Confidential materials omitted
and filed separately with the SEC. Asterisks denote
omissions.
EXPLORATION AND OPTION TO LEASE
AGREEMENT
This EXPLORATION
AND OPTION TO LEASE AGREEMENT (hereinafter “Exploration
Agreement”), made and entered on this 13
th of February, 2004, between the CROW TRIBE OF
INDIANS, Crow Agency, Montana 59022, (hereinafter “Crow
Tribe”), and WESTMORELAND RESOURCES, INC., a corporation
organized under the laws of the State of Delaware, with its
principal place of business at P.O. Box 449, Hardin, Big Horn
County, Montana (hereinafter
“Westmoreland”).
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A.
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The
Crow Tribe owns, and is in possession of, mineral properties
underlying land commonly referred to as the “South
Extension” as shown on Exhibit “B.” The Crow
Tribe also owns some limited surface interests in the South
Extension.
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B.
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The
Crow Tribe represents the South Extension contains evidence of coal
deposits of value and offers potential for the development of
coal.
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C.
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The
proper exploration and evaluation of the coal deposits, and their
proper development and sale, will require the expenditure of large
sums of capital and adequate time.
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D.
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Westmoreland is able and willing to
furnish the capital required for the development of the coal
deposits located in the Mining Area, but only in accordance with,
and subject to, the conditions set forth in this Exploration
Agreement.
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E.
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The
Minerals Management Service of the United States Department of the
Interior has made demand on Westmoreland for payment of additional
royalties and interest on revenue received by Westmoreland from
Northern States Power (now Xcel) relating to the 1986 NSP Coal
Reserve Option payments. The parties desire to settle said claim as
provided herein.
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F.
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Westmoreland currently mines coal
owned by the Crow Tribe pursuant to the Amended Coal Mining Lease
Indian Lands (“Tract III Lease”) entered into on
November 26, 1974, and subsequently amended. The terms of the
Tract III Lease may be amended by this Exploration Agreement if
certain contingencies occur.
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G.
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The
Crow Tribe wishes to obtain the assistance of Westmoreland in
connection with the Crow Tribe’s desire to obtain an aerial
photographic survey of the Crow Reservation.
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H.
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The
Crow Tribe wishes to expand the amount of surface rights owned by
the Tribe within the boundaries of the Crow Reservation.
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I.
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This Agreement and the Coal Lease
are entered into pursuant to the Indian Mineral Development Act of
1982.
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1
Confidential materials omitted
and filed separately with the SEC. Asterisks denote
omissions.
THEREFORE, based
on the foregoing, and for good and valuable consideration, the
parties represent, covenant, state, and agree as
follows:
1.1 Allotted
Land: All allotted trust land, as well as all allotted fee
land, owned by individual Crow Indians whether or not subject to
federal restraints on alienation.
1.2 Regional
Director: The Regional Director of the Bureau of Indian
Affairs, Rocky Mountain Regional Office, Billings, Montana, or any
of that individual’s successors.
1.3
Carrier: Trucks, railroads, conveyor belts, pipelines, or
any instrumentality or machinery used to deliver Coal after
sale.
1.4 Coal:
Any combustible carbonaceous rock, whether classified as
anthracite, bituminous, subbituminous, or lignite, as defined by
ASTM Standard D-388-77, along with all substances mixed with
Coal.
1.5 Coal
Delivery or Delivered Coal: Coal loaded into a Carrier at the
load out facility operated by Westmoreland on the Tract III Lease
for movement to another location for commercial use.
1.6 Coal
Lease: The document attached hereto as Exhibit A, which
was executed concurrently with execution of this Exploration
Agreement, by the Crow Tribe and Westmoreland.
1.7 Crow
Indian: An individual who is properly enrolled as a member of
the Crow Tribe.
1.8 Crow
Reservation: All lands lying within the exterior boundaries of
the Crow Indian Reservation in the state of Montana. For the
purposes of this Exploration Agreement, the “Crow
Reservation” is further divided into: (i) Allotted Land;
(ii) Tribal Land; and (iii) Fee Land, as those terms are
defined herein.
1.9 Exercise
Date: The date on which Westmoreland exercises its option to
lease pursuant to Section 3.2.
1.10
Exploration Agreement: This document and the exhibits and
attachments hereto.
1.11
Exploration Rights: The exclusive right to enter in and upon
the Prospect Area or Mining Area for the purpose of conducting
drilling, exploration, environmental testing, monitoring, data
gathering, and other incidental rights relating thereto, including
the right to remove and test samples of Coal. These Exploration
Rights shall be limited in scope and only pertain to Coal
exploration.
