Document:

Exhibit 10.17

                    UNITED STATES DEPARTMENT OF THE INTERIOR

                            BUREAU OF LAND MANAGEMENT
                              Wyoming State Office
                                  P.O. Box 1828
                          Cheyenne, Wyoming 82003-1828

                                                           In Reply Refer

                                                           3453
                                                           WYW0313773
                                                           WYW78631
                                                           WYW124783
                                                           (921MLove)
                                                           Phone No.: 307-______
                                                           Fax No.:  307-______

                                                      Nov 16 1999

                                 D E C I S I O N

RAG Wyoming Land Company                      :
Attn:  Steve Youngbauer                       :                   Federal Coal
P.O. Box 3039                                 :                 Eagle Butte Mine
Gillette, WY 82717-3039                       :

                Qualifications Accepted; Name Changes Recognized;
            Logical Mining Unit Modified; Bonds and Riders Accepted;
                  Final Bonus Payment Verified; Rider Returned;
                         Periods of Liability Terminated

On August 5, 1999, and October 12, 1999, we received documents evidencing the
merger of Cyprus Amax Coal Company into RAG American Coal Company with RAG
American Coal Company as the surviving entity, along with documentation of the
name change from Amax Land Company to RAG Wyoming Land Company. Additionally, we
received qualifications statements for RAG American Coal Company and RAG Wyoming
Land Company.

On August 20, 1999, we received replacement bonds, with RAG Wyoming Land Company
as principal, to provide coverage for Federal coal leases WYW0313773 and
WYW78631 included in the Eagle Butte Mine Logical Mining Unit (LMU). The limits
shared by the sureties are shown below:

                                                                               2

                                                                                                      Liability
         Lease #                          Surety Name                       Surety Bond #                Limit
         -------                          -----------                       -------------                -----

WYW0313773                 National Union Fire Insurance Insurance
                           Co. of Pittsburgh                                  210067-073               $159,000

                           St. Paul Fire and Marine Insurance
                           Company                                            KA2990-073               $159,000

                           Travelers Casualty and Surety Company            103198931-073              $159,000

WYW78631                   National Union Fire Insurance Insurance
                           Co. of Pittsburgh                                  210067-066              $1,200,333

                           St. Paul Fire and Marine Insurance
                           Company                                            KA2990-066              $1,200,333

                           Travelers Casualty and Surety Company            103198931-066             $1,200,333

On October 12, 1999, we received a rider to the above-described replacement bond
for Federal coal lease WYW0313773 which extends coverage of the bond to cover
any and all liabilities that may be outstanding on Bond Number 9278308, with
AMAX Land Company as principal, and National Fire Insurance Company of Hartford
as surety.

We also received on October 12, 1999, a rider to the above-described replacement
bond for Federal coal lease WYW78631 which extends coverage of the bond to cover
any and all liabilities that may be outstanding on Bond Number 158601710
(formerly bond number BND2248737) with National Fire Insurance Company of
Hartford as surety. (Note: Previously, on November 15, 1998, we received a rider
to 158601710 which increased the bond amount to $3,601,000. By this decision
that rider is being accepted effective November 16, 1998.)

Federal coal lease WYW124783, also part of the Eagle Butte Mine, but not
included in the LMU, is currently covered by bond numbers JP1298 ($5,000 lease)
and JP1297 ($3,694,080 deferred bonus) with St. Paul Fire and Marine Insurance
Company as surety. On August 20, 1999, we received riders to these bonds which
add two additional sureties/numbers and change the name of the principal from
AMAX Land Company to RAG Wyoming Land Company. We have verified with the
Minerals Management Service that the final deferred bonus payment for Federal
coal lease WYW124783, due August 1, 1999, has been paid; therefore, the period
of liability under Bond Number JP1297 is terminated. The rider supplied for Bond
Number JP1297 is returned without acceptance to RAG American Coal Company
attached to Ms. Eva Schrum's copy of this decision. The surety/bond number
changes to the $5,000 lease bond for Federal lease WYW124783 are shown below:

                                                                               3

                       Surety Name                     Surety Bond Number
                       -----------                     ------------------
    St. Paul Fire and
    Marine Insurance Company                       KA2990-021 (formerly JP1298)

    National Union Fire Insurance Insurance
    Co. of Pittsburgh                                       210067-021

    Travelers Casualty and
    Surety Company                                        103198931-021

The merger documents, qualifications statements, replacement bonds, and riders
have been examined, found satisfactory, and are accepted effective October 12,
1999.

The periods of Liability under Bond Numbers 9278308 and 158601710, with National
Fire Insurance Company of Hartford as surety, and AMAX Land Company as
principal, are hereby terminated effective October 12, 1999, the acceptance date
of the replacement bonds.

The records of this office have been changed to reflect that the lessee of
record for Federal coal leases WYW0313773, WYW78631, and WYW124783 is RAG
Wyoming Land Company.

Additionally, RAG Wyoming Land Company has requested that the Eagle Butte Mine
LMU be modified to change the unit operator from AMAX Land Company to RAG
Wyoming Land Company. The LMU is hereby modified to reflect that RAG Wyoming
Land Company is the operator and will be responsible for operations under the
LMU in accordance with the LMU approval document.

If you have any questions concerning this decision, please contact Mavis Love in
the Minerals and Lands Authorization Group at 307-775-6258.

                                             Pamela J. Lewis
                                             Chief, Leasable Minerals Section

cc:
RAG American Coal Company, Attn:  Eva Schrum, 9100 East Mineral Circle,
      Englewood, CO 80112-3401 w/rider to Bond #KA2990-025 (formerly JP1297)
National Union Fire Insurance Company of Pittsburgh, PA,
     c/o Patricia Thurmond, Attorney-in-Fact, 70 Pine Street, New York, NY 10270
St. Paul Fire and Marine Insurance Company, c/o Patricia Thurmond,
     Attorney-in-Fact, 385 Washington St., St. Paul, MN 55102
Travelers Casualty and Surety Company, c/o Patricia Thurmond, Attorney-in-Fact,
     One Tower Square, Hartford, CT 06183
National Fire Insurance Company of Hartford, c/o Joan Bagnall, Attorney-in-Fact,
     CNA Plaza, Chicago, IL 60685

                                                                               4

Mr. Olen Harvey, CNA Surety, 950 Echo Lane, Suite #250, Houston, TX 77024
MMS, Royalty Management Program, Reporting & Valuation Division, Solid Minerals
     Reporting Staff, P.O. Box 5760, MS3153, Denver, CO 80217
FM, Casper
Eagle Butte LMU File WYW133406
Qualifications Files

WY 3400-6                UNITED STATES               Serial Number
(April 1985)       DEPARTMENT OF THE INTERIOR        3400 (925-9) WYW0313773
                   BUREAU OF LAND MANAGEMENT         Date Lease Issued
                                                     Effective
                    COAL LEASE READJUSTMENT          September 1, 1965

PART I: LEASE RIGHTS GRANTED

This lease, entered into by and between the United States of America,
hereinafter called the lessor, through the Bureau of Land Management, and (Name
and Address)

                  AMAX Land Company
                  P.O. Box 3005
                  Gillette, WY  82717-3005

hereinafter called the lessee, is readjusted, effective (Date) September 1,
1995, for a period of 10 years and for so long thereafter as coal is produced in
commercial quantities from the leased lands, subject to readjustment of lease
terms at the end of each 10-year period.

Sec. 1. This lease readjustment is subject to the terms and provisions of the:

         [X]  Mineral Lands Leasing Act of 1920, Act of February 25, 1920, as
              amended, 41 Stat. 437, 30 U.S.C. 181-287, hereinafter referred to
              as the Act;

         [ ]  Mineral Leasing Act for Acquired Lands, Act of August 7, 1947,
              61 Stat. 913, 30 U.S.C. 351-359;

and to the regulations and formal orders of the Secretary of the Interior which
are now or hereafter in force, when not inconsistent with the express and
specific provisions herein.

Sec. 2. Lessor, in consideration of any rents and royalties to be paid, and the
conditions and covenants to be observed as herein set forth, hereby grants to
lessee the exclusive right and privilege to drill for, mine, extract, remove or
otherwise process and dispose of the coal deposits in, upon, or under the
following described lands:

          T. 51 N., R. 72 W., 6th P.M., Campbell County, Wyoming
          ------------------------------------------------------
               Sec. 21: Lots 1 thru 16;
               Sec. 22: Lots 9 thru 16;
               Sec. 23: Lots 9 thru 16;
               Sec. 26: Lots 1 thru 16;
               Sec. 27: Lots 1 thru 16;
               Sec. 28: Lots 1, 2, 7 and 8;
               Sec. 34: Lots 1, 2, 7 and 8;
               Sec. 35: Lots 1 thru 16.

containing 3,275.96 acres, more or less, together with the right to construct
such works, buildings, plants, structures, equipment and appliances and the
right to use such on-lease rights-

                                                             3400 (925-9)
                                                             WYW0313773
                                                             9/1/95 Readjustment

of-way which may be necessary and convenient to the exercise of the rights and
privileges granted, subject to the conditions herein provided.

PART II: TERMS AND CONDITIONS

Sec. 1. (a) RENTAL RATE - Lessee shall pay lessor rental annually and in advance
for each acre or fraction thereof during the continuance of the lease at the
rate of $3.00 for each lease year.

(b) RENTAL CREDITS - Rental shall not be credited against either production or
advance royalties for any year.

Sec. 2. (a) PRODUCTION ROYALTIES - The royalty shall be 12 1/2 percent of the
value of the coal produced by strip or auger methods and 8 percent of the value
of the coal produced by underground mining methods. The value of the coal shall
be determined as set forth in 43 CFR 3480. Royalties are due to lessor the final
day of the month succeeding the calendar month in which the royalty obligation
accrues.

(b) ADVANCE ROYALTIES - Upon request by the lessee, the authorized officer may
accept, for a total of not more than 10 years, the payment of advance royalties
in lieu of continued operation, consistent with the regulations. The advance
royalty shall be based on a percent of the value of a minimum number of tons
determined in the manner established by the advance royalty regulations in
effect at the time the lessee requests approval to pay advance royalties in lieu
of continued operation.

Sec. 3. BONDS - Lessee shall maintain in the proper office a lease bond in the
amount of $2,724,000. The authorized officer may require an increase in this
amount when additional coverage is determined appropriate.

Sec. 4. DILIGENCE - This lease is subject to the conditions of diligent
development and continued operation, except that these conditions are excused
when operations under the lease are interrupted by strikes, the elements, or
casualties not attributable to the lessee. The lessor, in the public interest,
may suspend the condition of continued operation upon payment of advance
royalties in accordance with the regulations in existence at the time of the
suspension. Lessee's failure to produce coal in commercial quantities at the end
of 10 years shall terminate the lease. If not submitted already, lessee shall
submit an operation and reclamation plan pursuant to Section 7 of the Act no
later than 3 years after the effective date of this lease readjustment.

The lessor reserves the power to assent to or order the suspension of the terms
and conditions of this lease in accordance with, INTER ALIA, Section 39 of the
Mineral Leasing Act, 30 U.S.C. 209.

Sec. 5. LOGICAL MINING UNIT (LMU) - Either upon approval by the lessor of the
lessee's application or at the direction of the lessor, this lease shall become
an LMU or part of an LMU, subject to the provisions set forth in the
regulations.

