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reclamation procedures. Lessor reserves to itself the right to <br />lease, sell. or othuwise dispose of the surface or other rninual <br />deposits in thelends and the right m continue existing uses andto <br />authoriu future uses upon or in the leased lands, including <br />issuing leases for minval deposits not covered hueundu end <br />approving easements or rights-of-way. Lessor shall condition <br />such uses to prevent unnecessary or umeasanable interference <br />with rights of Lessee es may be consistent with concepts of <br />multiple use and multiple minual development. <br />Sec. 8. PROTHCTION OF DIVERSE INTERESTS, AND <br />EQUAL OPPORTUNITY -Lessee shag pay when due W] <br />Imtes IegWly assessed and levied under the laws of the State a <br />the United States; accord all employee complete freedom of <br />purchase; pay all wagrs az (east twice wch month in lawful <br />money ofthe United Smtrs; maintahra safewrorldngenvironment <br />in accordance with standard indtutry practicrs; restriu du <br />workday to not more than 8 hams in any one day for <br />underground workers, except in emugences; and take measures <br />necessary to protect the heWdr avd safety of the public. No <br />person under the age of 16 years shall be employed in any mine <br />below the aurfact. To the extent that laws of the Smm in which <br />the !ands arc situated arc more restricUVe than [he provisions in <br />this paragraph, then the Smte laws apply. <br />Lessee will comply with all provisions of Executive Order No. <br />11246 of September 24, 1965, as amend W, and the rules, <br />regulations, and relevant orders of the Secretary of labor. <br />Neither Lessee nor Lusce's subconvazmrs shall mainmin <br />segregated facilities. <br />Sa. 9. (a) TRANSFERS -This lease may be transfured in <br />whole or in part To any puson, association or corporation <br />qualified to hold such lease interest <br />Transfers of record dtie, working ar royalty interest must be <br />appmved.in ecrordance with the regulatient. <br />(b) RELINQUISHMENTS -I-essee may relinquish in <br />writing a! any time all rights Urdu this lease or any portion <br />Thereof as provided in the regulations. Upon lessor's acceptance <br />of the relinquishment, lessee shall be relieved of all future <br />obligadons under dte lease or the relinquished portion tbereof, <br />whichever is applicable. <br />Sec 10. bEL[VERY OF PREM[SES, REMOVAL OF <br />MACHINERY, EQUIPMENT, ETC. - At such times u all <br />portions of this lease ue returned to lessor, lessee shall deliver <br />up to lusor the land leased, unduground timbering, and such <br />othu supports and structures accessary far the preservation of <br />the mine workings on the leased premises or deposits aM place <br />ill workings in condition for suspension or abandonment. <br />Wittdn 180 days Werwf, lessce shall remove from the premises <br />all othu structures, machinery, equipmenq tools, sod materials <br />that it elects roar as required by the authorized officer. Any such <br />^ - 3 <br />L <br />swctmes, machipery, ee~Wpment, tools, and material remaining <br />on the leased larl~{'%beyondil-$0 Uby¢7W~~provcd extension <br />thereof, shell became the proputy of the lessor, but lessee shall <br />eithu remove any or a!I such property or shall continue to be <br />liable for the cost of removal and disposal in the amountactually <br />incurred by Ne lessor. If the surfaze is owned by third panics, <br />lessor shall waive the requirement for removal, provided Uw thvd <br />patties do trot object to such waiver. I.esste shall, prior to lh< <br />termination of bold liability or at any other time when required <br />and in accordance with all applicable laws and regulations, <br />reclaim all lands the surface of which has been disturhed,dispose <br />of ell debris or solid waste, repair the offsite and onsite damage <br />caused by lessee's activity or activities irxidenml thereto, and <br />rcelaim aceus made or trails. <br />Sec ll. PROCF-F.DD~IGS IN CASEOF DEFAULT-If lessee <br />fails Io comply with appfitable laws, existing regulations, or the <br />terms, conditions and stipWadons of this tense, and the <br />noncompliance continues for 30 days after wrinen notice theeof, <br />this lease shall be subject [o cancellation by the lessor Doty by <br />judicial proceedings. This provision shall not be consuued m <br />prevent the exercise by lessor of any oNu legal end equitable <br />remedy. including waiver of the defaWt Any such remedy or <br />wvvu shall not prevent la[u cancellation for the same default <br />oceurting et any othu time. <br />Sec 12. HE1RS AND SUCCESSORS • IN-INTEREST-Each <br />obligation of this lease shat l extend to and be binding upon, and <br />every benefit hueaf shall insure m, the heirs, uecutors, <br />adminisVaeors, successors, or assigns of Ne respective parties <br />hereto. <br />Sec. 1}, INDEMNIFICATION - I-essee shall indemnify and <br />hold hmrNess [he United Smtes fmm any aM all claims arising <br />out of the Lessu's activitiu and operaions undo this lease. <br />Sec 14. SPECIAL STATOTFS -This lease is subject m dte <br />Federal Water Pollmion Control A<t (33 U.S.C. 1151 - 1175); <br />the Clean Air Ad (42 U.S.C. 1857 £ sue.), and m all othu <br />applicable laws purairting to exploration aclivides, mining <br />operations aM reclamation, including the Surtax Mining <br />Canuol and Reclamation Act of 1977 (30 U.S.C. 1201 et sue.) <br />Sec 15. SPECIAL STIPULATIONS (e) All stipulations <br />concerning compliance with the requirements of the Surface <br />Mining Control and Reclamation Ac[ will be iactuded in the <br />document approving the mining plan <br />(b) Lessee shall be required to mitigate for mWe deu, <br />dk, antelope, and sharp-tail grouse habitat Loss where applicable <br />and the rrsulfnn[ lass or displacement of these spuirs, as key <br />indicator species, due to surface coal mining opuadons. <br />CoxurrenBy, with the Rling of its mine plan, Icssce shill submit <br />far approval to the BLM, a habitat ru;overy and replacement <br />plan for protection or enhancement of mWe deer, elk, antelope, <br />Exhibit 1, Item 1-6 Revision Date: 1/16/06 <br />Revision No.: MR-78 <br />