2
Confidential materials omitted
and filed separately with the SEC. Asterisks denote
omissions.
1.12 Facilities
Area: The area within the Tract III Lease that will be utilized
and is necessary for the production of Coal under this Exploration
Agreement, including, but not limited to, haul roads, access roads,
buildings, water drainage courses, dams, ponds, water wells and
storage facilities, Coal processing facilities, railroads,
sidetracks, switches, storage facilities, conveyors, and other
structures and improvements.
1.13 Fee
Land: Any land except Tribal Land and/or Allotted
Land.
1.14 Mining
Activities: All functions and activities, whether performed on
or off the Crow Reservation, required to prepare for and conduct
the mining, preparation, transportation, and marketing of Coal, by
any method, from the Mining Area covered by this Exploration
Agreement; including, but not limited to:
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a.
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Pre-development drilling, sampling,
testing, and data gathering activities;
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b.
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Environmental and permitting
activities;
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c.
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Design, construction, and operation
of the mine and related facilities such as buildings, power lines,
access roads, railroads, and other transportation
facilities;
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d.
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Hauling Coal, Coal processing, or
delivery to a Carrier and all equipment, machinery, and workers
related thereto;
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e.
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Related administrative
activities;
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f.
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Termination activities;
and
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g.
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Reclamation.
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1.15 Mining
Area: The tract of the South Extension Area selected and
identified pursuant to Section 8 of this Exploration
Agreement.
1.16 Mining
Permits: All permits, plans, licenses, and approvals required
by the Surface Mining Control and Reclamation Act of 1977; the
Clean Air Act of 1990; the Federal Water Pollution Control Act, as
amended; and all other applicable governmental permits, plans,
approvals, and licenses required in order to conduct Mining
Activities as contemplated by this Exploration
Agreement.
1.17 Operating
Subsidiary: A wholly owned subsidiary of Westmoreland to which
Westmoreland may sublease or assign all or a portion of the lands
leased pursuant to this Exploration Agreement and the Mining
Area.
3
Confidential materials omitted
and filed separately with the SEC. Asterisks denote
omissions.
1.18 Prospect
Area: The area of land identified on the map or maps attached
hereto as Exhibit B.
1.19 Secretary
of Interior or Secretary: The Secretary of Interior of the
United States or his duly authorized representative.
1.20 South
Extension : An area of land on the Crow Reservation south of
the existing Tract III Lease, shown on Exhibit
“B.”
1.21
Superintendent: The Superintendent of the Bureau of Indian
Affairs at Crow Agency, Montana.
1.22 Ton: A
measure of weight of 2000 pounds avoirdupois.
1.23 Tract III
Lease: The existing Coal Mining Lease (United States Department
of the Interior Bureau of Indian Affairs, Contract
No. 1420-0252-4088, Tract 3, Sale 3), together with all
amendments and exhibits thereto, entered into between the Crow
Tribe and Westmoreland.
1.24 Tribal
Attorney: An attorney retained by the Crow Tribe to represent
and act as the legal representative for the Crow Tribe with regard
to this Exploration Agreement.
1.25 Tribal
Land: All land, whether now owned or hereafter acquired, held
in trust by the United States of America for the Crow Tribe, as
well as all Fee Land owned by the Crow Tribe, including Fee Land
subject to federal restrictions on alienation.
1.26 Tribal
Coal: All Coal, any interest in which is owned by the Crow
Tribe, whether held in fee or in trust by the United States for the
benefit of the Crow Tribe, or in fee subject to a restriction on
alienation.
1.27 Trust
Land: All land held in trust by the United States of America
for individual Crow Indians or for the Crow Tribe.
SECTION 2 EXPLORATION
LICENSE
2.1 Grant.
The Crow Tribe grants to Westmoreland, for a term commencing on the
date of approval of this Exploration Agreement by both parties and
ending on April 1, 2005 (unless extended pursuant to
Section 5.4), Exploration Rights in and on the Prospect Area
for all Tribal Land and Tribal Coal located within the Prospect
Area. Approval by the Crow Tribe shall be given by signature of the
Chairman and approval as provided in Section 5.1. Approval by
Westmoreland shall be upon approval by its Board and execution of
this Agreement by its executive.
