Method of Operation. Lessee covenants and agrees that when it commences operation in any coal leased herein it will thereafter diligently prosecute its operations hereunder utilizing modern mining equipment best suited for the prevailing mining conditions so as to develop thoroughly the coal herein leased and to conduct such operations in a careful, skillful, and workmanlike manner, and in compliance with the present and any future laws of the State of Illinois or any other applicable state and of the United States, and also according to the rules and practices of good mining and with due regard for the value of the Leased Premises as a coal producing property. Lessee shall be solely responsible for complying with all present and future laws and governmental regulations, including environmental laws and regulations, impacting on or controlling mining and related operations on the Leased Premises, which responsibility shall survive until final release of Lessee’s environmental reclamation bonds required by any regulatory authority or termination of this Lease, whichever shall last occur. If, as a result of Lessee’s operations hereunder, laws or governmental regulations are violated, or are claimed to be violated by the government, then Lessee shall indemnify Lessor and hold it harmless from any penalties, fines, costs, and expenses, including legal fees and court costs, imposed upon or incurred by Lessor as a result of said claim, violation or violations. Notwithstanding Lessee’s obligation to comply with all laws, rules, regulations and orders as set forth above, Lessor shall not declare a default hereunder solely as a result of routine operational violations which Lessee cures or abates as promptly as practical. Lessee shall be solely responsible for treatment of any water discharge caused by its operations, if required by present or future law or regulation, which responsibility shall survive until final release of Lessee’s environmental reclamation bonds required by any regulatory authority or termination of this Lease, whichever shall last occur. Lessee shall provide Lessor a permit map as a matter of information, in a format acceptable to Lessor, for any coal seams being permitted on the Leased Premises at the time of execution of this Lease and at the time of any subsequent permit submittal and at the time of any revisions and amendments thereof. Lessee acknowledges that Lessor holds the Leased Premises for the purpose of maximizing the royalty revenue generated therefrom and agrees that it will work and mine the coal in accordance with said purpose and in accordance with general and detail maps and plans of mining and descriptions to be prepared by Lessee (hereinafter collectively called “Mine Plans”) and will submit a copy of same to the Lessor in a digital format acceptable to Lessor, if available. Said Mine Plans shall take into consideration the entire area proposed to be developed by Lessee, and shall make suitable provisions for (1) the proper protection of overlying and underlying seams so that they may be economically mined at a later date and (2) the reasonable and proper removal of all the mineable and merchantable coal from the Leased Premises. No Mine Plan shall be proposed which, if adopted, would render otherwise mineable and merchantable coal unmineable or unmerchantable or substantially more difficult or expensive to mine. The said Mine Plans shall be submitted to the Lessor at least 30 days prior to the commencement of any operation on the Leased Premises. In the event Lessor determines that the Mine Plans submitted by Lessee fail to comply with any of the terms of this Lease, Lessor shall so notify Lessee within thirty (30) days of receipt of the Mine Plan, in which event Lessee will reasonably modify said Mine Plans to comply with the terms and conditions hereof. If Lessor makes no objection to a proposed Mine Plan within thirty (30) days of receipt of the Mine Plan, then Lessor’s agreement with the Mine Plan is conclusively established for all purposes under this Lease. No material change in, modification of, or departures from any Mine Plans so approved shall be made in the development or operation of the mine or mines except pursuant to modified Mine Plans submitted by Lessee to Lessor for the purpose of allowing Lessor to determine that said modification complies with the terms of this Lease. Lessor shall have thirty (30) days from receipt of a modified Mine Plan to object. If Lessor makes no objection to a proposed modified Mine Plan within thirty (30) days of receipt of the modified Mine Plan, then Lessor’s agreement with the Mine Plan, as modified, is conclusively established for all purposes under this Lease. Lessor’s right to notify Lessee that proposed Mining Plans fail to comply with this Lease is a right reserved solely to protect Lessor’s interest in the Leased Premises and to prevent waste and is not intended to give and shall not be construed to give Lessor any control over Lessee’s operations. Lessor shall have no authority to determine the manner in which or the methods by which any of Lessee’s mining operations are to be conducted, all of which shall be solely determined by Lessee. Lessee shall have no right, without prior written consent of Lessor, which shall not be unreasonably withheld, conditioned or delayed, to deposit slate, coal refuse, water or refuse of any kind on or in the Leased Premises in any manner or at any place which will materially impair Lessee’s ability or right to mine and remove any of the coal within the Leased Premises. Lessee may conduct its operations under this Lease through its contractors or agents when approval has been granted in writing by Lessor, such approval not to be unreasonably withheld, conditioned or delayed, provided in any case Lessee shall be and remain liable to Lessor for all obligations of the Lessee under this authority, and subject to any reasonable conditions imposed by Lessor in granting its consent. If it is found and reported to Lessee in writing by an agent of Lessor that in the progress of the work any areas of merchantable and mineable coal have been passed by or abandoned with the result that coal has not been mined and removed, which in accordance with generally accepted good mining practice should have been mined and removed, it shall be the duty of Lessee to return as soon as possible to such areas and mine and remove the coal therefrom, or failing so to do, Lessee shall account for the coal contained therein and pay the Tonnage Royalty therefore the same as though it had been mined. Lessee shall employ a competent mining engineer, duly registered in the State of Illinois or any other applicable states and acceptable to Lessor, whose duty it shall be to keep up the mine surveys and make accurate maps thereof, which maps shall at all times be subject to the inspection of Lessor, or its duly authorized agents, and copies furnished to the Engineer of Lessor at any time upon request but without such request at a minimum of on or before February
Appears in 4 contracts
Samples: Mining Lease and Sublease Agreement, Mining Lease and Sublease Agreement (Foresight Energy LP), Mining Lease and Sublease Agreement (Foresight Energy Partners LP)
Method of Operation. Lessor shall provide Lessee with copies of, or access to, all books and records (other than financial records) of Lessor related to the Plant, Impoundments, Coal Properties and Surface Properties, and Lessee shall have the right to use the same, without warranty as to accuracy or completeness, subject to any restrictions to third parties and only to the extent necessary in its operations. Lessee covenants and agrees that it shall diligently and continuously pursue the issuance of all necessary governmental authorizations and permits for coal mining operations on the Surface Property, and that when it commences operation in any coal leased herein of the seams located in the Coal Properties it will thereafter diligently prosecute its operations hereunder utilizing modern mining equipment on the Surface Property best suited for the prevailing mining conditions so as to develop thoroughly the coal herein leased therein and to conduct such operations in a careful, skillful, and workmanlike manner, and in compliance with the all present and any future laws of the State of Illinois West Virginia, and any agencies, subdivisions, localities, or any other applicable state counties thereof, and of the United States, and also according to the rules and practices of good mining and with due regard for the value of the Leased Premises Surface Property as a coal producing property. Lessee shall be solely responsible for complying with all present and future laws and governmental regulations, including environmental laws and regulations, impacting on or controlling mining and related operations on the Leased PremisesSurface Property, which responsibility shall survive until final release of Lessee’s environmental reclamation bonds required by any regulatory authority or termination of this Lease, whichever shall last occur. If, as a result of Lessee’s operations hereunder, laws or governmental regulations are violated, or are claimed to be violated by the governmentviolated, then Lessee shall indemnify Lessor and hold it harmless from any penalties, fines, costs, and expenses, including legal fees and court costs, imposed upon or incurred by Lessor as a result of said claim, violation or violations. Notwithstanding Lessee’s obligation to comply with all laws, rules, regulations and orders as set forth above, Lessor shall not declare a default hereunder solely as a result of one or more routine operational violations which Lessee cures or abates as promptly as practical. Lessee shall be solely responsible for treatment of any water discharge caused by its operations, if required by present or future law or regulation, which responsibility shall survive until final release of Lessee’s environmental reclamation bonds required by any regulatory authority or termination of this Lease, whichever shall last occurLease forever. Lessee shall provide Lessor a permit map as a matter of information, in a format acceptable to Lessor, for any coal seams operations being permitted on the Leased Premises Surface Property at the time of execution of this Lease and at the time of any subsequent permit submittal and at the time of any revisions and amendments thereof. Lessee acknowledges that Lessor holds the Leased Premises Surface Property for the purpose of maximizing the royalty revenue generated therefrom and agrees that it will work and mine the coal conduct its operations in accordance with said purpose and in accordance with general and detail maps and plans of mining operations and descriptions to be prepared by Lessee (hereinafter collectively called “Mine Plans”) and will submit a copy of same to the Lessor in a digital format acceptable to Lessor, if available. Said Mine Plans shall take into consideration the entire area proposed to be developed by Lessee, and shall make suitable provisions for (1) the proper protection placement of overlying improvements on the Surface Property to facilitate the most economically efficient method of processing, loading and underlying seams so that they may be economically mined at a later date transporting Coal, and (2) the reasonable and proper removal use of all the mineable and merchantable coal from Impoundments to ensure the Leased Premisesproper reclamation thereof. No Mine Plan shall be proposed which, if adopted, would render otherwise mineable and merchantable coal unmineable or unmerchantable or substantially more difficult or expensive to mine. The said Mine Plans shall be submitted to the Lessor at least 30 days prior to the commencement of any operation on the Leased PremisesSurface Property. In the event Lessor determines that the Mine Plans submitted by Lessee fail to comply with any of the terms of this Lease, Lessor shall so notify Lessee within thirty (30) days of receipt of the Mine PlanLessee, in which event Lessee will reasonably modify said Mine Plans to comply with the terms and conditions hereof. If Lessor makes no objection to a proposed Mine Plan within thirty (30) days of receipt of the Mine Plan, then Lessor’s agreement with the Mine Plan is conclusively established for all purposes under this Lease. No material change in, modification of, or departures from any Mine Plans so approved shall be made in the development or operation of Lessee’s operations on the mine or mines Surface Property except pursuant to modified Mine Plans submitted by Lessee to Lessor for the purpose of allowing Lessor to determine that said modification complies with the terms of this Lease. Lessor shall have thirty (30) days from receipt of a modified Mine Plan to object. If Lessor makes no objection to a proposed modified Mine Plan within thirty (30) days of receipt of the modified Mine Plan, then Lessor’s agreement with the Mine Plan, as modified, is conclusively established for all purposes under this Lease. Lessor’s right to notify Lessee that proposed Mining Mine Plans fail to comply with this Lease is a right reserved solely to protect Lessor’s interest in the Leased Premises Surface Property and to prevent waste and is not intended to give and shall not be construed to give Lessor any control over Lessee’s operations. Lessor shall have no authority to determine the manner in which or the methods by which any of Lessee’s mining operations are to be conducted, all of which shall be solely determined by Lessee. Anything contained in this Lease to the contrary