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<br />Sec. 6. DOCUMENTS, EVIDENCE AND INSPECTION - At such times and in
<br />such form as lessor may prescribe, lessee must furnish detailed statements
<br />showing the amounts and quality of all products removed and sold from the
<br />lease, the proceeds therefrom, and the amount used for production purposes or
<br />unavoidably lost.
<br />Lessee must keep open at all reasonable times for the inspection by BLM the
<br />leased premises and, all surface and underground improvements, works,
<br />machinery, ore stockpiles, equipment, and all books, accounts, maps, and
<br />records relative to operations, surveys, or investigations on or under the leased
<br />lands.
<br />Lessee must allow lessor access to and copying of documents reasonably
<br />necessary to verify lessee compliance with terms and conditions of the lease.
<br />While this lease remains in effect, information obtained under this section will
<br />be closed to inspection by the public in accordance with the Freedom of
<br />Information Act (5 U.S.C. 552).
<br />Sec. 9. (a) TRANSFERS
<br />This lease may be transferred in whole or in part to any person,
<br />association or corporation qualified to hold such lease interest.
<br />0 This lease may be transferred in whole or in part to another public body
<br />or to a person who will mine coal on behalf of, and for the use of, the
<br />public body or to a person who for the limited purpose of creating a
<br />security interest in favor of a lender agrees to be obligated to mine the
<br />coal on behalf of the public body.
<br />? This lease may only be transferred in whole or in part to another small
<br />business qualified under 33 CFR 121.
<br />Trawlers of record title, working or royalty interest must be approved in
<br />accordance with the regulations.
<br />(b) RELINQUISHMENT - The lessee may relinquish in writing at any time all
<br />rights under this lease or any portion thereof as provided in the regulations,
<br />Upon lessor's acceptance of the relinquishment, lessee will be relieved of all
<br />future obligations under the lease or the relinquished portion thereof,
<br />whichever is applicable.
<br />Sec. 7. DAMAGES TO PROPERTY AND CONDUCT OF OPERATIONS -
<br />Lessee must comply at its own expense with all reasonable orders of the
<br />Secretary, respecting diligent operations, prevention of waste, and protection of
<br />other resources.
<br />Lessee must not conduct exploration operations, other than casual use, without
<br />an approved exploration plan. All exploration plans prior to the commencement
<br />of mining operations within an approved mining permit area must be submitted
<br />to the BLM.
<br />Lessee must carry on all operations in accordance with approved methods and
<br />practices as provided in the operating regulations, having due regard for the
<br />prevention of injury to life, health, or property, and prevention of waste, damage
<br />or degradation to any land, air, water, cultural, biological, visual, and other
<br />resources, including mineral deposits and formations of mineral deposits not
<br />leased hereunder, and to other land uses or users. Lessee must take measures
<br />deemed necessary by lessor to accomplish the intent of this lease term. Such
<br />measures may include, but are not limited to, modification to proposed siting or
<br />design of facilities, timing of operations, and specification of interim and final
<br />reclamation procedures. Lessor reserves to itself the right to lease, sell, or
<br />otherwise dispose of the surface or other mineral deposits in the lands and the
<br />right to continue existing uses and to authorize future uses upon or in the leased
<br />lands, including issuing leases for mineral deposits not covered hereunder and
<br />approving easements or rights-of-way. Lessor must condition such uses to
<br />prevent unnecessary or unreasonable interference with rights of lessee as may be
<br />consistent with concepts of multiple use and multiple mineral development.
<br />Sec. 8. PROTECTION OF DIVERSE INTERESTS, AND EQUAL OPPORTU-
<br />NITY - Lessee must: pay when due all taxes legally assessed and levied under
<br />the laws of the State orthc United States; accord all employees complete
<br />freedom of purchase; pay all wages at least twice each month in lawful money
<br />of the United States; maintain a safe working environment in accordance with
<br />standard industry practices; restrict the workday to not more than 8 hours in any
<br />one day for underground workers, except in emergencies; and take measures
<br />necessary to protect the health and safety of the public. No person under the age
<br />of 16 years should be employed in any mine below the surface. To the extent
<br />that laws of the State in which the lands are situated are more restrictive than the
<br />provisions in this paragraph, then the State laws apply.
<br />Lessee will comply with all provisions of Executive Order No. 11246 of
<br />September 24, 1965, as amended, and the rules, regulations, and relevant orders
<br />of the Secretary of Labor. Neither lessee nor lessee's subcontractors should
<br />maintain segregated facilities.
<br />Sec. 15. SPECIAL STIPULATIONS
<br />Sec. 10. DELIVERY OF PREMISES, REMOVAL OF MACHINERY,
<br />EQUIPMENT, ETC. - At such time as alt portions of this lease are returned to
<br />lessor, lessee must deliver up to lessor the land leased, underground timbering,
<br />and such other supports and structures necessary for the preservation of the
<br />mine workings on the leased premises or deposits and place all workings in
<br />condition for suspension or abandonment. Within 180 days thereof, lessee
<br />must remove from the premises all other structures, machinery, equipment,
<br />tools, and materials that it elects to or as required by the BLM. Any such
<br />structures, machinery, equipment, toots, and materials remaining on the leased
<br />lands beyond 180 days, or approved extension thereof, will become the
<br />property of the lessor, but lessee may either remove any or all such property or
<br />continue to be liable for the cost of removal and disposal in the amount
<br />actually incurred by the lessor. If the surface is owned by third parties, lessor
<br />will waive the requirement for removal, provided the third parties do not object
<br />to such waiver. Lessee must, prior to the termination of bond liability or at any
<br />other time when required and in accordance with all applicable laws and
<br />regulations, reclaim all lands the surface of which has been disturbed, dispose
<br />of all debris or solid waste, repair the offsite and onsite damage caused by
<br />lessee's activity or activities incidental thereto, and reclaim access roads or
<br />trails.
<br />Sec. 11. PROCEEDINGS IN CASE OF DEFAULT - If lessee fails to comply
<br />with applicable laws, existing regulations, or the terms, conditions and
<br />stipulations of this lease, and the noncompliance continues for 30 days after
<br />written notice thereof, this lease will be subject to cancellation by the lessor
<br />only by judicial proceedings. This provision will not be construed to prevent
<br />the exercise by lessor of any other legal and equitable remedy, including
<br />waiver of the default. Any such remedy or waiver will not prevent later
<br />cancellation for the same default occurring at any other time.
<br />Sec. 12. HEIRS AND SUCCESSORS-IN-INTEREST - Each obligation of this
<br />lease will extend to and be binding upon, and every benefit hereof will inure
<br />to, the heirs, executors, administrators, successors, or assigns of the respective
<br />parties hereto.
<br />Sec. 13. INDEMNIFICATION -Lessee must indemnify and hold harmless the
<br />United States from any and all claims arising out of the lessee's activities and
<br />operations under this lease.
<br />Sec. 14. SPECIAL STATUTES - This lease is subject to the Clean Water Act
<br />(33 U.S.C. 1252 et seq.), the Clean Air Act (42 U.S.C. 4274 et seq.), and to all
<br />other applicable laws pertaining to exploration activities, mining operations
<br />and reclamation, including the Surface Mining Control and Reclamation Act of
<br />1977 (30 U.S.C. 1201 et seq.).
<br />See Attachment `A; and Appendix A.
<br />r:
<br />(Continued on page 3) (Form 3400-12, page 2)
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