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Sodium Lease C-0120057 Page 2
<br />Sec. 4. PROTEC"l'!ON OF OIL SHALE DEPOSITS. (a) Except as
<br />expressly provided in subsections (b), (c), and (d) below, the lessee
<br />shall not
<br />(1) utilize process solutions in excessof300degreesFahrenheitfor
<br />in situ solution mining of sodium compounds without the express
<br />permission of the authorized officer.
<br />of rode m' ed. but less than 25 gallons of shale oil per ton. such
<br />average to dete mined by modified Rwherassays. The lessee shall
<br />perform an processing or beneficiation in such a manner that sepa-
<br />rates from the leased deposes that quantity of contained organic
<br />matter to limit the shale ad content, if any, m not more than
<br />an average of 10 gallons per ton in the material removed from the
<br />leased
<br />(2) mine. extract, retort, process, use, or dispose of any oil shale, at
<br />organic matter or the products thereof contained in or derived heap
<br />any such oil shale, situated above, or below the Saline Zane in the Lands
<br />described in Sec. 2 above;
<br />(3) mine. extract, retort, process, use, or dispose of any 25 g.p.t. oil
<br />shale, arorganic matter or the products thereof contained in orderived
<br />from any such 25 g p.t. cal shale, sawated in the Saline Zane; or
<br />(4) use, remove from the leased premises, or dispose of any oil
<br />shale. ororganic Matta or the products thereof contained in or derived
<br />from any such oil shale, averaging more than 10 gallons of shale oil
<br />per ton from the Saline Zone, such average to be determined by
<br />modified Finches assays.
<br />(5)1t is expressly understood and agreed that the lessee shall not
<br />have any right to. and shall not, bun orb use forfuel orenergy
<br />production purposes any oil shale situated in or tender the lands
<br />described in Sec. 2 above. .
<br />(b) The lessee shall have the right and privilege tin:
<br />(1) mine and extract oil shale at other material located above the
<br />Saline Zone for the note purpose of emplacing shafts or other entries
<br />as are necessary, and are authorized by the authorized officer, to gain
<br />access to the leased deposits for mining. extraction, and removal
<br />operations. and
<br />(2) mine, extract, and process by non-retorting methods, which are
<br />-chemical or mechanical and donotnaaquire the use of heat, 25 g p.t oil
<br />shale intermingled with the leased deposits. but only to the extent
<br />necessary for and as an incident to the mining, extraction. processing.
<br />beneficiation and removal of the leased deposits, provided that the
<br />authorized officer determines there is no significant extraction or
<br />removal of 25 g.p.L oil shale and determines that 25 g.p.t. oil shale is
<br />not rendered unfit or significarntly lowered in quality for retorting
<br />purposes by such mining, extraction. processing, and beneficiation.
<br />(c) As required by the terms of this lease or as directed by the
<br />authorized officer, the lessee shall have the right and the duty to store
<br />and to protect all 25 g.p.t oil shale.which has been mined and all other
<br />oil shale which. after mining, harNNconne 25 g.p.t. oil shale as a result
<br />of processing or beneficiation.
<br />(1) acept as otherwise provided herein or unless otherwise autho-
<br />rized in writing by the authorized officer. the lessee shall, prior to
<br />disposition, process or benefici.ate any leased deposits in mined
<br />material to extract sodium compounds therefrom where that material
<br />contains oil shale averaging more than 10 gallons of shale oil per ton
<br />(2)j0h, shall store or daOSe of, as detemnnex ! and ditccud
<br />by thofficer. residue and/or waste materials which have
<br />been froer tine leased deposits or products thereof during or
<br />as a rining, extraction, processing, benefciation. retorting
<br />or otcanducted under this lease. where the aforesaid
<br />storaosal is not otherwise provided for or authorized by
<br />Sec. c. 4(d), Part 1, of this lease.
<br />(3) It is ly understood that the processed 25 g.p.t oil shale
<br />crotherpro oil shaleand, upon the termination of Ogg lease, any
<br />sodium coi pounds intermingled therewith. shall remain the sok
<br />property of lessor, and shall be subject wdisposition at any time by
<br />thelessar provided in Sec. 7ofthis leaworasotherwise deterrmined
<br />by the attth?rized officer.
<br />(d) In the vent that retorting or processing of the leased deposits
<br />results in production of any shale oil whatsoever, all Such shale oil
<br />small be shall remain the exclusive property of the lessor, any
<br />provision . this tease to the contrary notwithstanding, and shall be
<br />disposed of by die lessor.
<br />(1) At laskm'soption, and at the direction of the authorized officer
<br />givers las easornable time after its pmodnrction. the lessee shall
<br />disposshale oil, if any, on turns that ate just and. reasonable
<br />and douibm lessee to bear the costs of4isposingof the shale ail,
<br />It is enhat, if lessee is required by lessor to store such shale
<br />oil, the Wj storage Shall be init soy borne by. lessee but the
<br />tess`stsaarh c ostsagainstroyalties payable tenderthis lease
<br />by the those royalties become due an d payable.
<br />(2) An
<br />y q' otheragreement entered into by the lessee or iu
<br /> interest for the sale" transfer. or disposal of all or part of
<br />the lease F
<br />or the products thereof shall specifically provide
<br />that the or transferee. and its successor's in title, neithes
<br />intends ll produce, shalt o il therefrom. 11ne lessee shall
<br />make no f her sale`vr transfer of any leased deposit or any product;
<br />thereof wan purchaser, or any of its successors in tide. of any leased
<br />deposit or t ie products thereof who has violated such contractual
<br />provision. M oreover, the lessee shall tale whatever action may be
<br />necessary ei to recover for the lessor any shale oil so produced in
<br />any significa nt quantity which is then still in existence or to recover
<br />damages w ' shall be payable to the lessor if any such significant
<br />quantities o shale oil have been produced and are no longer in
<br />existence.
<br />PART Il. MS ARID CONDITIONS
<br />Seat. 1. (a) AL RATE - Lessee: shall pay lesser rental annually
<br />and in advarme foreach a=or fraction thereof during the continuance
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