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^^ 3 n.... ,?,.?_::, a• y <br />i. .n+.rsr _.i__?..v x. :xx.....,. .e_...-1.4dv.i!.a 6.. . 41? >,..::....._.. _-?_.?..::x_.' .... ....v-?.6._?. <br />United States <br />Department of the Interior <br />Bureau of Land Management Serial Number <br />Coal Lease Addendum COC-67232 <br />Coal Lease COC-67232 is hereby amended by this addendum: <br />PART I. LEASE RIGHTS GRANTED <br /> <br />Sec. 3: Notwithstanding the language in Sec. 2 of this tease and subject to the terms and <br />conditions below, lessee is authorized to drill for, extract, remove, develop, produce and <br />capture for use or sale any or all of the coal mine methane from the above described lands <br />that it would otherwise be required to vent or discharge for safety purposes by applicable <br />laws and regulations. For purposes of this lease, "coal mine methane" means any <br />combustible gas located in, over, under, or adjacent to the coal resources subject to this <br />lease, that will or may infiltrate underground mining operations. <br />Sec.4. Notwithstanding any other provision of this lease, nothing herein shall, nor shall it <br />be interpreted to, waive, alter or amend lessee's right to vent, discharge or otherwise <br />dispose of coal mine methane as necessary for mine safety or to mine the coal deposits <br />consistent with permitted underground mining operations and federal and state law and <br />regulation. Lessee shall not be obligated or required to capture for use or sale coal mine <br />methane that would otherwise be vented or discharged if the capture of coal mine <br />methane, independent of activities related to mining coal, is not economically feasible or <br />if the coal mine methane must be vented in order to abate the potential hazard to the <br />health or safety of the coal miners or coal mining activities. In the event of a dispute <br />between lessor and lessee as to the economic or other feasibility of capturing for use or <br />sale the coal mine methane, lessor's remedy as a prevailing party shall be limited to <br />recovery of compensatory royalties on coal mine methane not captured for use or sale by <br />lessee. Lessee shall have the right to continue all mining activities under this lease, <br />including venting coal mine methane, pending resolution of any dispute regarding the <br />application of the terms of Sections 3 and 4. <br />PART U. TERMS AND CONDITIONS <br />W c..sj Sec.2 <br />u- <br />'ii 0 <br />LU (c) COAL MINE METHANE OPERATIONS AND ROYALTIES - Notwithstanding the <br />? -1' language in Part 11, Sec. 2 (a) of this lease, the royalty shall be 12.5 percent of the value <br />p 1- -& of any coal mine methane that is captured for use or sale from this lease. For purposes of <br />c, this lease, the term "capture for use or sale ' shall not include and the royalty shall not <br />L) °o apply to coal wine methane that is vented or discharged and not captured for the <br />c-+ economic or safety reasons described in Part I, Sec. 4 of this lease. Lessee shall have no <br />obligation to pay royalties on any coal mine methane that is used on or for the benefit of