GENERAL45030

• Permit No: C1981039
• IBM Index Class Name: General Documents
• Doc Date: 3/17/1978
• Doc Name: LEASE
• Permit Index Doc Type: General Correspondence
• Media Type: D
• Archive: No

.; _ _~ : ~ • iii iiniiiiniu iii

MaR 1 7 1978
LEASE
THIS AGREEMENT, made and entered into this 6th
by and between BOGLE FARMS, INC., an Arizona Corporation,
L~il~~°. Gz. (~m ID. ~ l (a ~~ hereinafter colle
as "Lessor, or Party of the First Part, and CONSOLIDATED
CONSOLIDATED ENERGY, of P.0. Box 2867, Steamboat Springs,
referred to as "Lessee", or Party of the Second Part:
WITNESSETH:
MINED LAND RECLP~I!","'"~J
Cofo. Dept. of Natura~ ~:~ ~..- •~'~
of htarch, 1978,
o. ,073
:lively referred to
FUELS, INC., d/b/a
Colorado, hereinafter
That, for and in consideration of One Thousand and no/100 Dollars
($1,000.00) paid to Lessor by Lessee, the receipt of which is hereby acknowledged,
and in consideration of the covenants and agreements herein set out to be kept
and performed by both of the parties, the parties hereto have agreed and do
hereby covenant, each with the other, as follows, to-wit:
Lessor does hereby grant, demise, lease and let unto Lessee all
coal and coal deposits lying in, upon or under those lands located in Routt
County, Colorado, as described in Exhibit A, attached, together with the
right to use so much of the surface thereof as may be reasonably required
in the exercise of the right to mine coal, including stip mining, angering
and the reasonable right to ingress, egress and regress, to and from said
property, subject however, to all existing easements and rights-of-way of
third parties across said lands and to any and all other burdens and leases,
if any, of record. Lessor also grants to Lessee those additional rights
enumerated in paragraph 14, below. For all these purposes, t#~e rights granted
to Lessee are exclusive.
Said lands are hereby exclusively leased, let and demised to Lessee
for the purpose of prospecting, removing, extracting, processing, mining and
recovering coal in, upon or underlying the above described lands, irrespective
of and without regard to the number of separate veins of coal and said substances
underlying said lands and without regard to the depth beneath the surface
at which such vein may be found.
Lessee shall have the right to use such portion or portions of the
leased premises as may be reasonably necessary for conducting its operations
upon said leased premises, including by way of illustration, and not by way
of limitation, the right to operate machinery and equipment that are either
necessary or convenient for the mining, removal, haulage, storage, processing,
preparing for market and marketing of coal, to build offices and other mine
buildings of all kinds; to build and maintain haul roads; and to generally
mine, remove and prepare for market and market coal. Provided the acreage
so used exclusive of haul roads and reclaimed lands shall not exceed 35 acres
at any one time during the term hereof.
Lessor does not warrant either its title, if any, to leased substances
or its rights, if any, to grant any rights to Lessee hereunder and these granted
rights are limited by whatever right, title and interest the Lessor has in order
to grant the same. The Lessee, as stated above, has the right to broad uses
of the surface hereunder, and may effect irreparable damage or destruction
thereto, subject however, to those duties of reclamation appearing below and as
required by State and Federal Law. As limited hereby and in the exercise of
prudent and good mining practices, the Lessee is entitled to strip mine,
auger, cave or subside the surface, and as such, the rights to surface support,
both lateral and subjacent, is waived by Lessor.