                                                             3400 (925-9)
                                                             WYW0313773
                                                             9/1/95 Readjustment

The stipulations established in an LMU approval in effect at the time of LMU
approval will supersede the relevant inconsistent terms of this lease so long as
the lease remains committed to the LMU. If the LMU of which this lease is a part
is dissolved, the lease shall then be subject to the lease terms which would
have been applied if the lease had not been included in an LMU.

Sec. 6. DOCUMENTS, EVIDENCE AND INSPECTION - At such times and in such form as
lessor may prescribe, lessee shall furnish detailed statements showing the
amounts and quality of all products removed and sold from the lease, the
proceeds therefrom, and the amount used for production purposes or unavoidably
lost.

Lessee shall keep open at all reasonable times for the inspection of any duly
authorized officer of lessor, the leased premises and all surface and
underground improvements, works, machinery, ore stockpiles, equipment, and all
books, accounts, maps, and records relative to operations, surveys, or
investigations on or under the leased lands.

Lessee shall allow lessor access to and copying of documents reasonably
necessary to verify lessee compliance with terms and conditions of the lease.

While this lease remains in effect, information obtained under this section
shall be closed to inspection by the public in accordance with the Freedom of
Information Act (5 U.S.C. 552).

Sec. 7. DAMAGES TO PROPERTY AND CONDUCT OF OPERATIONS - Lessee shall comply at
its own expense with all reasonable orders of the Secretary, respecting diligent
operations, prevention of waste, and protection of other resources.

Lessee shall not conduct exploration operations, other than casual use, without
an approved exploration plan. All exploration plans prior to the commencement of
mining operations within an approved mining permit area shall be submitted to
the authorized officer.

Lessee shall carry on all operations in accordance with approved methods and
practices as provided in the operating regulations, having due regard for the
prevention of injury to life, health, or property, and prevention of waste,
damage, or degradation to any land, air, water, cultural, biological, visual,
and other resources, including mineral deposits and formations of mineral
deposits not leased hereunder, and to other land uses or users. Lessee shall
take measures deemed necessary by lessor to accomplish the intent of this lease
term. Such measures may include, but are not limited to, modification to
proposed siting or design of facilities, timing of operations, and specification
of interim and final reclamation procedures. Lessor reserves to itself the right
to lease, sell or otherwise dispose of the surface or other mineral deposits in
the lands and the right to continue existing uses and to authorize future uses
upon or in the leased lands, including issuing leases for mineral deposits not
covered hereunder, and approving easements or rights-of-way. Lessor shall
condition such uses to prevent unnecessary or unreasonable interference with
rights of lessee as may be consistent with concepts of multiple use and multiple
mineral development.

Sec. 8. PROTECTION OF DIVERSE INTERESTS, AND EQUAL OPPORTUNITY - Lessee shall:
pay when due all taxes legally assessed and levied under the laws of the State
or the

                                                             3400 (925-9)
                                                             WYW0313773
                                                             9/1/95 Readjustment

United States; accord all employees complete freedom of purchase; pay all wages
at least twice each month in lawful money of the United States; maintain a safe
working environment in accordance with standard industry practices; restrict the
workday to not more than 8 hours in any one day for underground workers except
in emergencies; and take measures necessary to protect the health and safety of
the public. No person under the age of 16 years shall be employed in any mine
below the surface. To the extent that laws of the State in which the lands are
situated are more restrictive than the provisions in the paragraph, then the
State laws apply.

Lessee will comply with all provisions of Executive Order No. 11246 of September
24, 1965, as amended, and the rules, regulations, and relevant orders of the
Secretary of Labor. Neither lessee nor lessee's subcontractors shall maintain
segregated facilities.

Sec. 9. (a) TRANSFERS

         [X]  This lease may be transferred in whole or in part to any person,
              association or corporation qualified to hold such lease interest.

         [ ]  This lease may be transferred in whole or in part to another
              public body, or to a person who will mine the coal on behalf of,
              and for the use of, the public body or to a person who for the
              limited purpose of creating a security interest in favor of a
              lender agrees to be obligated to mine the coal on behalf of the
              public body.

         [ ]  This lease may only be transferred in whole or in part to
              another small business qualified under 13 CFR 121.

Transfers of record title, working or royalty interest MUST be approved in
accordance with the regulations.

(b) RELINQUISHMENT - The lessee may relinquish in writing at any time all rights
under this lease or any portion thereof as provided in the regulations. Upon
lessor's acceptance of the relinquishment, lessee shall be relieved of all
future obligations under the lease or the relinquished portion thereof,
whichever is applicable.

Sec. 10. DELIVERY OF PREMISES, REMOVAL OF MACHINERY, EQUIPMENT, ETC. - At such
time as all portions of this lease are returned to lessor, lessee shall deliver
up to lessor the land leased, underground timbering, and such other supports and
structures necessary for the preservation of the mine workings on the leased
premises or deposits and place all workings in condition for suspension or
abandonment. Within 180 days thereof, lessee shall remove from the premises all
other structures, machinery, equipment, tools, and materials that it elects to
or as required by the authorized officer. Any such structures, machinery,
equipment, tools and materials remaining on the leased lands beyond 180 days or
approved extension thereof, shall become the property of the lessor, but lessee
shall either remove any or all such property or shall continue to be liable for
the cost of removal and disposal in the amount actually incurred by the lessor.
If the surface is owned by third parties, lessor shall waive the requirement for
removal, provided the third parties do not object to such waiver. Lessee shall,
prior to the termination of bond liability or at any other time when required
and in accordance with all applicable laws and

                                                             3400 (925-9)
                                                             WYW0313773
                                                             9/1/95 Readjustment

regulations reclaim all lands the surface of which has been disturbed, dispose
of all debris or solid waste, repair the offsite and onsite damage caused by
lessee's activity or activities incidental thereto, and reclaim access roads or
trails.

Sec. 11. PROCEEDINGS IN CASE OF DEFAULT - If lessee fails to comply with
applicable laws, existing regulations, or the terms, conditions and stipulations
of this lease, and the noncompliance continues for 30 days after written notice
thereof, this lease shall be subject to cancellation by the lessor only by
judicial proceedings. This provision shall not be construed to prevent the
exercise by lessor of any other legal and equitable remedy, including waiver of
the default. Any such remedy or waiver shall not prevent later cancellation for
the same default occurring at any other time.

Sec. 12. HEIRS AND SUCCESSORS-IN-INTEREST - Each obligation of this lease shall
extend to and be binding upon, and every benefit hereof shall inure to, the
heirs, executors, administrators, successors, or assigns of the respective
parties hereto.

Sec. 13. INDEMNIFICATION - Lessee shall indemnify and hold harmless the United
States from any and all claims arising out of the lessee's activities and
operations under this lease.

Sec. 14. SPECIAL STATUTES - This lease is subject to the Federal Water Pollution
Control Act (33 U.S.C. 1151-1175), the Clean Air Act (42 U.S.C. 1857 et seq.),
and to all other applicable laws pertaining to exploration activities, mining
operations and reclamation, including the Surface Mining Control and Reclamation
Act of 1977 (30 U.S.C. 1201 et seq.).

Sec. 15. SPECIAL STIPULATIONS - 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.

(a) CULTURAL RESOURCES

(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 Office of Surface Mining, the
authorized officer of the BLM, if

                                                             3400 (925-9)
                                                             WYW0313773
                                                             9/1/95 Readjustment

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 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 Regional Director or authorized officer.

(2) The lessee shall protect all cultural resource properties within the lease
area from lease-related activities until the cultural resource mitigation
measures can be implemented as part of an approved mining and reclamation plan
or exploration plan.

(3) The cost of conducting the inventory, preparing reports, and carrying out
mitigation measures shall be borne by the lessee.

(4) If cultural resources are discovered during operations under this lease, the
lessee shall immediately bring them to the attention of the Regional Director or
authorized officer, or the authorized officer of the surface managing agency, if
the Regional Director is not available. The lessee shall not disturb such
resources except as may be subsequently authorized by the Regional Director or
authorized officer. Within two (2) working days of notification, the 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 surface managing agency
unless otherwise specified by the authorized officer of the BLM or of the
surface managing agency, if different.

(5) 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
construction, the find will be reported to the authorized officer immediately.
Construction 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) MULTIPLE MINERAL DEVELOPMENT - 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.

(d) OIL AND GAS/COAL RESOURCES - The BLM realizes that coal mining operations
conducted on Federal coal leases issued within producing oil and gas fields may
interfere with

                                                             3400 (925-9)
                                                             WYW0313773
                                                             9/1/95 Readjustment

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.

(e) RESOURCE RECOVERY AND PROTECTION - Any bypass of Federal coal determined to
be economically recoverable must have the written approval of the Authorized
Officer of the BLM in the form of an approved modification to the Resource
Recovery and Protection Plan (R2P2) prior to the Federal coal being bypassed.
(43 CFR 3482.2(c)(2)) Failure to comply with this requirement shall result in
the issuance of a Notice of Noncompliance by the Authorized Officer. The Notice
of Noncompliance will include the amount of damages to be assessed for the
unauthorized bypass of Federal coal as determined by the Authorized Officer. The
amount of damages, at a minimum, will be the amount of royalty to be assessed as
determined by the Authorized Officer to compensate the Federal government for
the unauthorized bypassed Federal coal.

(f) PUBLIC LAND SURVEY PROTECTION - The lessee will protect all survey
monuments, witness corners, reference monuments, and bearing trees against
destruction, obliteration, or damage during operations on the lease areas. If
any monuments, corners 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, corners, 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.

                    UNITED STATES DEPARTMENT OF THE INTERIOR

                            BUREAU OF LAND MANAGEMENT
                              Wyoming State Office
                                  P.O. Box 1828
                          Cheyenne, Wyoming 82003-1828

                                                           3420 (925-9)
                                                           WYW0313773,
                                                           WYW0317682, WYW72282,
                                                           WYW78629, WYW78631,
                                                           WYW80954, CASPLMU11
                                                           and CASPLMU12

CERTIFIED-RETURN RECEIPT REQUESTED
----------------------------------

                                 D E C I S I O N

ASSIGNOR:                                      :
---------                                      :
                                               :
         Meadowlark, Inc. dba in               :
         Wyoming as Meadowlark                 :
            Farms, Inc.                        :
         P.O. Box 967                          :
         Indianapolis, Indiana 46206           :
                                               :              Federal Coal
ASSIGNEE:                                      :
---------                                      :
                                               :
         AMAX Land Company                     :
         Attn: Ranch, Revegetation             :
            or Real Estate/Legal               :
         P.O. Box 3005                         :
         Gillette, Wyoming 82717-3005          :

                        Record Title Assignments Approved
                        ---------------------------------
                              Bond Riders Accepted
                              --------------------
                          Logical Mining Units Modified
                          -----------------------------

On November 9, 1992, assignments of 100% record title interest in Federal coal
leases, WYW0313773, WYW0317682, WYW72282, WYW78629, WYW78631 and WYW80954 from
Meadowlark, Inc., dba in Wyoming as Meadowlark Farms, Inc., Assignor, to AMAX
Land Company, Assignee, were received in this office.

The assignments have been examined and are hereby approved effective June 1,
1993, based on the presumption that the lease accounts are in good standing,
subject to audit by the Minerals Management Service (MMS). Copies of the
approved assignments are attached for the Assignee.

