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This is a text-only version of the document "South Hilight - Coal Lease Application - Record of Decision - Appendix 2 - Coal Lease Stipulations". To see the original version of the document click here.



In addition to observing the general obligations and standards of performance set out in the current regulations, the lessee shall comply with and be bound by the following special stipulations. These stipulations are also imposed upon the lessee's agents and employees. The failure or refusal of any of these persons to comply with these stipulations shall be deemed a failure of the lessee to comply with the terms of the lease. The lessee shall require his agents, contractors, and subcontractors involved in activities concerning this lease to include these stipulations in the contracts between and among them. These stipulations may be revised or amended, in writing, by the mutual consent of the lessor and the lessee at any time to adjust to changed conditions or to correct an oversight.

(1) Before undertaking any activities that may disturb the surface of the leased lands, the lessee shall conduct a cultural resource intensive field inventory in a manner specified by the Authorized Officer of the BLM or of the surface managing agency, if different, on portions of the mine plan area and adjacent areas, or exploration plan area, that may be adversely affected by lease-related activities and which were not previously inventoried at such a level of intensity. The inventory shall be conducted by a qualified professional cultural resource specialist (i.e., archeologist, historian, historical architect, as appropriate), approved by the Authorized Officer of the surface managing agency (BLM, if the surface is privately owned), and a report of the inventory and recommendations for protecting any cultural resources identified shall be submitted to the Regional Director of the Western Region of the Office of Surface Mining (the Western Regional Director), the Authorized Officer of the BLM, if activities are associated with coal exploration outside an approved mining permit area (hereinafter called Authorized Officer), and the Authorized Officer of the surface managing agency, if different. The lessee shall undertake measures, in accordance with instructions from the Western Regional Director, or Authorized Officer, to protect cultural resources on the leased lands. The lessee shall not commence the surface disturbing activities until permission to proceed is given by the Western Regional Director or Authorized Officer. 2) Any existing Class III inventory report covering the lease area that has not received federal agency review must be reviewed and accepted by the agency, site NRHP eligibility determinations made, and consultation with the State Historic Preservation Officer completed before any surface disturbing activities take place. 3) No surface disturbance will occur near Eligible site 48CA2227 until consultation with the Wyoming SHPO office has occurred and an appropriate mitigation plan implemented. The BLM has determined that leasing the coal would likely result in an adverse effect to site


48CA2227. Consultation in relation to the resolution of the adverse effect will be completed by the OSM and WDEQ during the mine permitting process, prior to any surface disturbance. (4) The lessee shall protect all cultural resource properties that have been determined eligible or unevaluated to the National Register of Historic Places within the lease area from lease­ related activities until the cultural resource mitigation measures or site evaluations can be implemented as part of an approved mining and reclamation or exploration plan unless modified by mutual agreement in consultation with the State Historic Preservation Officer. (5) The cost of conducting the inventory, preparing reports, and carrying out mitigation measures shall be borne by the lessee. (6) If cultural resources are discovered during operations under this lease, the lessee shall immediately bring them to the attention of the Western Regional Director or Authorized Officer, or the Authorized Officer of the surface managing agency, if the Western Regional Director is not available. The lessee shall not disturb such resources except as may be subsequently authorized by the Western Regional Director or Authorized Officer. Within two (2) working days of notification, the Western Regional Director or Authorized Officer will evaluate or have evaluated any cultural resources discovered and will determine if any action may be required to protect or preserve such discoveries. The cost of data recovery for cultural resources discovered during lease operations shall be borne by the lessee unless otherwise specified by the Authorized Officer of the BLM or of the surface managing agency, if different. (7) All cultural resources shall remain under the jurisdiction of the United States until ownership is determined under applicable law. (b) 	 PALEONTOLOGICAL RESOURCES If paleontological resources, either large and conspicuous, and/or of significant scientific value, are discovered during mining operations, the find will be reported to the Authorized Officer immediately. Mining operations will be suspended within 250 feet of said find. An evaluation of the paleontological discovery will be made by a BLM-approved professional paleontologist within five (5) working days, weather permitting, to determine the appropriate action(s) to prevent the potential loss of any significant paleontological value. Operations within 250 feet of such discovery will not be resumed until written authorization to proceed is issued by the Authorized Officer. The lessee will bear the cost of any required paleontological appraisals, surface collection of fossils, or salvage of any large conspicuous fossils of significant scientific interest discovered during the operations. (c) 	 THREATENED, ENDANGERED, CANDIDATE, OR OTHER SPECIAL STATUS PLANTAND ANIMAL SPECIES The lease area may now or hereafter contain plants, animals, or their habitats determined to be threatened or endangered under the Endangered Species Act of 1973, as amended, 16 U.S.C. 1531 et seq., or that have other special status. The Authorized Officer may