notwithstanding, the Lessee shall have no right, without give notice in writing to the Lessor at least six (6) months prior written consent of Lessor, which shall not be unreasonably withheld, conditioned or delayed, to deposit slate, coal refuse, water or refuse the start of any kind on operations authorized herein which would require or result in the Leased Premises displacement or removal of trees or timber on the Surface Property. Lessor may, at its election, remove such trees or timber, or require Lessee to remove and stockpile any trees or timber deemed merchantable by Lessor. Lessor shall make all reasonable efforts to complete any harvesting operations for trees or timber sold “on the xxxxx” prior to start-up operations by Lessee, but it is understood that both activities may continue simultaneously, provided such continuance does not unreasonably interfere with Lessee’s operations. As an additional option, Lessee may give written notice to Lessor and elect to reimburse Lessor for such trees and timber at the fair market value as appraised by Lessor’s forester and dispose of such trees or timber in any manner it shall deem appropriate or at necessary and upon making payment in full, the Lessee shall not have any place which will materially impair Lessee’s ability further obligation to the Lessor with respect to such trees and timber or right to mine and remove any of the coal within the Leased Premisesdisposition thereof. Lessee may conduct its operations under this Lease through its contractors or agents when approval has been granted in writing by Lessor, such approval not to be unreasonably withheld, conditioned or delayed, provided in any case Lessee shall be and remain liable to Lessor for all obligations of the Lessee under this authority, and subject to any reasonable conditions imposed by Lessor in granting its consent. If it Lessor shall have the right at its option to lease to another or others while this Lease is found still in force and reported to Lessee in writing by an agent of Lessor that in effect the progress of the work any area or areas of merchantable and mineable coal have been passed real property which may be abandoned by or abandoned with said Lessee under the result provisions hereof; provided, however, that coal has not been mined and removed, which in accordance with generally accepted good mining practice should have been mined and removed, it shall be the duty of Lessee to return as soon as possible to such areas and mine and remove the coal therefrom, or failing so to do, Lessee shall account for the coal contained therein and pay the Tonnage Royalty therefore the same as though it had been mineddoes not interfere with Lessee’s operations. Lessee shall employ a competent mining engineer, duly registered in the State of Illinois or any other applicable states West Virginia and acceptable to Lessor, whose duty it shall be to keep up the mine surveys and make accurate maps thereofof Lessee’s operations on the Surface Property, which maps shall at all times be subject to the inspection of Lessor, or its duly authorized agents, and copies furnished to the Engineer of Lessor at any time upon request but without such request at a minimum of on or before FebruaryFebruary 1, May 1, August 1 and November 1 of each year. Lessee shall furnish Lessor copies of data derived from any and all coal exploration activities within the Surface Property, including, but not limited to, driller’s logs, geophysical logs, coal laboratory analyses, and geological maps. Upon request of Lessor, Lessee shall make available for Lessor’s inspection and copying any and all laboratory analyses made of coal processed or shipped at or from the Surface Property. Upon request of Lessor, Lessee shall make available for Lessor’s inspection and copying any and all Lessee’s correspondence with government agencies or departments which pertain to the Surface Property, or to operations undertaken or to be undertaken thereon. Lessor, through its duly authorized agents, shall at all reasonable times have the right to enter the Surface Property, inspect the same, and have surveys made thereof to determine if all the terms and conditions of this Lease are fully complied with, and for these purposes to use freely the means of access to the Surface Property without hindrance, but in such manner as not unreasonably to interfere with the Lessee’s operation thereof.
Appears in 3 contracts
Samples: Mutual Cooperation Agreement, Surface Rights Lease (Ramaco Resources, Inc.), Surface Rights Lease (Ramaco Resources, Inc.)
Method of Operation. Lessee covenants and agrees that when it commences operation in any coal of the seams leased herein it will thereafter diligently prosecute its operations hereunder utilizing modern mining equipment best suited for the prevailing mining conditions so as to develop thoroughly the coal herein leased and to conduct such operations in a careful, skillful, and workmanlike manner, and in compliance with the present and any future laws of the State of Illinois or any other applicable state and of the United States, and also according to the rules and practices of good mining and with due regard for the value of the Leased Premises as a coal producing property. Lessee shall be solely responsible for complying with all present and future laws and governmental regulations, including environmental laws and regulations, impacting on or controlling mining and related operations on the Leased Premises, which responsibility shall survive until final release of Lessee’s environmental reclamation bonds required by any regulatory authority or termination of this Lease, whichever shall last occur. If, as a result of Lessee’s operations hereunder, laws or governmental regulations are violated, or are claimed to be violated by the government, then Lessee shall indemnify Lessor and hold it harmless from any penalties, fines, costs, and expenses, including legal fees and court costs, imposed upon or incurred by Lessor as a result of said claim, violation or violations. Notwithstanding Lessee’s obligation to comply with all laws, rules, regulations and orders as set forth above, Lessor shall not declare a default hereunder solely as a result of routine operational violations which Lessee cures or abates as promptly as practical. Lessee shall be solely responsible for treatment of any water discharge caused by its operations, if required by present or future law or regulation, which responsibility shall survive until final release of Lessee’s environmental reclamation bonds required by any regulatory authority or termination of this Lease, whichever shall last occur. Lessee shall provide Lessor a permit map as a matter of information, in a format acceptable to Lessor, for any coal seams being permitted on the Leased Premises at the time of execution of this Lease and at the time of any subsequent permit submittal and at the time of any revisions and amendments thereof. Lessee acknowledges that Lessor holds the Leased Premises for the purpose of maximizing the royalty revenue generated therefrom and agrees that it will work and mine the coal in accordance with said purpose and in accordance with general and detail maps and plans of mining and descriptions to be prepared by Lessee (hereinafter collectively called “Mine Plans”) and will submit a copy of same to the Lessor in a digital format acceptable to Lessor, if available. Said Mine Plans shall take into consideration the entire area proposed to be developed by Lessee, and shall make suitable provisions for (1) the proper protection of overlying and underlying seams so that they may be economically mined at a later date and (2) the reasonable and proper removal of all the mineable and merchantable coal from the Leased Premises. No Mine Plan shall be proposed which, if adopted, would render otherwise mineable and merchantable coal unmineable or unmerchantable or substantially more difficult or expensive to mine. The said Mine Plans shall be submitted to the Lessor at least 30 days prior to the commencement of any operation on the Leased Premises. In the event Lessor determines that the Mine Plans submitted by Lessee fail to comply with any of the terms of this Lease, Lessor shall so notify Lessee within thirty (30) days of receipt of the Mine Plan, in which event Lessee will reasonably modify said Mine Plans to comply with the terms and conditions hereof. If Lessor makes no objection to a proposed Mine Plan within thirty (30) days of receipt of the Mine Plan, then Lessor’s agreement with the Mine Plan is conclusively established for all purposes under this Lease. No material change in, modification of, or departures from any Mine Plans so approved shall be made in the development or operation of the mine or mines except pursuant to modified Mine Plans submitted by Lessee to Lessor for the purpose of allowing Lessor to determine that said modification complies with the terms of this Lease. Lessor shall have thirty (30) days from receipt of a modified Mine Plan to object. If Lessor makes no objection to a proposed modified Mine Plan within thirty (30) days of receipt of the modified Mine Plan, then Lessor’s agreement with the Mine Plan, as modified, is conclusively established for all purposes under this Lease. Lessor’s right to notify Lessee that proposed Mining Plans fail to comply with this Lease is a right reserved solely to protect Lessor’s interest in the Leased Premises and to prevent waste and is not intended to give and shall not be construed to give Lessor any control over Lessee’s operations. Lessor shall have no authority to determine the manner in which or the methods by which any of Lessee’s mining operations are to be conducted, all of which shall be solely determined by Lessee. In the event Lessee desires to use Lessor’s surface rights, if any are owned or controlled by Lessor, over the Leased Premises, in connection with the conduct of its mining operations, or for any other permitted purpose under the terms of this Lease, it shall notify Lessor of the use and, if necessary, Lessor will cooperate with Lessee in formalizing the rights necessary, at no additional cost. Lessee shall have no right, without prior written consent of Lessor, which shall not be unreasonably withheld, conditioned or delayed, to deposit slate, coal refuse, water or refuse of any kind on or in the Leased Premises in any manner or at any place which will materially impair Lessee’s ability or right to mine and remove any of the coal within the Leased Premises. Lessee may conduct its operations under this Lease through its contractors or agents when approval has been granted in writing by Lessor, such approval not to be unreasonably withheld, conditioned or delayed, provided in any case Lessee shall be and remain liable to Lessor for all obligations of the Lessee under this authority, and subject to any reasonable conditions imposed by Lessor in granting its consent. If it is found and reported to Lessee in writing by an agent of Lessor that in the progress of the work any areas of merchantable and mineable coal have been passed by or abandoned with the result that coal has not been mined and removed, which in accordance with generally accepted good mining practice should have been mined and removed, it shall be the duty of Lessee to return as soon as possible to such areas and mine and remove the coal therefrom, or failing so to do, Lessee shall account for the coal contained therein and pay the Tonnage Royalty therefore the same as though it had been mined. Lessee shall employ a competent mining engineer, duly registered in the State of Illinois or any other applicable states and acceptable to Lessor, whose duty it shall be to keep up the mine surveys and make accurate maps thereof, which maps shall at all times be subject to the inspection of Lessor, or its duly authorized agents, and copies furnished to the Engineer of Lessor at any time upon request but without such request at a minimum of on or before FebruaryFebruary 1, May 1, August 1 and November 1 of each year. Such maps shall show the location of all coal section numbers obtained by Lessee in addition to those measured by Lessor during mine inspections in a form convenient to Lessee and acceptable to the Engineer of Lessor. Upon request, Lessee shall provide to Lessor, on the date designated by Lessor, either monthly, quarterly or annual tonnage and sales price forecasts, as prescribed by Lessor, for coal to be mined from the Leased Premises in future years. Lessee shall furnish Lessor copies of data derived from any and all coal exploration activities within the Leased Premises, including, but not limited to, driller’s logs, geophysical logs, coal laboratory analyses, and geological maps. Upon request of Lessor, Lessee shall make available for Lessor’s inspection and copying any and all laboratory analyses made of coal mined from the Leased Premises. Upon request of Lessor, Lessee shall make available for Lessor’s inspection and copying any and all of Lessee’s correspondence with government agencies or departments that pertain to the Leased Premises, or to operations undertaken or to be undertaken thereon. Lessor, through its duly authorized agents, shall at all reasonable times have the right to enter said mines, inspect the same, and have surveys made thereof to determine if all the terms and conditions of this Lease are fully complied with, and for these purposes to use freely the means of access to said mines and the workings thereof without hindrance, but in such manner as not unreasonably to interfere with the operation thereof.