                                                                    3420 (925-9)
                                                         WYW0313773, WYW0317682,
                                                             WYW72282, WYW78629,
                                                             WYW78631, WYW80954,
                                                         CASPLMU11 and CASPLMU12
                                                                               2

Name change bond riders to the following listed lease bonds changing the name of
the Principal to AMAX Land Company have been examined, found satisfactory, and
are hereby accepted as of June 1, 1993, the effective date of the assignments.

Lease Serial No. #              Bond                  Amount                           Surety
------------------              ----                  ------                           ------

WYW0313773                 927 83 08                $2,776,000          National Fire Insurance Company of
                                                                        Hartford

WYW0317682                 927 83 07                $2,197,000          National Fire Insurance Company of
                                                                        Hartford

WYW72282                   923 20 64                  $5,000            National Fire Insurance Company of
                                                                        Hartford

WYW78629                   BND 224 87 36              $5,000            Fireman's Insurance Company of
                                                                        Newark, NJ

WYW78631                   BND 224 87 37              $5,000            Firemen's Insurance Company of
                                                                        Newark, NJ

WYW80954                   926 76 52                  $5,000            National Fire Insurance Company of
                                                                        Hartford

The leases located in Campbell County, Wyoming, now held by AMAX Land Company,
are described as follows:

WYW0313773                 T. 51 N., R. 72 W., 6th P.M., Wyoming
                           -------------------------------------
                               Sec. 21:  Lots 1 thru 16;
                               Sec. 22:  Lots 9 thru 16;
                               Sec. 23:  Lots 9 thru 16;
                               Sec. 26:  Lots 1 thru 16;
                               Sec. 27:  Lots 1 thru 16;
                               Sec. 28:  Lots 1, 2, 7 and 8;
                               Sec. 34:  Lots 1, 2, 7 and 8;
                               Sec. 35:  Lost 1 thru 16.

                                                     Containing 3,275.96 acres

WYW0317682                 T. 47 N., R. 71 W., 6th P.M., Wyoming
                           -------------------------------------
                               Sec. 3: Lots 5 thru 8;
                               Sec. 4: Lots 5 thru 8;
                               Sec. 5: Lots 5 and 6;

                                                                    3420 (925-9)
                                                         WYW0313773, WYW0317682,
                                                             WYW72282, WYW78629,
                                                             WYW78631, WYW80954,
                                                         CASPLMU11 and CASPLMU12
                                                                               3

                               T. 48 N., R. 71 W., 6th P.M., Wyoming
                               -------------------------------------
                                   Sec. 26: Lots 10(S2) and 11;
                                   Sec. 27: Lots 9 thru 16;
                                   Sec. 28: Lots 9 thru 16;
                                   Sec. 29: Lots 7, 8, 13 and 14;
                                   Sec. 32: Lots 1, 2 and 7 thru 11;
                                   Sec. 33: Lots 1 thru 9;
                                   Sec. 34: Lots 1 thru 3 and 5 thru 10.

                                                 Containing 2,296.065 acres

WYW72282                       T. 41 N., R. 71 W., 6th P.M., Wyoming
                               -------------------------------------
                                    Sec. 2: N 300' of
                                    the NW of Lot 7
                                    Sec. 3: N 300' of Lots 9 thru 12;

                                                 Containing 41.25 acres

WYW78629                       T. 47 N., R. 71 W., 6th P.M., Wyoming
                               -------------------------------------
                                  Sec. 5: Lots 7 thru 9 14 thru 17
                                  Sec. 6: Lots 8 thru 23;

                               T. 48 N., R. 71 W., 6th P.M., Wyoming
                               -------------------------------------
                                   Sec. 31: Lots 13 and 14

                               T. 47 N., R. 72 W., 6th P.M., Wyoming
                               -------------------------------------
                                   Sec. 1: Lots 5, 7, 8 and 14.

                                        Containing 1,183.49 acres

WYW78631                       T. 51 N., R. 72 W., 6th P.M., Wyoming
                               -------------------------------------
                                    Sec. 20: Lot 16;
                                    Sec. 28: Lots 3 thru 6, 9 thru 12,
                                             Portion of Lot 13 (formerly
                                             described as the E2SWSW) and 14
                                             thru 16;

                                    Sec. 29: Portion of Lot 1 (formerly
                                             described as E2NENE) and Portion of
                                             Lot 8 (formerly described as
                                             NESENE). Containing 548.968 acres

WYW80954                       T. 48 N., R. 71 W., 6th P.M., Wyoming
                               -------------------------------------
                                    Sec. 29:  Lots 2 thru 5 and 9 thru 12:
                                    Sec. 30:  Lots 5 thru 20;
                                    Sec. 31:  Lots 5 thru 12;
                                    Sec. 32:  Lots 3 thru 6.

                                                 Containing 1,465.95 acres

                                                                    3420 (925-9)
                                                         WYW0313773, WYW0317682,
                                                             WYW72282, WYW78629,
                                                             WYW78631, WYW80954,
                                                         CASPLMU11 and CASPLMU12
                                                                               4

Additionally, as a result of the assignments, the Eagle Butte Mine and Belle Ayr
Mine Logical Mining Units (LMUs) affected by the Federal coal leases set out
below, are hereby modified to reflect that AMAX Land Company is the LMU
operator. All other terms and conditions of the LMUs remain unchanged by this
modification to each LMU.

    Eagle Butte Mine LMU (CASPLMU11)                   WYW0313773 and WYW78631
    --------------------------------
    Belle Ayr Mine LMU (CASPLMU12)                     WYW0317682, WYW78629 and
    ------------------------------                     WYW80954

                                      Ray Brubaker
                                      State Director

Attachments

           323789                               Book 56 Mining Records, Page 552

         Form 4-696                    UNITED STATES               Land Office
       (January 1964)           DEPARTMENT OF THE INTERIOR           Wyoming
                                 BUREAU OF LAND MANAGEMENT
       84200200/3A/12                                             Serial Number
                                        COAL LEASE              Wyoming 0313773

This lease is entered into on the 1st day of September, 1965, by the United
States of America, the lessor, through the Bureau of Land Management, and

         Ayrshire Collieries Corporation
         430 Big Four Building
         105 South Meridian Street
         Indianapolis, Indiana 46225

, the lessee, pursuant and subject to the terms and provisions of the Act of
February 25, 1920 (41 Stat. 437), as amended, hereinafter referred to as the
Act, and to all reasonable regulations of the Secretary of the Interior now or
hereafter in force which are made a part hereof,

WITNESSETH:

Sec. 1. Rights of Lessee. The lessor, in consideration of the rents and
royalties to be paid and the conditions to be observed as hereinafter set forth
does hereby grant and lease to the lessee the exclusive right and privilege to
mine and dispose of all the coal in the following-described tracts of land,
situated in the State of Wyoming.

       T. 51 N., R. 72 W., 6th Prin. Mer.
           Section 21: All
           Section 22: S 1/2
           Section 23: S 1/2
           Section 26: All
           Section 27: All
           Section 28: NE 1/4
           Section 34: NE 1/4
           Section 35:  All

containing 3520 acres, more or less, together with the right to construct all
such works, buildings, plants, structures, and appliances as may be necessary
and convenient for the mining and preparation of the coal for market, the
manufacture of coke or other products of coal, the housing and welfare of
employees, and subject to the conditions herein provided, to use so much of the
surface as may reasonably be required in the exercise of the rights and
privileges herein granted.

                                                                               2

Sec. 2. In consideration of the foregoing, the lessee hereby agrees:

         (a) Bond. To maintain the bond furnished upon the issuance of this
lease, which bond is conditioned upon compliance with all the provisions of the
lease, and to increase the amount or furnish such other bond as may be required.

         (b) Rental. To pay the lessor annually, in advance, for each acre or
fraction thereof covered by this lease, beginning with the date hereof, the
following rentals: 25 cents for the first year; 50 cents for the second, third,
fourth, and fifth years, respectively; and $1 for the sixth and each succeeding
year during the continuance of the lease, such rental for any year to be
credited against the first royalties as they accrue under the lease during the
year for which the rental was paid.

         (c) Royalty. To pay the lessor a royalty of ___ cents on every ton of
2,000 pounds of coal mined during the first 20 years succeeding the execution of
this lease. Royalties shall be payable quarterly within 30 days from the
expiration of the quarter in which the coal is mined. For additional royalty
terms, see last page.

         (d) Minimum production. Beginning with the sixth year of the lease,
except when operations are interrupted by strikes, the elements, or casualties
not attributable to the lessee, or unless on application and showing made,
operations shall be suspended when market conditions are such that the lessee
cannot operate except at a loss or suspended for the other reasons specified in
Section 39 of the Act, to mine coal each year and pay a royalty thereon to a
value of $1 per acre or fraction thereof. Operations under this lease shall be
continuous, except in circumstances described or unless the lessee shall pay a
royalty, less rent, on such minimum amount of the leased deposits, for one year
in advance, in which case operations may be suspended for that year.

         (e) Payments. To make rental payments to the Manager of the appropriate
Land Office, except that when this lease becomes productive the rentals and
royalties shall be paid to the appropriate Regional Mining Supervisor of the
United States Geological Survey, with whom all reports concerning operations
under the lease shall be filed. All remittances to the Manager of the Land
Office shall be made payable to the Bureau of Land Management, those to the
Geological Survey shall be made payable to the United States Geological Survey.

         (f) Plats, reports, maps. At such times and in such form as the lessor
may prescribe, to furnish a plat showing development work and improvements on
the leased lands and a report with respect to stockholders, investment,
depreciation, and costs. To furnish in such form as the lessor may prescribe,
within 30 days from the expiration of each quarter a report covering such
quarter, certified by the superintendent of the mine, or by such other agent
having personal knowledge of the facts as may be designated by the lessee for
such purpose, showing the amount of leased deposits mined during the quarter,
the character and quality thereof, amount of its products and byproducts
disposed of and price received therefor, and amount in storage or held for sale.
To keep and prepare maps of the leased lands in accordance with the appropriate
regulations.

         (g) Weights. To determine accurately the weight or quantity and quality
of all leased deposits mined, and to enter accurately the weight or quantity and
quality thereof in due form in books to be kept and preserved by the lessee for
such purposes.

                                                                               3

         (h) Inspection. To permit at all reasonable times (1) inspection by any
duly authorized officer of the Department, of the leased premises and all
surface and underground improvements, works, machinery, equipment, and all books
and records pertaining to operations and surveys or investigations under this
lease; and (2) the lessor to make copies of and extracts from any or all books
and records pertaining to operations under this lease, if desired.

         (i) Assignment. To file for approval in the appropriate Land Office
within 90 days from the date of execution, any assignment or transfer made of
this lease, whether by direct assignment, operating agreement, working or
royalty interest, or otherwise. Such instrument will take effect the first day
of the month following its approval by the Bureau of Land Management, or if the
assignee requests, the first day of the month of approval. The showing required
to be made with an assignment or transfer is set forth in the appropriate
regulations.

         (j) Nondiscrimination clauses. During the performance of this contract
the lessee agrees as follows:

         (1) The lessee will not discriminate against any employee or applicant
for employment because of race, creed, color, or national origin. The lessee
will take affirmative action to ensure that applicants are employed, and that
employees are treated during employment, without regard to their race, creed,
color, or national origin. Such action shall include, but not be limited to, the
following: employment, upgrading, demotion or transfer; recruitment or
recruitment advertising; layoff or termination; rates of pay or other forms of
compensation; and selection for training, including apprenticeship. The lessee
agrees to post in conspicuous places, available to employees and applicants for
employment, notices to be provided by the contracting officer setting forth the
provisions of this nondiscrimination clause.

