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<br />COAL MINING LEASE
<br />TFIIS COAL MINING LEASE (the "Lease") is made this
<br />Il'1 a. ~ 1990 ("effective date"), by and between /e r 1 en c ~3.
<br />whos address is /d Z 6 z9 K' ~~e ~ GF e /P., . O 8~~ ~ 3 i ("L
<br />one or more), and NEW CASTLE NERGY Cb PORATION ("Lessee"),
<br />is 7625 East Napa Place, Denver, Colorado 80237, Attn: President.
<br />Lessor and Lessee agree as follows:
<br />Definitions
<br />''day of
<br />v.~hose address
<br />Whenever 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 intent 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 I-essee, feasible.
<br />"Commercial Quantities" means a quantity of Coal produced and sold from
<br />the Unitized Premises sufficient to allow Lessee to realize a profit, after deducting al]
<br />expenses attributable to production from the Unitized Premises, other than depreciation
<br />and initial development costs.
<br />"Continuous Basis" means, with respect to Mining Operations, so long as
<br />all such Mining Operations do not cease for a total of more 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-length sales 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 Unitized Premises, for differences in the terms of the
<br />respective sales contracts and brokerage costs, and for transportation 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 iu obligations under this Lease: lightning,
<br />earthquake, storm, fire, flood, windstorms, and other damage from the elements; strikes,
<br />lockouts, 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; acts of God
<br />or acts of the public enemy; breakdown of equipment, machinery or facilities which are
<br />not readily replaceable; scarcity 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 shaft, hydraulic, incline, and/or 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 mining industry.
<br />"Mining Operations" means: the production of Coal in Commercial
<br />Quantities; operations for opening, reworking, deepening, or extending a mine reasonably
<br />calculased to facilitate the production of Coal 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 az set forth in Schedule I, which is attached to and made a part of
<br />this Lease.
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