Appears in 2 contracts
Samples: Mining Lease Agreement (Foresight Energy LP), Mining Lease Agreement (Foresight Energy Partners LP)
Method of Operation. Lessee covenants and agrees that it will diligently commence its operations on the Leased Premises, and when it commences operation in any coal of the seams leased herein it will thereafter diligently prosecute its operations hereunder utilizing modern mining equipment best suited for the prevailing mining conditions so as to develop thoroughly the coal herein leased Leased Coal and to conduct such operations in a careful, skillful, and workmanlike manner, and in compliance with the present and any future laws of the State of Illinois or any other applicable state West Virginia and of the United States, and also according to the rules and practices of good mining and with due regard for the value of the Leased Premises as a coal coal-producing property. Lessee shall be solely responsible for complying with all present and future laws and governmental regulations, including environmental laws and regulations, impacting on or controlling mining and related operations on the Leased Premises, which responsibility shall survive until final release of Lessee’s environmental reclamation bonds required by any regulatory authority or termination of this Lease, whichever shall last occur. If, as a result of Lessee’s operations hereunder, laws or governmental regulations are violated, or are claimed to be violated by the government(including any violations occurring or claims asserted after bond release or termination of this Lease), then Lessee shall indemnify Lessor and hold it harmless from any damages, claims, penalties, fines, costs, and expenses, including legal fees and court costs, imposed upon or incurred by Lessor as a result of said claim, violation or violations. Any dispute as to the absolute obligation of Lessee to relieve or indemnify Lessor as provided herein shall be submitted to arbitration in the manner provided in Section 10 hereof. Notwithstanding Lessee’s obligation to comply with all laws, rules, regulations and orders as set forth above, Lessor shall not declare a default hereunder solely as a result of one or more routine operational violations which Lessee cures or abates as promptly as practical. Lessee shall be solely responsible for treatment of any water discharge caused by its operations, if required by present or future law or regulation, which responsibility shall survive until final release of Lessee’s environmental reclamation bonds required by any regulatory authority or termination of this Lease, whichever shall last occurLease forever. Lessee shall provide Lessor a permit map as a matter of information, in a format acceptable to Lessor, for any coal seams being permitted on the Leased Premises at the time of execution of this Lease and at the time of any subsequent permit submittal and at the time of any revisions and amendments thereof. Lessee acknowledges that Lessor holds the Leased Premises and adjoining properties for the purpose of maximizing the royalty revenue generated therefrom and agrees that it will work and mine the coal in accordance with said purpose and in accordance with general and detail maps and plans of mining and descriptions to be prepared by Lessee (hereinafter collectively called “Mine Plans”) and will submit a copy of same to the Lessor in a digital format acceptable to Lessor, if available. Said Mine Plans shall take into consideration the entire area proposed to be developed by Lessee, and shall make suitable provisions for (1) the proper protection of overlying and underlying seams so that they may be economically mined at a later date and (2) the reasonable and proper removal of all the mineable and merchantable coal Leased Coal from the Leased Premises. No Mine Plan shall be proposed which, if adopted, would render otherwise mineable and merchantable coal unmineable or unmerchantable or substantially more difficult or expensive to mine. The said Mine Plans shall be submitted to the Lessor at least 30 days prior to the commencement of any operation on the Leased Premises. In the event Lessor determines that the Mine Plans submitted by Lessee fail to comply with any of the terms of this Lease, Lessor shall so notify Lessee within thirty (30) days of receipt of the Mine PlanLessee, in which event Lessee will reasonably modify said Mine Plans to comply with the terms and conditions hereof. If Lessor makes no objection to a proposed Mine Plan within thirty (30) days of receipt of the Mine Plan, then Lessor’s agreement with the Mine Plan is conclusively established for all purposes under this Lease. No material change in, modification of, or departures from any Mine Plans so approved shall be made in the development or operation of the mine or mines except pursuant to modified Mine Plans submitted by Lessee to Lessor for the purpose of allowing Lessor to determine that said modification complies with the terms of this Lease. Lessor shall have thirty (30) days from receipt of a modified Mine Plan to object. If Lessor makes no objection to a proposed modified Mine Plan within thirty (30) days of receipt of the modified Mine Plan, then Lessor’s agreement with the Mine Plan, as modified, is conclusively established for all purposes under this Lease. Lessor’s right to notify Lessee that proposed Mining Plans mining plans fail to comply with this Lease is a right reserved solely to protect Lessor’s interest in the Leased Premises and to prevent waste and is not intended to give and shall not be construed to give Lessor any control over Lessee’s operations. Lessor shall have no authority to determine the manner in which or the methods by which any of Lessee’s mining operations are to be conducted, all of which shall be solely determined by Lessee. Anything contained herein to the contrary notwithstanding, Lessee shall have no right, not mine any Leased Coal by the auger method without prior the written consent of Lessor, which shall not consent may be unreasonably arbitrarily withheld. In the event Lessee desires to use Lessor’s surface rights, conditioned if any are owned or delayed, to deposit slate, coal refuse, water or refuse of any kind on or in the Leased Premises in any manner or at any place which will materially impair Lessee’s ability or right to mine and remove any of the coal within controlled by Lessor over the Leased Premises. Lessee may conduct its operations under this Lease through its contractors or agents when approval has been granted , in writing by Lessor, such approval not to be unreasonably withheld, conditioned or delayed, provided in any case Lessee shall be and remain liable to Lessor for all obligations of the Lessee under this authority, and subject to any reasonable conditions imposed by Lessor in granting its consent. If it is found and reported to Lessee in writing by an agent of Lessor that in the progress of the work any areas of merchantable and mineable coal have been passed by or abandoned connection with the result that coal has not been mined and removedconduct of its mining operations, which in accordance with generally accepted good mining practice should have been mined and removedor for any other permitted purpose under the terms of this Lease, it shall be first submit a written statement explaining the duty extent of Lessee to return as soon as possible to such areas and mine and remove the coal therefrom, or failing so to do, Lessee shall account for the coal contained therein and pay the Tonnage Royalty therefore the same as though it had been mined. Lessee shall employ a competent mining engineer, duly registered in the State of Illinois or any other applicable states and acceptable its requirements to Lessor, whose duty it shall be to keep up the mine surveys and make accurate maps thereofshall, which maps shall at all times be subject to the inspection extent Lessor controls and has the right to grant same, be permitted to use only such portions of Lessor, or its duly authorized agents, said surface for the purposes and copies furnished to upon the Engineer of conditions as Lessor at any time upon request but without such request at a minimum of on or before Februaryshall authorize in writing.
Appears in 2 contracts
Samples: Lease (Ramaco Resources, Inc.), Lease (Ramaco Resources, Inc.)