         (2) The lessee will, in all solicitations or advertisements for
employees placed by or on behalf of the lessee, state that all qualified
applicants will receive consideration for employment without regard to race,
creed, color, or national origin.

         (3) The lessee will send to each labor union or representative of
workers with which he has a collective bargaining agreement or other contract or
understanding, a notice, to be provided by the agency contracting officer,
advising the said labor union or workers' representative of the lessee's
commitments under this section, and shall post copies of the notice in
conspicuous places available to employees and applicants for employment.

         (4) The lessee will comply with all provisions of Executive Order No.
10925 of March 6, 1961, as amended, and of the rules, regulations, and relevant
orders of the President's Committee on Equal Employment Opportunity created
thereby.

         (5) The lessee will furnish all information and reports required by
Executive Order No. 10925 of March 6, 1961, as amended, and by the rules,
regulations, and orders of the said Committee, or pursuant thereto, and will
permit access to his books, records, and accounts by the contracting agency and
the Committee for purposes of investigation to ascertain compliance with such
rules, regulations, and orders.

         (6) In the event of the lessee's noncompliance with the
nondiscrimination clauses of this contract or with any of the said rules,
regulations, or orders, this lease may be cancelled,

                                                                               4

terminated, or suspended in whole or in part and the lessee may be declared
ineligible for further Government contracts in accordance with procedures
authorized in Executive Order No. 10925 of March 6, 1961, as amended, and such
other sanctions may be imposed and remedies invoked as provided in the said
Executive Order of by rule, regulation, or order of the President's Committee on
Equal Employment Opportunity, or as otherwise provided by law.

         (7) The lessee will include the provisions of paragraphs (1) through
(7) in every subcontract or purchase order unless exempted by rules,
regulations, or orders of the President's Committee on Equal Employment
Opportunity issued pursuant to Section 303 of Executive Order No. 10925 of March
6, 1961, as amended, so that such provisions will be binding upon each
subcontractor or vendor. The lessee will take such action with respect to any
subcontract or purchase order as the contracting agency may direct as a means of
enforcing such provisions, including sanctions for noncompliance: Provided,
however, that in the event the lessee becomes involved in, or is threatened
with, litigation with a subcontractor or vendor as a result of such direction by
the contracting agency, the lessee may request the United States to enter into
such litigation to protect the interests of the United States.

         (k) Land disposed of with coal deposits reserved to the United States.
If the lands embraced herein have been or shall hereafter be disposed of under
laws reserving to the United States the deposits of coal therein, to comply with
all conditions as are or may hereafter be provided by the laws and regulations
reserving such coal.

         (l) Operations, wages, freedom of purchase. To comply with the
appropriate operating regulations, to exercise reasonable diligence, skill, and
care in the operations of the property, and to carry on all operations in
accordance with approved methods and practices as provided in the operating
regulations, having due regard for the prevention of injury to life, health or
property, and of waste or damage to any water or mineral deposits; to fairly and
justly weigh or measure the coal mined by each miner, to pay all wages due
miners and employees, both above and below ground, at least twice each month in
lawful money of the United Sates; to accord all miners and employees complete
freedom of purchase; to restrict the workday to not exceeding eight hours in any
one day for underground workers, except in cases of emergency; to employ no boy
under the age of sixteen and no girl or woman, without regard to age, in any
mine below the surface; unless the laws of the State otherwise provide, in which
case the State laws control.

         (m) Taxes. To pay when due, all taxes lawfully assessed and levied
under the laws of the State or the United States upon improvements, output of
mines, or other rights, property, or assets of the lessee.

         (n) Overriding royalties. Not to create, by assignment or otherwise, an
overriding royalty interest in excess of 50 percent of the rate of royalty first
payable to the United States under this lease or an overriding royalty interest
which when added to any other outstanding overriding royalty interest exceeds
that percentage, excepting, that where an interest in the leasehold or in an
operating agreement is assigned, the assignor may retain an overriding royalty
interest in excess of the above limitation if he shows to the satisfaction of
the Bureau of Land Management, that he has made substantial investments for
improvements on the land covered by the assignment.

                                                                               5

         (o) Delivery of premises in case of forfeiture. In case of forfeiture
of this lease, to deliver up to the lessor in good order and condition the land
leased, including all buildings, and underground timbering and such other
supports and structures as are necessary for the preservation of the mine or
deposit.

Sec. 3. The lessor expressly reserves:

         (a) Rights reserved. The right to permit for joint or several use such
easements or rights-of-way, including easements in tunnels upon, through, or in
the land leased, occupied, or used as may be necessary or appropriate to the
working of the same or other lands containing the deposits described in the Act,
and the treatment and shipment of the products thereof by or under authority of
the Government, its lessees or permittees, and for other public purposes.

         (b) Disposition of surface. The right to lease, sell, or otherwise
dispose of the surface of the leased lands under existing law or laws hereafter
enacted, insofar as said surface is not necessary for the use of the lessee in
the extraction and removal of the coal therein, or to dispose of any resource in
such lands which will not unreasonably interfere with operations under this
lease.

         (c) Monopoly and fair prices. Full power and authority to promulgate
and enforce all the provisions of Section 30 of the Act to insure the sale of
the production of said leased lands to the United States and to the public at
reasonable prices, to prevent monopoly, and to safeguard the public welfare.

         (d) Readjustment of terms. The right reasonably to readjust and fix
royalties payable hereunder and other terms and conditions at the end of 20
years from the date hereof and thereafter at the end of each succeeding 20-year
period during the continuance of this lease unless otherwise provided by law at
the time of the expiration of any such period. Unless the lessee files
objections to the proposed terms or a relinquishment of the lease within 30 days
after receipt of the notice of proposed terms for a 20-year period, he will be
deemed to have agreed to such terms.

         (e) Waiver of conditions. The right to waive any breach of the
conditions contained herein, except the breach of such conditions as are
required by the Act, but any such waiver shall extend only to the particular
breach so waived and shall not limit the rights of the lessor with respect to
any future breach; nor shall the waiver of a particular cause of forfeiture
prevent cancellation of this lease for any other cause, or for the same cause
occurring at another time.

Sec. 4. Relinquishment of lease. Upon a satisfactory showing that the public
interest will not be impaired, the lessee may surrender the entire lease or any
legal subdivision thereof. A relinquishment must be filed in duplicate in the
appropriate Land Office. Upon its acceptance it shall be effective as of the
date it is filed, subject to the continued obligation of the lessee and his
surety to make payment of all accrued rentals and royalties and to provide for
the preservation of any mines or productive works or permanent improvements on
the leased lands in accordance with the regulations and terms of the lease.

Sec. 5. Protection of the surface, natural resources, and improvements. The
lessee agrees to take such reasonable steps as may be needed to prevent
operations from unnecessarily: (1)

                                                                               6

causing or contributing to soil erosion or damaging any forage and timber growth
thereon; (2) polluting the waters of springs, streams, wells, or reservoirs; (3)
damaging crops, including forage, timber, or improvements of a surface owner; or
(4) damaging range improvements whether owned by the United States or by its
grazing permittees or lessees; and upon any partial or total relinquishment or
the cancellation or expiration of this lease, or at any other time prior thereto
when required by the lessor and to the extent deemed necessary by the lessor, to
fill any sump holes, ditches and other excavations, remove or cover all debris,
and, so far as reasonably possible, restore the surface of the leased land to
its former condition, including the removal of structures as and if required.
The lessor may prescribe the steps to be taken and restoration to be made with
respect to lands of the United States and improvements thereon.

Sec. 6. Removal of equipment, etc., on termination of lease. Upon termination of
this lease, by surrender or forfeiture, the lessee shall have the privilege at
any time within a period of 90 days thereafter of removing from the premises all
machinery, equipment, tools and materials, except underground timbering placed
by the lessee in or on the leased lands, which are necessary for the
preservation of the mine. Any materials, tools, appliances, machinery,
structures, and equipment, subject to removal as above provided, which are
allowed to remain on the leased lands shall become the property of the lessor on
expiration of the 90-day period or such extension thereof as may be granted
because of adverse climatic conditions, but the lessee shall remove any or all
of such property where so directed by the lessor.

Sec. 7. Proceedings in case of default. If the lessee shall not comply with any
of the provisions of the Act or the regulations thereunder or default in the
performance or observance of any of the provisions of this lease, and such
default shall continue for a period of 30 days after service of written notice
thereof by the lessor, the lessor may institute appropriate proceedings in a
court of competent jurisdiction for the forfeiture and cancellation of this
lease as provided in Section 31 of the Act. If the lessee fails to take prompt
and necessary steps to prevent loss or damage to the mine, property, or
premises, or danger to the employees, the lessor may enter on the premises and
take such measures as may be deemed necessary to prevent such loss or damage or
to correct the dangerous or unsafe condition of the mine or works thereof, which
shall be at the expense of the lessee. However, the lessee shall not be held
responsible for delays or casualties occasioned by causes beyond the lessee's
control.

Sec. 8. Heirs and successors in interest. Each obligation hereunder shall extend
to, and be binding upon, and every benefit hereof shall inure to, the heirs,
executors, administrators, successors, or assigns of the respective parties
hereto.

Sec. 9. Unlawful interest. No Member of, or Delegate to, Congress, or Resident
Commissioner, after his election or appointment, or either before or after he
has qualified and during his continuance in office, and no officer, agent, or
employee of the Department of the Interior, except as provided in 43 CFR
7.4(a)(1), shall be admitted to any share or part in this lease or derive any
benefit that may arise therefrom; and the provisions of Section 3741 of the
Revised Statutes of the United States, as amended (41 U.S.C. Sec. 22), and
Sections 431, 432 and 433, Title 18, U.S.C., relating to contracts, enter into
and form a part of this lease so far as the same may be applicable.

                                                                               7

                                          THE UNITED STATES OF AMERICA

                                          By: /s/ W.C. Ackerman
                                              ----------------------------------
                                                      (Signing Officer)

                                              Walter C. Ackerman
                                              Acting Assistant Manager, Mining
                                              ----------------------------------
                                                           (Title)

                                              August 12, 1965
                                              ----------------------------------
                                                            (Date)

WITNESS TO SIGNATURE OF LESSEE            AYRSHIRE COLLIERIES CORPORATION

ATTEST:

 /s/ A. Lucius Hubbard                    By: /s/ Roy E. Dean
 --------------------------------------       ----------------------------------
 A. Lucius Hubbard, Assistant Secretary             (Signature of Lessee)
                                              Roy E. Dean, Vice President

 --------------------------------------       ----------------------------------
                                                    (Signature of Lessee)

 --------------------------------------       ----------------------------------
                                                    (Signature of Lessee)

(If this lease is executed by a corporation, it must bear the corporate seal)

(c) Royalty. To pay the lessor a royalty of 17 1/2 cents a ton of 2,000 pounds
for the first 10 years of the lease and 20 cents a ton for the remainder of the
first 20-year period succeeding the execution of this lease.

323789
Coal Lease
United States
to
Ayrshire Collieries Corporation

STATE OF WYOMING  )
                  ) ss.
CAMPBELL COUNTY   )

Filed for record this 29th day of May A.D. 1969 at 1:14 o'clock P.M., and
recorded in book 56 of Mining Records on page 542.

