Fifteen Cents
($0.15) per ton of clean coal produced from the Prep Plant on or before the 10th day
of January of each year this Agreement remains in place.
4. Use. Picketwire agrees to divert and use the leased Water Rights and
the 83CW131 Water solely for coal beneficiation purposes at the New Elk facility and
to the fullest extent reasonable and consistent with the terms of the Water Rights
and with normal coal processing practices. Provided that Picketwire is in
compliance with the terms of this provision, Picketwire shall not be liable to NCE
for loss or diminishment of the Water Rights by virtue of the abandonment or
alleged abandonment of the same. Picket~vire shall have the right with NCE's
approval (which shall not be unreasonably withheld) to apply for changes of use,
changes in place of diversion and other modifications to the Water Rights necessary
for Picketwire's use of the 6Vater Rights at the New Elk facility, and NCE agrees to