Method of Operation. Lessee covenants and agrees that when it commences operation in any coal of the seams leased herein it will thereafter diligently prosecute its operations hereunder utilizing modern mining equipment best suited for the prevailing mining conditions so as to develop thoroughly the coal herein leased and to conduct such operations in a careful, skillful, and workmanlike manner, and in compliance with the present and any future laws of the State of Illinois or any other applicable state and of the United States, and also according to the rules and practices of good mining and with due regard for the value of the Leased Premises as a coal producing property. Lessee shall be solely responsible for complying with all present and future laws and governmental regulations, including environmental laws and, including environmental laws and regulations, impacting on or controlling mining and related operations on the Leased Premises, which responsibility shall survive until final release of Lessee’s environmental reclamation bonds required by any regulatory authority or termination of this Lease, whichever shall last occur. If, as a result of Lessee’s operations hereunder, laws or governmental regulations are violated, or are claimed to be violated by the government, then Lessee shall indemnify Lessor and hold it harmless from any penalties, fines, costs, and expenses, including legal fees and court costs, imposed upon or incurred by Lessor as a result of said claim, violation or violations. Any dispute as to the absolute obligation of Lessee to indemnify Lessor shall be submitted to arbitration in the manner provided in Section 10 hereof. Notwithstanding Lessee’s obligation to comply with all laws, rules, regulations and orders as set forth above, Lessor shall not declare a default hereunder solely as a result of routine operational violations which Lessee cures or abates as promptly as practical. Lessee shall be solely responsible for treatment of any water discharge caused by its operations, if required by present or future law or regulation, which responsibility shall survive until final release of Lessee’s environmental reclamation bonds required by any regulatory authority or termination of this Lease, whichever shall last occur. Lessee shall provide Lessor a permit map as a matter of information, in a format acceptable to Lessor, for any coal seams being permitted on the Leased Premises at the time of execution of this Lease and at the time of any subsequent permit submittal and at the time of any revisions and amendments thereof. Lessee acknowledges that Lessor holds the Leased Premises for the purpose of maximizing the royalty revenue generated therefrom and agrees that it will work and mine the coal in accordance with said purpose and in accordance with general and detail maps and plans of mining and descriptions to be prepared by Lessee (hereinafter collectively called “Mine Plans”) and will submit a copy of same to the Lessor in a digital format acceptable to Lessor, if available. Said Mine Plans shall take into consideration the entire area proposed to be developed by Lessee, and shall make suitable provisions for (1) the proper protection of overlying and underlying seams so that they may be economically mined at a later date and (2) the reasonable and proper removal of all the mineable and merchantable coal from the Leased Premises. No Mine Plan shall be proposed which, if adopted, would render otherwise mineable and merchantable coal unmineable or unmerchantable or substantially more difficult or expensive to mine. The said Mine Plans shall be submitted to the Lessor at least 30 days prior to the commencement of any operation on the Leased Premises. In the event Lessor determines that the Mine Plans submitted by Lessee fail to comply with any of the terms of this Lease, Lessor shall so notify Lessee within thirty (30) 30 days of receipt of the Mine Plan, in which event Lessee will reasonably modify said Mine Plans to comply with the terms and conditions hereof. If Lessor makes no objection to a proposed Mine Plan within thirty (30) 30 days of receipt of the Mine Plan, then Lessor’s agreement with the Mine Plan is conclusively established for all purposes under this Lease. No material change in, modification of, or departures from any Mine Plans so approved shall be made in the development or operation of the mine or mines except pursuant to modified Mine Plans submitted by Lessee to Lessor for the purpose of allowing Lessor to determine that said modification complies with the terms of this Lease. Lessor shall have thirty (30) 30 days from receipt of a modified Mine Plan to object. If Lessor makes no objection to a proposed modified Mine Plan within thirty (30) 30 days of receipt of the modified Mine Plan, then Lessor’s agreement with the Mine Plan, as modified, is conclusively established for all purposes under this Lease. Lessor’s right to notify Lessee that proposed Mining Plans fail to comply with this Lease is a right reserved solely to protect Lessor’s interest in the Leased Premises and to prevent waste and is not intended to give and shall not be construed to give Lessor any control over Lessee’s operations. Lessor shall have no authority to determine the manner in which or the methods by which any of Lessee’s mining operations are to be conducted, all of which shall be solely determined by Lessee. In the event Lessee desires to use Lessor’s surface rights, if any are owned or controlled by Lessor, over the Leased Premises, in connection with the conduct of its mining operations, or for any other permitted purpose under the terms of this Lease, it shall notify Lessor of the use and, if necessary, Lessor will cooperate with Lessee in formalizing the rights necessary, at no additional cost. Lessee shall have no right, without prior written consent of Lessor, which shall not be unreasonably withheld, conditioned or delayed, to deposit slate, coal refuse, water or refuse of any kind on or in the Leased Premises in any manner or at any place which will materially impair Lessee’s ability or right to mine and remove any of the coal within the Leased Premises. Lessee may conduct its operations under this Lease through its contractors or agents when approval has been granted in writing by Lessor, such approval not to be unreasonably withheld, conditioned or delayed, provided in any case Lessee shall be and remain liable to Lessor for all obligations of the Lessee under this authority, and subject to any reasonable conditions imposed by Lessor in granting its consent. If it is found and reported to Lessee in writing by an agent of Lessor that in the progress of the work any areas of merchantable and mineable coal have been passed by or abandoned with the result that coal has not been mined and removed, which in accordance with generally accepted good mining practice should have been mined and removed, it shall be the duty of Lessee to return as soon as possible to such areas and mine and remove the coal therefrom, or failing so to do, Lessee shall account for the coal contained therein and pay the Tonnage Royalty therefore the same as though it had been mined. If there is a dispute between Lessor and Lessee as to whether Lessee has passed by or abandoned any coal which should have been mined and removed as above provided, such dispute shall be submitted to arbitration in the manner provided in Section 10 hereof. Lessee shall employ a competent mining engineer, duly registered in the State of Illinois or any other applicable states and acceptable to Lessor, whose duty it shall be to keep up the mine surveys and make accurate maps thereof, which maps shall at all times be subject to the inspection of Lessor, or its duly authorized agents, and copies furnished to the Engineer of Lessor at any time upon request but without such request at a minimum of on or before FebruaryFebruary 1, May 1, August 1 and November 1 of each year. Such maps shall show the location of all coal section numbers obtained by Lessee in addition to those measured by Lessor during mine inspections in a form convenient to Lessee and acceptable to the Engineer of Lessor. Upon request, Lessee shall provide to Lessor, on the date designated by Lessor, either monthly, quarterly or annual tonnage and sales price forecasts, as prescribed by Lessor, for coal to be mined from the Leased Premises in future years. Lessee shall furnish Lessor copies of data derived from any and all coal exploration activities within the Leased Premises, including, but not limited to, drillers logs, geophysical logs, coal laboratory analyses, and geological maps. Upon request of Lessor, Lessee shall make available for Lessor’s inspection and copying any and all laboratory analyses made of coal mined from the Leased Premises. Upon request of Lessor, Lessee shall make available for Lessor’s inspection and copying any and all Lessee’s correspondence with government agencies or departments that pertain to the Leased Premises, or to operations undertaken or to be undertaken thereon. Lessor, through its duly authorized agents, shall at all reasonable times have the right to enter said mines, inspect the same, and have surveys made thereof to determine if all the terms and conditions of this Lease are fully complied with, and for these purposes to use freely the means of access to said mines and the workings thereof without hindrance, but in such manner as not unreasonably to interfere with the operation thereof.
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Samples: Mining Lease Agreement (Foresight Energy LP), Mining Lease Agreement (Foresight Energy Partners LP)
Method of Operation. Upon termination of this Lease for any reason, Lessee shall, at Lessor's option, to be exercised within thirty (30) days if at all, sell and convey to Lessor, at fair market value, any real property owned by Lessee or its affiliates within the Controlled Properties boundary as defined by the bold green outline on Exhibit A. Lessee covenants and agrees that when it commences operation in any coal of the seams leased herein it will thereafter diligently prosecute its operations hereunder utilizing modern mining equipment best suited for the prevailing mining conditions so as to develop thoroughly the coal herein leased and to conduct such operations in a careful, skillful, and workmanlike manner, and in compliance with the present and any future laws of the State of Illinois or any other applicable state West Virginia and of the United States, and also according to the rules and practices of good mining and with due regard for the value of the Leased Premises as a coal producing property. Minimum Annual Royalty paid hereunder shall be in lieu of any implied covenant of diligent development. Lessee shall be solely responsible for complying with all present and future laws and governmental regulations, including environmental laws and regulations, impacting on related to or controlling mining and related operations by Lessee, its sublessees and contractors, on the Leased Premises, which responsibility shall survive until final release of Lessee’s environmental reclamation bonds required by any regulatory authority or termination of this Lease. If Lessee violates, whichever shall last occur. If, as a result of Lessee’s operations hereunderor is claimed to have violated, laws or governmental regulations are violated, or are claimed to be violated by the governmentregulations, then Lessee shall indemnify Lessor and hold it harmless from any penalties, fines, costs, and expenses, including legal fees and court costs, imposed upon or incurred by Lessor as a result of said claim, violation or violations. Notwithstanding Lessee’s 's obligation to comply with all laws, rules, regulations and orders as set forth above, Lessor shall not declare a default hereunder solely as a result of routine one or more operational violations which Lessee cures or abates as promptly as practical. Lessee shall be solely responsible for treatment of any water discharge caused by its operations, if required by present or future law or regulation, which responsibility shall survive until final release of Lessee’s environmental reclamation bonds required by any regulatory authority or termination of this Lease. Lessor shall consent to Lessee's election of post-mining land uses (including post-mining retention of roads and ponds in place to the extent allowed by applicable law) and shall execute all consents, whichever shall last occurwaivers and authorizations reasonably requested by Lessee with respect thereto. Lessee shall provide Lessor a permit map as a matter of information, in a format acceptable to Lessor, for any coal seams being permitted on the Leased Premises at the time of execution of this Lease and at the time of any subsequent permit submittal and at the time of any revisions and amendments thereof. Lessee acknowledges that Lessor holds the Leased Premises for the purpose of maximizing the royalty revenue generated therefrom and agrees that it will work and mine the coal in accordance with said purpose and in accordance with general and detail maps and plans of mining and descriptions to be prepared by Lessee (hereinafter collectively called “"Mine Plans”") and will submit a copy of same to the Lessor in a digital format acceptable to Lessor, if available. Said Mine Plans shall take into consideration the entire area proposed to be developed by Lessee, and shall make suitable provisions for (1) the proper protection of overlying and underlying seams so that they may be economically mined at a later date consistent with the terms of this Lease and (2) the reasonable and proper removal of all the mineable and merchantable coal from the Leased Premiseswithin such Mine Plans. No Mine Plan shall be proposed which, if adopted, and Lessor may refuse to approve any Mine Plan that, would render any substantial portion of otherwise mineable and merchantable coal unmineable or unmerchantable or substantially more difficult or expensive to mine. The said Mine Plans shall be submitted to the Lessor at least 30 thirty (30) days prior to the commencement of any operation on the Leased Premises. In the event Lessor determines that the Mine Plans submitted by Lessee fail to comply with any of the terms of this Lease, Lessor shall so notify Lessee within thirty (30) days of receipt of the Mine PlanLessee, in which event Lessee will reasonably make reasonable attempts to modify said the Mine Plans to comply with the terms and conditions hereof. If Lessor makes no objection to a proposed Mine Plan within thirty (30) days of receipt of the Mine Plan, then Lessor’s agreement with the Mine Plan is conclusively established for all purposes under this Lease. No material change in, modification of, or The symbol [***] is used to indicate that a portion of the exhibit has been omitted and filed separately with the commission. Confidential treatment has been requested with respect to the omitted portion. departures from any Mine Plans so approved shall be made in the development or operation of the mine or mines except pursuant to modified Mine Plans submitted by Lessee to