Common use of Commencement of Operations Clause in Contracts

Commencement of Operations. It is understood and agreed by and between the Parties that a part of the consideration for COLT entering into this Lease is Lessee’s commitment to promptly commence and actively pursue an aggressive coal mining operation in order to maximize the benefits of current coal market conditions. Without in any way limiting COLT’s termination rights, as provided herein, failure of Lessee to commence bona fide coal production and continuous mining operations within ten (10) years after the effective date of this Lease shall create the presumption that Lessee has failed to comply with the provisions of this section, unless such failure to commence mining operations is caused by Lessee’s inability, after diligent and aggressive efforts, to obtain the necessary permits relating to the start-up of mining activities from state and/or federal regulatory agencies. In the event that Lessee fails to commence bona fide coal production and continuous mining operations within ten (10) years other than for reasons set forth in the preceding sentence after the effective date of this Lease, COLT shall have the option to terminate this Lease and all payments made by Lessee to COLT shall be forfeited by Lessee and in addition, Lessee shall deliver all project permits, engineering plans, marketing plans and studies to COLT (“Project Documents”) to become the property of COLT. In the event that COLT exercises this right of termination, it shall be COLT’s sole remedy at law or in equity against Lessee, and Lessee, having forfeited all payments made to COLT and having delivered all Project Documents to COLT, shall be forever discharged from any and all obligations, claims, or causes of action of any nature whatsoever arising out of this Lease or activities related thereto.

Commencement of Operations. It is understood and agreed by and between the Parties parties hereto that a part of the consideration for COLT RGGS entering into this Lease is Lessee’s commitment to promptly commence and actively pursue an aggressive coal mining operation in order to maximize the benefits of current coal market conditions. Without in any way limiting COLTRGGS’s termination rights, as provided herein, failure of Lessee to commence bona fide coal production and continuous mining operations within ten four (104) years after the effective date of this Lease shall create the presumption that Lessee has failed to comply with the provisions of this section, unless such failure to commence mining operations is caused by Lessee’s inability, after diligent and aggressive efforts, to obtain the necessary permits relating to the start-up of mining activities from state and/or federal regulatory agencies. In the event that Lessee fails to commence bona fide coal production and continuous mining operations within ten four (104) years other than for reasons set forth in the preceding sentence after the effective date of this Lease, COLT RGGS shall have the option to terminate this Lease and all payments made by Lessee to COLT RGGS shall be forfeited by Lessee and in addition, Lessee shall deliver all project permits, engineering plans, marketing plans and studies to COLT RGGS (the “Project Documents”) to become the property of COLTRGGS. In the event that COLT RGGS exercises this its right of terminationtermination under this section 19, it shall be COLTRGGS’s sole remedy at law or in equity against Lessee, Lessee and Lessee, having forfeited all payments made to COLT RGGS and having delivered all Project Documents to COLTRGGS, shall be forever discharged from any and all obligations, claims, or causes of action of any nature whatsoever arising out of this Lease or activities related theretothereto other than continuing indemnities described in sections 24, 30 and 32 herein.

Commencement of Operations. It is understood and agreed by and between the Parties that a part of the consideration for COLT RUGER entering into this Lease is Lessee’s commitment to promptly commence and actively pursue an aggressive coal mining operation in order to maximize the benefits of current coal market conditions. Without in any way limiting COLTRUGER’s termination rights, as provided herein, failure of Lessee to commence bona fide coal production and continuous mining operations within ten (10) years after the effective date of this Lease shall create the presumption that Lessee has failed to comply with the provisions of this section, unless such failure to commence mining operations is caused by Lessee’s inability, after diligent and aggressive efforts, to obtain the necessary permits relating to the start-up of mining activities from state and/or federal regulatory agencies. In the event that Lessee fails to commence bona fide coal production and continuous mining operations within ten (10) years other than for reasons set forth in the preceding sentence after the effective date of this Lease, COLT RUGER shall have the option to terminate this Lease and all payments made by Lessee to COLT RUGER shall be forfeited by Lessee and in addition, Lessee shall deliver all project permits, engineering plans, marketing plans and studies to COLT RUGER (“Project Documents”) to become the property of COLTRUGER. In the event that COLT RUGER exercises this right of termination, it shall be COLTRUGER’s sole remedy at law or in equity against Lessee, and Lessee, having forfeited all payments made to COLT RUGER and having delivered all Project Documents to COLTRUGER, shall be forever discharged from any and all obligations, claims, or causes of action of any nature whatsoever arising out of this Lease or activities related thereto.