|
., 11/lY/GVVO ia:to raa f.oiuxxxuxy JAGLL Vi L. L?iVt?L
<br />preference lease area for this lease is described as
<br />follows.
<br />T_ 1 S., R. 98 W., 6a' P.M.
<br />Sec. 32, E%, and E'hW%.
<br />T. 2 S., R. 98 W., Oh P.M.
<br />Sec. 3, lots 2 through 4, lots 15 through 20,
<br />SWANS'/., SihNWP/s, and N'hSW1/;
<br />Sec. 4, Lots 5 through 8,11 through 14, and 17
<br />through 20;
<br />Sec. 5, Lots 1 through 3, SV/zNE'/, SEV4NW%,
<br />NEB iSWV4, NIASEI/•, and S'hS'/s;
<br />Sec. 8, all;
<br />Sec. 9, N'h, NV2SWI/4, and NW'/4SEV4;
<br />Sec. 10, Lots 1 through 8, and SINS h;
<br />Sec. 11, NW"/4W/4, S1/31M a, W'hSW ANE'/s,
<br />SEl/•SWI/4NEV4, MAMA, and SKSth:
<br />Sec. 12, Lots 17, and 18;
<br />Sec. 13, Lots 3 through 6, NfiSWI/;
<br />Sec. 14, Lots 1 through 8, and N'hSVh;
<br />Sec. 15, Lots 1 through 3, and Lots 6 through 8.
<br />Containing 4,965.99 acres, more or less.
<br />(f) "Shale oil" means synthetic petroleum derived
<br />from the destructive distillation of oil shale.
<br />Section 2. Grant to Lessee
<br />The Lessee is hereby granted, subject to the terms of
<br />this lease, the exclusive right and privilege to prospect
<br />for, drill, mine, extract, remove, beneficiate,
<br />concentrate, process and dispose of the oil shale and
<br />the products of oil shale contained within the Leased
<br />Lands as proposed in the nomination submitted in
<br />response to the Federal register notice of June 9,
<br />2005. In accordance with plans of operation
<br />approved pursuant to section B. the Lessee may utilize
<br />or dispose of all oil shale and oil shale products,.
<br />together with the right to construct on the Leased
<br />Lands all such works, buildingg, plants, structures,
<br />roads, power lines, and additional facilities as may be
<br />necessary or reasonably convenient for the mining,
<br />extraction, processing, and preparation of oil shale
<br />and oil shale products for market. The Lessee has the
<br />right to use so much of the surface of the Leased
<br />.a va. , .....
<br />Lands as may reasonably be required in the exercise
<br />of the rights and privileges herein granted.
<br />Section 3. Lessor's Reserved Interests in the Leased
<br />Lands
<br />The Lessor reserves:
<br />(a) The right to continue existing uses of the leased
<br />lands and the right to lease, sell, or otherwise dispose
<br />of the surface or other mineral deposits in the lands
<br />for uses that do not unreasonably interfere with
<br />operations of the Lessee under this lease. (b) The
<br />right to permit for joint or several use, such easements
<br />or rights-of-way, including easements in tunnels or
<br />shafts upon, through, or in the Leased Lands, as may
<br />be necessary or appropriate to the working of the
<br />Leased Lands or other lands containing mineral
<br />deposits subject to the Mineral Leasing Act of 1920,
<br />and the treatment and shipment of the products
<br />thereof by or under authority of the Lessor, its lessees,
<br />or permittees, and for other public purposes. Lessor
<br />shall condition such uses to prevent unnecessary or
<br />unreasonable interference with rights of the Lessee.
<br />Section 4. Lease Term
<br />The lease is issued for a term of ten years with the
<br />option for an extension not to exceed five years upon
<br />demonstration to the satisfaction of the authorized
<br />officer that a process leading to production in
<br />commercial quantities is being diligently pursued,
<br />consistent with the schedule specified in the approved
<br />plan of development. The lease is subject to
<br />conversion to a twenty-year lease under the
<br />conditions specified in section 23.
<br />Section 5. Rentals: Non-commercial Production
<br />The Lessee shall pay the Lessor the statutorily
<br />established annual rental in advance for each acre or
<br />fraction thereof during the continuance of the lease of
<br />52.00. Rental is payable annually on or before the
<br />anniversary date of the lease beginning the a year of
<br />the lease. Rental is waived for the first 5 years of the
<br />lease. The failure to pay rental by the anniversary
<br />date shall be grounds for termination of the lease.
<br />2
|