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Form 340D•12
<br />• {February 2{IDS)
<br />UNITED STATES
<br />DEPARTMENT OF THE INTERIOR
<br />BUREAU OF LAI~Z3 MANAGEMENT
<br />COAL LEASE
<br />FORM APPROVED
<br />OEvtB NO. 1004-0073
<br />Expires: January 31, 2007
<br />.Number
<br />COC-67232
<br />PART 3.. LEASE RIGHTS GRANTED
<br />This lease, entered into by and between the IJIv'[TED STATES OF AMERICA, hereinafter called lessor, thmu=h thz Bureau of Cand Management (BLMj, and
<br />{Name and Addrrss}
<br />Ark Land Company. One CityPlace Dr., Ste.300, St. Louis, MS 63141
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<br />hereinafter caned lessee, is elI'ective 03/01/2D07 , far a period of 20 years and for so long thereafter as coal is produced in commercial quantities from the lease! lands,
<br />subject m rradjustmettt of lease teens at the end of the ?0th Tease year and each 1 D-year period thereafter.
<br />Sec. !.This lease is issued purnrdtrt and subject to the terms anti provisions of the:
<br />Mineral Lands L,earing Act of 1920, Act of February 25,1920, as amended, 41 Stat. 437, 30 U.S.C. 181-287, hereina: - r referst:d to as the Act;
<br />Mineral Lt=acing Act for Acquired Lands. Act of August 7,1947, 61 Stet. 913, 30 U.S.C. 351-359;
<br />and to the regulations and formal orders of the Secretary ofthe Interior which are now or hcrrafter is force, when not inconsistent with the express and specific
<br />provisions heroin.
<br />Sec. 2. Lessor, in consideration of any bonuses, rents, and royalties to be paid, and the conditions and covenants to be observed' as herein set forth, hereby grants and
<br />)eases to lessee the exclusive right and privilege to drill for, mine, extrect, remove, or otherwise process and dispose of the coat de:posiu in, upon, or under the following
<br />descn'bed lands:
<br />T, 13 5., R. 90 W., 6m P_M.
<br />sec. 35, cots 5 through 7, inclusive, and loo 9 through 16, inclusive, less and except land in coal leases C-i 362 and COC-56447, as modified;
<br />sec. 36, W 1/25W li4NW 1/4, and W 1/25 W 114, less and except Sand in coat lease COC-16447, as modified.
<br />7. 14 S., R. 90 W.; 6°' P.M.
<br />sec. t, cots 3, 4, S 1l2NW 114, S W 1/4, W L/2N W 1/45E114, and S W 1/45E1l4;
<br />sec. 2,1ots 1 through 4, inclusive, S] /2N 12, and S 112;
<br />sec. 11, N1/2N12;
<br />sec. 13, N 1i21+IW 114, and'NW r/41~E1!4.
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<br />Containing 1,517,13 acres, more or less, together ~s~ith the right to consuvc such works, buildings, plants, structures, equipment and appliances and the tight to use
<br />such oa-Iease rights-of--way which maybe necessary and convenient in the exercise of the righu and pm•ileges granted, subject to the conditions herein provided.
<br />PART II. TERMS AND C~NDl"T10NS
<br />Ser. ]. (a) RENTAL RATE -Lessee must pay lessor rental annually and in advance
<br />for each acre or fraction thereof during the continuance of the lease at the rate of
<br />$ 3.00 far each lease year.
<br />(b) RENTAL CRED]T5 -Rental will oat be credited against either production or
<br />advance royalties far any year.
<br />Sec. 2. (aj PRODUCT[ON ROYALTIES -'[lre royalty will be 8.0 percent of
<br />the value of the coal as set fonh in th.e regulations. Royalties are due to lessor the
<br />final day of the month succeeding the calendar month in which the royalty
<br />obligaiian accrues.
<br />(b) ADYAIr'CE ROYALTIES - L'pon request by the lessee, the BLM may accept, for
<br />a total of not more than 10 years, the pa}anent of advance royahies is lieu of
<br />continued operation, cotLSistent with the regurations. The advance royalty will be
<br />based on a percent of the value of a mirrimurn number of tons determined in the
<br />manner established by lire advance royalty regulations in effect at the time the lessee
<br />requests approval to gay advance ro}~alties in lieu of continued operation,
<br />Sec, 3. BONDS - I-essee must maintain in the proper office a lease bond in the
<br />amount of S 605,000.OD. The BLM may require an increase in dtis amount
<br />when additional coverage is determined appropriate.
<br />Sec. 4, DILIGENCE,-This lease is subject to the conditions of diligent development and
<br />continued operation, except that these c-0nditions are excused
<br />when operations under the lease are interrupted by strikes, the elements, or
<br />casuattip not attributable to the lessee. The lessor, in the public irrterest, may
<br />suspend the condition of continued operation upon pa}~ment of advance royalties
<br />in accordance with the regulations in existence at the time of the suspension.
<br />Lessee`s failure to produce coal in commercial quantities at the end of i 0 years
<br />will terminate the lease, Lessee must submit an operation and reclamation plan
<br />pursuant to Section 7 of the Act not later than 3 years after least issuance.
<br />The Lessor reserves the power to assent to or order the suspension of the
<br />temts and conditions of this Tease in accordance with, inter aria; Section 39 of
<br />the Mineral Leasing Act, 30 U.S,C. 2D4.
<br />5, LOGICAL MiNiNG UNiT (LMU) -Either upon approval by the Eessor ofthe
<br />lessee's application or at the direction of the )ester, this lease will become an
<br />LMU or part of an LMU, subject to the provisions set forth in the regulations.
<br />The stipulations established in an LMU approval in effect at the time of I MU
<br />approve} oil] supersede the relevant inconsistent teens of this (ease so long as
<br />the lease remains committed to the LMU. if the LMU of which this lease is a
<br />pari is dissolved, the lease will then be subjec[ to the Tease teams which would
<br />have been applied if the lease had not been included in an LMU.
<br />(Continued oa page 2)
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