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<br />• UNITED STATES
<br />DL'PARTMFNT OF THE INTERIOR
<br />P.UAEAU OF LAND MANAGEMENT
<br />MODIFIED COAL LEASE
<br />Serial No. COC X53510
<br />Date of Lease: November 1, 2992
<br />PART T.
<br />'PHIS MODILIED COAL LEASE iS entered into On ~ _' by and between the UNITED
<br />STATES OE AMERICA, horeinafter called the Lessor, throng the Buccau of Land Management,
<br />and
<br />Oxbow Mtninq Tnc.
<br />7901 South Park Plaza, Ste. 7.02
<br />Littleton, Colorado 80120
<br />hereinafter called Lessee.
<br />This modified lease shall retain tho effective dace of November 1, 1992, oL the original COAL LEASE
<br />COC 53510, and is efiect ive for a period of 20 years therefrom, and for so long thereafter as coal is
<br />produced in commercial quantities from the leased lands, subject to readjustment of lease terms at the
<br />end of the 20th lease year (November 1, 2012}, and each 10-year period thereaftor.
<br />Soo. 1. This lease is issued pursuant and subject to the terms and provisions of the Mineral Lands
<br />Lansing Aet of 1920, as amended, 41 Stae. 437, 70 U.S.C. 181-287, hereinafter referred to as the Act;
<br />and to the regulations and formal orders of the secretary o1 the Interior which are now or hereafter in
<br />force, when not inconsiste;~t with the express and specific provisions herein.
<br />Sec. 2. Lasscr_ as the holder of Coal Lease COC 53510, issued effective November 1, 1992, was granted the
<br />exclusive rig}it and priviloge to drill for, mine, extract, remove or otherwise process and dispose of the
<br />coal deposits limited to the coal recoverable by underground mining methods in the D and C coal seams in
<br />the following lands described below as
<br />• ra r 1:
<br />T. 13 9., R. 90 W., fith P.M.
<br />sec. 1, lots 14 to 19, inclusive;
<br />sec. 2, lots 13 to 20, inclusive;
<br />Sec. 3, lots 13, 19, 17, and LS;
<br />sec. 10, lots 1 and 2, NENSE4:
<br />sec. 11, lots 1 to B, inclusive;
<br />sec. 22, lots 2 to 9, inclusive, SW+QIWK, and those
<br />portions of SWNNE4 and SEkNWV lying north
<br />of the North Fork o! the Gunnison River.
<br />1339.56 acres, Gunaieon County, Colorado.
<br />Tho Lessor Sn consideration of fair market value, rants and royalties to be paid, and the conditions and
<br />covenants to be observed as herein sat forth, hereby grants and leases co Lessee rho exclusive sight and
<br />privilege to drill for, mine, extract, remove, or otherwise process and dispose of the coal deposits
<br />limited to the coal recoverable by underground mining methods in the B coal seam sn the following lands
<br />described below as Tra r.[ 2:
<br />T. 13 S., R. 90 W., 6th P.H.
<br />see.2, lots 10 to 12, inclusive.
<br />127.79 acres, Gunnison County, Colorado.
<br />containi;tq 1,467.35 acres, more or less, together with the right to coastruet ^uch works, buildings,
<br />plants, s[nutures, equipment and appliances and the right to use such on-lease rights^oF-way which may
<br />e necessary and convenient Sn the exercise of the rights and privileges granted, subject to the
<br />conditions herein provided.
<br />Part II. TERMS AND CONDITIONS
<br />Sac. 1.(a) RENTAL RATE - Lessee shall pay
<br />Lessor rental annually and in advance For each
<br />acre or fraction thereof during the continuance
<br />of the lease at the rate of 53.00 for each Iease
<br />year.
<br />Sae. 2.(a) PRODIICTION ROYALTIES - The royalty
<br />shall be B.0 percent of the value of the coal as
<br />set forth in the regulations. Royalties are due
<br />to Lessor the final day of the month succeeding
<br />the calendar month in which the royalty
<br />abligatlon accrues.
<br />(b) RENTAL CREDITS - Rental shall not
<br />be credited against either production oz advance
<br />.royalties for any year.
<br />(b) ADVANCE ROYALTIES - Opon request
<br />by the Lessee, the authorized officor may accept,
<br />for a total of not more than 10 cars, the
<br />payment of advance royalties in lieu of continued
<br />
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