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consistent - \v ith permitted underground mining operations and federal <br />and state law and regulation Lessee shall not be obligated or required <br />io capture for use or sale coal mine methane that would rtherwrse be <br />vented or discharged if the capture of coal mine methane, independent <br />of activities related to mining coal, is not economically feasible or if <br />the coal mine methane must be vented in order to abate the potential <br />hazard to the health or safety of the coal mines or coal mining <br />activities. In the event of a dispute between lessor and lessee as to the <br />economic or other feasibility of capturing for use or sale the coal mine <br />methane. lessor's remedy as a prevailing party shall be limited to <br />recovery of compensatory royalties on coal mine methane not captured <br />for use or sale by lessee. Lessee shall have the right to continue all <br />mining activities under this lease, including venting coal mine <br />methane. pending resolution of any dispute regarding the application <br />of the terns of Sections 3 and 4. <br />Pursuant to the Iease addenda and subsequent BLM request, West Elk contracted with third - <br />parties to evaluate various methane uses and their technological and economic feasibility at <br />the mine, and then produced a report which was provided to BLM on September 24, 2009. <br />MCC provided a supplement to this report detailing the West Elk Mine's economic <br />conditions to BLM on November 23, 2009. <br />The 2009 West Elk Mine E -Seam (ias Economic Evaluation Report (2009 Report) analyzes <br />methane capture for pipeline sale, capture for onsite electric generation, and flaring. 'Elie <br />2009 Report showed that in 2009 there were no economically feasible uses of the methane <br />emitted from the mine. The BLM evaluated this report and found it to be credibly supported <br />by relevant economics and technology. (it is to be noted that the BLM also evaluated a <br />report related to the lease addenda prepared by Power Consulting and provided to the BLM <br />in January 2010, and found that report to be unpersuasive based on its reliance on a carbon <br />credit market that in 2009/2010 did not support economic methane use at the West Elk Mine, <br />and a market which at the signing of this ROD is significantly devalued since the 2009/2010 <br />analysis.) <br />As a part of the 2009 Report, MCC proposed that annual evaluations of new technology, <br />coupled with economic trigger values, will determine when future analysis is required. <br />These trigger values are: 1) natural gas price of $18.66MM /Btu; 2) price per Megawatt /Hour <br />(MWh) for electricity paid by the mine of $114 /MWh; and 3) carbon offset price of <br />$19.25 /ton. <br />MCC provided the BLM with updated information pursuant to Section VII of the R2P2 <br />report in April, 2012, which showed that none of the above stated trigger values had been <br />reached, and thus an additional detailed analysis is not necessary. The BLM agrees with <br />MCC's conclusions based on this updated information, and has provided MCC with an <br />approval of its proposed economic trigger values and continuing evaluation of new methane <br />use technology <br />