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UNITED STATES
<br /> DEPARTMENT OF THE INTERIOR Senel number C-030345
<br /> BUREAU OF LAND MANAGEMENT
<br /> i,,,Om- April 1, 1961
<br /> COAL LEASE READJUSTMENT
<br /> PART I. LEASE RIGHTS GRANTED
<br /> This lease,entered into by and between the Umffzn STATES OF AmEiti"hereinafter called lessor,through the Bureau of Land Management,an
<br /> Mid—Continent Resources, Inc.
<br /> P.O. Drawer 790
<br /> Glenwood Springs, Colorado 81601
<br /> hereinafter called lessee,is moo wed April 1, 1991 for a period of 10 years and for so long thereafter as coal
<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 Ac:.•
<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 expre.
<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. here=
<br /> grants to lessee the exclusive right and privilege to drill for,mine,extract,remove,or otherwise process and dispose of the coal deposits in,upe.
<br /> or under the following described lands:
<br /> T. 10 S. , R. 90 W. , 6th P.M.
<br /> sec. 25, lots 1 and 2, and NW-4NEB
<br /> containing 117.05 acres,more or less,together with the right to construct such works,buildings,plants,structures,equipment and applianc
<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,subject
<br /> the conditions herein provided.
<br /> PART II.TERMS AND CONDITIONS Sea 4. DILIGENCE-This lease is subject to the conditions of dilige:
<br /> development and continued operation,except that these conditions a_
<br /> Sec. 1.(a) RENTAL RATE-Lessee shall pay lessor rental annually and excused when operations under the lease are interrupted by strikes,t.
<br /> in advance for each acre or fraction thereof during the continuance of elements,or casualties not attributable to the lessee.The lessor,:n t.
<br /> the lease at the rate of a 3.00 -- for each lease year. public interest,may suspend the condition of continued operation upc
<br /> (b) RENTAL CREDITS - Rental shall not be credited against either payment of advance royalties in accordance with the regulations
<br /> production or advance royalties for any year. existence at the time of the suspension e
<br /> Sea 2. (a) PRODUCTION ROYALTIES -The royalty shall be (surf ac )
<br /> 12.5 percent and (underground) 8.0 per. ���
<br /> cent of the value of the coal as set forth in the regulations.Royalties are btJ
<br /> due to lessor the final day of the month succeeding the calendar month The lessor reserves the power to assent to or order the suspension of tr
<br /> in which the royalty obligation accrues. terms and conditions of this lease in accordance with, inter all
<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 t:
<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, th
<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 provisto r
<br /> established by the advance royalty regulations in effect at the time the set forth in the regulations.
<br /> lessee requests approval to pay advance royalties in lieu of continued
<br /> operation. The stipulations established in an LMU approval in effect at the time
<br /> LMU approval will supersede the relevant inconsistent terms of th
<br /> Sec.3. BONDS-Lessee shall maintain in the proper office a lease bond lease so long as the lease remains committed to the LMU.If the LIM U
<br /> in the amount of i 5,000.00. The authorized officer may require an which this lease is a part is dissolved,the lease shall then be subject
<br /> increase in this amount when additional coverage is determined the lease terms which would have been applied if the lease had not bet.
<br /> appropriate:. included in an LMU.
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