1994-10-17_GENERAL DOCUMENTS - C1981017

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• «1�E\T OF United States Department of the Interior 91 P BUREAU OF LAND MANAGEMENT h _ COLORADO STATE OFFICE 2850 YOUNGFIELD STREET IT LAKEWOOD, COLORADO 80215-7076 CO-921B(ALV) i.' 3451 r$ D-040389 {{ Coal Jt CERTIFIED MAIL DECISION Pitkin Iron Corporation P.O. Drawer 790 Glenwood Springs, Colorado 81602 Notice of Readjusted Terms and Conditions Coal lease D-040389 was issued effective May 21, 1932, and was modified in 1956. Although the Bureau of Land Management(BLM) attempted to readjust this lease by its decision of February 1, 1980, Mid-Continent Limestone Company, then lessee, timely filed objections to readjustment that were eventually sustained. Notice of intent to readjust coal lease D-040389 at its next readjustment period was sent to the lessee, Pitkin Iron Corporation, May 21, 1990. As provided in the Mineral Leasing Act of 1920, as amended(41 Stat. 437, 30 U.S.C. 181 et seal, the regulations, and Section 3 of the lease, we are hereby readjusting the terms and conditions of lease D-040389. A copy of the lease is enclosed. The readjusted terms and conditions shall become effective May 21, 1992. The annual rental rate is increased to $3 per acre or fraction thereof as provided by the current regulations at Title 43, Code of Federal Regulations (CFR), Subpart 3473.3-1. The royalty rates, established by law and by regulations at 43 CFR 3473.3-2, are increased to 116 percent of the value of the coal removed from a surface mine and 8 percent for coal removed from an underground mine. See 55 Federal Register (FR)2653,January 26, 1990. The value of the coal shall be determined in accordance with the regulations at 30 CFR 206, as amended. 54 FR 1523, January 13, 1989, and 55 FR 35427, August 30, 1990. All payments of rentals and royalties must be submitted to the Minerals Management Service in accordance with that agency's regulations in Title 30, Code of Federal Re lagj t� ions. The adequacy of the lease bond is reviewed periodically and adjusted when necessary to reflect changed conditions. Because D-040389 remains inactive, the existing$5,000 bond is considered adequate at this time. Coal lease D-040389 will become subject to the provisions of the Federal Coal Leasing Amendments Act of 1976, as amended (90 Stat. 1083), effective May 21, 1992, the date of