recommend modifications to exploration and development proposals to further conservation and management objectives or to avoid activity that will contribute to a need to list such species or their habitat or to comply with any biological opinion issued by the Fish and Wildlife Service for the Proposed Action. The Authorized Officer will not approve any ground-disturbing activity that may affect any such species or critical habitat until it completes its obligations under applicable requirements of the Endangered Species Act. The Authorized Officer may require modifications to, or disapprove a proposed activity that is likely to result in jeopardy to the continued existence of a proposed or listed threatened or endangered species, or result in the destruction or adverse modification of designated or proposed critical habitat. The lessee shall comply with instructions from the Authorized Officer of the surface managing agency (BLM, if the surface is private) for ground disturbing activities associated with coal exploration on federal coal leases prior to approval of a mining and reclamation permit or outside an approved mining and reclamation permit area. The lessee shall comply with instructions from the Authorized Officer of the Office of Surface Mining Reclamation and Enforcement, or his designated representative, for all ground disturbing activities taking place within an approved mining and reclan1ation permit area or associated with such a permit.

Operations will not be approved which, in the opinion of the Authorized Officer, would unreasonably interfere with the orderly development and/or production from a valid existing mineral lease issued prior to this one for the same lands.


TJ1e BLM realizes that coal mining operations . conducted on Federal .coal leases issued within producing oil and gas fields may interfere with the economic recovery of oil and gas, just as Federal oil and gas leases issued in a Federal coal lease area may inhibit coal recovery. BLM retains the authority to alter and/or modify the resource recovery and protection plans for coal operations and/or oil and gas operations on those lands covered by Federal mineral leases so as to obtain maximum resource recovery.


Notwithstanding the approval of a resource recovery and protection plan (R2P2) by the BLM, the lessor reserves the right to seek damages against the operator/lessee in the event (i) the operatorllessee fails to achieve maximum economic recovery (MER) (as defined at 43 CFR 3480.0-5(21)) of the recoverable coal reserves or (ii) the operator/lessee is determined to have caused a wasting of recoverable coal reserves. Damages shall be measured on the basis of the royalty that would have been payable on the wasted or unrecovered coal. The parties recognize that under an approved R2P2, conditions may require a modification by the operator/lessee of that plan. In the event a coal bed or portion thereof is not to be 4

mined or is rendered unmineable by the operation, the operator/lessee shall submit appropriate justification to obtain approval by the Authorized Officer to leave such reserves unmined. Upon approval by the Authorized Officer, such coal beds or portions thereof shall not be subject to damages as described above. Further, nothing in this section shall prevent the operator/lessee from exercising its right to relinquish all or portion of the lease as authorized by statute and regulation. In the event the Authorized Officer determines that the R2P2, as approved, will not attain MER as the result of changed conditions, the Authorized Officer will give proper notice to the operator/lessee as required under applicable regulations. The Authorized Officer will order a modification if necessary, identifying additional reserves to be mined in order to attain MER. Upon a final administrative or judicial ruling upholding such an ordered modification, any reserves left unmined (wasted) under that plan will be subject to damages as described in the first paragraph under this section. Subject to the right to appeal hereinafter set forth, payment of the value of the royalty on such unmined recoverable coal reserves shall become due and payable upon determination by the Authorized Officer that the coal reserves have been rendered unmineable or at such time that the operator/lessee has demonstrated an unwillingness to extract the coal. The BLM may enforce this provision either by issuing a written decision requiring payment of the Mineral Management Service demand for such royalties, or by issuing a notice of non­ compliance. A decision or notice of non-compliance issued by the lessor that payment is due under this stipulation is appealable as allowed by law. (g)

