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UNITED S':ATES
<br /> DEPARTMENT OF THE INTERIOR Senalnurnkw C-0125456
<br /> BUREAU OF LAND MANAGEMENT
<br /> M' Lsw Dan\ April 1 1 4 F 1
<br /> COAL LEASE READJUSTME
<br /> PART 1. LEASE RIGHTS GRANTED
<br /> This lease,entered into by and between the UNMW STATES of AMESICA,hereinafter called lessor,through the Bureau of Land Management,a
<br /> Mid—Continent Resources, Inc.
<br /> P.O. Drawer 790
<br /> Glenwood Springs, Colorado 81601
<br /> hereinafter called lessee,is teedjtuced.'effective April 1, 1991 ,for a period of 10 years and for so long thereafter as coa,
<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. I. 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 Act.
<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 drtll for,mine,extract,remove,or otherwise process and dispose of the coal deposits in,upc
<br /> or under the following described lands-
<br /> T. 10 S., R. 90 W. , 6th P.M.
<br /> sec. 24, N�SWI-4
<br /> containing 80 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 IL TERMS AND CONDITIONS Sea 4. DILIGENCE-This lease is subject to the conditions of diliger.
<br /> Sec 1.(a) RENTAL RATE-Lessee shall development and continued operation,except that these conditions a-
<br /> . lessor rental annually and excused when operations under the lease are interrupted by strikes,t-
<br /> i
<br /> n advance for each acre or fraction thereof during the continuance of elements,or casualties not attributable to the lessee.The lessor,in cr.the lease at the rate of S 3.00 -- for each lease year. public interest,may suspend the condition of continued operation upo-
<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.h :ee'_faiinie to
<br /> Sec 2. (a) PRODUCTION ROYALTIES -The royalty shall be (surface
<br /> 12.5 percent . and (underground) 8.0 per,
<br /> to Section 7 oi the Aft ftft later them 3)esm afte d e effeedwe date
<br /> cent of the value of the coal as set forth in the regulations.Royalties are
<br /> due to lessor the final day of the month succeeding the calendar month The lessor reserves the ofw sserittoororder the suspension o
<br /> f th
<br /> in which the royalty obligation accretes. terms and conditions this lease in accordance with, nterali.:
<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 tn..
<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, thi-
<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 provision
<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 o_
<br /> LMU approval will supersede the relevant inconsistent terms of thi
<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 LMU o_
<br /> in the amount of$ 5,000.00.The authorized officer may require an which this lease is a part is dissolved,the lease shall then be subject t..
<br /> increase in this amount when additional coverage is determined the lease terms which would have been applied if the lease had not been
<br /> appropriate• included in an LMU.
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