2.2 Exploration
Rights. Westmoreland, as licensee, shall have the right to
exercise all Exploration Rights, including the right to drill,
prospect, explore, test, develop, and work at its own discretion
and at its own expense, on all or any part of the Prospect Area on
the condition all work
4
Confidential materials omitted
and filed separately with the SEC. Asterisks denote
omissions.
and all
improvements made by Westmoreland on the Prospect Area, or any part
of the Crow Reservation, under the terms of this Exploration
Agreement and during the period of this Exploration Agreement,
shall be done in a miner-like and proper manner, so that the
Prospect Area shall be carefully operated and the minerals
contained in the Prospect Area may be sampled and evaluated in an
economical and environmentally responsible manner.
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a.
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Roads. Westmoreland may use existing roads,
if any, on the South Extension and may construct and maintain at
its own expense any additional roads within the Prospect Area that
are necessary in carrying on prospecting and exploration work. The
Crow Tribe consents to the construction and use of such roads and
will cooperate in obtaining any needed consents or approvals from
any government entity, including the BIA.
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b.
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No Public Right.
The public shall obtain
no rights to any roads constructed by Westmoreland, nor shall
Westmoreland be obliged to maintain said roads for use by any other
person, or permit any other persons to use them, and on termination
of this Exploration Agreement, or if at any time it becomes
unnecessary for Westmoreland to use any roads for conducting
authorized operations, the right to use and any obligation to
maintain the roads shall cease and, subject to any need to use
roads to complete reclamation, all rights shall revest in the
surface owner.
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Installations made by Westmoreland
in connection with roads may be removed by Westmoreland.
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c.
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Removal and Reclamation.
Installations made by
Westmoreland in connection with roads may be removed by
Westmoreland. If Westmoreland does not exercise its option, and
subject to all terms and conditions of its governmental permits,
Westmoreland will reclaim and restore all roads and related
installations it has constructed, except to the extent that the
surface owners (including the Crow Tribe) wish them to remain in
place.
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2.3 Licensing
and Permits. Prior to exercising the exploration rights set
forth in this Exploration Agreement, Westmoreland shall obtain all
necessary licenses and permits from the federal government. The
parties recognize that time is of the essence in
Westmoreland’s ability to conduct exploration within the
Prospect Area, and it is contemplated that Westmoreland will be
able to obtain a federal approval of a prospecting permit for the
limited purpose of conducting those exploration activities
immediately after the Crow Tribe’s approval of this
Agreement, and prior to federal approval pursuant to the
requirements of the IMDA. The Crow Tribe shall cooperate fully with
Westmoreland in Westmoreland’s attempt to obtain all
requisite licenses and permits, and the Crow Tribe shall impose no
charges for same.
2.4 Exploration
Results. Upon exercise of its option to lease as provided for
in Section 3 of this Exploration Agreement, or if Westmoreland
elects not to lease, Westmoreland shall provide
5
Confidential materials omitted
and filed separately with the SEC. Asterisks denote
omissions.
one copy each
to the Crow Tribe, MMS, and the Regional Director of logs, tests,
and other raw data obtained through the exploration efforts of
Westmoreland on the Prospect Area, which the Crow Tribe, MMS, and
the Regional Director agree to keep strictly confidential. If
Westmoreland elects not to lease, all data developed hereunder
shall be provided to the Crow Tribe as additional consideration for
the right of first refusal provided in Section 3.3.
Westmoreland shall not provide or disclose the data to any other
party. The data provided to the Tribe may be used without
restriction by the Tribe and its consultants for planning a
Tribally-owned mine or provided by the Tribe to other potential
lessors, developers, operators, or partners at the Tribe’s
sole discretion.
2.5 Reservation
of Right to Grant Additional Exploration Licenses. The Crow
Tribe retains the right to grant exploration rights for minerals
other than Coal, on the Prospect Area designated by Westmoreland,
but the parties agree any exploration rights so granted shall not
interfere with the exploration rights of Westmoreland. Any
exploration rights granted to parties other than Westmoreland
covering the Prospect Area shall provide that activities conducted
pursuant to such rights are subordinate to the exploration rights
of Westmoreland and thus shall not interfere with
Westmoreland’s exploration rights and shall further provide
any selection of a mining (including drilling for hydrocarbons)
area by such third parties shall be made only after Westmoreland
has selected its Mining Area in accordance with Section 8 of
this Exploration Agreement, and after selection, Westmoreland shall
have the exclusive use of said Mining Area. To the extent
practicable, Westmoreland shall conduct its exploration activities
so as not to diminish the quantity or value of the Tribe’s
Coal or coal bed methane resources in seams that Westmoreland does
not intend to mine under this Agreement.