Lessor for the purpose of allowing Lessor to determine that said modification complies with the terms of this Lease. Lessor shall have thirty (30) days from receipt of a modified Mine Plan to object. If Lessor makes no objection to a proposed modified Mine Plan within thirty (30) days of receipt of the modified Mine Plan, then Lessor’s agreement with the Mine Plan, as modified, is conclusively established for all purposes under this Lease. Lessor’s 's right to notify Lessee that proposed Mining Plans mining plans fail to comply with this Lease is a right reserved solely to protect Lessor’s 's interest in the Leased Premises and to prevent waste and is not intended to give and shall not be construed to give Lessor any control over Lessee’s 's operations. Lessor shall have no authority to determine the manner in which or the methods by which any of Lessee’s 's mining operations are to be conducted, all of which shall be solely determined by Lessee. Lessor acknowledges its approval of all Mine Plans of Lessee shall have no right, without prepared prior written consent of Lessor, which shall not be unreasonably withheld, conditioned or delayed, to deposit slate, coal refuse, water or refuse of any kind on or in the Leased Premises in any manner or at any place which will materially impair Lessee’s ability or right to mine date hereof and remove any of the coal within the Leased Premises. Lessee may conduct its operations under this Lease through its contractors or agents when approval has been granted in writing by Lessor, such approval not to be unreasonably withheld, conditioned or delayed, provided in any case Lessee shall be and remain liable made available to Lessor for all obligations of the Lessee under this authority, and subject to any reasonable conditions imposed by Lessor in granting its consent. If it is found and reported to Lessee in writing by an agent of Lessor that in the progress of the work any areas of merchantable and mineable coal have been passed by or abandoned with the result that coal has not been mined and removed, which in accordance with generally accepted good mining practice should have been mined and removed, it shall be the duty of Lessee to return as soon as possible to such areas and mine and remove the coal therefrom, or failing so to do, Lessee shall account for the coal contained therein and pay the Tonnage Royalty therefore the same as though it had been mined. Lessee shall employ a competent mining engineer, duly registered in the State of Illinois or any other applicable states and acceptable to during Lessor, whose duty it shall be to keep up the mine surveys and make accurate maps thereof, which maps shall at all times be subject 's due diligence review related to the inspection transaction described in that certain Purchase and Sale Agreement of even date herewith between Lessee and Lessor, or its duly authorized agents, and copies furnished to the Engineer of Lessor at any time upon request but without such request at a minimum of on or before February.
Appears in 1 contract
Method of Operation. Lessee covenants and agrees that when it commences operation in any coal of the seams leased herein it will thereafter diligently prosecute its operations hereunder utilizing modern mining equipment best suited for the prevailing mining conditions so as to develop thoroughly the coal herein leased and to conduct such operations in a careful, skillful, and workmanlike manner, and in compliance with the present and any future laws of the State Commonwealth of Illinois or any other applicable state Virginia and of the United States, and also according to the rules and practices of good mining and with due regard for the value of the Leased Premises as Premises. Minimum Annual Royalty paid hereunder shall be in lieu of any implied covenant of diligent development. The symbol [***] is used to indicate that a coal producing propertyportion of the exhibit has been omitted and filed separately with the commission. Confidential treatment has been requested with respect to the omitted portion. Lessee shall be solely responsible for complying with all present and future laws and governmental regulations, including environmental laws and regulations, impacting on related to or controlling mining and related operations by Lessee, its sublessees and contractors, on the Leased Premises, which responsibility shall survive until final release of Lessee’s environmental reclamation bonds required by any regulatory authority or termination of this Lease. If Lessee violates, whichever shall last occur. If, as a result of Lessee’s operations hereunderor is claimed to have violated, laws or governmental regulations are violated, or are claimed to be violated by the governmentregulations, then Lessee shall indemnify Lessor and hold it harmless from any penalties, fines, costs, and expenses, including reasonable legal fees and court costs, imposed upon or incurred by Lessor as a result of said claim, violation or violations. Notwithstanding Lessee’s 's obligation to comply with all laws, rules, regulations and orders as set forth above, Lessor shall not declare a default hereunder solely as a result of routine one or more operational violations which Lessee cures or abates as promptly as practical. Lessee shall be solely responsible for treatment of any water discharge caused by its operations, if required by present or future law or regulation, which responsibility shall survive until final release of Lessee’s environmental reclamation bonds required by any regulatory authority or termination of this Lease. Lessor shall consent to Lessee's election of post-mining land uses (including post-mining retention of roads and ponds in place to the extent allowed by applicable law) and shall execute all consents, whichever shall last occurwaivers and authorizations reasonably requested by Lessee with respect thereto. Lessee shall provide Lessor a permit map as a matter of information, in a format acceptable to Lessor, for any coal seams being permitted on the Leased Premises at the time of execution of this Lease and at the time of any subsequent permit submittal and at the time of any revisions and amendments thereof. Lessee acknowledges that Lessor holds the Leased Premises for the purpose of maximizing the royalty revenue generated therefrom and agrees that it will work and mine the coal in accordance with said purpose and in accordance with general and detail maps and plans of mining and descriptions to be prepared by Lessee (hereinafter collectively called “"Mine Plans”") and will submit a copy of same to the Lessor in a digital format acceptable to Lessor, if available. Said Mine Plans shall take into consideration the entire area proposed to be developed by Lessee, and shall make suitable provisions for (1) the proper protection of overlying and underlying seams so that they may be economically mined at a later date of Leased Coal consistent with the terms of this Lease and (2) the reasonable and proper removal of all the mineable and merchantable coal from the Leased Premiseswithin such Mine Plans. No Mine Plan shall be proposed which, if adopted, and Lessor may refuse to approve any Mine Plan that would render any substantial portion of otherwise mineable and merchantable coal unmineable or unmerchantable or substantially more difficult or expensive to mine. The said Mine Plans shall be submitted to the Lessor at least 30 thirty (30) days prior to the commencement of any operation on the Leased Premises. In the event Lessor determines determines, in the reasonable exercise of its discretion, that the Mine Plans submitted by Lessee fail to comply with any of the terms of this Lease, Lessor shall so notify Lessee within thirty (30) days of receipt of the Mine PlanLessee, in which event Lessee will reasonably make reasonable attempts to modify said the Mine Plans to comply with the terms and conditions hereof. If Lessor makes no objection to a proposed Mine Plan within thirty (30) days of receipt of the Mine Plan, then Lessor’s agreement with the Mine Plan is conclusively established for all purposes under this Lease. No material change in, modification of, or departures from any Mine Plans so approved shall be made in the development or operation of the mine or mines except pursuant to modified Mine Plans submitted by Lessee to Lessor for the purpose of allowing Lessor to determine determine, in the reasonable exercise of its discretion, that said modification complies with the terms of this Lease. Lessor shall have thirty (30) days from receipt of a modified Mine Plan to object. If Lessor makes no objection to a proposed modified Mine Plan within thirty (30) days of receipt of the modified Mine Plan, then Lessor’s agreement with the Mine Plan, as modified, is conclusively established for all purposes under this Lease. Lessor’s 's right to notify Lessee that proposed Mining Plans mining plans fail to comply with this Lease is a right reserved solely to protect Lessor’s 's interest in the Leased Premises and to prevent waste and is not intended to give and shall not be construed to give Lessor any control over Lessee’s 's operations. Lessor shall have no authority to determine the manner in which or the methods by which any of Lessee’s 's mining operations are to be conducted, all of which shall be solely determined by Lessee. Lessor acknowledges its approval of all Mine Plans of Lessee which show an approval date on the front thereof as of April 1, 2003 and which were made available to Lessor during Lessor's due diligence review related to the transaction described in that certain Purchase and Sale Agreement of even date herewith between Lessee and Lessor. All Mine Plans submitted by Lessee to Lessor shall have no rightbe deemed, without prior written consent of for all purposes under this Lease, approved by Lessor, which unless Lessor disapproves any such The symbol [***] is used to indicate that a portion of the exhibit has been omitted and filed separately with the commission. Confidential treatment has been requested with respect to the omitted portion. Mine Plan in writing, within 30 days after Lessor's receipt thereof. Lessor's approval of Mine Plans submitted by Lessee pursuant to this Lease shall not be unreasonably withheld, conditioned delayed or delayed, to deposit slate, coal refuse, water or refuse of any kind on or in the Leased Premises in any manner or at any place which will materially impair Lessee’s ability or right to mine and remove any of the coal within the Leased Premisesconditioned. Lessee may conduct its operations under this Lease through its contractors or agents when approval has been granted in writing by Lessor, such approval not to be unreasonably withheld, conditioned or delayedagents, provided in any case Lessee shall be and remain liable to Lessor for all obligations of the Lessee under this authority, and subject to any reasonable conditions imposed by Lessor in granting its consentLease. If it is found and reported to Lessee in writing by an agent of Lessor that in the progress of the work any areas of mineable and merchantable and mineable coal coal, which Lessee had planned to mine pursuant to a Mine Plan approved by the Lessor, have been passed by or abandoned with the result that mineable and merchantable coal has not been mined and removed, which in accordance with generally accepted good mining practice should have been mined and removed, it shall be the duty of Lessee to return as soon as possible reasonably practicable to such areas and mine and remove the mineable and merchantable coal therefrom, or failing so to do, Lessee shall account for the mineable and merchantable coal contained therein and pay the Tonnage Royalty therefore royalty therefor the same as though it had been mined. If Lessee subsequently mines and removes any coal that has been bypassed and paid for within the contemplation of this Section, Lessee shall not be liable for any additional royalty for such coal. Lessee shall employ a competent mining engineer, duly registered in the State Commonwealth of Illinois or any other applicable states and acceptable to LessorVirginia, whose duty it shall be to keep up the mine surveys and make accurate maps thereof, which maps shall at all reasonable times and upon reasonable notice be subject to the inspection of Lessor, or its duly authorized agents, and copies furnished to the Engineer of Lessor at any time upon request but without such request at a minimum of on or before FebruaryFebruary 1 and August 1 of each year. Such maps shall show the location of the coal section numbers obtained by Lessor during mine inspections, in a form convenient to Lessee and acceptable to the Engineer of Lessor. Lessee shall furnish Lessor copies of data derived from any and all future coal exploration activities within the Leased Premises, including, but not limited to, driller's logs, geophysical logs, and coal laboratory analyses of core holes and associated geological maps. Upon request of Lessor, Lessee shall make available for Lessor's inspection and copying any and all laboratory analyses made of coal mined from the Leased Premises. Upon request of Lessor, Lessee shall make available for Lessor's inspection, at all reasonable times and upon reasonable notice, and copying any and all Lessee's correspondence with government agencies or departments which pertain to the Leased Premises, or to operations undertaken or to be undertaken thereon. Lessor, through its duly authorized agents, shall at all reasonable times, upon reasonable notice and at its own risk have the right to enter said mines, inspect the same, and have surveys made thereof to determine if all the terms and conditions of this Lease are fully complied with, and for these purposes to use freely the means of access to said mines and the workings thereof without hindrance, but in such manner as not unreasonably to interfere with the operation thereof. Lessor shall indemnify and hold Lessee, its members, managers, officers, employees, contractors, agents and permitted sublessees, successors and assigns harmless from and against any and all claims, demands, causes of action, costs and liabilities due to personal injury, death, property damage or The symbol [***] is used to indicate that a portion of the exhibit has been omitted and filed separately with the commission. Confidential treatment has been requested with respect to the omitted portion. loss arising from or in connection with the entrance in or upon said mines by Lessor or its duly authorized agents or contractors. Lessor shall maintain all records furnished or made available pursuant hereto in confidence. Notwithstanding anything in this Lease to the contrary, Lessee shall be entitled to enter into contract mining agreements and subleases with any mining contractor or sublessee, without Lessor's consent, for mining of the Leased Coal, upon any terms and conditions chosen by the Lessee; provided that the Lessee shall remain obligated to the Lessor for compliance with all the terms and conditions of this Lease; and provided further that any such subleases shall not sublease the Leased Premises in its entirety.