/s/ Yvonne I. Hayden
--------------------
County Clerk and Ex-Officio Register of Deeds

By /s/ Vivian E. Addison
------------------------
   Deputy

Fees $5.00
Recorded
Abstracted
Indexed
CheckedExhibit 10.18

                   United States Department of the Interior      Serial Number
                           Bureau of Land Management                WYW78631
                             Wyoming State Office
                                                               Date Lease Issued
                            COAL LEASE READJUSTMENT            September 1, 1982

PART I: LEASE RIGHTS GRANTED

This lease, entered into by and between the United States of America,
hereinafter called the lessor, through the Bureau of Land Management, and (Name
and Address)

                  RAG Wyoming Land Company
                  P.O. Box 3039
                  Gillette, Wyoming  82717-3039

hereinafter called the lessee, is readjusted, effective (Date) September 1,
2002, for a period of 10 years and for so long thereafter as coal is produced in
commercial quantities from the leased lands, subject to readjustment of lease
terms at the end of each 10-year period.

Sec. 1. This lease readjustment is subject to the terms and provisions of the:

     [X]  Mineral Lands Leasing Act of 1920, Act of February 25, 1920, as
          amended, 41 Stat. 437, 30 U.S.C. 181-287, hereinafter referred to as
          the Act:

     [ ]  Mineral Leasing Act for Acquired Lands, Act of August 7, 1947, 61
          Stat. 913, 30 U.S.C. 351-359;

and to the regulations and formal orders of the Secretary of the Interior which
are now or hereafter in force, when not inconsistent with the express and
specific provisions herein.

Sec. 2. Lessor, in consideration of any rents and royalties to be paid, and the
conditions and covenants to be observed as herein set forth, hereby grants to
lessee the exclusive right and privilege to drill for, mine, extract, remove or
otherwise process and dispose of the coal deposits in, upon, or under the
following described lands: in Campbell County:

                  T. 51 N., R. 72 W., 6th P.M., Wyoming
                  -------------------------------------
                      Sec. 20: Lot 16;
                      Sec. 28: Lots 3 thru 6, 9 thru 12, 13(E2), 14 thru 16;
                      Sec. 29: Lots 1(E2), 8(NE).

containing 548.968 acres, more or less, together with the right to construct
such works, buildings, plants, structures, equipment and appliances and the
right to use such on-lease rights-of-way which may be necessary and convenient
to the exercise of the rights and privileges granted, subject to the conditions
herein provided.

                                                                               2

PART II: TERMS AND CONDITIONS

Sec. 1. (a) RENTAL RATE - Lessee shall pay lessor rental annually and in advance
for each acre or fraction thereof during the continuance of the lease at the
rate of $3.00 for each lease year.

(b) RENTAL CREDITS - Rental shall not be credited against either production or
advance royalties for any year.

Sec. 2. (a) PRODUCTION ROYALTIES - The royalty shall be 12 1/2 percent of the
value of the coal produced by strip or auger methods and 8 percent of the value
of the coal produced by underground mining methods. The value of the coal shall
be determined as set forth in 43 CFR 3480. Royalties are due to lessor the final
day of the month succeeding the calendar month in which the royalty obligation
accrues.

(b) ADVANCE ROYALTIES - Upon request by lessee, the authorized officer may
accept, for a total of not more than 10 years, the payment of advance royalties
in lieu of continued operation, consistent with the regulations. The advance
royalty shall be based on a percent of the value of a minimum number of tons
determined in the manner established by the advance royalty regulations in
effect at the time the lessee requests approval to pay advance royalties in lieu
of continued operation.

Sec. 3. BONDS - Lessee shall maintain in the proper office a lease bond in the
amount of $2,477,000.00. The authorized officer may require an increase in this
amount when additional coverage is determined appropriate.

Sec. 4. DILIGENCE - This lease is subject to the conditions of diligent
development and continued operation, except that these conditions are excused
when operations under the lease are interrupted by strikes, the elements, or
casualties not attributable to the lessee. The lessor, in the public interest,
may suspend the condition of continued operation upon payment of advance
royalties in accordance with the regulations in existence at the time of the
suspension. Lessee's failure to produce coal in commercial quantities at the end
of the 10 years shall terminate the lease. If not submitted already, lessee
shall submit an operation and reclamation plan pursuant to Section 7 of the Act
no later than 3 years after the effective date of this lease readjustment.

The lessor reserves the power to assent to or under the suspension of the terms
and conditions of this lease in accordance with, INTER ALIA, Section 39 of the
Mineral Leasing Act, 30 U.S.C. 209.

Sec. 5. LOGICAL MINING UNIT (LMU) - Either upon approval by the lessor of the
lessee's application or at the direction of the lessor, this lease shall become
an LMU or part of an LMU, subject to the provisions set forth in the
regulations.

The stipulations established in an LMU approval in effect at the time of LMU
approval will supersede the relevant inconsistent terms of this lease so long as
the lease remains committed to the LMU. If the LMU of which this lease is a part
is dissolved, the lease shall then be subject to the lease terms which would
have been applied if the lease had not been included in an LMU.

                                                                               3

Sec. 6. DOCUMENTS, EVIDENCE AND INSPECTION - At such times and in such form as
lessor may prescribe, lessee shall furnish detailed statements showing the
amounts and quality of all products removed and sold from the lease, the
proceeds therefrom, and the amount used for production purposes or unavoidably
lost.

Lessee shall keep open at all reasonable times for the inspection of any duly
authorized officer of the lessor, the leased premises and all surface and
underground improvements, works, machinery, ore stockpits, equipment, and all
books, accounts, maps, and records relative to operations, surveys, or
investigations on or under the leased lands.

Lessee shall allow lessor access to and copying of documents reasonably
necessary to verify lessee compliance with terms and conditions of the lease.

While this lease remains in effect, information obtained under this section
shall be closed to inspection by the public in accordance with the Freedom of
Information Act (5 U.S.C. 552).

Sec. 7. DAMAGES TO PROPERTY AND CONDUCT OF OPERATIONS - Lessee shall comply at
its own expense with all reasonable orders of the Secretary, respecting diligent
operations, prevention of waste, and protection of other resources.

Lessee shall not conduct exploration operations, other than casual use, without
an approved exploration plan. All exploration plans prior to the commencement of
mining operations within an approved mining permit area shall be submitted to
the authorized officer.

Lessee shall carry on all operations in accordance with approved methods and
practices as provided in the operating regulations, having due regard for the
prevention of injury to life, health, or property, and prevention of waste,
damage, or degradation to any land, air, water, cultural, biological, visual,
and other resources, including mineral deposits and formations of mineral
deposits not leased hereunder, and to other land uses or users. Lessee shall
take measures deemed necessary by lessor to accomplish the intent of this lease
term. Such measures may include, but are not limited to, modification to
proposed siting or design of facilities, timing of operations and specification
of interim and final reclamation procedures. Lessor reserves to itself the right
to lease, sell or otherwise dispose of the surface or other mineral deposits in
the lands and the right to continue existing uses and to authorize future uses
upon or in the leased lands, including issuing leases for mineral deposits not
covered hereunder, and approving easements or rights-of-way. Lessor shall
condition such uses to prevent unnecessary or unreasonable interference with
rights of lessee as may be consistent with concepts of multiple use and multiple
mineral development.

Sec. 8. PROTECTION OF DIVERSE INTERESTS, AND EQUAL OPPORTUNITY - Lessee shall:
pay when due all taxes legally assessed and levied under the laws of the State
or the United States; accord all employees complete freedom of purchase; pay all
wages at least twice each month in lawful money of the United States; maintain a
safe working environment in accordance with standard industry practices;
restrict the workday to not more than 8 hours in any one day for underground
workers except in emergencies; and take measures necessary to protect the health
and safety of the public. No person under the age of 16 years shall be employed
in

                                                                               4

any mine below the surface. To the extent that laws of the State in which the
lands are situated are more restrictive than the provisions in the paragraph,
then the State laws apply.

Lessee will comply with all provisions of Executive Order No. 11246 of September
24, 1965, as amended, and the rules, regulations, and relevant orders of the
Secretary of Labor. Neither lessee nor lessee's subcontractors shall maintain
segregated facilities.

Sec. 9. (a) TRANSFERS

     [X]  This lease may be transferred in whole or in part to any person,
          association or corporation qualified to hold such lease interest.

     [ ]  This lease may be transferred in whole or in part to another public
          body, or to a person who will mine the coal on behalf of, and for the
          use of, the public body or to a person who for the limited purpose of
          creating a security interest in favor of a lender agrees to be
          obligated to mine the coal on behalf of the public body.

     [ ]  This lease may only be transferred in whole or in part to another
          small business qualified under 13 CFR 121.

Transfers of record title, working or royalty interest MUST be approved in
accordance with the regulations.

(b) RELINQUISHMENT - The lessee may relinquish in writing at any time all rights
under this lease or any portion thereof as provided in the regulations. Upon
lessor's acceptance of the relinquishment, lessee shall be relieved of all
future obligations under the lease or the relinquished portion thereof,
whichever is applicable.

Sec. 10. DELIVERY OF PREMISES, REMOVAL OF MACHINERY, EQUIPMENT, ETC. - At such
time as all portions of this lease are returned to lessor, lessee shall deliver
up to lessor the land leased, underground timbering, and such other supports and
structures necessary for the preservation of the mine workings on the leased
premises or deposits and place all workings in condition for suspension or
abandonment. Within 180 days thereof, lessee shall remove from the premises all
other structures, machinery, equipment, tools, and materials that it elects to
or as required by the authorized officer. Any such structures, machinery,
equipment, tools and materials remaining on the leased lands beyond 180 days or
approved extension thereof, shall become the property of the lessor, but lessee
shall either remove any or all such property or shall continue to be liable for
the cost of removal and disposal in the amount actually incurred by the lessor.
If the surface is owned by third parties, lessor shall waive the requirement for
removal, provided the third parties do not object to such waiver. Lessee shall,
prior to the termination of bond liability or at any other time when required
and in accordance with all applicable laws and regulations reclaim all lands the
surface of which has been disturbed, dispose of all debris or solid waste,
repair the offsite and onsite damage caused by lessee's activity or activities
incidental thereto, and reclaim access roads or trails.

Sec. 11. PROCEEDINGS IN CASE OF DEFAULT - If lessee fails to comply with
applicable laws, existing regulations, or the terms, conditions and stipulations
of this lease, and the noncompliance continues for 30 days after written notice
thereof, this lease shall be subject to

                                                                               5

cancellation by the lessor only by judicial proceedings. This provision shall
not be construed to prevent the exercise by lessor of any other legal and
equitable remedy, including waiver of the default. Any such remedy or waiver
shall not prevent later cancellation for the same default occurring at any other
time.

Sec. 12. HEIRS AND SUCCESSORS-IN-INTEREST - Each obligation of this lease shall
extend to and be binding upon, and every benefit hereof shall inure to, the
heirs, executors, administrators, successors, or assigns of the respective
parties hereto.

Sec. 13. INDEMNIFICATION - Lessee shall indemnify and hold harmless the United
States from any and all claims arising out of the lessee's activities and
operations under this lease.

Sec. 14. SPECIAL STATUTES - This lease is subject to the Federal Water Pollution
Control Act (33 U.S.C. 1151-1175), the Clean Air Act (42 U.S.C. 1857, et. seq.),
and to all other applicable laws pertaining to exploration activities, mining
operations and reclamation, including the Surface Mining Control and Reclamation
Act of 1977 (30 U.S.C. 1201 et. seq.).

