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JAN. -06' 04 (TUE) DB; 29
<br />P. 003
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<br />I• J
<br />Part II. TERMS AND CUNDITIUNS
<br />Sec. I. (aJ I2ENPAL izlTC -Lassen shall pqy fessrn' rental
<br />annually and in advance I'ar each acre or fraction thereof dtuing
<br />the continuance of the lease at the rate of $3.00 I'nr each Icasc
<br />year.
<br />(h) RENTAI. CREDITS - Rental shall oar he a•edited
<br />against either production or advance royalties Inr any year.
<br />whialt would hove h=en applied if the leasuhud not been inGudud
<br />in an 1-MU.
<br />Sec.fi. DOCUMk.NTS,EVIUENCLtANDINSPECT]ON-A[
<br />such times and in such form as Lessor may preserih=, Lessee
<br />shall flu•nish demi led stuemenls showing the amounts and quality
<br />of all products removed and sold from the ]ease, the proceeds
<br />rhereh'c+m, and the amount axed for production purposes or
<br />unavoidably lust.
<br />Sec. Z. (n) PRODUCTTON RUYALTITS • The royalty shall
<br />he B.U percem of the value of [he cngl as scr forth in the
<br />regulations. Royalties ore due to Lessor the final day of the
<br />month succeeding the calendar month in which the royalty
<br />ahligation accmes.
<br />I6) aAYaNCE ROYAI.TfMS - Upan regtresr by the
<br />Izssee, the authorized afficer may accept, for a total of nut mart
<br />shun lU yeah, the payment of advance royalties in lieu of
<br />continued apcratian, consistent with the regulntiotts. The
<br />advance royalry shall he based on a pertunl of the value of a
<br />minimum number of tans dctcrminzd in the manner established
<br />by the advance royalry t•egn l atians in effect n[ [he time the Lessee
<br />toga[ >-s approval to pay advance royahies in lieu of continued
<br />opzratian.
<br />Soc. 3. DONDS - Laxsec shall maintain in the proper ofhce a
<br />leuso bond in thz amount of $3,533,000. The authorized ollicer
<br />may require an incrznse in thix amount when additional coverage
<br />is dzterminui appropriate.
<br />Sec, q, Pf LIC;ENCE -This lease is suhjcet to lhz conditions of
<br />diligent development and continued opera[ian, except tire[ [hest
<br />conditions are excused when opemtions under fie lease are
<br />interrupkd by so-ikes, the elements, of ensualtien nut attributable
<br />ro lheLessez. The lessor, in the public interest, nwy suspend the
<br />uiutdirion of continued operation upon pnymenl of advance
<br />royalties in accordance wish thz regulations in exis[cnce nt [he
<br />lime of the suspension. Lessee shall submit an amended
<br />operation and reclamation plan pursuant to Section 7 of the Ac[
<br />(3U U.S.C. 2U7(c) within 3 years of the date of modincatiun ur
<br />prior ro approval to Commence mining operarions.
<br />Lcssar reserves the power w assent to or order dte suspension of
<br />the [cans and conditions oFthis lease in accordance with, lllLC
<br />u ia, Section 39 of the Mineral Leasing Act, 30 U.S.C. 2U9.
<br />Sec. 5. LOFICAI, MINING UNIT (LM11U) - Eith=r upon
<br />np(,rnvul by Ih= lessor of the lessee's application or at the
<br />direction uC the lessor, this lease Shall bteume par[ of an L.NILI,
<br />subject w [he provisions set forth in the regulations. 1'hz
<br />stipularinns establixhed in nn LML1 approval in cl'fcct ttl the time
<br />of LMU approval ur maditicution will supersede dtz rctcvan[
<br />intonsi;tem terms of this ICase ;o long as the louse remains
<br />Committed to [hc LMIJ. If dte T-MU of which this lease is a pan
<br />is dissolved, [he IL[ISC .hall then be subject to cite Icase [eons
<br />Lessee shall keep open al all rcaaonable times for the inspection
<br />of any duly nudtrn•ited officer nl'Lussor, the tensed pretnises and
<br />all sutfacc and underground imptnvements, works, machinery,
<br />ore stoc6piles, equipment, and ell books, ncconn[s, maps, and
<br />retards rclglive la uperallnnR, surveys, or investigations on rn•
<br />under the !cased Innds.
<br />l.eesea shall allow Izssor access to and copying of documents
<br />reasonably necessary m verify LzsRee compliance with terms and
<br />conditions of the !case.
<br />While this Iznsz remains in effect, information oblainzd under
<br />this section shall be closed In inspection by the public in
<br />accordance with the Frccdom of Information Action (5 U.S.C.
<br />552).
<br />Sec. 7, DAMAGTiS TO PROPERTY AND CONDUCT OF
<br />OPERATIONS -Lessee shall comply at its own expense wish
<br />all raasonahle orders of the Szcratary, respecting diligent
<br />operarions, prevznrion of waste, and protection of other
<br />feanurCe9.
<br />Lessee shall not conduct exploration operations, other than
<br />casual use, withnut an approved explnratinn phut. A11
<br />exploration plans prior In the cortunencement of ruining
<br />operations within an approval mining permit area shall he
<br />submitted w the auchurizcd officer.
<br />Lessee shall carryon all openrinns in ncmrdance with approved
<br />methods and practices as provided in the operating regulations,
<br />having due regard fur the pr=venticn of injury [n life, health, or
<br />property, and pruvcmion oC wns[e, damage nr dugradntinn any
<br />land, air, water, cu)tural, biological, visual, and other rrsourcu,
<br />including mineral dzposic: and formations ni' mincntl deposits
<br />not leased hereunder, and to other land uses ur users. LeRSee
<br />sitaf( race measures deemaf necessary by lesser to aceornplish
<br />lheintemufdtislcu;ererm. Suehmea»u•esmayindudc,hmnol
<br />limited ro, modification ro proposed siting or design of I'uril hies,
<br />timing of aperacigns, and speeifica[ions of interim and final
<br />reclamaion prcucdarcs. Leeaor rd;arvo: to itsull the ril{hr [o
<br />lease, sell, or alherwise dtspoae of the surface nr other rninera~
<br />deposits in the land; and the right to continue existing uses and t
<br />authorize future u;d.9 upon or in the Iwsed lands, including
<br />issuing leases Far minmal deposits oat covered hereunder anti
<br />approving easemenuc ur rightsrof--way. J.essar shall condition
<br />such uezs to prevent unnecessary or unraasonalalc inrerfcrcnce
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