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UNITED STATES
<br /> DEPARTMENT OF THE INTERIOR serest mumbw C-09004
<br /> BUREAU OF LAND MANAGEMENT
<br /> Lease Date May 1 . l o 6,
<br /> COAL LEASE REAWUSTMEN T
<br /> PART 1. LEASE RIGHTS GRANTED
<br /> This lease,entered into by and between the UNrrzD STATo op,AatsxtcA.hereinafter called lessor,through the Bureau of Land Managemen
<br /> Mid-Continent Resources, Inc.
<br /> P.O. Drawer 790
<br /> Glenwood Springs, Colorado 81601
<br /> hereinafter called lessee.is teadjtrnod.'effective May 1, 1991 ,for a period of 10 years and for so long thereafter as c=
<br /> produced in commercial quantities from the leased lands,subject to readjustment of lease terms at the end of each 10-year lease period.
<br /> Sec. 1. This lease is issued pursuant and subject to the terms and provisions of the:
<br /> ® Mineral Lands Leasing Act of 1920,Act of February 25,1920,as amended,41 Stat.437,30 U-S.C.181-287,hereinafter referred to as the.
<br /> ❑ Mineral Leasing Act for Acquired Lands,Act of August 7,1947,61 Stat.913,30 U.S.C.351.359;
<br /> and to the regulations and formal orders of the Secretary of the Interior which are now or hereafter in force,when not inconsistent with the ex
<br /> and specific provisions herein.
<br /> Sec-2. Lessor,in consideration of any rents,and royalties to be paid,and the conditions and covenants to be observed as herein set forth, h=
<br /> grants to lease+the exclusive right and privilege to drill for,mine,extract,remove,or otherwise process and dispose of the coal deposits in,
<br /> or under the following described lands:
<br /> T. 10 S. , R. 89 W. , 6th P.M.
<br /> sec. 6, lots 6 and 7;
<br /> sec. 7, lots 1 to 4, inclusive;
<br /> sec. 18, lots 5 to 10, inclusive;
<br /> sec. 19, lots 1 and 2, and EzNW!4.
<br /> T. 10 S. , R. 89 W. , 6th P.M.
<br /> sec. 1, lots 1, 2, 5, and 6, NEkSWZ, SIISWk, and W-2SEk;
<br /> sec. 12, lots 1 to 4, inclusive, WIlEll and Wil;
<br /> sec. 13, lots 1 to 4, inclusive, WIEI and W-11;
<br /> sec. 24, lots 1 and 2, WINEk and NW14,
<br /> containing 2501.34 acres,more or less,together with the right to construct such works,buildings,plants,structures,equipment and appiiz
<br /> and the right to use such on-lease rights-of-way which maybe necessary and convenient in the exercise of the rights and privileges granted,subs
<br /> the conditions herein provided.
<br /> PART IL TERMS AND CONDITIONS See.4. DILIGENCE-This lease is subject to the conditions of di:_
<br /> Sec 1.(a) RENTAL RATE-Lessee shall pay lessor rental annually and development and continued operation,except that these conditior
<br /> excused when operations under the lease are interrupted by strika_
<br /> in advance for.each acre or fraction thereof during the continuance of elements.or casualties not attributable to the lessee.The lessor,:.
<br /> the lease at the rate of S 3.00 *** for each lease year. public interest,may suspend the condition of continued operation _
<br /> (b) RENTAL CREDITS - Rental shall not be credited against either payment of advance royalties in accordance with the regulation
<br /> production or advance royalties for any year. existence at the time of the suspension.Lessee's failure to product/
<br /> in commercial quantities at the end of 10 years shall termtnata
<br /> Sec 2. (a) PRODUCTION ROYALTIES -The royalty shall be (surfac ) lease.Lessee shall submit an operation and reclamation planpurs
<br /> 12.5 percent 'and (underground) 8.0 par to Section 7 of the Act not later than 3 years after theelfec&m date
<br /> cent of the value of the coal as set forth in the regulations.Royalties are thb hose fit.
<br /> due to lessor the final day of the month succeeding the calendar month The leasor:eserves the
<br /> in which the royalty obligation accrues. powerto assent to ororder the suspension c
<br /> terms and conditions of this lease in accordance with. inter
<br /> (b) ADVANCE ROYALTIES-Upon request by the lessee,the authorized Section 39 of the Mineral Leasing Act,30 U.S.C.209.
<br /> officer may accept.for a total of not more than 10 years,the payment of
<br /> advance royalties in lieu of continued operation,consistent with the Sec, 5. LOGICAL MINING UNIT (LMU) - Either upon approval by
<br /> regulations.The advance royalty shall be based on a percent of the lessor of the lessee's application or at the direction of the lessor.
<br /> value of a minimum number of tons determined in the manner lease shall become an LMU or part of an LMU,subject to the prove:
<br /> established by the advance royalty regulations in effect at the time the set forth in the
<br /> lessee requests approval to pay advance royalties in lieu of continued regulations.
<br /> operation. The stipulations established in an LMU approval in effect at the to
<br /> LMU approval will supersede the relevant inconsistent terms o:
<br /> Sec.3. BONDS-Lessee shall maintain in the proper office a lease bond lease so long as the lease remains committed to the L.11U.If the L`,.
<br /> in the amount of S 3 9 2,000- The authorized officer may require an which this lease is a part is dissolved,the lease shall then be subs
<br /> increase in this amount when additional coverage is determined the lease terms which would have been applied if the lease had not
<br /> appropriate. included in an LMU.
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