SECTION 3 OPTION TO
LEASE
3.1 Exclusive
Option to Lease. Westmoreland shall have the exclusive option
to lease the Crow Tribe’s Coal in the Prospect Area. Said
option shall be exercised, if at all, upon completion of
Westmoreland’s exploration and reserve analysis in the
Prospect Area or no later than April 1, 2005, unless
Westmoreland elects the extension provided in provision 5.4 of this
Exploration Agreement.
3.2 Exercise of
Option. If Westmoreland elects to exercise the option granted
and receive a Coal Lease to the Mining Area, it shall notify the
Crow Tribe in a manner in accordance with provision 25.3 of this
Exploration Agreement. On giving such notice, Westmoreland shall be
entitled to receive, in accordance with and subject to the terms of
this Exploration Agreement, a lease in the form of the Coal Lease
attached hereto as Exhibit A. The Crow Tribe shall, on the
receipt of the notice of Westmoreland’s intention to exercise
its option, deliver the fully executed lease to
Westmoreland.
3.3 Conversion
of Option into Right of First Refusal. The option to demand and
receive a Coal Lease, if not exercised, shall convert into a right
of first refusal for as long as Westmoreland operates the Absaloka
Mine. If the Crow Tribe receives an offer to lease Coal in the
Prospect Area from any party other than Westmoreland during the
right of first refusal period, it
6
Confidential materials omitted
and filed separately with the SEC. Asterisks denote
omissions.
must present to
Westmoreland an offer to lease said Coal on the same terms as said
offer, and Westmoreland shall have sixty (60) days within
which to accept or reject.
This
right of first refusal shall not apply if, after Westmoreland fails
to exercise its option, the Crow Tribe decides to develop the Coal
in the Prospect Area itself, or through any entity or joint venture
of which the Crow Tribes owns not less than one-half (i.e., a
Tribally-owned mine); provided, however, that Westmoreland will be
given the opportunity to bid on any general contract for operating
a Tribally-owned mine in the Prospect Area.
The
Crow Tribe must inform any offeror no later than five (5) days
after receiving any offer of Westmoreland’s right of first
refusal.
3.4 Machinery
and Equipment. No equipment, tools, machinery, improvements, or
personal property of any nature or description brought or placed in
the property prior to the exercise of this option by Westmoreland
for use in the work shall become a fixture.
All
the equipment, structures, improvements, and other property shall
remain the property of Westmoreland, subject to removal by
Westmoreland. If Westmoreland does not exercise this option, it
shall be entitled to remove all equipment, tools, machinery,
structures, improvements, and personal property from the property
within ninety (90) days after the expiration of this
option.
3.5 Title of
Owner. The Crow Tribe represents that it is the lawful owner of
all minerals located in the Mining Area, as specifically described
herein, and such Tribal Land as is located in the Mining Area. The
Crow Tribe further represents the minerals covered by this
Exploration Agreement are each free from all liens and encumbrances
of every nature and description.
During
the period of this option, the Crow Tribe shall protect all of its
property in the Mining Area from any and all liens except those
arising from the acts of Westmoreland on the Mining
Area.
The
Crow Tribe shall not encumber any of its property in the Mining
Area or any part of it and shall furnish to Westmoreland
satisfactory evidence of good title to same not less than ninety
(90) days after any written request from Westmoreland to do
so.
Nothing
herein shall be construed as prohibiting the Tribe from pledging or
assigning payments due the Tribe under this Agreement, including
lump sum payments, royalties, and taxes.
3.6 Unavoidable
Delays. Any time lost by Westmoreland in the event of Force
Majeure, as that term is defined in Section 11 of this
Exploration Agreement, shall not run against the time specified in
this Exploration Agreement for exercise of this option.
7
Confidential materials omitted
and filed separately with the SEC. Asterisks denote
omissions.
SECTION 4 SETTLEMENT WITH
MMS
As additional
consideration for this Exploration Agreement, the parties agree to
settle the matters recited in the Settlement Agreement attached
hereto as Exhibit C by executing same and carrying out its
terms.
Except for the
Exploration License granted in Section 2, the Crow
Tribe’s performance of this Exploration and Option to Lease
Agreement is contingent upon the Tribe’s receipt of the
payment due under said Settlement Agreement as provided in
Section 5.2 below.
SECTION 5 LUMP SUM
PAYMENTS
Payments.
