MINING LEASE FORMS

The following are lease forms commonly used in obtaining an oil and gas, coal or metallic mineral mining lease:

Oil and Gas Lease

AGREEMENT, Made and entered into............day of..

by and between..

of.

192......,

party of the first part, hereinafter

called lessor (whether one or more), and... party of the second part, lessees.

WITNESSETH,

That the said lessor, for and in consideration of ...Dollars, cash in hand paid, and other good and valuable considerations, receipt of which is hereby acknowledged and of the covenants and agreements hereinafter contained on the part of the lessee to be paid, kept and performed, has granted, demised, leased and let and by these presents does grant, demise, lease and let unto the said lessee, for the sole and only purpose of mining and operating for oil and gas, and laying pipe lines, and building tanks, power stations and structures thereon to produce, save and take care of said products, all that certain tract of land situated in the County of.. State of Arkansas, described as follows, to-wit:

It is agreed that this lease shall remain in force for a term of... years from this date, and as long thereafter as oil and gas, or either of them, is produced from said land by the lessee.

In consideration of the premises the said lessee covenants and agrees: 1st. To deliver to the credit of lessor, free of cost, in the pipe line to which he may connect his wells, the equal one-eighth part of all oil produced and saved from said leased premises.

2nd. To pay the lessor two hundred dollars each year for each well producing gas only, until such time as the gas shall be utilized or sold off the premises, and at that time the royalty above named shall cease, and thereafter the grantor shall be paid one-eighth (%) of the value of such gas calculated at the rate of..... ........cents per thousand cubic feet, corrected to two pounds above atmospheric pressure, and lessor to have gas free of cost from any such well for all stoves and all inside lights in the principal dwelling house on said land during the same time by making his own connections with the wells at his own risk and expense.

3rd. To pay lessor for gas produced from any oil well and used off the premises or for the manufacture of casing head gas.... Dollars per year, for the time during which such gas shall be used, said payments to be made each three months in advance.

day of

If no well be commenced on said land on or before the....... 192...., this lease shall terminate as to both parties, unless the lessee on or before that date shall pay or tender to the lessor, or to the lessor's credit in the..... Bank at...

which bank and its successors are the lessor's agent and which shall continue as the depository regardless of changes in the ownership of said land, the sum of.... ...Dollars, which shall operate as a rental

and cover the privilege of deferring the commencement of a well for.. months from said date. In like manner and upon like payments or tenders the commencement of a well may be further deferred for like periods of the

same number of months successively. And it is understood and agreed that the consideration first recited herein, the down payment, covers not only the privileges granted to the date when said first rental is payable as aforesaid, but also the lessee's option of extending that period as aforesaid, and any and all other rights conferred.

Should the first well drilled on the above described land be a dry hole, then, and in that event, if a second well is not commenced on said land within twelve months from the expiration of the last rental period which rental has been paid, this lease shall terminate as to both parties, unless the lessee on or before the expiration of said twelve months shall resume the payment of rentals in the same amount and in the same manner as herein before provided. And it is agreed that upon the resumption of the payment of rentals, as above provided, that the last preceding paragraph hereof, governing the payment of rentals and the effect thereof, shall concontinue in force just as though there has been no interruption in the rental payments.

The Lessee shall have the exclusive right to take all waste oil, from its own wells, or coming on this property from other sources, and agrees to pay to Lessor an equal one-eighth thereof, if utilized.

If said lessor owns a less interest in the above described land than the entire and undivided fee simple estate therein, then the royalties and rentals herein provided shall be paid the lessor only in the proportion which ...interest bears to the whole and undivided fee.

Lessee shall have the right to use, free of cost, gas, oil and water produced on said land for....... ..operation thereon, except water from wells of lessor.

When requested by lessor, lessee shall bury...... plow depth.

.pipe lines below

No well shall be drilled nearer than 200 feet to the house or barn now on said premises, without the written consent of the lessor.

Lessee shall pay for damages caused by.. crops on said land.