Appears in 1 contract
Method of Operation. Upon termination of this Lease for any reason, Lessee shall, at Lessor's option, to be exercised within thirty (30) days if at all, sell and convey to Lessor, at fair market value, any real property owned by Lessee or its affiliates within the Controlled Properties boundary as defined by the bold green outline on Exhibit A. Lessee covenants and agrees that when it commences operation in any coal of the seams leased herein it will thereafter diligently prosecute its operations hereunder utilizing modern mining equipment best suited for the prevailing mining conditions so as to develop thoroughly the coal herein leased and to conduct such operations in a careful, skillful, and workmanlike manner, and in compliance with the present and any future laws of the State of Illinois or any other applicable state and a d of the United States, and also according to the rules and practices of good mining and with due regard for the value of the Leased Premises as a coal producing property. Minimum Annual Royalty paid hereunder shall be in lieu of any implied covenant of diligent development. Lessee shall be solely responsible for complying with all present and future laws and governmental regulations, including environmental laws and regulations, impacting on related to or controlling mining and related operations by Lessee, its sublessees and contractors, on the Leased Premises, which responsibility shall survive until final release of Lessee’s environmental reclamation bonds required by any regulatory authority or termination of this Lease. If Lessee violates, whichever shall last occur. If, as a result of Lessee’s operations hereunderor is claimed to have violated, laws or governmental regulations are violated, or are claimed to be violated by the governmentregulations, then Lessee shall indemnify Lessor and hold it harmless from any penalties, fines, costs, and expenses, including legal fees and court costs, imposed upon or incurred by Lessor as a result of said claim, violation or violations. Notwithstanding Lessee’s 's obligation to comply with all laws, rules, regulations and orders as set forth above, Lessor shall not declare a default hereunder solely as a result of routine one or more operational violations which Lessee cures or abates as promptly as practical. Lessee shall be solely responsible for treatment of any water discharge caused by its operations, if required by present or future law or regulation, which responsibility shall survive until final release of Lessee’s environmental reclamation bonds required by any regulatory authority or termination of this Lease. Lessor shall consent to Lessee's election of post-mining land uses (including post-mining retention of roads and ponds in place to the extent allowed by applicable law) and shall execute all consents, whichever shall last occurwaivers and authorizations reasonably requested by Lessee with respect thereto. Lessee shall provide Lessor a permit map as a matter of information, in a format acceptable to Lessor, for any coal seams being permitted on the Leased Premises at the time of execution of this Lease and at the time of any subsequent permit submittal and at the time of any revisions and amendments thereof. Lessee acknowledges that Lessor holds the Leased Premises for the purpose of maximizing the royalty revenue generated therefrom and agrees that it will work and mine the coal in accordance with said purpose and in accordance with general and detail maps and plans of mining and descriptions to be prepared by Lessee (hereinafter collectively called “"Mine Plans”") and will submit a copy of same to the Lessor in a digital format acceptable to Lessor, if available. Said Mine Plans shall take into consideration the entire area proposed to be developed by Lessee, and shall make suitable provisions for (1I) the proper protection of overlying and underlying seams so that they may be economically mined at a later date consistent with the terms of this Lease and (2) the reasonable and proper removal of all the mineable and merchantable coal from the Leased Premiseswithin such Mine Plans. No Mine Plan shall be proposed which, if adopted, and Lessor may refuse to approve any Mine Plan that, would render any substantial portion of otherwise mineable and merchantable coal unmineable or unmerchantable or substantially more difficult or expensive to mine. The said Mine Plans shall be submitted to the Lessor at least 30 thirty (30) days prior to the commencement of any operation on the Leased Premises. In the event Lessor determines that the Mine Plans submitted by Lessee fail to comply with any of the terms of this Lease, Lessor shall so notify Lessee within thirty (30) days of receipt of the Mine PlanLessee, in which event Lessee will reasonably make reasonable attempts to modify said the Mine Plans to comply with the terms and conditions hereof. If Lessor makes no objection to a proposed Mine Plan within thirty (30) days of receipt of the Mine Plan, then Lessor’s agreement with the Mine Plan is conclusively established for all purposes under this Lease. No material change in, modification of, or departures from any Mine Plans so approved shall be made in the development or operation of the mine or mines except pursuant to modified Mine Plans submitted by Lessee to Lessor for the purpose of allowing Lessor to determine that said modification complies with the terms of this Lease. Lessor shall have thirty (30) days from receipt of a modified Mine Plan to object. If Lessor makes no objection to a proposed modified Mine Plan within thirty (30) days of receipt of the modified Mine Plan, then Lessor’s agreement with the Mine Plan, as modified, is conclusively established for all purposes under this Lease. Lessor’s 's right to notify Lessee that proposed Mining Plans mining plans fail to comply with this Lease is a right reserved solely to protect Lessor’s 's interest in the Leased Premises and to prevent waste and is not intended to give and shall not be construed to give Lessor any control over Lessee’s 's operations. Lessor shall have no authority to determine the manner in which or the methods by which any of Lessee’s 's mining operations are to be conducted, all of which shall be solely determined by Lessee. Lessor acknowledges its approval of all Mine Plans of Lessee shall have no right, without prepared prior written consent of Lessor, which shall not be unreasonably withheld, conditioned or delayed, to deposit slate, coal refuse, water or refuse of any kind on or in the Leased Premises in any manner or at any place which will materially impair Lessee’s ability or right to mine date hereof and remove any of the coal within the Leased Premises. Lessee may conduct its operations under this Lease through its contractors or agents when approval has been granted in writing by Lessor, such approval not to be unreasonably withheld, conditioned or delayed, provided in any case Lessee shall be and remain liable made available to Lessor for all obligations of the Lessee under this authority, and subject to any reasonable conditions imposed by Lessor in granting its consent. If it is found and reported to Lessee in writing by an agent of Lessor that in the progress of the work any areas of merchantable and mineable coal have been passed by or abandoned with the result that coal has not been mined and removed, which in accordance with generally accepted good mining practice should have been mined and removed, it shall be the duty of Lessee to return as soon as possible to such areas and mine and remove the coal therefrom, or failing so to do, Lessee shall account for the coal contained therein and pay the Tonnage Royalty therefore the same as though it had been mined. Lessee shall employ a competent mining engineer, duly registered in the State of Illinois or any other applicable states and acceptable to during Lessor, whose duty it shall be to keep up the mine surveys and make accurate maps thereof, which maps shall at all times be subject 's due diligence review related to the inspection transaction described in that certain Purchase and Sale Agreement of even date herewith between Lessee and Lessor, or its duly authorized agents, and copies furnished to the Engineer of Lessor at any time upon request but without such request at a minimum of on or before February.