Sec. 15. SPECIAL STIPULATIONS - 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 this 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.

(a) CULTURAL RESOURCES.

(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 Assistant Director of the Western Support Center of the Office
of Surface Mining, 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 Assistant 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
Assistant Director or authorized officer.

                                                                               6

(2) The lessee shall protect all cultural resource properties within the lease
area from lease-related activities until the cultural resource mitigation
measures can be implemented as part of an approved mining and reclamation plan
or exploration plan.

(3) The cost of conducting the inventory, preparing reports, and carrying out
mitigation measures shall be borne by the lessee.

(4) If cultural resources are discovered during operations under this lease, the
lessee shall immediately bring them to the attention of the Assistant Director
or Authorized Officer, or the Authorized Officer of the surface managing agency,
if the Assistant Director is not available. The lessee shall not disturb such
resources except as may be subsequently authorized by the Assistant Director or
Authorized Officer.

Within two (2) working days of notification, the Assistant 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 surface managing agency
unless otherwise specified by the Authorized Officer of the BLM or of the
surface managing agency, if different.

(5) 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
surface disturbing activities, the find will be reported to the Authorized
Officer immediately. Surface distributing activities 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) MULTIPLE MINERAL DEVELOPMENT - 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.

(d) OIL AND GAS/COAL RESOURCES - The 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.

                                                                               7

(e) RESOURCE RECOVERY AND PROTECTION - Notwithstanding the approval of a
resource recovery and protection plan (R2P2) by the BLM, lessor reserves the
right to seek damages against the operator/lessee in the event (i) the
operator/lessee 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 royalty that would have been
payable on the wasted or unrecoverable coal.

The parties recognize that under an approved R2P2, condition is may require a
modification by the operator/lessee of that plan. In the event a coalbed or
portion thereof is not to be mined or is rendered unmineable by the operation,
the operator/lessee shall submit appropriate justification to obtain approval by
the authorized officer (AO) to leave such reserves unmined. Upon approval by the
AO, such coalbeds 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 rights to relinquish all or portion of the
lease as authorized by statute or regulation.

In the event the AO determines that the R2P2, as approved, will not attain MER
as the result of changed conditions, the AO will give proper notice to the
operator/lessee as required under applicable regulations. The AO 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 AO 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 MMS demand for such royalties, or by issuing a notice
of noncompliance. A decision or notice of noncompliance issued by the lessor
that payment is due under this stipulation is appealable as allowed by law.

(f) PUBLIC LAND SURVEY PROTECTION - The lessee will protect all survey
monuments, witness corners, reference monuments, and bearing trees against
destruction, obliteration, or damage during operations on the lease areas. If
any monuments, corners 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, corners, 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.

                    UNITED STATES DEPARTMENT OF THE INTERIOR

                            BUREAU OF LAND MANAGEMENT
                              Wyoming State Office
                                  P.O. Box 1828
                          Cheyenne, Wyoming 82003-1828

                                                           In Reply Refer

                                                           3453
                                                           WYW0313773
                                                           WYW78631
                                                           WYW124783
                                                           (921MLove)
                                                           Phone No.: 307-7_____
                                                           Fax No.: 307-775___

                                                     Nov 16, 1999

                                 D E C I S I O N

RAG Wyoming Land Company                     :
Attn:  Steve Youngbauer                      :               Federal Coal
P.O. Box 3039                                :             Eagle Butte Mine
Gillette, WY 82717-3039                      :

                Qualifications Accepted; Name Changes Recognized;
            Logical Mining Unit Modified; Bonds and Riders Accepted;
                  Final Bonus Payment Verified; Rider Returned;
                         Periods of Liability Terminated

On August 5, 1999, and October 12, 1999, we received documents evidencing the
merger of Cyprus Amax Coal Company into RAG American Coal Company with RAG
American Coal Company as the surviving entity, along with documentation of the
name change from Amax Land Company to RAG Wyoming Land Company. Additionally, we
received qualifications statements for RAG American Coal Company and RAG Wyoming
Land Company.

On August 20, 1999, we received replacement bonds, with RAG Wyoming Land Company
as principal, to provide coverage for Federal coal leases WYW0313773 and
WYW78631 included in the Eagle Butte Mine Logical Mining Unit (LMU). The limits
shared by the sureties are shown below:

                                                                               2

 Lease #          Surety Name                     Surety Bond #  Liability Limit
 -------          -----------                     -------------  ---------------
WYW0313773  National Union Fire Insurance
            Insurance Co. of Pittsburgh           210067-073      $      159,000
            St. Paul Fire and Marine Insurance
            Company                               KA2990-073      $      159,000
            Travelers Casualty and Surety Company 103198931-073   $      159,000
WYW78631    National Union Fire Insurance
            Insurance Co. of Pittsburgh           210067-066      $    1,200,333
            St. Paul Fire and Marine Insurance
            Company                               KA2990-066      $    1,200,333
            Travelers Casualty and Surety Company 103198931-066   $    1,200,333

On October 12, 1999, we received a rider to the above-described replacement bond
for Federal coal lease WYW0313773 which extends coverage of the bond to cover
any and all liabilities that may be outstanding on Bond Number 9278308, with
AMAX Land Company as principal, and National Fire Insurance Company of Hartford
as surety.

We also received on October 12, 1999, a rider to the above-described replacement
bond for Federal coal lease WYW78631 which extends coverage of the bond to cover
any and all liabilities that may be outstanding on Bond Number 158601710
(formerly bond number BND2248737) with National Fire Insurance Company of
Hartford as surety. (Note: Previously, on November 16, 1998, we received a rider
to 158601710 which increased the bond amount to $3,601,000. By this decision
that rider is being accepted effective November 16, 1998.)

Federal coal lease WYW124783, also part of the Eagle Butte Mine, but not
included in the LMU, is currently covered by bond numbers JP1298 ($5,000 lease)
and JP1297 ($3,694,080 deferred bonus) with St. Paul Fire and Marine Insurance
Company as surety. On August 20, 1999, we received riders to these bonds which
add two additional sureties/numbers and change the name of the principal from
AMAX Land Company to RAG Wyoming Land Company. We have verified with the
Minerals Management Service that the final deferred bonus payment for Federal
coal lease WYW124783, due August 1, 1999, has been paid; therefore, the period
of liability under Bond Number JP1297 is terminated. The rider supplied for Bond
Number JP1297 is returned without acceptance to RAG American Coal Company
attached to Ms. Eva Schrum's copy of this decision. The surety/bond number
changes to the $5,000 lease bond for Federal lease WYW124783 are shown below:

                                                                               3

                    Surety Name                        Surety Bond Number
                    -----------                        ------------------
     St. Paul Fire and Marine Insurance Company     KA2990-021 (formerly JP1298)

     National Union Fire Insurance Co. of
     Pittsburgh                                     210067-021

     Travelers Casualty and Surety Company          103198931-021

The merger documents, qualifications statements, replacement bonds, and riders
have been examined, found satisfactory, and are accepted effective October 12,
1999.

The periods of liability under Bond Numbers 9278308 and 158601710, with National
Fire Insurance Company of Hartford as surety, and AMAX Land Company as
principal, are hereby terminated effective October 12, 1999, the acceptance date
of the replacement bonds.

The records of this office have been changed to reflect that the lessee of
record for Federal coal leases WYW0313773, WYW78631, and WYW124783 is RAG
Wyoming Land Company.

Additionally, RAG Wyoming Land Company has requested that the Eagle Butte Mine
LMU be modified to change the unit operator from AMAX Land Company to RAG
Wyoming Land Company. The LMU is hereby modified to reflect that RAG Wyoming
Land Company is the operator and will be responsible for operations under the
LMU in accordance with the LMU approval document.

If you have any questions concerning this decision, please contact Mavis Love in
the Minerals and Lands Authorization Group at 307-775-6258.

                                                /s/ Pamela J. Lewis
                                                Pamela J. Lewis
                                                Chief, Leasable Minerals Section

cc:

RAG American Coal Company, Attn:  Eva Schrum, 9100 East Mineral Circle,
     Englewood, CO 80112-3401 W/RIDER TO BOND # KA2990-025 (FORMERLY JP1297)

National Union Fire Insurance Company of Pittsburgh, PA, c/o Patricia Thurmond,
     Attorney-in-Fact, 70 Pine Street, New York, NY 10270

St.  Paul Fire and Marine Insurance Company, c/o Patricia Thurmond,
     Attorney-in-Fact, 385 Washington St., St. Paul, MN 55102

Travelers Casualty and Surety Company, c/o Patricia Thurmond,
     Attorney-in-Fact, One Tower Square, Hartford, CT 06183

                                                                               4

National Fire Insurance Company of Hartford, c/o Joan Bagnall,
     Attorney-in-Fact, CNA Plaza, Chicago, IL 60685

Mr. Olen Harvey, CNA Surety, 950 Echo Lane, Suite #250, Houston, TX 77024

MMS, Royalty Management Program, Reporting & Valuation Division, Solid Minerals
     Reporting Staff, P.O. Box 5760, MS3153, Denver, CO 80217

FM, Casper

Eagle Butte LMU File WYW133406

Qualifications Files

                       UNITED STATES                              Serial Number
                DEPARTMENT OF THE INTERIOR
                 BUREAU OF LAND MANAGEMENT                           W-78631

                        COAL LEASE

This lease is entered into on August 17, 1982, by the United States of America,
the lessor through the Bureau of Land Management and

                                                     Book 692 of Photos, Page 92

         Meadow Farms, Inc.
         P. O. Box 967
         Indianapolis, Indiana 46206

, the lessee, and shall become effective, on September 1, 1982, (effective
date).

Sec. 1. STATUTES AND REGULATIONS - This lease is issued pursuant and subject to
the terms and provisions of the Mineral Leasing Act of February 25, 1920, 41
Stat. 437, as amended, 30 U.S.C. Sections 181-263, hereafter referred to as the
Act, and of the Surface Mining Control and Reclamation Act of 1977, 30 U.S.C.
Section 1201 et seq., the Federal Coal Leasing Amendments Act of 1976, as
amended, 90 Stat. 1083-1092, and in the case of acquired lands, the Mineral
Leasing Act for Acquired Lands of September 7, 1947, as amended, 30 U.S.C.
351-359 et seq. This lease is also subject to all regulations of the Secretary
of the Interior (including but not limited to 30 CFR Part 211 and Chapter VII
and 43 CFR Group 3400) which are now in force or (except as expressly limited
herein) hereafter in force, and all of such regulations are made a part hereof.

WITNESSETH:

Sec. 2. RIGHTS OF LESSEE - The lessor, in consideration of any bonus paid (or to
be paid if deferred), rents and royalties and other conditions hereinafter set
forth, hereby grants and leases to the lessee the exclusive right and privilege
to mine and dispose of all recoverable coal reserves in the following described
lands in Campbell County, Wyoming:

            T. 51 N., R. 72 W., 6th P.M.
            ----------------------------
                sec. 20, SE1/4SE1/4;
                sec. 28, NW1/4, N1/2S1/2, E1/2SW1/4SW1/4, SE1/4SW1/4, S1/2SE1/4;
                sec. 29, E1/2NE1/4NE1/4, NE1/4SE1/4NE1/4.