The lessee will protect all survey monuments, witness comers, reference monuments, and bearing trees against destruction, obliteration, or damage during operations on the lease areas. If any monuments, comers or accessories are destroyed, obliterated, or damaged by this operation, the lessee will hire an appropriate county surveyor or registered land surveyor to reestablish or restore the monuments, comers, or accessories at the same location, using surveying procedures in accordance with the "Manual of Surveying Instructions for the Survey of the Public Lands of the United States." The survey will be recorded in the appropriate county records, with a copy sent to the Authorized Officer.




No mining activity of any kind may be conducted within the Campbell County Hilight Road right-of-way and its associated 100-foot buffer zone while the public road remains in the current (2010) location. The lessee shall recover all legally and economically recoverable coal from all leased lands not within the foregoing right-of-way and associated buffer zone. If a permit is obtained to relocate the public road and it is approved by the appropriate authority, the lessee shall recover all legally and economically recoverable coal from all leased lands within the foregoing right-of-way and associated buffer zone. The lessee shall pay all royalties on any legally and economically recoverable coal which it fails to mine without the written permission of the Authorized Officer.


No mining activity of any kind may be conducted within the Burlington Northern/Santa Fe and Union Pacific railroad right-of-way and associated 100-foot buffer zone. The lessee shall recover all legally and economically recoverable coal from all leased lands not within the foregoing right-of-way. The lessee shall pay all royalties on any legally and economically recoverable coal which it fails to mine without the written permission of the Authorized Officer.


The permittee/lessee must comply with all the rules and regulations of the Secretary of Agriculture set forth at Title 36, Chapter II, of the Code of Federal Regulations governing the use and management of the National Forest System (NFS) when not inconsistent with the rights granted by the Secretary of Interior in the permit. The Secretary of Agriculture's rules and regulations must be complied with for (1) all use and occupancy ofthe NFS prior to approval of an exploration plan by the Secretary of the Interior, (2) uses of all existing improvements, such as forest development roads, within and outside the area permitted by the Secretary of the Interior, and (3) use and occupancy of the NFS not authorized by an exploration plan approved by the Secretary of the Interior. All matters related to this stipulation are to be addressed to: Forest Supervisor Medicine Bow-Routt National Forests & Thunder Basin National Grassland 2468 Jackson Street Laramie, WY 82070 307-745-2300 who is the authorized representative of the Secretary of Agriculture. 6

CULTURAL AND PALEONTOLOGICAL RESOURCES - The FS is responsible for assuring that the leased lands are examined to determine if cultural resources are present and to specify mitigation measures. Prior to undertaking any surface-disturbing activities on the lands covered by this lease, the lessee or operator, unless notified to the contrary by the FS, shall: 1. 	 Contact the FS to determine if a site specific cultural resource inventory is required. If a survey is required, then: 2. 	 Engage the services of a cultural resource specialist acceptable to the FS to conduct a cultural resource inventory of the area of proposed surface disturbance. The operator may elect to inventory an area larger than the area of proposed disturbance to cover possible site relocation which may result from environmental or other considerations. An acceptable inventory report is to be submitted to the FS for review and approval at the time a surface disturbing plan of operation is submitted. 3. 	 Implement mitigation measures required by the FS and BLM to preserve or avoid destruction of cultural resource values. Mitigation may include relocation of proposed facilities, testing, salvage, and recordation or other protective measures. All costs of the inventory and mitigation will be borne by the lessee or operator, and all data and materials salvaged will remain under the jurisdiction of the U.S. Government as appropriate. The lessee or operator shall immediately bring to the attention of the FS and BLM any cultural or paleontological resources or any other objects of scientific interest discovered as a result of surface operations under this lease, and shall leave such discoveries intact until directed to proceed by FS and BLM. ENDANGERED OR THREATENED SPECIES - The FS is responsible for assuring that the leased land is examined prior to undertaking any surface-disturbing activities to determine effects upon any plant or animal species listed or proposed for listing as endangered or threatened, or their habitats. The findings of this examination may result in some restrictions to the operator's plans or even disallow use and occupancy that would be in violation of the Endangered Species Act of 1973 by detrimentally affecting endangered or threatened species or their habitats. The lessee/operator may, unless notified by the FS that the examination is not necessary, conduct the examination on the leased lands at his discretion and cost. This examination must be done by or under the supervision of a qualified resource specialist approved by the FS. An acceptable report must be provided to the FS identifying the anticipated effects of a proposed action on endangered or threatened species or their habitats.