Appears in 1 contract
Method of Operation. Lessee covenants and agrees that when it commences operation in any coal leased herein it will thereafter diligently prosecute its operations hereunder utilizing modern mining equipment best suited for the prevailing mining conditions so as to develop thoroughly the coal herein leased and to conduct such operations in a careful, skillful, and workmanlike manner, and in compliance with the present and any future laws of the State of Illinois or any other applicable state and of the United States, and also according to the rules and practices of good mining and with due regard for the value of the Leased Premises as a coal producing property. Lessee shall be solely responsible for complying with all present and future laws and governmental regulations, including environmental laws and regulations, impacting on or controlling mining and related operations on the Leased Premises, which responsibility shall survive until final release of Lessee’s environmental reclamation bonds required by any regulatory authority or termination of this Lease, whichever shall last occur. If, as a result of Lessee’s operations hereunder, laws or governmental regulations are violated, or are claimed to be violated by the government, then Lessee shall indemnify Lessor and hold it harmless from any penalties, fines, costs, and expenses, including legal fees and court costs, imposed upon or incurred by Lessor as a result of said claim, violation or violations. Notwithstanding Lessee’s 's obligation to comply with all laws, rules, regulations and orders as set forth above, Lessor shall not declare a default hereunder solely as a result of one or more routine operational violations which Lessee cures or abates as promptly as practical. Lessee shall be solely responsible for treatment of any water discharge caused by its operations, if required by present or future law or regulation, which responsibility shall survive until final release of Lessee’s environmental reclamation bonds required by any regulatory authority or termination of this Lease, whichever shall last occur. Lessee shall provide Lessor a permit map as a matter of information, in a format acceptable to Lessor, for any coal seams being permitted on the Leased Premises at the time of execution of this Lease and at the time of any subsequent permit submittal and at the time of any revisions and amendments thereof. Lessee acknowledges that Lessor holds the Leased Premises for the purpose of maximizing the royalty revenue generated therefrom and agrees that it will work and mine the coal in accordance with said purpose and in accordance with general and detail maps and plans of mining and descriptions to be prepared by Lessee (hereinafter collectively called “"Mine Plans”") and will submit a copy of same to the Lessor in a digital format acceptable to Lessor, if available. Said Mine Plans shall take into consideration the entire area proposed to be developed by Lessee, and shall make suitable provisions for (1) the proper protection of overlying and underlying seams so that they may be economically mined at a later date and (2) the reasonable and proper removal of all the mineable and merchantable coal from the Leased Premises. No Mine Plan shall be proposed which, if adopted, would render otherwise mineable and merchantable coal unmineable or unmerchantable or substantially more difficult or expensive to mine. The said Mine Plans shall be submitted to the Lessor at least 30 thirty (30) days prior to the commencement of any operation on the Leased Premises. In the event Lessor determines that shall provide Lessee any comments it has with respect to the Mine Plans submitted by Lessee fail to comply with any of the terms of this Lease, Lessor shall so notify Lessee within said thirty (30) days of receipt of day period; provided, however, and notwithstanding anything in this Lease to the Mine Plancontrary, in which event Lessee will reasonably modify said Mine Plans nothing herein is intended to comply empower the Lessor to make any decisions, and Lessor hereby expressly waives and disclaims any right to make any decisions, with respect to the terms and conditions hereof. If Lessor makes no objection to a proposed Mine Plan within thirty (30) days under which the coal leased hereunder is extracted or prepared, such as, but not limited to, the manner of receipt of the Mine Plan, then Lessor’s agreement with the Mine Plan is conclusively established for all purposes under this Lease. No material change in, modification ofextraction or preparation, or departures from any Mine Plans so approved shall be made in the development or operation amount of the mine or mines except pursuant to modified Mine Plans submitted by Lessee to Lessor for the purpose of allowing Lessor to determine that said modification complies with the terms of this Lease. Lessor shall have thirty (30) days from receipt of a modified Mine Plan to object. If Lessor makes no objection to a proposed modified Mine Plan within thirty (30) days of receipt of the modified Mine Plan, then Lessor’s agreement with the Mine Plan, as modified, is conclusively established for all purposes under this Lease. Lessor’s right to notify Lessee that proposed Mining Plans fail to comply with this Lease is a right reserved solely to protect Lessor’s interest in the Leased Premises and to prevent waste and is not intended to give and shall not be construed to give Lessor any control over Lessee’s operations. Lessor shall have no authority to determine the manner in which or the methods by which any of Lessee’s mining operations are coal to be conductedproduced at any particular time, all of which shall be solely determined by Lessee. In addition to the submission of Mine Plans, beginning on December 31, 2002 and continuing on an annual basis thereafter, Lessee shall have no rightprovide Lessor with copies of mine maps, without prior written consent of Lessorin either paper or electronic form, which shall not be unreasonably withheld, conditioned or delayed, to deposit slate, coal refuse, water or refuse of any kind on or in the Leased Premises in any manner or at any place which will materially impair Lessee’s ability or right to showing proposed mine plans and remove any of the coal within the Leased Premisesprojections. Lessee may conduct its operations under this Lease through its contractors or agents when approval has been granted in writing by Lessor, such approval not to be unreasonably withheld, conditioned or delayedagents, provided in any case Lessee shall be and remain liable to Lessor for all obligations of the Lessee under this authority. Lessee covenants and agrees to indemnify and save harmless Lessor, its partners (general and subject limited), officers, directors, agents, employees, successors and assigns from and against (a) any and all claims, demands, actions or causes of action by or on behalf of any person, firm, corporation or governmental body for damages, injuries, deaths, penalties, fines, assessments or otherwise caused by, arising out of, resulting from or as a consequence of, in whole or in part, (i) any acts or omissions of Lessee, its officers, directors, employees, sublessees, contractors, subcontractors, licensees, invitees, engineers, agents, successors, assigns or parent or affiliated corporations or (ii) the use and enjoyment of the Leased Premises pursuant to this Lease and (b) the reasonable costs, counsel fees, expenses and liabilities incurred in or about any reasonable conditions imposed such claim or action brought thereon, all of which costs, counsel fees, expenses and liabilities shall be reimbursed to Lessor by Lessee within thirty (30) days of notification from Lessor in granting its consent. If it is found and reported to Lessee in writing by an agent of Lessor that in the progress of the work any areas of merchantable and mineable coal same have been passed by or abandoned with the result that coal has not been mined and removed, which in accordance with generally accepted good mining practice should have been mined and removed, it shall be the duty of Lessee to return as soon as possible to such areas and mine and remove the coal therefrom, or failing so to do, Lessee shall account for the coal contained therein and pay the Tonnage Royalty therefore the same as though it had been minedincurred. Lessee shall employ a competent mining engineer, duly registered in the State of Illinois or any other applicable states and acceptable to Lessor[ ], whose duty it shall be to keep up the mine surveys and make accurate maps thereof, which maps shall at all times be subject to the inspection of Lessor, or its duly authorized agents, and copies furnished to the Engineer engineer of Lessor at any time upon request but without such request at a minimum of on or before FebruaryFebruary 2 and August 1 of each year. Such maps shall show the location of the coal section numbers obtained by Lessor during mine inspections in a form convenient to Lessee and reasonably acceptable to the engineer of Lessor. Upon request of Lessor, Lessee shall make available for Lessor's inspection and copying data derived from any and all coal exploration activities within the Leased Premises, including, without limitation, driller's logs, geophysical logs, coal laboratory analyses, and geological maps, together with any and all laboratory analyses made of coal mined from the Leased Premises. Upon request of Lessor, Lessee shall make available for Lessor's inspection and copying any and all of Lessee's correspondence with government agencies or departments which pertain to the Leased Premises, or to operations undertaken or to be undertaken thereon. Lessor, through its duly authorized agents, shall at all reasonable times have the right to enter Lessee's mines on the Leased Premises, inspect the same, and have surveys made thereof to determine if all the terms and conditions of this Lease are fully complied with, and for these purposes to use the means of access to said mines and the workings thereof, even if such access and workings are not on the Leased Premises, in such manner as not to interfere with the operation thereof.
