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~hn (t uu wtu 1[09 PM FAX N0. 3032393799 P, 04/07 <br />LJ <br />operation, consistent with the regulations. Th0 <br />advance royalty shall be based on a percent of <br />the value of a minimum number of tons determined <br />1n the manner established by the advance royalty <br />rcqulations in effect at the time the I,es sec <br />requests approval to pay advance royalties in <br />lieu of continued operation. <br />Sac. 3. BONDS - Lassos shall maintain in the <br />proper office a lease bond in the amount of <br />5920,000. The authorized officer may require an <br />inCTPA+'e in this amount when additional coverage <br />is determined appropriate. <br />Saa, 4. DILIGENCE - This lease achiyved diligent <br />development March 15, 1994, and is subject to the <br />conditions of continued operation. Continued <br />operation may he ereused uhcn operations under <br />the lease are intczrupted by strikes, the <br />elements, or casualties not ettributsb le to the <br />Lessee. <br />The l,esaor, in the public interest, may suspend <br />the condition of continued operation upon payment <br />of acivanec royaleies in aeeordanee with the <br />regv).a Lions in existence at the Limo of the <br />suspension. <br />The Lessor reserves the power ty assent to or <br />order rho suspension of the terms and conditions <br />of this lease in accordance with, inter, a <br />Section 39 of rho Mineral Leasing Act, 3l~U.S. Cam. <br />209. <br />Sec. 5. LOGICAL MINING DNIT ILMD) - Either upon <br />approval by the Lessor of the Lessee's <br />application or at the direction of the Lessor, <br />this lease shall become an LMV or part of an LMU, <br />subject to the provisions set Lozth in the <br />zegulation.s, <br />The stipul.a Lions established in an LMU approval <br />in effect at the time of LMU approval or <br />modification will supersede the relevant <br />inconsistent terms of this lease so long as the <br />lease remains committed to the LMU. If the LMU <br />of which this lease is a part is dissolved, the <br />lease shall then ba subject to the lease terms <br />which would have been applied if the Lease had <br />not been included in the LMU. <br />Sea. 6. DOC[ASfiNTS, EVIDENCE AND INSIIECTIOM - AC <br />such times and in such form as Lessor may <br />prescribe, Lessee shall furnish detailed <br />sty l'ements showing the amounts and quality of all <br />pcoducte removed and sold from the Lease, the <br />proce¢ds therefrom, and rho amount used for <br />production purposes or unavoidably lost. <br />Lessoc shall keep o an at all reasonable times <br />fox the inspection of any duly authorized officer <br />of I,essur, the leased premises and~all surface <br />and underground improvements, works, machinery, <br />ore stockpiles, equipment, and all books, <br />accounts, maps, and records relative to <br />operations, surveys, or investigations on or <br />under the leased lands. <br />Lessee shall allow Lessoc peters to and copying <br />of documnnts reasonably necessary to verify <br />i,essee compliance with forms and conditions of <br />the inert. <br />While this lease remains in effect, infoanation <br />. obtained under this section shall he closed to <br />inspection by the public in accordance with the <br />Freedom 0f Information Action (5 U.S.C. 552). <br />Soc. 7. DAMAGES TO PROPEATI AND CONDOCT O& <br />OPERATIONS - Lessee shall comply at its own <br />expense with all rcasonablo orders of the <br />Secretary, respecting diligent operations, <br />prevention of waste, and protection of other <br />resources. <br />Lessee shall not conduct exploration operations, <br />other than casual use, without an approved <br />exploration plan. All exploration plans prior to <br />the commencement of mining opperations within an <br />approved mining permit area shnll be submitted to <br />the authosi red officer. <br />Lessee shall Carry on all operations in <br />accordance with approved methods and practices as <br />provided in the operating regulations, having due <br />regard for the prevention of injury to life, <br />health, or property, and prevention of waste, <br />damage or deyradacion any land, air, water, <br />Cultural, brologiesl, visual, and other <br />resources, including mineral deposits and <br />formations of mineral deposits not leased <br />hereunder, and to other land uses or users. <br />Lessee shall take measures deemed necessary by <br />t.essor to accomplish the intent of this lease <br />term. Such measures may include, but not limieed <br />to, modification to proposed siting or design of <br />facilities. timing of ynerations, and <br />speoificatlons of interim and final reclamation <br />procedures. Lessor reserves to itself the right <br />to lease, sell, or otherwise disppore of the <br />surface or other mineral deposits in the lands <br />end Che right to continue existing uses and to <br />authorize future uses upon or in the leased <br />lands, Sncluding issuing leases for mineral <br />deposits not towered hereunder and aPProvinq <br />easements or rights-of-way. Lessor shall <br />condition such uses to prevent unnecessary or <br />unrcasonablo interference with rights of Lessee <br />as guy ba consistent with concepts of multiply <br />use and multiple mineral develotaaent. <br />Saa. 8. PROTECTION Op DIVERSE INTERESTS, AND <br />EQUAL oPPOATONITr - Lessee shall: pay wham due <br />all taxes legally assessed and lnvied ,ender the <br />laws of the State or the United Staten: accord <br />ell employees complete freedom of purchaser pay <br />all wages at leeaL twice oath month in lawful <br />money of the United States: maintain a salt <br />workrnq environment in accordaneo with standard <br />industry practices; restrict L•ha workday to not <br />more than 8 hours in any one day for underground <br />workers, except in emergences; and take measures <br />necessary to protect rho health gad safety of the <br />public. No person under the ago of 16 years <br />^hall be employed in any mine below the surface. <br />To rho extent that laws of the state in which the <br />lands are situated era more restrictive than the <br />provisions in this paragraph, then the state laws <br />aPPly. <br />Lesscc will comply with all provisions of <br />Executive Order No. 11246 of September 24, 1965, <br />as amended, and the rules, regulations, and <br />relevant orders of the secretary of Labor. <br />Neither Lessee nor Lessee's subcontractors shall <br />maintain segregated facilities. <br />sac. 9. (a) TRANSFERS - Phis least may be <br />transferred in whole or in part to any person, <br />association or corporation qualified to hold auoh <br />lease interest. <br />