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<br />III III'IIIII"II III
<br />COAL MA'ING LEASE
<br />' ~ ~ THIS COAL MINING LEASE (the "Lease") is made this 1's't day of
<br />n 1990 ("effective date"), by aad between o ~ ~ ,
<br />•.v ose a ress is ~{ 8 1',. sr. ,.~me ono "Less r," w et er
<br />one or more), and NEW CAS~NE G`~ AT1O ("Lessee"), whose address
<br />is 7625 East Napa Place, llcnver, Colorado 80237, Attn: President.
<br />Lessor and Lessee agree as follows:
<br />Wheaever used in this Lease, the following terms will have the following
<br />meanings:
<br />"Coal" means all forms of coal, including lignite and subbituminous coal, as
<br />well as gaseous substances naturally occurring in combination with coal deposits. It is
<br />not the iatent of the parties, by including gaseous substances within this definition, to
<br />require that Lessee capture, gather and market such gaseous substances where it is not
<br />technically and economically feasible to do so, but only to provide that it will and may
<br />be done if such activity is, in the sole opinion of Lessee, feasible.
<br />"Commercial Quantities" means a quantity of Coal produced and said from
<br />the Unitized Premises sufficient to allow Lessee to realize a profit, after deducting all
<br />expenses attzibutable to production from the Unitized Premises, other than depreciation
<br />and initial development cows.
<br />"Continuous Basis" means, with respect to Mining Operations, so long as
<br />alt such Mining Operations do not cease for a total of mare than three hundred sixty-
<br />five (365) consecutive days, in the absence of the existence of Force Majeure.
<br />"Current Market Value" means the price paid for Coal in comparable
<br />current arms•Iength salts at other mines, adjusted to account for variances in mining and
<br />processing methods and the grade, quality and composition of the Coal from that mine
<br />and the Coal mined on the 1;laitized Premises, for differences in the terms of the
<br />respective sales contracu and brokerage costs, and for traruportation costs to the point
<br />of sale.
<br />"Force Majeure" means the occurrence and continuation of any of the
<br />following conditions beyond the reasonable control of the Lessee, which, during its
<br />occurrence prevents Lessee from carrying out its obligations under this Lease: lightning,
<br />earthquake, storm, fire, flood, windstorms, and other damage from the elements; strikes,
<br />lockouu, or other labor disturbance; war, insurrection, mob violence, riots; interference,
<br />action, legislation, or regulation by legislative, administrative, judicial or other
<br />governmental or military authority; inability to obtain permits or licenses; acu of God
<br />or acts of the public enemy; breakdown of equipment, machinery or facilities which are
<br />not readily replaceable; scattily or unavailability of equipment, material, power, fuel or
<br />water; failure of carriers to transport or furnish facilities for transportation; or any other
<br />like cause beyond Lessee's control.
<br />'Mining" means deep abaft, hydraulic, incline, and/ar adit mining, and any
<br />other underground mining method presently or in the future in commercial use or
<br />developmental testing in the worldwide coal mitring industry.
<br />"Mining Operations" meant: the production of Coal in Commercial
<br />Quantities; operations for opening, reworking, deepening, or extending a mine reasonably
<br />calculated to facilitate the production of Coa] in Commercial Quantities; and other
<br />operations conducted on the Unitized Premises in an effort to obtain or reestablish the
<br />commercial production of Coal.
<br />"Premises" means the surface (if applicable) and mineral (as recited}
<br />interests of Lessor as set forth in Schedule I, which is attached to and made a Bart of
<br />this Lease.
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