2010-09-02_PERMIT FILE - C1981012

• Permit No: C1981012
• IBM Index Class Name: Permit File
• Doc Date: 9/2/2010
• Doc Name: Division of Wildlife Lease
• Section_Exhibit Name: Exhibit 34 Addendum
• Media Type: D
• Archive: No

Requested By: s ih 0312812008
Instrument Book Page
200500696948 OR 1075 1943
12. LESSEE'S EXISTING RIGHTS. Lessor and Lessee recognize the existence of (A) that
certain Quitclaim Deed dated as of June 1, 1997 from North Central Energy, Inc. to
Picketwire Processing, LLC, as modified by Quitclaim Deed from North Central Energy,
Inc. to Picketwire Processing, LLC dated July 31, 2001 and recorded in Book 1008 at
Page 1015 of the Las Animas County records, conveying the surface of 213.01 acres of
land in Las Animas County, Colorado more particularly shown on Exhibit B attached
hereto and the appurtenances thereon, which include stockpile coal and refuge and
loadout facilities (the " New Eik Facility and (B) that certain Quitclaim Deed of
Abandoned Underground Workings dated June 1, 1997 from North Central Energy, Inc.
and Basin Resources, Inc. to Picketwire Processing, LLC recorded in Book 1006 at Page
685 of the Las Animas County records, conveying the mine workings underlying Parcel I
of the Leased Premises (together, the "New Elk Mine Deeds '). Lessee has succeeded to
the rights of Picketwire Processing, LLC under the New Elk Mine Deeds, and is the
current holder of Mine Permit No. C -81 -012 covering Parcel 1 of the Leased Premises.
With respect to Parcel 1 of the Leased Premises, Lessor and Lessee recognize that
ownership of the following (collectively the " Underground Mine Workings ") was
transferred in the deed recorded in Book 1006 at Page 685: the mine portals (to the
extent not covered by the deed recorded in Book 1008 at Page 1015); all existing
underground passages, pockets and spaces that were created during and/or as a result of
prior mining of said Parcel l as more particularly shown on the plat attached hereto as
Exhibit C ; and all mine equipment and facilities for transporting coal located in such
passages, pockets and spaces (including, without limitation, a continuous miner, a rock
bolting machine, shuttle cars, conveyor belts, rails, locomotives; trolley wire, section
exhaust fan, mine fan, feeder breaker, section transformer, rectifier, high voltage cables
and low voltage cables). For definitions of the foregoing terms, see Exhibit D attached
hereto. The parties further recognize that under and pursuant to the New Elk Mine
Deeds, Lessee already has, and will continue to have following termination of this Lease,
the right to use the New Elk Facility, the right to enter through the existing portals into
and through Parcel 1 of the Leased Premises, and the right to transport through the mine
workings underlying Parcel 1 of the Leased Premises any coal from the Leased Premises
or other lands that is now or hereafter owned, leased or otherwise acquired by Lessee
(provided that coal transported through the mine workings during the term of this Lease
from land other than the Leased Premises shall be subject to the Haulage Royalty
provided for in Section 4 hereof). For purposes of clarification, Lessee hereby agrees that
it does not hold or claim title to the unmined coal remaining in Parcel 1 of the Leased
Premises as of the Effective Date.
13. AGREEMENTS OUTSIDE THE TERMS OF THIS LEASE. No assignment of
undivided interests or retention or reservation of overriding royalties will be recognized
by Lessor; and the effect, if any, of any such assignments or reservations will be strictly
and only as between the parties thereto, and outside the terms of this Lease, and no
dispute between parties to any such assignment or reservation shall operate to relieve
Lessee from performance of any terms or conditions hereof or to postpone the time
therefor. Lessor will and shall at all times be entitled to look solely to Lessee or its
successors and assigns as being solely responsible for the sending of all notices required
by this Lease and for the performance of all terms and conditions hereof.
Page 9 of 17.