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UNT[ED STATES Sa W Number
<br />DEPARTNCENTOF THE RTMOR 4r,. i
<br />BUREAU OF LAND MANAGEMENT Cr UP. C.0120057
<br />Preference Right Sodium Lease
<br />PART 1. LEASE RIGHTS GRANTED.
<br />Thislease,enteredintobyandbetweeatheUNI ED STATES OF AMERICA, through theBureauofLandbUn c, hereinaftercalledlessc
<br />atd (1002) 2535 South Colorado Blvd., Denver, CO 80219
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<br />hereinafter called lessee, is effective Rp fors period of 20 years, with pteftoential right in the lessee to renew for sucressi
<br />periods of 10 years under such teems aanndd conditions as may be prt<scribed by the Socrztary of the Inaerior, unless o€ twine provided by law
<br />the r. gkration of any period, and provided that the sodium is being produced in paying quantities at the end of the initial 20-year period and
<br />renewed, at the end of each succesdve 10-yen period.
<br />Sea 1. This lease is issued pursuant and subject to the am and ptovhdons of the Mineral Leasing Act of 1920, as atne€tded and supplcmente
<br />41 Stat. 437.34 U.S.C.181 287. hereinafter referred m as the Act; and to the regulatim and formal orders of the Secretary of the interior whi
<br />are now or hereafter in fore, spocifically induding, but not limited to. 43 GFR 23 (to the saute c own as if the operations under this lease we
<br />surface mining), 3540. 3520, and 3590, when not incorrsistetu with due express and specific provisions herein.
<br />Sec. 2. Lessor. in consideration of rents and royalties to be paid, and the conditions and covenants to be observed as herein set forth. hereby guar
<br />and leases to lessee the eacludve right and privilege to explore for,.drill for. mine, extract, remove, beneficiam. concaauate, or otherwise prose
<br />anddisposeof the sodium depositsm tttcSalineZonc, h=mafterrdaradtoas"kaseddeposits." in, upon. orunderthefollowingdescriibedlane
<br />T. 2 S.. R. 98 W„ 6th P.M.
<br />sec. 3. lots lb to 19, incladve;
<br />sec. 4. fors 5 to 2d.. inclusive;
<br />sec. S. lots i to 3. inclusive, S'MEK, SE'ANW A NEKSW'/., S'hSW'/+, and SE'/.;
<br />sec. 8, at
<br />sec. 9, NW A, SW'/4NEV4, and SIANWY4,
<br />containing 2186.76 acres, more or less, together with the right to consn ct such work, buddings, plates, structures, equipment, and applianc
<br />and the right to use such orwease rights-of-way which maybe necemy xrdconvenient in the exerciseof the€ights andprivtileges granted, sub?
<br />to the conditions herein provided
<br />Sec. 3. DEFI1ti MONS. The following definitions shall be used in the inuMetation of this tease:
<br />(a) "M Shale" is a fine-grained sedimentary rack containing organic matter which was derived chiefly from aquatic organisms or waxy spa
<br />orpollen grains. which isonly slightly soluble in ordinary petroleum solvents,andofwhichalarge proportion isdistillableintoartificial petrol=
<br />This term is applicable to any argillaceous, carbonate, or siliceous sedimentary rock which will yield oil upon destructive distillation. In this leap
<br />"destructive distillation" means the process of decomposition of oil shale where heat is applied to a temperature at which the hydrocarbons z
<br />converted to vapors and/or liquids.
<br />(b) "Satire Zone" in this leasd paeans the lower pan of the Parachute Creek Member of the Green River Formation in the Piceance Creels Bas:
<br />the top ofwhich zone: isdefined atanypoint by the characteristic"dissolution sudace"and the bottom ofwhich is defined atany point by thehoriz+
<br />marker designated as the "Blare Marker," which forms the approximate base of the Parachute Creek Member.
<br />(c) "Leased deposits" means (1) all sodium compounds and any related products thereof in the Saline Zone not intermingled with oil shs
<br />averaging 25 gallons of shale oil or more per ton of rock mined (hereinafter referred to as "25 g.p.t. oil shale"), such average to be detwain
<br />monthly foreach calendar month by modified Fischer assays of the rock mined byre forprocessingorbenefieiation by any method, and(2) ;
<br />sodium compounds and any related products within the Saline ?.one which arc intermingled with 25 g.p.L oil shale and which can be mine
<br />extracted, processed, bcneticiated, used. and disposed of without the destnxiive distillation of the 25 g p.t. oil shale and without significant
<br />changing the composition of the 25 g.p.t. oil shale or rendering it more unsuitable in any material respectfordevelopment, retorting, processen
<br />use, or disposition. As used herein, the term "related products" shall, in no event, include oil shale.
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