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Sec.6. DOCUMENTS.EVIDENCE AND INSPECTION-At such times and Sec.9. (a) TRANSFERS
<br /> :a such form as lessor may prescribe, lessee shall furnish detailed
<br /> statements showing the amounts and quality of all products removed ® This lease may or transferred in whole or in partfied to hold such lease interest.
<br /> to any person,
<br /> and sold from the lease,the proceeds therefrom,and the amount used association or corporation qualified
<br /> far production purposes or unavoidably lost. ❑ This lease may be transferred in whole or in part to another
<br /> o public body or to a person who will mine the coal on behalf of,and
<br /> .esaee shall kee p pen stall reasonable times for the inspection of any for the use of,the public body or to a person who for the limited
<br /> uiy authorized officer of lessor,the leased premises and all surface and purpose of creating a security interest in favor of a lender agrees
<br /> Underground improvements,works,machinery, ore stockpiles,equip- to be obligated to mine the coal on behalf of the public body.
<br /> ment,and all books,accounts,maps,and records relative to operations,surveys,or investigations on or under the leased lands. ❑ This lease may only be transferred in whole or in part to another
<br /> small business qualified under 13 CFR 121.
<br /> essee shall allow lessor access to and copying of documents reason- Transfers of record title, working or royalty interest must be
<br /> sbly necessary to verify lessee compliance with terms and conditions of
<br /> the(ease. approved in accordance with the regulations.
<br /> (b) REUNOUISHMENT - The lessee may relinquish in writing at any
<br /> W'hile this lease remains in effect, information obtained under this time all rights under this lease or any portion thereof as provided in the
<br /> ection shall be closed to inspection by the public in accordance with regulations. Upon lessor's acceptance of the relinquishment, lessee
<br /> .he Freedom of Information Act(5 U.S.C.552). shall be relieved of all future obligations under the lease or the
<br /> relinquished portion thereof,whichever is applicable.
<br /> Sec. 7. DAMAGES TO PROPERTY AND CONDUCT OF OPERATIONS - Sec, 10. DELIVERY OF PREMISES, REMOVAL OF MACHINERY, EGUIP-
<br /> L,essee shall comply at its own expense with all reasonable orders of the MENT,ETC.-At such time as all portions of this lease are returned to
<br /> secretary, respecting diligent operations, prevention of waste, and lessor,lessee shall deliver up to lessor the land leased, underground
<br /> ::rocection of other resources. timbering, and such other supports and structures necessary for the
<br /> :_.essee shall not conduct exploration operations,otherthan casual use, preservation of the mine workings on the leased premises or deposits
<br /> without an approved exploration plan. All exploration plans prior to and place all workings in condition for suspension or abandonment.
<br /> -he commencement of mining operations within an approved mining. Within 180 days thereof,lessee shall remove from the premises all other
<br /> permit area shall be submitted to the authorized officer. structures,machinery,equipment,tools,and materials that it elects to
<br /> or as required by the authorized officer. Any such structures, ma-
<br /> :-essee shall carry on all operations in accordance with approved chinery,equipment,tools,and materials remaining on the leased lands
<br /> methods and practices as provided in the operating regulations,having beyond 180 days, or approved extension thereof, shall become the
<br /> sue regard for the prevention of injury to life,health,or property,and Property of the lessor, but leaue shall either remove any or all such
<br /> vrevention of waste, damage or degradation to any land,air,water, property or shall continue to be liable for the cost of removal and
<br /> cultural, biological, visual, and other resources, including mineral disposal in the amount actually incurred by the lessor.if the surface is
<br /> deposits and formations of mineral deposits not)eased hereunder,and owned by third parties,lessor shall waive the requirement for removal,
<br /> to other land uses or users. Lessee shall take measures deemed Provided the third parties do not object to such waiver. Lessee shall,
<br /> necessary by lessor to accomplish the intent of this lease term.Such Prior to the termination of bond liability or at any other time when
<br /> measures may include,but are not limited to,modification to proposed required and in accordance with all applicable laws and regulations,
<br /> citing or design of facilities,timing of operations,and specification of reclaim all lands the surface of which has been disturbed,dispose of all
<br /> interim and final reclamation procedures.Lessor reserves to itself the debris or solid waste,repair the offsite and onsite damage caused by
<br /> right to lease,sell,or otherwise dispose of the surface or other mineral lessee's activity or activities incidental thereto, and reclaim access
<br /> deposits in the lands and the tight to continue existing uses and to roads or trails.
<br /> authorize future uses upon or in the leased lands, including issuing Sec.11. PROCEEDINGS IN CASE OF DEFAULT-if lessee fails to comply
<br /> ieases for mineral deposits not covered hereunder and approving with applicable laws,existing regulations,or the terms,conditions and
<br /> easements or rights-of-way.Lessor shall condition such uses to prevent stipulations of this lease,and the noncompliance continues fur 30 days
<br /> unnecessary or unreasonable interference with rights of lessee as may after written notice thereof,this lease shall be subject to cancellation by
<br /> be consistent with concepts of multiple use and multiple mineral the lessor only by Y Judicial proceedings. This provision shalt not be
<br /> construed to prevent the exercise by lessor of any other legal and
<br /> equitable remedy,including waiver of the default.Any such remedy or
<br /> Sec.S. PROTECTION OF DIVERSE INTERESTS,AND EOUAL OPPORTU- waiver shall not prevent later cancellation for the same default
<br /> NITY-Lessee shall: pay when due all taxes legally assessed and levied occurring at any other time.
<br /> under the laws of the State or the United States;accord all employees
<br /> complete freedom of purchase;pay all wages at lease twice each month Sec. 12. HEIRS AND SUCCESSORS-IN-INTEREST- Each obligation of
<br /> in lawful money of the United States; maintain a safe working this lease shall extend to and be binding upon,and every benefit hereof
<br /> environment in accordance with standard industry practices;restrict shall inure to, the heirs, executors, administrators, successors, or
<br /> the workday to not more than 8 hours in any one day for underground assigns of the respective parties hereto.
<br /> workers,except in emergencies;and take measures necessary to protect Sec 13. INDEMNIFICATION-Lessee shall indemnify and hold harmless
<br /> the health and safety of the public.No person under the age of 16 years the United States from any and all claims arising out of the lessee's
<br /> snall be employed in any mine below the surface.To the extent that activities and operations under this lease.
<br /> laws of the State in which the lands are situated are more restrictive
<br /> than the provisions in this paragraph,then the State laws apply. Sec.14. SPECIAL STATUTES-This lease is subject to the Federal Water
<br /> Pollution Control Act(33 U.S.C. 1151-1175), the Clean Air Act (42
<br /> Lessee will comply with all provisions of Executive Order No.11246 of U.S.C. 1857 et. seq.), and to all other applicable laws pertaining to
<br /> September 24, 1965, as amended, and the rules, regulations, and exploration activities, mining operations and reclamation,including
<br /> relevant orders of the Secretary of Labor.Neither leasee nor lessee's the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C.
<br /> subcontractors shall maintain segregated facilities. 1201 et.m q.).
<br /> See. 15. SPECIAL STIPULATIONS- (a) This lease is subject to USDA — Forest Service stipulations, including
<br /> Forest Service Stipulation 1 and Supplements A and D, which are attached to and made part of the
<br /> lease.
<br /> THE UNITED STATES OF AMERICA
<br /> /s/ Tom Walker
<br /> By: Assor'.ate
<br /> State Director
<br /> Date: SEp 2 6 J�
<br />
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