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UNITED STATES Serial Number
<br /> DEPARTMENT OF THE INTERIOR
<br /> BUREAU OF LAND MANAGEMENT,.,., „f — ,,� C-0119985
<br /> �; _ i• 25
<br /> Sodium Lease Renewal
<br /> PART 1.LEASE RIGHTS GRANTED.
<br /> This lease renewal,entered into by and between the UNITED STATES OF AMERICA,through the Bureau of Land Management,hereinafter
<br /> called lessor,and
<br /> E.E.Kinder Company
<br /> 1612 1 st Avenue
<br /> Greeley,Colorado 80631
<br /> hereinafter called lessee,is effective July 1, 1991, for a period of 10 years,with preferential right in the lessee to renew for successive periods
<br /> of 10 years under such terms and conditions as maybe prescribed by the Secretary of the Interior,unless otherwise provided by law at the expiration
<br /> of any period,and provided that the sodium is being produced in paying quantities at the end of the 10-year renewal period and,if renewed,at
<br /> the end of each successive 10-year period.
<br /> Sec. 1.This lease is issued pursuant and subject to the terms and provisions of the Mineral Leasing Act of 1920,as amended and supplemented,
<br /> 41 Stat.437,30 U.S.C.181-287,hereinafter referred to as the.Act;and to the regulations and formal orders of the Secretary of the Interior which
<br /> are now or hereafter in force,specifically including,but not limited to,43 CFR 23(to the same extent as if the operations under this lease were
<br /> surface mining),3500,3520,and 3590,when not inconsistent with the express and specific provisions herein.
<br /> Sec.2.Lessor,in consideration of rents and royalties to be paid,and the conditions and covenants to be observed as herein set forth,hereby grants
<br /> and leases to lessee the exclusive right and privilege to explore for,drill for,mine,extract,remove,beneficiate,concentrate,or otherwise process
<br /> and dispose of the sodium deposits in the S aline Zone,hereinafter referred to as"leased deposits,"in,upon,or under the following described lands:
<br /> T. 1 S.,R.98 W.,6th P.M.
<br /> sec. 19,SE'/4NE'/4 and E'/2SE'/4;
<br /> sec.20,SE'/4NE'/4,W'/2E'/2,and W/2;
<br /> sec.21,SW'/4NW'/4;
<br /> sec.29,NW'/4;
<br /> sec.30,lots 1,2,and 4,NE'/4,E'/2NW'/4,SE'/4SW'/4,and S'/2SE'/4;
<br /> containing 1319.59 acres,more or less,together with the right to construct such works,buildings,plants,structures,equipment,and appliances
<br /> and the right to use such on-lease rights-of-way which maybe necessary and convenient in the exercise of the rights and privileges granted,subject
<br /> to the conditions herein provided.
<br /> Sec.3.DEFINITIONS.The following definitions shall be used in the interpretation of this lease:
<br /> (a)"Oil Shale"is afine-grained sedimentary rock containing organic matter which was derived chiefly from aquatic organisms or waxy spores
<br /> orpollen grains,which is only slightly soluble in ordinary petroleum solvents,and of which a large proportion is distillable into artificial petroleum.
<br /> This term is applicable to any argillaceous,carbonate,or siliceous sedimentary rock which will yield oil upon destructive distillation.In this lease,
<br /> "destructive distillation"means the process of decomposition of oil shale where heat is applied to a temperature at which the hydrocarbons are
<br /> converted to vapors and/or liquids.
<br /> (b)"Saline Zone"in this lease means the lower part of the Parachute Creek Member of the Green River Formation in the Piceance Creek Basin,
<br /> the top of which zone is defined at any point by the characteristic"dissolution surface"and the bottom of which is defined at any point by the horizon
<br /> marker designated as the"Blue Marker,"which forms the approximate base of the Parachute Creek Member.
<br /> (c) "Leased deposits" means (1) all sodium compounds and any related products thereof in the Saline Zone not intermingled with oil shale
<br /> averaging 25 gallons of shale oil or more per ton of rock mined(hereinafter referred to as25 g.p.t.oil shale',such average to be determined
<br /> monthly for each calendar month by modified Fischer assays of the rock mined by lessee forprocessing or beneficiation by any method,and(2)all
<br /> sodium compounds and any related products within the Saline Zone which are intermingled with 25 g.p.t.oil shale and which can be mined.
<br /> extracted,processed,beneficiated, used,and disposed of without the destructive distillation of the 25 g.p.t.oil shale and without significantly
<br /> changing the composition of the 25 g.p.t.oil shale or rendering it more unsuitable in any material respect for development,retorting,processing,
<br /> use,or disposition.As used herein,the term"related products"shall,in no event,include oil shale.
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