Signature of LicenseelPermittee/Lessee 7



fORM APPROVED OMli NO. 1004.0113 ~ : 111M 30, :.-ofJ


This 1_, cnlcred into bya.nd bclWy gnats and Ieues to I~ the exclusive ri$ht and privilege 10 drill lOr. mint. eldnct, RlIIOW,. 01' 0Ibr:rwiK process and dispose of lhe . . . ckposils in, "f'ClD, 01' under lbc
foll""'~dqc;ri~ ~:

dcd in the opcnIinI! rcgulaIions, having due reprd for the prevention of inj wy 10 life, health, or property, and prevClltion of wask, damqc or dep8dation to any land, air, waIcr, cultural, biological, .is.... and other resources, inc:ludil1l mi~al deposib and formations of mincnl cIeposilS not Ieued ben:undcr, and 10 0Ihcr land uses or users. Lessee must lake rneHUreS ckcmed necessary by lessor to accomplish tbe intent of this 1_ term. Such mcasLftS may include, but arc not limited 10, modification to proposed silina or design of facilities, timing of operations. and specification of interim and final m:1 _ion procedures. Lessor fdeI"\Ies to itsclflhe right to lease, sell. or otherwise dispose of tbe surf_ or other mineral deposits in the lInds IIIId the riglltlO CUIIinuc existing uses and 10 authorize lUture UICS upon or in the Jeued IlIlds, including issuina leases for mineral deposib not covered hereunder and apptO\'ing euemenlS or rights-of·way. Lessor must condition such uses to prevent unnecess.y or ul"RlSOlllblc inlerference with rights oflessec a may be consistent with COIlCepcs of multiple use and multiple mineral development
Sec. 11. PROTECTION OF DIVERSE INTERESTS, AND EQUAL OPPORTU· NITY • Lessee must; pay when due aU taxes lesaJly UKS$ed and levied under the laws oftbe Stale or the United Slates; accord an employees complete &eedom of purchase; ..y all wages at least twice each month in lawfill money of the United !>we,; maintain a safe workln!! environment in accordance with standard incblry pradiccs; n:strid the worIutay to not more than I hours in any one day for undrqround workers, uccpt in ClllelllCncies; and lake measures nec:>essary 10 protect the health and safety oftbe public. No person under tbe age of 16 yars should be employed in any mine below the slM"f..:e. To the extent thai laws of the Stale in which the lands an: sinl8led are more n:strictive than the provisions in thi. perasnoph, then the Stale laws apply.

trails. Sec. II. PROCEEI>INGS IN CASE OF DEFAUl.T . If lessee rails 10 comply with IIJlPlicable laws, exi5linll'Cllllatlons, or tbe terms. conditions and stipulations of this lease. and the noncompliance continues for 30 days after written notice tbcreof. this 1..- will be subject 10 cancellalion by the lessor only by jucliciaJ proccedinas. This provision will not be construed 10 preYent the exen:ise by lessor of any other legal and equitable remedy, includina waiver of the default. Any sud! n:medy or ~..iver will not prevent later cancellation for the same default ocwrrina 8l any other time. Sec. 12. IIEHRS AND SUCCESSORS·IN·INTEREST • Each obligation ofthis leaSe will extend 10 and be binding upon. and every benefit hereof will inure: to, the heirs, executors, a