|
Sodium Lease C-0119985 Page 2
<br /> Sec.4.PROTECTION OF OIL. _,iLE DEPOSITS. (a)Except as of rock mined, but less than 25 gallons of shale oil per ton, such
<br /> expressly provided in subsection: (t)),(c),aiid(d)below,the lessee average to be determined by modified Fischer assays.The lessee shall
<br /> shall not: perform any processing or beneficiation in such a manner that sepa-
<br /> rates from the leased deposits that quantity of contained organic
<br /> (1)utilize process solutions in excess of 300 degrees Fahrenheit for matter necessary to limit the shale oil content,if any,to not more than
<br /> in situ solution mining of sodium compounds without the express an average of 10 gallons per ton in the material removed from the
<br /> permission of the authorized officer; leased premises.
<br /> (2)mine,extract,retort,process,use,or dispose of any oil shale,or (2)The lessee shall store or dispose of,as determined and directed
<br /> organic matter or the products thereof contained in or derived from by the authorized officer,residue and/or waste materials which have
<br /> any such oil shale,situated above or below the SalineZone in the lands been separated from the leased deposits or products thereof during or
<br /> described in Sec.2 above; as a result of mining,extraction,processing,beneficiation,retorting
<br /> or other operations conducted under this lease,where the aforesaid
<br /> (3)mine,extract,retort,process,use,or dispose of any 25 g.p.t.oil storage or disposal is not otherwise provided for or authorized by
<br /> shale,or organic matter or the products thereof contained in or derived Sec.4(c)or Sec.4(d),Part I,of this lease.
<br /> from any such 25 g.p.t.oil shale,situated in the Saline Zone;or
<br /> (3)It is expressly understood that the processed 25 g.p.t.oil shale
<br /> (4) use, remove from the leased premises, or dispose of any oil or other processed oil shale and,upon the termination of this lease,any
<br /> shale,or organic matter or the products thereof contained in or derived sodium compounds intermingled therewith, shall remain the sole
<br /> from any such oil shale,averaging more than 10 gallons of shale oil property of the lessor and shall be subject to disposition at any time by
<br /> per ton from the Saline Zone, such average to be determined by the lessor as provided in Sec.7 of this lease or as otherwise determined
<br /> modified Fischer assays. by the authorized officer.
<br /> (5)It is expressly understood and agreed that the lessee shall not (d) In the event that retorting or processing of the leased deposits
<br /> have any right to,and shall not,bum or otherwise use for fuel or energy results in the production of any shale oil whatsoever,all such shale oil
<br /> production purposes any oil shale situated in or under the lands shall be and shall remain the exclusive property of the lessor, any
<br /> described in Sec.2 above. provision in this lease to the contrary notwithstanding,and shall be
<br /> disposed of by the lessor.
<br /> (b) The lessee shall have the right and privilege to:
<br /> (1)At lessor's option,and at the direction of the authorized officer
<br /> (1) mine and extract oil shale or other material located above the given within a reasonable time after its production, the lessee shall
<br /> Saline Zone for the sole purpose of emplacing shafts or other entries dispose of such shale oil,if any,on terms that are just and reasonable
<br /> as are necessary,and are authorized by the authorized officer,to gain and do not require lessee to bear the costs of disposing of the shale oil.
<br /> access to the leased deposits for mining, extraction, and removal It is understood that,if lessee is required by lessor to store such shale
<br /> operations,and oil,the costs of such storage shall be initially borne by lessee but the
<br /> lessor shall credit such costs against royalties payable under this lease
<br /> (2)mine,extract,and process by non-retorting methods,which are by the lessee as those royalties become due and payable.
<br /> chemical or mechanical and do not require the use of heat,25 g.p.t.oil
<br /> shale intermingled with the leased deposits, but only to the extent (2)Any contract or other agreement entered into by the lessee or its
<br /> necessary for and as an incident to the mining,extraction,processing, successors in interest for the sale,transfer,or disposal of all or part of
<br /> beneficiation and removal of the leased deposits,provided that the the leased deposits or the products thereof shall specifically provide
<br /> authorized officer determines there is no significant extraction or that the purchaser or transferee, and its successors in title, neither
<br /> removal of 25 g.p.t.oil shale and determines that 25 g.p.t.oil shale is intends to, nor shall produce, shale oil therefrom. The lessee shall
<br /> not rendered unfit or significantly lowered in quality for retorting make no further sale or transfer of any leased deposit or any products
<br /> P,.:rposes by such mining,extraction,processing,and beneficiation. thereof to any purchaser,or any of its successors in title,of any leased
<br /> deposit or the products thereof who has violated such contractual
<br /> (c) As required by the terms of this lease or as directed by the provision. Moreover, the lessee shall take whatever action may be
<br /> authorized officer,the lessee shall have the right and the duty to store necessary either to recover for the lessor any shale oil so produced in
<br /> and to protect all 25 g.p.t.oil shale which has been mined and all other any significant quantity which is then still in existence or to recover
<br /> oil shale which,after mining,has become 25 g.p.t.oil shale as a result damages which shall be payable to the lessor if any such significant
<br /> of processing or beneficiation. quantities of shale oil have been produced and are no longer in
<br /> existence.
<br /> (1)Except as otherwise provided herein or unless otherwise autho-
<br /> rized in writing by the authorized officer, the lessee shall, prior to PART U.TERMS AND CONDITIONS
<br /> disposition, process or beneficiate any leased deposits in mined
<br /> material to extract sodium compounds therefrom where that material Sec. 1.(a)RENTAL RATE-Lessee shall pay lessor rental annually
<br /> contains oil shale averaging more than 10 gallons of shale oil per ton and in advance at the rate of S 1 for each acre or fraction thereof during
<br />
|