                                                                               2

containing 530 acres, more or less and, subject to the conditions, limitations
and prohibitions provided in the lease and in applicable acts and regulations,
the right to construct all works, buildings, structures, equipment, and
appliances which may be necessary and convenient for the mining and preparation
of the coal for market, and, subject to the conditions herein provided, to use
so much of the surface as may reasonably be required in the exercise of the
rights and privileges herein granted for a period of 20 years and so long
thereafter as the condition of continued operation is met.

Sec. 3. DILIGENT DEVELOPMENT AND CONTINUED OPERATION - The lessee shall engage
in the diligent development of the coal resources subject to the lease. After
diligent development is achieved, the lessee shall maintain continued operation
of the mine or mines on the leased lands. The terms diligent development and
continued operation are defined in the applicable regulations in Titles 30 and
43 of the Code of Federal Regulations.

Sec. 4. BONDS - The lessee shall file with the appropriate Bureau of Land
Management office a lease bond in the amount of $5,000.00 for the use and
benefit of the United States, to insure payment of deferred bonus payments,
rentals and royalties and to insure compliance with all other items of this
lease, the regulations and the Act (except for reclamation within the area
covered by a surface mining permit issued under the permanent regulatory program
by the regulatory authority) and, if appropriate, for the protection of the
interests of the surface owners on the leased lands. An increase in the amount
of the lease bond may be required by the lessor at any time during the life of
the lease to reflect changed conditions.

Sec. 5. RENTAL - An annual rental of $3.00 for each acre or fraction thereof
shall be paid in advance on or before the anniversary date of this lease. This
section shall not be subject to revision except in the course of lease
readjustment.

Sec. 6. PRODUCTION ROYALTY - The lessee shall pay a production royalty of 12 1/2
percent of the value of coal produced by strip or auger mining methods and 8
percent of the value of coal produced by underground mining methods. The value
of coal shall be determined as set forth in 30 CFR 211. Production royalties
paid for a calendar month shall be reduced by the amount of any advance
royalties paid under this lease to the extent that such advance royalties have
not been used to reduce production royalties in a previous month. However,
production royalties payable after the 20th year of the lease shall not be
reduced by advance royalties paid during the first 20 years of the lease.
Production royalties shall be payable the final day of the month succeeding the
calendar month in which the coal is sold, unless otherwise specified in 30 CFR
211. The royalty rates provided in this section shall not be subject to revision
except in the course of lease readjustment.

Sec. 7. ADVANCE ROYALTY - Upon request by the lessee the District Mining
Supervisor may accept, for a total of not more than 10 years, the payment of
advance royalties in lieu of the condition of continued operation consistent
with the regulations in 43 CFR 3473 and 30 CFR 211. The advance royalty shall be
based on a percent of the value of a minimum number of tons which shall be
determined in the manner established by the regulation in 43 CFR 3473.

                                                                               3

Sec. 8. METHOD OF PAYMENTS - The lessee shall make rental payments to the
appropriate Bureau of Land Management (BLM) office until production royalties
become payable. Thereafter, all rentals, production royalties and advance
royalties shall be paid to the appropriate office of Minerals Management
Service.

Sec. 9. EXPLORATION PLAN - The lessee shall not commence any exploration, except
casual use, on the leased lands without an approved exploration plan.
Exploration plans for leased lands covered by an approved mining permit shall be
submitted to the Regional Director of the Office of Surface Mining in accordance
with the regulations in 30 CFR Chapter VII. Exploration plans for leased lands
not covered by an approved mining permit shall be submitted to the District
Mining Supervisor in accordance with the regulations in 30 CFR 211.

Sec. 10. MINING PLAN - In accordance with the regulations in 30 CFR 211 and
Chapter VII, the lessee shall submit a mining and reclamation plan not more than
three years after the effective date of this lease. Mining operations shall not
commence until after the mining and reclamation plan is approved. The mining and
reclamation shall be conducted in accordance with the approved mining and
reclamation plan. Exploration activities which were not included in the approved
mining and reclamation plan require submittal of exploration plans in accordance
with Section 9 of this lease.

Sec. 11. LOGICAL MINING UNIT (LMU) - This lease is automatically considered to
be an LMU. This LMU may be enlarged, adjusted or diminished in accordance with
the applicable regulations in Titles 30 and 43 of the Code of Federal
Regulations. The mining plan for the LMU shall require that the reserves of the
LMU will be mined within a period of 40 years in accordance with 30 CFR 211 and
43 CFR 3400.0-5. The definition of LMU and LMU reserves and other applicable
conditions are set forth in the regulations in 43 CFR 3400.0-5 and 3475 and 30
CFR 211 of the Code of Federal Regulations.

Sec. 12. OPERATIONS ON LEASED LANDS - (a) in accordance with conditions of this
lease, the exploration and mining and reclamation plans, the permit issued
pursuant to 30 CFR Chapter VII, and all applicable acts and regulations, the
lessee shall exercise reasonable diligence, skill, and care in all operations on
leased lands. (b) The lessee shall minimize to the maximum extent possible
wasting of the coal deposits and other mineral and nonmineral resources,
including, but not limited to, surface resources which may be found in, upon, or
under such lands.

Sec. 13. SPECIAL STATUTES - The lessee shall comply with the provisions of the
Federal Water Pollution Control Act (33 U.S.C. 1151-1175) and the Clean Air Act
(42 U.S.C. 7401 et seq.).

Sec. 14. AUTHORIZATION OF OTHER USES AND DISPOSITION OF LEASED LANDS -(a) The
lessor reserves the right to authorize other uses of the leased lands by
regulation or by issuing, in addition to the lease, leases, licenses, permits,
easements, or rights-of-way, including leases for the development of minerals
other than coal under the Act. The lessor may authorize any other uses of the
leased lands that do not unreasonably interfere with the exploration and mining
operations of the lessee, and the lessee shall make all reasonable efforts to
avoid interference with such authorized uses.

                                                                               4

     (b) The leasor reserves the right: (i) to sell or otherwise dispose of the
surface of the leased lands under existing law or laws hereinafter enacted
insofar as said surface is not necessary to the use of the lessee in the
extraction and removal of the coal therein, or (ii) to dispose of any resource
in such lands if such disposal will not unreasonably interfere with the
exploration and mining operations of the lessee.

     (c) If the leased lands have been or shall hereafter be disposed of under
laws reserving to the United States the deposits of coal therein, the lessee
shall comply with all conditions as are or may hereafter be provided by the laws
and regulations reserving such coal.

Sec. 15. EQUAL OPPORTUNITY CLAUSE - The lessee will comply with all provisions
of Executive Order No. 11246 of September 24, 1965, as amended, and the rules,
regulations and relevant orders of the Secretary of Labor.

Sec. 16. CERTIFICATION OF NONSEGREGATED FACILITIES - By entering into this
lease, the lessee certifies that he does not and will not maintain or provide
for his employees any segregated facilities at any of his establishments, and
that he does not and will not permit his employees to perform their services at
any location under his control where segregated facilities are maintained. The
lessee agrees that a breach of this certification is a violation of the Equal
Opportunity clause of this lease. As used in this certification, the term
"segregated facilities" means, but is not limited to, any waiting rooms, work
areas, rest rooms and wash rooms, restaurants and other eating areas, time
clocks, locker rooms and other storage or dressing areas, parking lots, drinking
fountains, recreation or entertainment areas, transportation, and housing
facilities provided for employees which are segregated by explicit directive or
are in fact segregated on the basis of race, color, religion, or national
origin, because of habit, local custom, or otherwise. Lessee further agrees that
(except where lessee has obtained identical certifications from proposed
contractors and subcontractors for specific time periods) lessee will obtain
identical certifications from proposed contractors and subcontractors prior to
award of contracts or subcontracts exceeding $10,000 which are not exempt from
the provisions of the Equal Opportunity clause; that lessee will retain such
certification in lessee's files; and that lessee will forward the following
notice to such proposed contractors and subcontractors (except where proposed
contractor or subcontractor has submitted identical certifications at specific
time periods). Notice to prospective contractors and subcontractors of
requirement for certification of nonsegregated facilities. A Certification of
Nonsegregated Facilities, as required by the May 9, 1967, order (32 F.R. 7439,
May 19, 1967) on Elimination of Segregated Facilities, by the Secretary of
Labor, must be submitted prior to the award of a contract exceeding $10,000
which is not exempt from the provisions of the Equal Opportunity clause.
Certification may be submitted either for each contract and subcontract or for
all contracts and subcontracts during a period (i.e., quarterly semiannually, or
annually).

Sec. 17. EMPLOYMENT PRACTICES - The lessee shall pay all wages due persons
employed on the leased lands at least twice each month in lawful money of the
United States. The lessee shall grant all miners and other employees complete
freedom to purchase goods and service of their own choice. The lessee shall
restrict the workday to not more than 8 hours in any one day for underground
workers, except in case of emergency. The lessee shall employ no person under
the age of 16 years in any mine below the surface. If the laws of the State in
which the mine is

                                                                               5

situated prohibit the employment, in a mine below the surface, of persons of an
age greater than 16 years, the lessee shall comply with those laws.

Sec. 18. MONOPOLY AND FAIR PRACTICES - The lessor reserves full authority to
promulgate and enforce orders and regulations under the provisions of Sections
30 and 32 of the Act (30 U.S.C. Sections 187 and 189) necessary to insure that
any sale of the production from the leased lands to the United States or to the
public is at reasonable prices, to prevent monopoly, and to safeguard the public
welfare, and such orders and regulations shall upon promulgation be binding upon
the lessee.

Sec. 19. TRANSFERS -

     [X]  This lease may be transferred in whole or in part to any person,
          association or corporation qualified under 43 CFR 3472.1-1 to hold a
          lease.

     [ ]  This lease may only be transferred in whole or in part to another
          public body, or to a person who will mine the coal on behalf of and
          for the use of the public body, or to a person for the limited purpose
          of creating a security interest in favor of a lender who agrees to be
          obligated to mine the coal on behalf of the public body. The
          transferee must be qualified under 43 CFR 3472.

     [ ]  This lease may only be transferred in whole or in part to other small
          businesses qualifying under 13 CFR 121 and 43 CFR 3472.2(c).

Any transfer of this lease in whole or in part is subject to the procedures and
requirements for approval in the relevant regulations in 43 CFR 3400. A transfer
will become effective on the first day of the month following its approval by
the authorized officer, or, if the transferee requests, the first day of the
month of the approval.

Sec. 20. RELINQUISHMENT OF LEASE - The lessee may be a relinquishment of the
entire lease, a legal subdivision or aliquot part thereof, but not less than 10
acres, or any bed of the coal deposits therein. The relinquishment shall be
filed in triplicate with the authorized officer. Upon the determination by the
authorized officer that the public interest shall not be impaired, that all
accrued rentals and royalties have been paid and that all of the obligations of
the lessee under the regulations and the lease terms have been met, the
relinquishment shall be accepted effective the date filed.

Sec. 21. NONCOMPLIANCE - Any failure to comply with the conditions of this
lease, the approved exploration and mining and reclamation plans, the
regulations, or applicable acts shall be dealt with in accordance with the
procedures set forth in the regulations.

Sec. 22. WAIVER OF CONDITIONS - The lessor reserves the right to waive any
breach of the conditions contained in this lease, except the breach of such
conditions as are required by the Act, but any such waiver shall extend only to
the particular breach so waived and shall not limit the rights of the lessor
with respect to any future breach; nor shall the waiver of a particular breach
prevent cancellation of this lease for any other cause, or for the same cause
occurring at another time.