..operations to growing

Lessee shall have the right at any time to remove all machinery and fixtures placed on said premises, including the right to draw and remove casing.

If the estate of either party hereto is assigned, and the privilege of assigning in whole or in part is hereby expressly allowed, the covenant hereof shall extend to their heirs, executors, administrators, successors or assigns, but no change in the ownership of the land or assignment of rentals or royalties shall be binding on the lessee until after the lessee has been furnished with a written transfer or assignment or a true copy thereof, and it is hereby agreed in the event this lease shall be assigned as to part or as to parts of the above described lands and the assignee or assignees of such part or parts shall fail or make default in the payment of the proportionate part of the rents due from him or them, such default shall not operate to defeat or affect this lease in so far as it covers a part or parts of said lands upon which said lessee or any assignee thereof shall make due payment of said rental.

Lessor hereby warrants and agrees to defend the title to the lands herein described, and agrees that the lessee shall have the right at any time to redeem for lessor, by payment, any mortgage, taxes or other liens on the above described lands, in the event of default of payment by lessor, and be subrogated to the rights of the holder thereof.

Notwithstanding anything in this lease contained to the contrary, it is expressly agreed that if lessee shall commence drilling operations at any

time while this lease is in force, this lease shall remain in force and its term shall continue so long as such operations are prosecuted, and, if production results therefrom, then as long as such production continues.

And I,

wife of the said..

for and in consideration of the said sum of money, paid as a consideration for the foregoing, do hereby release and relinquish unto and in favor of the said. ...all my rights of dower and homestead in and to the above described land to the extent of the rights hereinabove set forth.

..of.

192......

AGREEMENT, Made and entered into........ ..day of.. by and between.. party of the first part, hereinafter called lessor (whether one or more) and party of the second part, lessee.

WITNESSETH, That the said lessor, for and in consideration of One Dollar, cash in hand paid, and other valuable considerations, receipt of which is hereby acknowledged, and of the covenants and agreements hereinafter contained on the part of lessee to be paid, kept and performed, has granted, demised, leased and let and by these presents does grant, demise, lease and let unto the said lessee, or his assigns, for the sole and only purpose of mining and operating for coal, and laying sidings, switches (including switch across land to reach other coal land further from railroad) and building tipples, buildings and structures thereon to produce, save and take care of said products, all that certain tract of land situated in the county of.... .and state of.

as follows, to-wit..

described

,and containing.

It is agreed that this lease shall remain in force for a term of five years from this date, and as long thereafter as coal is produced from said land by lessee, or royalty is advanced thereon, as provided in another clause of this agreement.

In consideration of the premises the said lessee covenants and agrees: To pay the lessor. .cents per ton for all coal mined and loaded, the railroad weights to be taken as a basis for such payment, and payment to be made the tenth of each month, covering tonnage of previous month, said payment to be made to lessor or to the credit of lessor in the....... Bank, at..

or its successors.

This contract is to cover only such parts of the above described land as the preliminary drilling shows can be profitably worked and it is understood that lessee has the right to remove the top vein of coal by the steam shovel process or other equally good process.

If no test drilling be commenced on said land within six months from date hereof this lease shall terminate as to both parties.

If work has not begun on the establishment of a plant on said land within twelve months from date hereof this lease shall terminate unless the lessee on or before that date shall pay or tender to the lessor, or to

the lessor's credit in the..

Bank at..

.or

its successors, which shall continue as the depository regardless of the changes in ownership of said land, the sum of..... Dollars, said sum being an advance royalty to be later deducted from the first royalty due lessor after actual operations begin, and said advance of royalty shall operate as a rental and cover the privilege of deferring the commencement of the plant for twelve months from said date. In like manner, and upon like payments or tenders, the commencement of the plant may be further deferred for like periods of the same number of months successively, such advances of royalty acting in each instance as an extension of one year of the time in which production of coal may begin. And it is understood and agreed that the consideration first recited herein, the down payment, covers not only the privileges granted to the date when said first rental is payable as aforesaid, but also the lessee's option of extending that period as aforesaid, and any and all other rights conferred.

