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<br />Part 11. I'I::RNIS AND ('0NDII'IONS
<br />Sec. 1. (a) RENTAL RACE - Lcssce shall pay lessor rental
<br />annually and in advance for each acre or traction thcreofduring
<br />the continuance of the lease at the rate of 53.00 li)r each lease
<br />dear.
<br />(b) RENTAL CREDITS - Rental shall not be credited
<br />against either production or advance royalties for any year.
<br />Sec. 2. (a) PRODUCTION ROYALTIES - The rovalty shall
<br />be 8.0 percent of the value of the coal as set forth in the
<br />regulations. Royalties are due to Lessor the tinal day of the
<br />month succeeding the calendar month in which the royalty
<br />obligation accrues.
<br />(b) ADVANCE ROYALTIES - Upon request by the
<br />Lessee, the authorized officer may accept, fora total ot'not more
<br />than 10 years, the payment of advance royalties in lieu of
<br />continued operation, consistent with the regulations. I'he
<br />advance royalty shall be based on a percent of the value of a
<br />minimum number of tons determined in the manner established
<br />by the advance royalty regulations in effect at the time the Lessee
<br />requests approval to pay advance royalties in lieu of continued
<br />operation.
<br />Sec. 3. BONDS - Lessee shall maintain in the proper office a
<br />lease bond in the amount of $5,000. The authorized officer may
<br />require an increase in this amount when additional coverage is
<br />determined appropriate.
<br />Sec. 4. DILIGENCE - This lease is subject to the conditions of
<br />diligent development and continued operation, except that these
<br />conditions are excused when operations under the lease are
<br />interrupted by strikes, the elements, or casualties not attributable
<br />to the Lessee. The lessor, in the public interest, may suspend the
<br />condition of continued operation upon payment of advance
<br />royalties in accordance with the regulations in existence at the
<br />time of the suspension. Lessee shall submit an amended
<br />operation and reclamation plan pursuant to Section 7 of the Act
<br />(30 U.S.C. 207(c) within 3 years of the date of modification or
<br />prior to approval to commence mining operations.
<br />Lessor reserves the power to assent to or order the suspension of
<br />the terms and conditions of this lease in accordance with, inter
<br />ilia, Section 39 of the Mineral Leasing Act, 30 U.S.C. 209.
<br />5. LOGICAL ?'1IINING UNIT (LN(U) - 11 s
<br />u. °d in the original Icase Lite included t ado %'line
<br />L.%I U. se, inber COC >7190 ette ep?tcmber 16, 1955.
<br />\1 ithin 30 day; e ctfec to ofthis lease nloditication.
<br />le,?ee;hall amend ?tine LNIU to include the IoU
<br />eres adde a lease C'75' _ ? odificatio n. Ilie
<br />n%?dllt; and.diall be :;curet.rated int?.? :uluthe °'ul aril Icaie
<br />Gld the le:,>ee tail t! ?ruendnieut
<br />e stipulations cstabltl_ le `i Aii? appru\al in effect at the
<br />unic AlU approval or modification will st e
<br />relevant Sistent terms of this lease , g as the lease
<br />remains conlilli U of which this lease
<br />is a part is disc e eaa subject to the lease
<br />tens, would have been applied if t le c., t been
<br />t i ed in an L.N1U.
<br />Sec. 6. DOCUMENTS, EVIDENCE AND INSPECTION -At
<br />such times and in such form as Lessor may prescribe, Lessee
<br />shall furnish detailed statements showing the amounts and quality
<br />of all products removed and sold from the lease, the proceeds
<br />therefrom, and the amount used for production purposes or
<br />unavoidably lost.
<br />Lessee shall keep open at all reasonable times for the inspection
<br />of any duly authorized officer of Lessor, the leased premises and
<br />all surface and underground improvements, works, machinery,
<br />ore stockpiles, equipment, and all books, accounts, maps, and
<br />records relative to operations, surveys, or investigations on or
<br />under the leased lands.
<br />Lessee shall allow lessor access to and copying of documents
<br />reasonably necessary to verify Lessee compliance with terms and
<br />conditions of the lease.
<br />While this lease remains in effect, information obtained under
<br />this section shall be closed to inspection by the public in
<br />accordance with the Freedom of Information Action (5 U.S.C.
<br />552).
<br />Sec. 7. DAMAGES TO PROPERTY AND CONDUCT OF
<br />OPERATIONS - Lessee shall comply at its own expense with
<br />all reasonable orders of the Secretary, respecting diligent
<br />operations, prevention of waste, and protection of other
<br />resources.
<br />Lessee shall not conduct exploration operations, other than
<br />casual use, without an approved exploration plan. All
<br />exploration plans prior to the commencement of mining
<br />operations within an approved mining pennit area shall be
<br />submitted to the authorized officer.
<br />Lessee shall carry on all operations in accordance with approved
<br />methods and practices as provided in the operating regulations,
<br />having due regard for the prevention of injury to life, health, or
<br />property, and prevention of waste, damage or degradation any
<br />land, air, water, cultural, biological, visual, and other resources,
<br />including mineral deposits and formations of mineral deposits
<br />not leased hereunder, and to other land uses or users. Lessee
<br />;stall take measures deemed necessary by lessor to accumpli.sh
<br />the intent of this lease term. Such measures may include, but not
<br />limited to, modification to proposed siting or design of facilities.
<br />tinting of operations, -ind ?;pccifications 4 interim ind final
<br />r,:clanlation proccdures. lessor reserves to itself file itudit to
<br />tc:?,c, ,cll. ? r ? CI)ei ,? C,e ?I!:,?U6e vt thL r.lll (;.1C..' ? ?r ?'t11er !iiiil?. f;il
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