                                                                               6

Sec. 23. READJUSTMENT OF TERMS AND CONDITIONS - (a) The lease is subject to
readjustment on the 20th year after the effective date and on each 10th year
thereafter. In order that the lease may be readjusted as close as possible to
the dates when it becomes subject to readjustment, the lessor may propose the
terms of readjustment of any conditions of this lease, including rental and
royalty rates, before the 20th year after the effective date and before each
10-year interval thereafter. The authorized officer shall notify the lessee
whether he intends to readjust the terms and conditions of the lease and, if he
intends to readjust, the nature of the readjustments in accordance with the
regulations in 43 CFR 3451. Unless the lessee, within 60 days after receipt of
the proposed readjustment terms, files with the lessor an objection to the
proposed readjusted conditions or relinquishes the lease as of the effective
date of the readjustment, the lessee shall be deemed conclusively to have agreed
to such conditions.

     (b) If the lessee files objections to the proposed readjustment conditions,
the existing conditions shall remain in effect until there has been an agreement
between the lessor and the lessee on the new condition to be incorporated in the
lease, or until the lessee has exhausted his rights of appeal under Section 29
of this lease, or until the lease is relinquished, except that the authorized
officer may provide in the notice of readjusted lease terms that the
readjustment or any part thereof is effective pending the outcome of the appeal.
If the readjusted royalty provisions are subsequently rescinded or amended, the
lessee shall be permitted to credit any excess royalty payments against
royalties subsequently due to the lessor.

Sec. 24. DELIVERY OF PREMISES - Upon termination of this lease for any reason,
or relinquishment of a part of this lease, the lessee shall deliver to the
lessor in good order and condition all or the appropriate part of the leased
lands. Delivery of the leased lands shall include underground timbering and such
other supports and structures as are necessary for the reservation of the mine
or deposit, and shall be in accordance with all other applicable provisions of
the regulations including 30 CFR 211 and Chapter VII, for the completion of
operations and abandonment.

Sec. 25. PROPRIETARY INFORMATION - Geological and geophysical data and
information, including maps, trade secrets, and commercial and financial
information which the lessor obtains from the lessee shall be treated in
accordance with 43 CFR Part 2, 30 CFR 211.6 and other applicable regulations.
Total lease reserve figures developed from this information will not be
confidential.

Sec. 26. LESSEE'S LIABILITY TO LESSOR - (a) The lessee shall be liable to the
United States for any damage suffered by the United States in any way arising
from or connected with the lessee's activities and operations under this lease,
except where damage is caused by employees of the United States acting within
the scope of their authority.

     (b) The lessee shall indemnify and hold harmless the United States from any
and all claims arising from or connected with the lessee's activities and
operations under this lease.

     (c) In any case where liability without fault is imposed on the lessee
pursuant to this section, and the damages involved were caused by the action of
a third party, the rules of subrogation shall apply in accordance with the law
of the jurisdiction where the damages occurred.

                                                                               7

Sec. 27. INSPECTIONS AND INVESTIGATIONS - (a) All books and records maintained
by the lessee showing information required by this lease or regulations must be
kept current and in such manner that the books and records can be readily
checked at the mine, upon request, by the Regional Director or District Mining
Supervisor or their representative.

(b) The lessee shall permit any duly authorized officer or representative of the
lessor at any reasonable time (1) to inspect or investigate the leased lands,
the exploration and mining and reclamation operations, and all surface and
underground improvements, works, machinery, and equipment, and all books and
records pertaining to the lessee's obligations to the lessor under this lease
and regulations and (2) to copy, and make extracts from any such books and
records.

Sec. 28. UNLAWFUL INTEREST - No member of, or Delegate to, Congress, or Resident
Commissioner, after his election or appointment, either before or after he has
qualified and during his continuance in office, and no officer, or employee of
the Department of the Interior, except as provided in 43 CFR 7.4(a)(3), shall
hold any share or part in this lease or derive any benefit therefrom. The
provisions of Section 3741 of the Revised Statutes, as amended, 41 U.S.C.
Section 22, and the Act of June 25, 1948, 62 Stat. 702, as amended, 18 U.S.C.
Sections 431-433, relating to contracts, enter into and form a part of this
lease insofar as they may be applicable.

Sec. 29. APPEALS - The lessee shall have the right to appeal (a) under 43 CFR
3000.4 from an action or decision of any official of the Bureau of Land
Management, (b) under 30 CFR Part 290 from an action, order, or decision of any
official of he Minerals Management Service, or (c) under applicable regulation
from any action or decision of any other official of the Department of the
Interior arising in connection with this lease, including any action or decision
pursuant to Section 23 of this lease with respect to the readjustment of
conditions.

Sec. 30. DEFERRED BONUS - This lease is issued subject to the payment of by the
leasee as a deferred bonus. Payment of the deferred bonus by the lessee shall be
made on a schedule specified in Section 31 (Special Stipulations) of this lease.

Sec. 31. SPECIAL STIPULATIONS - 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 this 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. The Lessor may amend
these stipulations at any time without the consent of the Lessee in order to
make them consistent with any new federal or state statutes and the regulations
promulgated under authority or new statutes.

(a) Cultural Resources - (1) Before undertaking any activities that may disturb
the surface of the leased lands, the leases 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)

                                                                               8

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 or 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 Office of Surface Mining (or the District Mining Supervisor if
activities are associated with coal exploration outside an approved mining
permit area) and the authorized officer of the BLM or the surface managing
agency (if different). The lessee shall undertake measures, in accordance with
instructions from the Regional Director for the District Mining Supervisor if
activities are associated with coal exploration outside an approved mining
permit area), to protect cultural resources on the leased land. The lessee shall
not commence the surface disturbing activities until permission to proceed is
given by the Regional Director (or the District Mining Supervisor if activities
are associated with coal exploration outside an approved mining permit area).

(2) The lessee shall protect all cultural resource properties within the lease
area from lease-related activities until the cultural resource mitigation
measures can be implemented as part of an approved mining and reclamation plan
or exploration plan.

(3) The cost of conducting the inventory, preparing reports, and carrying out
mitigation measures shall be borne by the lessee.

(4) If cultural resources are discovered during operations under this lease, the
lessee shall immediately bring them to the attention of the Regional Director
(or the District Mining Supervisor if activities are associated with coal
exploration outside an approved mining permit area), or the authorized officer
of the surface managing agency if the Regional Director, or District Mining
Supervisor, as appropriate, is not available. The lessee shall not disturb such
resources except as may be subsequently authorized by the Regional Director (or
the District Mining Supervisor if activities are associated with coal
exploration outside an approved mining permit area). Within two (2) working days
of notification, the Regional Director (or the District Mining Supervisor if
activities are associated with coal exploration outside an approved mining
permit area) 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 surface managing agency unless otherwise
specified by the authorized officer of the BLM or of the surface managing agency
(if different).

(5) All cultural resources shall remain under the jurisdiction of the United
States until ownership is determined under applicable law.

     (b) Paleontological Resources - (1) Before undertaking any activities that
may disturb the surface of the leased lands, the lessee shall contact the Bureau
of Land Management to determine whether the authorized officer will require the
lessee to conduct a paleontological appraisal of the mine plan and adjacent
areas, or exploration plan areas, that may be adversely affected by
lease-related activities. If the authorized officer determines that one is
necessary, the paleontological appraisal shall be conducted by a qualified
paleontologist approved by the

                                                                               9

authorized officer of the surface managing agency (BLM if the surface is
privately owned), using the published literature and, where appropriate, field
appraisals for determining the possible existence of larger and more conspicuous
fossils of scientific significance. A report of the appraisal and
recommendations for protecting any larger and more conspicuous fossils of
significant scientific interest on the leased lands so identified shall be
submitted to the authorized officer of the surface managing agency (BLM if the
surface is privately owned). When necessary to protect and collect the larger
and more conspicuous fossils of significant scientific interest on the leased
lands, the lessee shall undertake the measures provided in the approval of the
mining and reclamation plan or exploration plan.

(2) The lessee shall not knowingly disturb, alter, destroy or take any larger
and more conspicuous fossils of significant scientific interest, and shall
protect all such fossils in conformance with the measures included in the
approval of the mining and reclamation plan or exploration plan.

(3) The lessee shall immediately bring any such fossils that might be altered or
destroyed by his operation to the attention of the Regional Director or the
District Mining Supervisor, as appropriate. Operations may continue as long as
the fossil specimen or specimens would not be seriously damaged or destroyed by
the activity. The Regional Director or the District Mining Supervisor, as
appropriate, shall evaluate or have evaluated such discoveries brought to his
attention and, within five (5) working days, shall notify the lessee what action
shall be taken with respect to such discoveries.

(4) All such fossils of significant scientific interest shall remain under the
jurisdiction of the United States until ownership is determined under applicable
law. Copies of all paleontological resource data generated as a result of the
lease term requirements will be provided to the Regional Director or the
District Mining Supervisor, as appropriate.

(5) The cost of any required salvage of such fossils shall be borne by the
United States.

(6) These conditions apply to all such fossils of significant scientific
interest discovered within the lease area whether discovered in the overburden,
interburden, or coal seam or seams.

(c) The Lessee will protect all survey monuments, witness corners, reference
monuments, and bearing trees against destruction, obliteration, or damage during
operations on the lease area. If any monuments, corners, 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, corners 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," and will record the
survey in the appropriate county records, with a copy sent to the Authorized
Officer.

(d) No surface occupancy will be allowed within 100 feet of the right-of-way
boundary for State Highway 14-16 bordering the tract on the south and west. The
lessee shall relocate State Highway 59 as agreed with the Wyoming Highway
Department.

(e) The lessee shall comply with all valid and applicable laws and regulations
of Federal, State, and local governmental authority.

                                                                              10

DEFERRED BONUS PAYMENT SCHEDULE:

Total Amount of Bid $7,420,000.00

1/5 in the amount of $1,484,000.00 submitted on date of sale. (Balance is due
and payable in equal annual installments on the first four anniversary dates of
the lease.)

1/5 in the amount of $1,484,000.00 due on September 1, 1983.

1/5 in the amount of $1,484,000.00 due on September 1, 1984.

1/5 in the amount of $1,484,000.00 due on September 1, 1985.

1/5 in the amount of $1,484,000.00 due on September 1, 1986.

STATE OF WYOMING     )
                     )   ss.
Campbell County      )

Filed for record this 13th day of July A.D., 1983 at 9:10 o'clock A.M. and
recorded in Book 692 of Photos on page 92 Fees $10.00

/s/ Vivian E. Addison
-----------------------------
County Clerk and Ex-Officio             RECORDED       BY
Register of Deeds                       ABSTRACTED     Deputy /s/ Dorothy Ochs
                                        INDEXED               ----------------
                                        CHECKED

                                                                              11

                                             THE UNITED STATES OF AMERICA

                                             By:      /s/ Judith A. Moffit
                                                 -------------------------------
                                                       (Signing Officer)

                                                 For Marla B. Bohl
                                                 Chief, Lands and Mining Section
                                                 -------------------------------
                                                            (Title)

                                                 August 17, 1982
                                                 -------------------------------
                                                            (Date)

ATTEST

WITNESS TO SIGNATURE OF LESSEE                   Meadowlark Farms, Inc.

                                             By: /s/
     -----------------------------------         -------------------------------
     Assistant Secretary                              (Signature of Lessee)
                                                          Vice President

     -----------------------------------         -------------------------------
                                                      (Signature of Lessee)

     -----------------------------------         -------------------------------

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