In consideration for the execution of this Exploration Agreement,
as well as the grant of the rights and obligations contained in
this Exploration Agreement, and the agreement to settle the MMS
dispute per Section 4, Westmoreland shall make lump sum
payments as follows:
5.1 [*****] upon
final approval of this Exploration Agreement, including the Coal
Lease and the MMS Settlement Agreement. For purposes of this
contingency, the term “final approval” shall mean
binding approval of this Exploration Agreement and Coal Lease, and
all exhibits and agreements attached thereto, by the Crow Tribe by
signed approval of the Executive Branch of the governing body of
the Crow Tribe of Indians and final and binding approval by the
legislature of the Crow Tribe pursuant to Article V,
Section 2(d), of the Constitution of the Crow Tribe. A true
and correct copy of the Crow Tribal Legislative Act No. CLB
0402, enacted February 10, 2004, and approved
February 12, 2004, approving this Exploration Agreement and
the Coal Lease, and all exhibits and attachments, and authorizing
the Executive of the Crow Government to execute said agreements on
behalf of the Crow Tribe is attached hereto as Exhibit
“D.”
If
Westmoreland elects not to exercise its option, or if this
Exploration Agreement is not approved by the Secretary as provided
in Section 21, then the [*****], paid pursuant to this, shall
be treated as an advance of royalty and taxes under the existing
Tract III Lease and shall be reimbursed pro rata over the
next twenty-four (24) months following expiration of the term
of the option.
5.2 One Million
Five Hundred Thousand Dollars and 0/100 ($1,500,000), following
approval per Section 5.1, and upon approval and execution of
the Settlement Agreement attached as Exhibit C, according to
its terms, releasing Westmoreland from any further royalties,
assessments, or taxes of any kind based on option payments received
from Xcel Energy (formerly NSP), from the period from 1986 to 1999,
as full, final and complete settlement of the MMS dispute.
Following approval, execution, and payment as provided herein, the
MMS Settlement Agreement shall survive any of the following:
termination of this Exploration Agreement or the Coal Lease, or
failure or refusal of the Secretary to approve same, and shall be
permanent and binding according to its terms.
This
lump sum payment for the MMS Settlement Agreement is not contingent
upon federal approval of this Exploration and Option to Lease
Agreement or associated prospecting permit or Coal Mining Lease and
is non-recoupable according to the terms of the Settlement
Agreement, as long as it has been separately approved according to
its terms.
8
Confidential materials omitted
and filed separately with the SEC. Asterisks denote
omissions.
5.3 If
Westmoreland elects to exercise the option specified in
Section 3 of this Exploration Agreement, Westmoreland shall
pay the Crow Tribe the sum of [*****], which shall be paid, less
any advance payment as provided in Section 5.4 below, within
ten (10) days of exercising the option.
5.4 Westmoreland
may extend its exploration rights and the date for exercising its
option from April 1, 2005, to June 1, 2006, by paying an
additional [*****] to the Crow Tribe on or before April 1,
2005. If Westmoreland subsequently elects to exercise its right to
mine, said [*****] shall be an advance on the consideration
required for Westmoreland’s right to elect its option as
specified in provision 5.3. If Westmoreland elects not to exercise
its option, then [*****] of this payment shall be treated as an
additional advancement on royalty and taxes under the existing
Tract III Lease to be reimbursed over the next eight
(8) quarters.
5.5 With the
exception of the contingencies outlined in Sections 5.1 and
5.4 of this Exploration Agreement, the above described lump sum
payments shall not be recoupable against future royalties, taxes,
or any other amounts Westmoreland owes the Crow Tribe.
5.6 All lump sum
payments to the Crow Tribe shall be made to the Superintendent in
trust for the use and benefit of the Crow Tribe.
5.7 All lump sum
payments shall be paid by electronic funds transfer to an account
or accounts designated by the Crow Tribe and approved by the
Superintendent.
SECTION 6 AMENDMENT TO TRACT III
LEASE
6.1 Royalty
Renegotiation. Lessor and Lessee agree that the royalty
renegotiation provided for in the Tract III Lease, which is
scheduled for November of 2004, shall be resolved as follows:
Lessor and Lessee agree that the tax and royalty terms of the Coal
Lease shall be amended into, and shall apply, to the Tract III
Lease from and after December 1, 2004, for new Coal sales (new
sales made or contracted after December 1, 2004). Current
Tract III Lease Royalty Rates shall remain in effect on all sales
made under contracts existing on December 1, 2004, through
their term, or any price renegotiation date, whichever comes first,
but Westmoreland shall agree that on such sales, the Crow Tribe
will realize an overall royalty of not less than that provided in
Article 7 of the Coal Lease.
