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Sodium Lease C-0119985 • Page 3
<br /> the continuance of the lease. copying of,documents reasonably necessary to verify lessee compli-
<br /> ance with terms and conditions of the lease.
<br /> (b) RENTAL CREDITS - The rental for any year will be credited
<br /> against the first royalties as they accrue under the lease during the year While this lease remains in effect, information obtained under this
<br /> for which rental was paid. section shall be closed to inspection by the public in accordance with
<br /> the Freedom of Information Act(5 U.S.C. 552).
<br /> Sec.2. (a)PRODUCTION ROYALTIES -Lessee shall pay lessor a
<br /> production royalty of 5 percent of the gross value of the output of the Sec.6.WATER RIGHTS -All water rights developed by the lessee
<br /> leased deposits at the point of shipment to market. Such production through operations on the lease lands shall immediately become the
<br /> royalty is due the last day of the month next following the month in property of the lessor.Lessee shall have the right to use those water
<br /> which the minerals are sold or removed from the leased lands. rights free of charge for operations under this lease.
<br /> (b)MIN1,MU`M ANNUAL PRODUCTION AND MDMvfUM ROY- Sec. 7. CONDUCT OF OPERATIONS - (a) Lessee shall exercise
<br /> ALTY -Beginning with the first full year of the renewed lease: reasonable diligence,skill,and care in the operation of the property,
<br /> and shall carry on all operations,having due regard for the prevention
<br /> (1)Lessee shall produce on an annual basis a minimum amount of of injury to life,health,orproperry,and prevention of waste ordamage
<br /> 1,000 tons of sodium or related products during the 10-year lease or degradation to any land,water,or mineral resources.
<br /> period;or
<br /> (1)Lessee shall not conduct exploration or operations,other than
<br /> (2)At the request of the lessee,made prior to initiation of the lease casual use,prior to approval of plans of exploration or operations by
<br /> year, the authorized officer may allow in writing the payment of a lessor and the receipt of necessary permits.
<br /> $3.00 per acre or fraction thereof minimum royalty in lieu of produc-
<br /> tion for any particular lease year.Minimum royalty payments shall be (2)Lessee shall carry on all operations in accordance with approved
<br /> credited to production royalties for that year only. methods and practices,and as provided in the operating regulations
<br /> and in the approved mining plan,in a manner that minimizes adverse
<br /> Sec. 3. SUSPENSION - Lessee shall notify the authorized officer impacts to the land,air,water,cultural,biological,visual,and other
<br /> when operations are interrupted by strikes,the elements,or casualties resources, including mineral deposits and formations of mineral
<br /> not attributable to the lessee. Upon application of lessee,lessor may deposits not leased hereunder,and to other land uses or users.Lessee
<br /> approve suspension of operations under the lease when marketing shall take measures deemed necessary by lessor to accomplish the
<br /> conditions are such that the lease cannot be operated except at a loss. intent of this lease term. Such measures may include, but are not
<br /> In the interest of conservation of natural resources, the lessor may limited to, modification to proposed siting or design of facilities,
<br /> waive, suspend, or reduce rental, or minimum royalty, or reduce timing of operations,and specification of interim and final reclama-
<br /> royalty,and may direct or assent to the suspension of operations and Lion procedures.
<br /> production under this lease in accordance with section 39 of the
<br /> Mineral Leasing Act,30 U.S.C.209. (3) Lessor reserves to itself the right to lease, sell, or otherwise
<br /> dispose of the surface or other mineral deposits in the lands and the
<br /> Sec.4.BONDS-Lessee shall maintain in the proper office an initial right to continue existing uses and to authorize future uses upon or in
<br /> lease bond in the amount of S 16,000,or in lieu thereof,an acceptable the leased lands, including issuing leases for mineral deposits not
<br /> statewide or nationwide bond.The authorized officer may adjust the covered hereunder and approving of easements or rights-of-way.
<br /> bond amount as determined appropriate for operations under this Lessor expressly reserves the right to issue oil shale leases for all or
<br /> lease.Lessor shall require a lease bond sufficient to satisfy rental and any part of the lands subject to this lease,including the Saline Zone.
<br /> royalty payments as well as lessee's performance bond under 43 CFR Lessor also reserves the right to issue sodium leases for all or any part
<br /> 23 for operations and reclamation requirements in the event that lessee of the lands subject to this lease,excluding the Saline Zone,giving due
<br /> fails to fully comply with lease terms,conditions,and stipulations. regard to the rights of lessee to the deposits leased herein.Lessor shall
<br /> condition such uses to prevent unnecessary or unreasonable interfer-
<br /> Sec.5. DOCUMENTS,EVIDENCE AND INSPECTION-At such ence with rights of lessee as may be consistent with concepts of
<br /> times and in such form as lessor may prescribe,lessee shall furnish multiple use and multiple mineral development.
<br /> detailed statements showing the amounts and quality of all products
<br /> removed and sold from the lease, the proceeds therefrom, and the (b) Exploration,Development, and Production of Leased Deposits
<br /> amount used for production purposes or unavoidably lost. and Other Operations in Oil Shale or Other Leasable Deposits -
<br /> Lessee shall not conduct exploration or mining operations that the
<br /> Lessee shall keep open at all reasonable times,for the inspection of authorized officer determines:
<br /> any duly authorized officer of lessor, the leased premises and all
<br /> surface and underground improvements,works,machinery,ore stock- (1)would be hazardous to the concurrent or future production of
<br /> piles,equipment,and all books,accounts,maps,and records relative mineral deposits under existing leases issued pursuant to the Act for
<br /> to operations,surveys,or investigations on or under the leased lands. the same lands,of oil shale not located in the Saline Zone,or of the 25
<br /> g.p.t.oil shale in the Saline Zone in the same lands;
<br /> Lessee either shall submit or shall provide lessor access to, and
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