Appears in 1 contract
Samples: Natural Resource Partners Lp
Method of Operation. Upon termination of this Lease for any reason, Lessee shall, at Lessor's option, to be exercised within thirty (30) days, if at all, sell and convey to Lessor, at fair market value, any real property owned by Lessee or its affiliates within the Controlled Properties Boundary as depicted on Exhibit B. Lessee covenants and agrees that when it commences operation in any coal of the seams leased herein it will thereafter diligently prosecute its operations hereunder utilizing modern mining equipment best suited for the prevailing mining conditions so as to develop thoroughly the coal herein leased and to conduct such operations in a careful, skillful, and workmanlike manner, and in compliance with the present and any future laws of the State Commonwealth of Illinois or any other applicable state Virginia and of the United States, and also according to the rules and practices of good mining and with due regard for the value of the Leased Premises as a coal producing propertyPremises. Minimum Annual Royalty paid hereunder shall be in lieu of any implied covenant of diligent development. Lessee shall be solely responsible for complying with all present and future laws and governmental regulations, including environmental laws and regulations, impacting on related to or controlling mining and related operations by Lessee, its sublessees and contractors, on the Leased Premises, which responsibility shall survive until final release of Lessee’s environmental reclamation bonds required by any regulatory authority or termination of this Lease. If Lessee violates, whichever shall last occur. If, as a result of Lessee’s operations hereunderor is claimed to have violated, laws or governmental regulations are violated, or are claimed to be violated by the governmentregulations, then Lessee shall indemnify Lessor and hold it harmless from any penalties, fines, costs, and expenses, including reasonable legal fees and court costs, imposed upon or incurred by Lessor as a result of said claim, violation or violations. Notwithstanding Lessee’s 's obligation to comply with all laws, rules, regulations and orders as set forth above, Lessor shall not declare a default hereunder solely as a result of routine one or more operational violations which Lessee cures or abates as promptly as practical. Lessee shall be solely responsible for treatment of any water discharge caused by its operations, if required by present or future law or The symbol [***] is used to indicate that a portion of the exhibit has been omitted and filed separately with the commission. Confidential treatment has been requested with respect to the omitted portion. regulation, which responsibility shall survive until final release of Lessee’s environmental reclamation bonds required by any regulatory authority or termination of this Lease. Lessor shall consent to Lessee's election of post-mining land uses (including post-mining retention of roads and ponds in place to the extent allowed by applicable law) and shall execute all consents, whichever shall last occurwaivers and authorizations reasonably requested by Lessee with respect thereto. Lessee shall provide Lessor a permit map as a matter of information, in a format acceptable to Lessor, for any coal seams being permitted on the Leased Premises at the time of execution of this Lease and at the time of any subsequent permit submittal and at the time of any revisions and amendments thereof. Lessee acknowledges that Lessor holds the Leased Premises for the purpose of maximizing the royalty revenue generated therefrom and agrees that it will work and mine the coal in accordance with said purpose and in accordance with general and detail maps and plans of mining and descriptions to be prepared by Lessee (hereinafter collectively called “"Mine Plans”") and will submit a copy of same to the Lessor in a digital format acceptable to Lessor, if available. Said Mine Plans shall take into consideration the entire area proposed to be developed by Lessee, and shall make suitable provisions for (1) the proper protection of overlying and underlying seams so that they may be economically mined at a later date of Leased Coal consistent with the terms of this Lease and (2) the reasonable and proper removal of all the mineable and merchantable coal from the Leased Premiseswithin such Mine Plans. No Mine Plan shall be proposed which, if adopted, and Lessor may refuse to approve any Mine Plan that, would render any substantial portion of otherwise mineable and merchantable coal unmineable or unmerchantable or substantially more difficult or expensive to mine. The said Mine Plans shall be submitted to the Lessor at least 30 thirty (30) days prior to the commencement of any operation on the Leased Premises. In the event Lessor determines determines, in the reasonable exercise of its discretion, that the Mine Plans submitted by Lessee fail to comply with any of the terms of this Lease, Lessor shall so notify Lessee within thirty (30) days of receipt of the Mine PlanLessee, in which event Lessee will reasonably make reasonable attempts to modify said the Mine Plans to comply with the terms and conditions hereof. If Lessor makes no objection to a proposed Mine Plan within thirty (30) days of receipt of the Mine Plan, then Lessor’s agreement with the Mine Plan is conclusively established for all purposes under this Lease. No material change in, modification of, or departures from any Mine Plans so approved shall be made in the development or operation of the mine or mines except pursuant to modified Mine Plans submitted by Lessee to Lessor for the purpose of allowing Lessor to determine determine, in the reasonable exercise of its discretion, that said modification complies with the terms of this Lease. Lessor shall have thirty (30) days from receipt of a modified Mine Plan to object. If Lessor makes no objection to a proposed modified Mine Plan within thirty (30) days of receipt of the modified Mine Plan, then Lessor’s agreement with the Mine Plan, as modified, is conclusively established for all purposes under this Lease. Lessor’s 's right to notify Lessee that proposed Mining Plans mining plans fail to comply with this Lease is a right reserved solely to protect Lessor’s 's interest in the Leased Premises and to prevent waste and is not intended to give and shall not be construed to give Lessor any control over Lessee’s 's operations. Lessor shall have no authority to determine the manner in which or the methods by which any of Lessee’s 's mining operations are to be conducted, all of which shall be solely determined by Lessee. Lessor acknowledges its approval of all Mine Plans of Lessee which show an approval date on the front thereof as of April 1, 2003 and made available to Lessor during Lessor's due diligence review related to the transaction described in that certain Purchase and Sale Agreement of even date herewith between Lessee and Lessor or which were approved pursuant to a lease dated effective December 1, 2002 covering a part of the Leased Premises. All Mine Plans submitted by Lessee to Lessor shall have no rightbe deemed, without prior written consent of for all purposes under this Lease, approved by Lessor, which unless Lessor disapproves any such Mine Plan in writing, within 30 days after Lessor's receipt thereof. Lessor's approval of Mine Plans submitted by Lessee pursuant to this Lease shall not be unreasonably withheld, conditioned delayed or delayedconditioned. Anything contained in this Lease to the contrary notwithstanding, for those Leased Premises described on Exhibit A hereto as Area 1, the Lessee shall give notice in writing to deposit slate, coal refuse, water or refuse the Lessor at least six (6) months prior to the start of any kind operations authorized herein which would require or result in the displacement or removal of trees or timber on or in the surface of the Leased Premises where said surface is owned by Lessor. Lessor may, at its election, remove such trees or timber. Lessor shall make all reasonable efforts to complete any harvesting operations for trees or timber sold "on the stump" prior to start-up operations by Lessee, but it is understood xxxx both activities may continue simultaneously, provided such continuance does not unreasonably interfere with Lessee's operations. Notwithstanding the foregoing, if Lessor has not removed timber within such six (6) month period, Lessee may remove or destroy such timber without liability or payment therefor. As an additional option, Lessee may give The symbol [***] is used to indicate that a portion of the exhibit has been omitted and filed separately with the commission. Confidential treatment has been requested with respect to the omitted portion. written notice to Lessor and elect to reimburse Lessor for such trees and timber at the fair market value and dispose of such trees or timber in any manner Lessee shall deem appropriate or at necessary and upon Lessee making payment in full to Lessor, the Lessor shall execute and deliver to Lessee any place which will materially impair and all documents necessary to convey title to such trees and timber to Lessee or Lessee’s ability 's assignee, and the Lessee shall not have any further obligation to the Lessor with respect to such trees and timber or right to mine and remove any of the coal within the Leased Premisesdisposition thereof. Lessee may conduct its operations under this Lease through its contractors or agents when approval has been granted in writing by Lessor, such approval not to be unreasonably withheld, conditioned or delayedagents, provided in any case Lessee shall be and remain liable to Lessor for all obligations of the Lessee under this authority, and subject to any reasonable conditions imposed by Lessor in granting its consentLease. If it is found and reported to Lessee in writing by an agent of Lessor that in the progress of the work any areas of mineable and merchantable and mineable coal coal, which Lessee had planned to mine pursuant to a Mine Plan approved by the Lessor, have been passed by or abandoned with the result that mineable and merchantable coal has not been mined and removed, which in accordance with generally accepted good mining practice should have been mined and removed, it shall be the duty of Lessee to return as soon as possible reasonably practicable to such areas and mine and remove the mineable and merchantable coal therefrom, or failing so to do, Lessee shall account for the mineable and merchantable coal contained therein and pay the Tonnage Royalty therefore royalty therefor the same as though it had been mined. If Lessee subsequently mines and removes any coal that has been bypassed and paid for within the contemplation of this Section, Lessee shall not be liable for any additional royalty for such coal. Lessee shall employ a competent mining engineer, duly registered in the State Commonwealth of Illinois or any other applicable states and acceptable to LessorVirginia, whose duty it shall be to keep up the mine surveys and make accurate maps thereof, which maps shall at all reasonable times and upon reasonable notice be subject to the inspection of Lessor, or its duly authorized agents, and copies furnished to the Engineer of Lessor at any time upon request but without such request at a minimum of on or before FebruaryFebruary 1 and August 1 of each year. Such maps shall show the location of the coal section numbers obtained by Lessor during mine inspections, in a form convenient to Lessee and acceptable to the Engineer of Lessor. Lessee shall furnish Lessor copies of data derived from any and all future coal exploration activities within the Leased Premises, including, but not limited to, driller's logs, geophysical logs, and coal laboratory analyses of core holes and associated geological maps. Upon request of Lessor, Lessee shall make available for Lessor's inspection and copying any and all laboratory analyses made of coal mined from the Leased Premises. Upon request of Lessor, Lessee shall make available for Lessor's inspection, at all reasonable times and upon reasonable notice, and copying any and all Lessee's correspondence with government agencies or departments which pertain to the Leased Premises, or to operations undertaken or to be undertaken thereon. Lessor, through its duly authorized agents, shall at all reasonable times, upon reasonable notice and at its own risk have the right to enter said mines, inspect the same, and have surveys made thereof to determine if all the terms and conditions of this Lease are fully complied with, and for these purposes to use freely the means of access to said mines and the workings thereof without hindrance, but in such manner as not unreasonably to interfere with the operation thereof. Lessor shall indemnify and hold Lessee, its members, managers, officers, employees, contractors, agents and permitted sublessees, successors and assigns harmless from and against any and all claims, demands, causes of action, costs The symbol [***] is used to indicate that a portion of the exhibit has been omitted and filed separately with the commission. Confidential treatment has been requested with respect to the omitted portion. and liabilities due to personal injury, death, property damage or loss arising from or in connection with the entrance in or upon said mines by Lessor or its duly authorized agents or contractors. Lessor shall maintain all records furnished or made available pursuant hereto in confidence. Lessor acknowledges that it has received a copy of that certain Contract, dated April 25, 2001 (the "A & G Contract"), between Lessee's affiliate sublessee and A & G Coal Corporation ("A & G"), and consents to the terms thereof, including A & G's rights under Section 23 of the A & G Contract. To the extent the A & G Contract grants or conveys more extensive or broader rights than granted by this Lease, Lessee is nevertheless deemed to have the authority and power to grant such rights with respect to the property affected by the A & G Contract, and Lessee shall not be in default as a result thereof or as a result of the exercise of such more extensive or broader rights by Lessee or A & G. Additionally, notwithstanding anything in this Lease to the contrary, Lessor hereby grants Lessee the mining and other rights granted under the A & G Contract (including the customary practice of cutting timber and retaining the proceeds therefrom and the right to grant the same rights as set forth in Section 23 of the A & G Contract), and similar rights with respect to the areas identified on the map attached hereto as Exhibit B (the "Contract Mine Areas"). Notwithstanding anything in this Lease to the contrary, Lessee shall be entitled to enter into contract mining agreements and subleases with any mining contractor or sublessee, without Lessor's consent, for mining of the Leased Coal, upon any terms and conditions chosen by the Lessee; provided that the Lessee shall remain obligated to the Lessor for compliance with all the terms and conditions of this Lease; and provided further that any such subleases shall not sublease the Leased Premises in its entirety.
Appears in 1 contract
