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the permit boundary has been conducted in accordance with the approved permit." See, Exhibit 1 page <br />1 -2. <br />To put the scale of the soil management issue in context, the Morgan property is approximately 140 <br />acres in size, and approximately 111.7 acres will be disturbed by mining activities. All remaining lands <br />other than the 51.6 acres that had already been stripped have since been and are now being reclaimed <br />using Prime Farmlands standards, beginning with WFC's activities undertaken in 2008. <br />Background: the September 10, 1998 Coal Mining Lease <br />The background for the negotiations between WFC and the Morgan family is the September 10, 1998 <br />Coal Mining Lease between the parties. The Lease is attached as Exhibit 2 hereto. Pursuant to the <br />Lease, the Morgans leased to WFC "all of Lessor's right, title and interest in the coal in, on or under the <br />Property." See, Lease page 1 (text in all caps converted to normal). The term of the Lease is 20 years <br />and for so long thereafter as either commercial production of coal is continuing or the Property is being <br />reclaimed as required by DRMS. See, id. page 1 ¶ 1. <br />The terms of the Lease require WFC to pay Advance Royalties and Production Royalties (absent breach <br />by the Lessor) to the Morgan family. The Advance Royalties contemplated by the Lease are in total <br />$1,075,000.00. To date, WFC has paid the Morgan family $900,000.00 of this total. The Lease also <br />calls for Production Royalties depending upon the amount of coal produced from the Property. Based <br />on production to date, it appears likely that the Morgans may potentially earn such royalties, though the <br />amount has not been determined. Thus, the Morgan family can potentially earn well over a million <br />dollars in royalties from WFC over the term of the Lease, which will likely be substantially less than the <br />20 years provided. <br />In exchange, the Lease grants WFC certain critical rights. Among these are the rights <br />to mine, extract, remove, process, own, market or otherwise use the Coal, including mining by <br />the strip and/or any other methods now or hereafter in existence, without any liability to Lessor <br />for any current or future damages (including damage or loss to other minerals or strata) to <br />Lessor's estate. <br />Exhibit 2, Lease page 4 ¶ 3(b). <br />In addition, another important right granted under the Lease is the right to select the post - reclamation <br />land use of the Property: <br />No provision of this Lease shall be construed to deprive Lessee of the exclusive right to <br />determine the uses to which the Property is to be put after mining, or the crops, if any, to <br />be raised, or the methods to be employed and the costs to be incurred as part of such <br />after - mining uses. <br />Exhibit 2, Lease page 5 ¶ 3(e). <br />These rights are subject to the following obligation: <br />Lessee shall reclaim the Property so that the Property is approximately in the same <br />condition as when Lessee entered the Property (i.e. a farmable condition). This includes <br />returning the land to cropland to grow alfalfa or row crops, leaving land flat enough for <br />