6.2 Extension
of Tract III Lease. If Westmoreland exercises its option to
lease under this Exploration Agreement, the parties recognize that
Westmoreland must use its current Tract III Facilities Area for the
efficient production of Coal from the Mining Area for the entire
period during which Westmoreland conducts Mining Activities in the
Mining Area. The parties further recognize that it is to their
mutual interest and benefit to maintain Westmoreland’s Tract
III facilities area beyond the end of the current projected
Tract III production to provide the means for future
production should market conditions warrant. Therefore, if
Westmoreland exercises its option to lease hereunder, the Tract III
Lease shall be amended to provide that Westmoreland shall have
the
9
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and filed separately with the SEC. Asterisks denote
omissions.
option to
extend the term of the Tract III Lease beyond production of Coal in
paying quantities for a term equal to the term of the Coal Lease by
the payment of One Dollar and 0/100 cents ($1.00) per acre per year
as minimum royalty under the Tract III Lease.
6.3 Tribal
Employment. The Tribal employment provisions in Article 36
of the Coal Lease shall also apply to the Tract III Lease effective
upon the Tribe’s approval of this Agreement.
6.4 Amendment
to Tract III Lease. The parties will amend the Tract III Lease
to reflect the terms of this Section 6.
SECTION 7 PHOTOGRAPHIC
SURVEY
As additional
consideration for the promises herein, following execution of this
Exploration Agreement and approval by the Secretary, Westmoreland
shall actively assist the Crow Tribe in its plan to obtain and
create a photographic survey of the Crow Reservation. Westmoreland
will provide technical advice and support to the Crow Tribe’s
project manager. Westmoreland’s staff, time, and availability
will be contingent upon and limited by Westmoreland’s own
work load. In addition, Westmoreland will provide One Hundred
Twenty-Five Thousand Dollars and 0/100 cents ($125,000.00) to the
Crow Tribe to help fund this project. Said fund shall be available
thirty (30) days after the date upon which final approval of
this Exploration Agreement is granted by the Secretary. At the
Tribe’s option and request at any time thereafter, the
remaining balance of the fund shall be paid directly to the
Tribe.
SECTION 8 SELECTION OF MINING
AREA
8.1 Mining
Tract Designation. On or before the Exercise Date, Westmoreland
shall select, from the Prospect Area, the Mining Area. Selection of
the Mining Area shall not itself constitute exercise of the option,
and the Mining Area may be amended by Westmoreland prior to the
Exercise Date.
8.2 Selection
Notice. Westmoreland shall select the Mining Area by delivering
to the Crow Tribe written notice, in the manner set forth herein,
providing the legal description of the tract selected. The mining
tract described in the notice shall constitute the Mining Area. The
Mining Area shall be identified and by addendum attached to the
Coal Lease.
9.1 Execution
and Approval of Lease Form. The parties will execute and the
Crow Tribe will approve the Coal Lease in the manner provided in
Section 5.1 at the same time as this Exploration Agreement. In
addition, the parties shall request that approval of the attached
Coal Lease be simultaneous with approval of this Exploration
Agreement by the Secretary. The parties agree to cooperate to seek
approval of all terms of this Exploration Agreement and Coal Lease
by the Secretary as expeditiously as possible. Approval of the Coal
Lease is subject to the limitations in
Section 21.6.
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and filed separately with the SEC. Asterisks denote
omissions.
9.2 Effective
Date of Lease. In the event Westmoreland elects to exercise its
option to lease, the Coal Lease shall take effect thirty
(30) days following Westmoreland’s notice of its
election to lease.
9.3 Limitation
of Mining Area. Notwithstanding any provision in this
Exploration Agreement or the Coal Lease, any grant of rights from
the Crow Tribe to Westmoreland to use or lease land, or to explore
for and/or mine Coal is limited to Tribal Land and Tribal Coal. To
the extent there is other land and/or Coal located in the Prospect
Area and/or the Mining Area, Westmoreland shall be responsible for
obtaining any necessary right to enter, explore for, and mine Coal
on said land or to use and occupy said land, including the
acquisition of any necessary surface rights.
9.4 Acreage
Under Lease . Lessee currently leases Coal owned by Lessor
outside the boundaries of the Crow Reservation pursuant to the
terms of the Tract III lease. Lessee may identify and lease a
Mining Area in excess of 2,560 acres, but not more than 3,400
acres, in a single, reasonably compact block. Approval of the
Exploration Agreement and Coal Lease shall constitute
cons
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