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• ASSIGNMENT OF RECORD TITLE <br />�TO FEDERAL COAL LEASE C -29225 <br />COLOWYO COAL COMPANY ( "Assignor "), a Delaware general <br />partnership between Gracoal, Inc., a Delaware corporation <br />( "Gracoal "), and Gracoal II, Inc., a Delaware corporation <br />( "Gracoal II"), both wholly -owned subsidiaries of Grace Energy <br />Corporation, a Delaware corporation, hereby quitclaims, <br />transfers, and assigns to COLOWYO COAL COMPANY L.P. ( "Assignee "), <br />a Delaware limited partnership, having its principal office at <br />5731 State Highway 13, Meeker, Colorado 81641, effective <br />August 9, 1993, all of Assignor's right, title, and interest in <br />that certain Federal coal mining lease described as follows (the <br />"Lease "), insofar as the Lease covers and relates to the <br />following land: <br />Lease Effective <br />Serial No. Date . �' o <br />C -29225 June 1, 1983 <br />Ci .s <br />Land Description <br />0 <br />Township 3 North, Range 93 West, 6th P.M. -0 <br />Section 5: Lots 1, 2, S1 /2NE1 /4, SEi /4; <br />Section 7: NE1 /4NE1/4, S1 /2NE1 /4, SE1 /4; <br />Section 8: All; <br />• Section 17: All; <br />Section 18_: Lots 3, 4, E1 /2, E1 /2SW1 /4; <br />in Moffat County, Colorado, containing 2,367.78 acres, more or <br />less, subject to the overriding production royalty reserved in <br />that certain Assignment dated August 18, 1988 from BHP -Utah <br />International Inc., a Delaware corporation, to Assignor. <br />Assignee expressly agrees by execution and acceptance <br />of this Assignment to pay, discharge, or fulfill all of <br />Assignor's liabilities and obligations as lessee under the Lease, <br />and all liabilities and obligations of Assignor under previous <br />assignments of the Lease. Further, Assignee accepts the <br />assignment contained herein subject to all rights reserved by the <br />• <br />UNfMWITEBOFAMERr.n <br />AS$MMENTAPPWVED EFFE0M hiAR l W4 <br />so ate State Director <br />Exhibit 1, Item 12 -3 Revision Date: 8/31/11 <br />Revision No.: TR -93 <br />