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UNITED STATES <br />DEPARTMENT OF THE INTERIOR <br />BUREAU OF LAND MANAGEMENT <br />MODIFIED COAL LEASE <br />Serial No,: COC72980 <br />Date of Lease: March 01, 2009 <br />PART 1. <br />THIS MODIFIED COAL LEASE is entered into on February 01, 2013, by and between the UNITED STATES OF AMERICA, <br />hereinafter called the Lessor, through the Bureau of Land Management, and <br />Twentymile Coal, LLC <br />PO Box 483 <br />Paonia, CO 81428 <br />hereinafter called Lessee. <br />This modified lease shall retain the effective date March 01, 2009, of the original Coal Lease COC72980 and is effective for a period <br />of 20 years therefrom, and for so long thereafter as coal is produced in commercial quantities from the leased lands, subject to <br />readjustment of lease terms at the end of the 20th lease year (March 01, 2029), and each 10 -year period thereafter. <br />Sec. 1. This lease is issued pursuant and subject to the terms and provisions of the Mineral Lands Leasing Act of 1920, as amended, <br />41 Stat. 437, 30 U.S.C. 181-287, hereinafter referred to as the Act; and to the regulations and formal orders of the Secretary of the Interior <br />which are now or hereafter in force, when not inconsistent with the express and specific provisions herein. <br />Sec. 2. I. Lessee as the holder of Coal Lease COC72980, issued effective March 01, 2009, was granted the exclusive right and <br />privilege to drill for, mine, extract, remove or otherwise process and dispose of the coal deposits, under the lands described below as <br />TCC Wadge Seam. <br />2, The Lessor in consideration of fair market value, rents and royalties to be paid, nd the conditions and covenants to be observed as <br />herein set forth, hereby grants and leases to lessee the exclusive right and privil�e driII for, mine, extract, remove, or otherwise <br />process and dispose of the underground coal deposits on the following 1� saribed as�Wadge Seam. <br />Original Lease: _ �' •'S ' <br />TCC Wadtre Seam: T. 5 N., R. k7 <br />sec. 27 �a, tVNV✓V4,'N %zNE' /,SW; / <, and W' SE' /4. <br />Contai giu Arriately 260 acres, more or less. <br />Modification: <br />Additional UG Reserves <br />Wadg_e Seam: T. 5 N., R. 87W., 6`s P.M. <br />sec. 32, NWIANE' /4. <br />Containing approximately 40 acres, more or less. <br />Containing 300 acres, more or less, together with the right to construct such works, buildings, plants, structures, equipment and <br />appliances and the right to use such on -lease rights -of -way which may be necessary and convenient in the exercise of the rights and <br />privileges granted, subject to the conditions herein provided. <br />