1989-05-26_REVISION - C1981035 - Laserfiche WebLink

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LETTER OF INTENT This Letter of Intent is executed this ;6 day of 1989, by ZANE J. LUBIN and FRED FOX, JR. , Co-Trustees of th Gilbert C. VanCamp, Jr. Administrative Trust, c/o Zane J. Lubin & Associates, 12700 Ventura Boulevard, Suite 140, Studio City, California 91604. This letter is issued for the benefit of National King Coal Company pursuant to proposals made in negotiations by and between the Trustees of the Administrative Trust and Brad Gosche, as representative from National King Coal Company. Pursuant to the terms hereinafter set forth, the Co-Trustees of the Administrative Trust hereby express their intent, subject to execution of a mutually satisfactory final agreement, to lease to National King Coal Company the right to mine and extract coal from reserves located on property owned by the Administrative Trust which is more specifically described on Exhibit "A" hereto attached, the contents of which are specifically incorporated by reference herein. Any binding obligation on the part of the Co-Trustees is expressly subject to the execution of a mutually satisfactory finalized agreement which, at a minimum, must include the following provisions: 1. Utilization of the surface of the property owned by the Administrative Trust by National King Coal shall be limited to the maximum extent practical, to minimize disruption of natural foliage and ground cover. The Co-Trustees acknowledge and understand, however, that National King Coal may be required to perform some work on the surface of the property described on Exhibit "A" hereto attached due to cave-ins or other catastrophies which require remediation pursuant to applicable state and federal regulations. 2. Relocation of ditch and water courses along the surface of the property shall be prohibited. In the event underground water is encountered through mining operations, National King Coal may divert such underground water to the extent necessary to allow continuous mining operations. 3. The Coal Lease shall extend for a period not to exceed five (5) years. Operations subsequent to the initial five (5) year period shall be contingent upon the ability to negotiate a mutually satisfactory extension agreement. 4. The finalized agreement between the parties shall provide that in the event of any default, written notification shall be given and the lease shall be terminable if such default is not cured within a period of thirty (30) days after written notification or, alternatively, in the event such cure cannot occur within said thirty (30) day period, the lease shall be terminable by the non-defaulting party, if the party in fault does not, within said thirty (30) day period initiate procedures reasonable calculated to cure the default and thereafter pursue such procedures diligently. 5. The finalized agreement shall require full and complete restoration of the surface of the property as well as the sub-structure by Lessee prior to termination and vacation of the premises.