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wasting of recoverable coal reserves. Damages <br />shall be measured on the basis of the royalty <br />that would have been payable on the wasted or <br />unrecovered coal. <br />(2) The parties recognize that under an <br />approved R2P2, conditions may require a <br />modification by the operator/lasses of that plan. <br />In the event a coalbed or portion thereof is not <br />to be mined or is rendered unmineaBle by the <br />operation, the operator/lessee abitIl submit <br />appropriate justification to obtain approval by <br />the (AO) to leave such reserves unmined. Upon <br />approval by the A0, such coalbeds or portions <br />thereof shall not be subject to damages as <br />described above. Further, nothing in this <br />section shall prevent the operator/'.essee from <br />exercising its right to relinquish all or portion <br />of the lease as authorized by statute and <br />regulation. <br />(3) in the event the AO determines that <br />the R2P2, as approved, will not attai=AM as the <br />result of changed conditions, the AO will give <br />proper notice to the operator/losses as required <br />under applicable regulations. The AO will order <br />a modification if necessary, identifying <br />additional reserves to be mined in order to <br />attain MM. Upon a final administrative or <br />judicial ruling upholding such an ordered <br />modification, any reserves left unmined (wasted) <br />under that plan will be subject to damages as <br />described in the first paragraph under this <br />section. <br />(4) Subject to the right to appeal <br />hereinafter set forth, payment of the value of <br />the royalty on such unmined recoverable coal <br />reserves shall become due and payable upon <br />determination by the AO that the coal reserves <br />have been rendered unmineable or at such time <br />that the operator/lessee has demonstrated an <br />unwillingness to extract the coal. <br />(5) The SLh! may enforce this provision <br />either by issuing a written decision requiring <br />payment of the =9 demand for such royalties, or <br />by issuing a notice of non-compliance. A <br />decision or notice of non-compliance issued by <br />the lessor that payment is due under this <br />stipulation is appealable as allowed by law. <br />THE MUTED STATES OF AMERICA <br /> <br />m on of Energy, Lands and Minerals <br />mpu-orr-aido State Director <br />(! ?- State office <br />Date: /e) ??