If said lessor owns a less interest in the above described land than the entire and undivided fee simple estate therein, then the royalty and rentals herein provided shall be paid the lessor only in the proportion which his interest bears to the whole and undivided fee.

Lessee shall have the right to use, free of cost, coal and water produced on said land for its operations thereon, except water from wells of lessor.

Lessee shall have the right at all times to remove all machinery, buildings and fixtures placed on said premises.

It is understood that the covenants hereof shall extend to the heirs, executors, administrators, successors or assigns of the parties hereto.

Lessor hereby warrants and agrees to defend the title to the lands herein described, and agrees that the lessee shall have the right at any time to redeem for lessor, by payment, any mortgage, taxes or other liens on the above described lands, in the event of default of payment by lessor, and be subrogated to the rights of the holder thereof.

Lessor hereby extends to the lessee the privilege of buying the above described lands, in fee simple, at... ..Dollars per acre at any time during the life of this lease, and, upon his tendering this amount, to furnish a good and sufficient title and abstract and give a warranty deed to same.

IN TESTIMONY WHEREOF we sign this the..

day of............, 192.......

MINING LEASE-METALLIC MINERALS

THIS INDENTURE, Made and entered into on this, the.. of.... 19, by and between......... hereinafter known as the Lessors, and... hereinafter known as the Lessee.

.day

WITNESSETH: That the Lessors, in consideration of the agreements and undertakings, hereinafter named, to be kept and performed by the Lessee, his successors and assigns, the Lessors do by these presents de. mise and lease unto the Lessee, his successors and assigns, for all mining purposes, the following described land situated in. .County,

State of Arkansas, to-wit:

I. Exploration and development of mineral deposits on said land and the commercial mining of the same for purposes of sale thereof to the mutual profit of the parties hereto, being the essence of this contract, it is therefore agreed and understood that the Lessee shall commence the work of mining on said land not later than.. ; and shall diligently carry on such work in a thorough and mining-like manner; and shall install such equipment as may be deemed practicable in furthering said work; and shall not suspend work more than thirty days at any time without the written consent of the Lessors; PROVIDED that if, by reason of low price or other unavoidable cause, the ore mined on said land cannot be sold at a margin of profit to the Lessee, then production of ore thereon may be suspended until such cause shall cease to exist.

II. The Lessee shall pay to the Lessor.. ..per centum of the gross receipts from sales of all ores mined on said land when same are sold; and shall keep a correct account of the same, showing the grades of ore and weights thereof, to whom sold and the price received, which record of account shall be open to inspection of the Lessor; and shall render to the Lessor a true statement and copy of settlement sheet of each consignment of ore sold; and shall pay to the Lessor, or agent, all royalty due on each sale of ore, within five days after payment is made for same by purchaser thereof.

III. The Lessors shall be furnished with a true record of all prospect drill holes, as same may be made on said land.

IV. The Lessee shall have the right to use timber on said land for mine supports, cribbing, derricks, and tramways; and to construct roads, tramways, cables, dams, flumes, pipe lines, and reservoirs on and across said land for purposes of mining and treating the ores thereon, together with all water rights.

V. The Lessee shall have the right to erect buildings of whatsoever kind and to install machinery, suitable for the proper mining, crushing and cleaning of ores mined thereon; and shall have the right to remove same at the expiration or forfeiture of this lease.

VI. As compensation for any loss of time from work on said land that may occur, the Lessee shall pay all taxes charged against said land by the County and State and thereafter coming due during the term of this lease.

VII. Any failure or refusal to comply with the stipulations of this lease shall constitute sufficient grounds for peremptory cancellation and forfeiture of this lease, within thirty days.

VIII. Subject to the foregoing stipulations, this lease shall be in force and effect for a term of TEN years from date hereof; and the same shall continue in force for an additional period of TEN years, provided that mining operations and the production of ore therein are then being carried on by the Lessee, his successors and assigns.

IN WITNESS WHEREOF, We hereunto set our hands and seals on the date first above written.

(SEAL) (SEAL)

Lessee