|
worm ,10412 Serial Number
<br />,ril 1981) UNITED STATES
<br />+druvn DEPARTb1ENT OIC THE INTERIOR
<br />BUREAU Of' LAND MANACEt~IENT COC 53510
<br />• COAL LEASE
<br />PART L LEASE RIGHTS GRANTED
<br />This lease, cntcrad into by and between the UNITED STATLY Or Attt:atc.t,hereinafter calla-0lessor, lhruul;h the Ilurcau of Land Munaccmcnl.:tmi
<br />(Name and AddresaJ
<br />Somerset Mining Company
<br />~P.O. Box 535
<br />' Somerset, Colorado 81434
<br />haroinalter rolled Ieasaa, V effeeUve N~v 1 ~~ , for o periaJ of 20 yeah and fur ao bnR there:rfler na c„al is produced in n,mmerciul
<br />gmntiUes from tba trued lands, subject b rcad)wlment of lenses terms of the ertd of the 20th lease year and r.,ch I4ycar period lhern,Rer.
<br />Ste. 1. This leans V (saved pursuant and subject w the teens and provisions of the.
<br />® Mineral Lmtds Leasing Aet of 1920, AeL o[ February 25,1720, m nmcndnl, ~ I StaL 1ST, 90 UXC. 1li1~S47, hcrcinahcr mfcrred w as the Ant
<br />^ Minonl Leasing Ati for Acquired Lands, Act oC August 7, 1917, GI $laL 915.:)0 US.C.:1:,IJ5!k
<br />and w tha regulations and formal orders of the Secretary of the Interior which arc now ar hereafter in force, when nut incu:,sistent with tl,r exyrcss
<br />and spedLe provisions herein.
<br />San 2, Lessor, in wnsiderolion of any bonuses, rents, and royalties w be paid. and the mndiliom and covenants W be obscncd as herein set funh.
<br />hereby grants and leases b lessee the exelusiva right and privilege to drill fur, mine, cxtrocL remove, or otherwise pn,aaa and d'uposc u! tltc tool
<br />deposits limited to the coal recoverable by underground mining methods in the B and C coal see
<br />in the following lands in Gunnison County:
<br />Sixth Principal Meridian
<br />T. 13 S.,
<br />• sec. 1,
<br />sec. 2,
<br />sec. 3,
<br />sec. 10,
<br />sec. I1,
<br />sec. 12,
<br />R. 90 li. ,
<br />lots 14 to 19, inclusive;
<br />lots 13 to 20, inclusive;
<br />lots 13, 14, 17, and 18;
<br />lots 1 and 2, and 17F:sSF)t;
<br />lots 1 to 8, inclusive; '
<br />lots 2 to 4, inclusive, SIJ!r,NW[t, and those
<br />portions of SIikNF~ and SEItNW~ lying north
<br />of the North Pork of tho Gunnison River,
<br />eontaining 1339.56 nap, more or less, together with the right to Construct such wrorka, buildinFa, plane, slruclurca, equipment and oppli:,ncr.•
<br />and the right louse such on-leave rights4f•woy which may be necessary and convenien t in tl,c ~~eraise of the riglLLS and privilagrsgranted, aubjcct t~.
<br />the conditions herdn provided.
<br />PMT IL TERMS AND CONORIONS
<br />Sea 1. (a) RENTAL RATE • Lessee shall pay Icaaor rental annu:Jly a„d
<br />in advance for egeh here or fraction thereof during the continuance of
<br />the (case at Cho rata of S 3.00 -- for each Icmc year.
<br />(b) RENTAL CREDRS • Rental abaft not be credited al;rinst tilltcr
<br />production or advana royalties for any year.
<br />Sec 2. (a) PRODUCTION ROYALTIF3 • The royally shall be B pcr•
<br />cent of the vsl uo of the coal as act forth in the regulations. lioyaltics :,rc
<br />due Lo Iesaor the Gnnl day of the month succeeding the calendar month
<br />is which the royalty obligation accroes. ,
<br />rh) ADVANCE ROYALTIES -Upon request by the lessee, the aulhurircd
<br />~ccr may atteDL for a total of not more than l0 ycara. the payment of
<br />~ancc royalties in lieu of rnntinued operation, consistent with the
<br />~tlations. The advance royalty shall ba based on a percent of tllc
<br />je of ^ minimum number of wtu determined in the manner
<br />tablished by the advana royalty regulations in effect at the time the
<br />essea requests approval to pay advana royaltica in lieu of antinued
<br />operation.
<br />Seal. BONDS-Leueeshallmaintnininthcpropcrofficcalcasebund
<br />Intheamountofi $25.OOR •Theautharizcdo(ficcrmayrcquircan
<br />inaeaso in thin amount w en additional eovernge is determined
<br />Sec. 1. DILIGENCE • Phis Iense is subject a, the conditions of diliaeu+
<br />devcluPment and rnntin ucd opera lion, except that these anuliliuns arv•
<br />excused when operations u nder the Iense nn inlcrruylerl I,y etrik,a. t I:••
<br />clemenu, or caaualtica eat uuribut:,ble w the Ics.+cc. The Irsxor. in tL-,•
<br />public interest, may suspenJ the a,ndilion of amtinued aperalinn ulna,
<br />payment of aJvona n,yallica in :tecordance with the reCUl:tti~~ns is
<br />cxiateua at the time of the suspension. Lessee's failure to pnslwc ncd
<br />in rnmmerrial quanliucs nt the end of In ycara shall lcrmin:ur th~~
<br />Icuse. I,essce shall submit an operation and nrlamalinn pbm pursu:u,I
<br />to Scetion 7 of the Act nut later than a vr:tro offer Icasc issuance.
<br />The lessor reserves U,c Duwcr to assent 4, ur order the suspension of th••
<br />terms and eunJitims of this Icasc in aaorJanre with, inter ali.:
<br />Stttian :19 of the Alineml LcusinR Act. all 11.S.G .'trl.
<br />Scc. +,. LOGICAL MINING UNIT (LMU) - ISitl,cr upon appn,val by Ih.•
<br />Ieasur of the les~a a aVDlicution or at the Jirectiun of the It+aur. tl: i.;
<br />Iense shall become an 1 H U or part of an LM U, subject U, the prvvision.~
<br />set forth in the regulations.
<br />The ati potations established in an 4N U nppnrval in effete at the time o:
<br />LMU approval will supersede the rclcvanl inronsistent terms of Ile:
<br />Icasc so long as the kale remains committed a: tltc L\I U.1 f the l.dl l' . ~I
<br />which this lease is a pan is dissolved, the (ease shall then he subjttt o.
<br />the Icasc terms which weal) have been applied if the Icasc h;,J nut I,cs•:,
<br />
|