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Exhibit 10.15    
    

	 
	 	 
	 	 
	 	 

	Form 3400-12

(April 2007)	 	UNITED STATES

DEPARTMENT OF THE INTERIOR

BUREAU OF LAND MANAGEMENT

 COAL LEASE	 	DEPT. OF INTERIOR

BUR. OF LAND MANAGEMENT

2007 JUL 20 AM 10 37

RECEIVED

MONTANA STATE OFFICE

BILLINGS MONTANA	 	FORM APPROVED

OMB NO. 1004-0073

Expires: March 31, 2010
	 	 	 	 	 	 	Serial Number
	

 	
 	

 	
 	

 	
 	

MTM 94378

PART
1. LEASE RIGHTS GRANTED 

This
lease, entered into by and between the UNITED STATES OF AMERICA, hereinafter called lessor, through the Bureau of Land Management (BLM), and (Name and
Address)

Spring
Creek Coal Company

P.O. Box 67

Decker, Montana 59025 

hereinafter
called lessee, is effective (date) 12/01/2007, for a period of 20 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 the 20th lease year and each 10-year period thereafter. 

Sec.
1. This lease is issued pursuant and subject to the terms and provisions of the; 

	ý
	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;

	o
	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 bonuses, rents, and royalties to be paid, and the conditions and covenants to be observed as herein set forth, hereby grants and leases 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: 

        SEE
ATTACHED EXHIBIT A 

containing
1117.70        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 in 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 must 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 will not be credited against either production or advance royalties for any year. 

 

Sec.
2. (a) PRODUCTION ROYALTIES—The royalty will be
12.5                                     percent of the value of
the coal as set forth in the regulations. 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 BLM 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 will 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 must maintain in the proper office a lease bond in the amount of $
5.000*                                    . The BLM 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 will terminate the
lease. Lessee must submit an operation and reclamation plan pursuant to Section 7 of the Act not later than 3 years after lease issuance. 

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

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 will 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 will 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 must 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
must keep open at all reasonable times for the inspection by BLM 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
must 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 will 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 must comply at its own expense with all reasonable orders of the Secretary, respecting diligent operations, prevention of
waste, and protection of other resources. 

Lessee
must 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 must be submitted to the BLM. 

2

 

Lessee
must 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 must 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. Lesser must 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 must 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 should 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 this 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 should maintain segregated facilities. 

Sec.
9. (a) TRANSFERS 

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

	o
	This
lease may be transferred in whole or in part to another public body or to a person who will mine coal on behalf of, and for the use
of, the public body or to at 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.

	o
	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 will 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 must 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 must remove from the premises all other structures, machinery, equipment, tools, and materials that it elects to or as required by the BLM. Any
such 

3

 

structures,
machinery, equipment, tools, and materials remaining on the leased lands beyond 180 days, or approved extension thereof, will become the property of the lessor, but lessee may
either remove any or all such property or 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
will waive the requirement for removal, provided the third parties do not object to such waiver. Lessee must, 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 will be subject to cancellation by the lessor only by judicial proceedings. This provision will 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 will 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 will extend to and be binding upon, and every benefit hereof will inure to, the heirs,
executors, administrators, successors, or assigns of the respective parties hereto. 

Sec.
13. INDEMNIFICATION—Lessee must 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 Clean Water Act (33 U.S.C. 1252 et seq.), the Clean Air Act (42 U.S.C. 4274 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 

Deferred
Bonus Payment Schedule:

1/5 ($ 3,980,440.00) on first anniversary date;

1/5 ($ 3,980,440.00) on second anniversary date;

1/5 ($ 3,980,440.00) on third anniversary date;

1/5 ($ 3,980,440.00) on fourth anniversary date; 

See
Attached Exhibit B, Exhibit C, and Exhibit D

DEPT.
OF INTERIOR

BUR. OF LAND MANAGEMENT

2007 JUL 20 AM 10 37

RECEIVED

MONTANA STATE OFFICE

BILLINGS MONTANA 

4

 

	 	 	THE UNITED STATES OF AMERICA
	

Spring Creek Coal Company
 (Company or Lessee Name)	
 	

By	
 	

Bureau of Land Management

	

[SIGNATURE ILLEGIBLE]
 (Signature of Lessee)	
 	

/s/ Edward L. Hughes
 Edward L. Hughes(BLM)
	

VP Technical Services
 (Title) LEGAL REVIEW AP	
 	

Acting Chief, Branch of Solid Minerals
 (Title)
	

7.16.07
 (Date)	
 	

11-09-2007
 (Date)

Title
18 U.S.C. Section l001, makes it a crime for any person knowingly and willfully to make to any department or agency of the United States any false, fictitious or fraudulent
statements or representations as to any matter within its jurisdiction. 

NOTICES

The
Privacy Act of 1974 and the regulation in 43 CFR 2.48(d) provide that you be furnished with the following information in connection with information required by this application. 

AUTHORITY:
30 U.S.C. 181-287 and 30 U.S.C. 351-359. 

PRINCIPAL
PURPOSE: BLM will use the information you provide to process your application and determine if you are eligible to hold a lease on BLM Land, 

ROUTINE
USES: BLM will only disclose the information according to the regulations at 43 CFR 2.56(d). 

EFFECT
OF NOT PROVIDING INFORMATION: Disclosing the information is necessary to receive a benefit. Not disclosing the information may result in BLM's rejecting your request for a lease. 

The
Paperwork Reduction Act of 1995 requires us to inform you that: 

The
BLM collects this information to authorize and evaluate proposed exploration and mining operations on public lands. 

Response
to the provisions of this lease form is mandatory for the types of activities specified. 

The
BLM would like you to know that you do not have to respond to this or any other Federal agency-sponsored information collection unless it displays a currently valid OMB control number. 

BURDEN
HOURS STATEMENT: Public reporting burden for this form is estimated to average one hour per response including the time for reading the instructions and provisions, and completing and reviewing
the form. Direct comments regarding the burden estimate or any other aspect of this form to U.S. Department of the Interior, Bureau of Land Management (1004-0073), Bureau Information
Collection Clearance Officer (WO-630), 1849 C Street, Mail Stop 401 LS, Washington, D.C. 20240. 

5

  
EXHIBIT A 

	 	 	 	 	DEPT. OF INTERIOR

BUR. OF LAND MANAGEMENT

2007 JUL 20 AM 10 37

RECEIVED

MONTANA STATE OFFICE

BILLINGS MONTANA

Tract
1: 

T.
8 S., R. 39 E., P.M.M. 

	 	Sec. 13:	 	SW1/4NW1/4NW1/4, SW1/4NW1/4,
SW1/4SE1/4NW1/4, N1/2SW1/4, N1/2SW1/4SW1/4,
 N1/2SE1/4SW1/4SW1/4,SE1/4SE1/4SW1/4SW1/4,
SE1/4SW1/4, NW1/4NW1/4SE1/4,
S1/2NW1/4SE1/4, N1/2SW1/4SE1/4, SW 1/4
SW1/4 SE1/4
	

 	

Sec. 14:	
 	

Beginning at a point bearing S. 60° 25' 06" E., 2299.67 feet from the section corner of sections. 10, 11, 14, and 15 and on the N-S center line of the NE1/4NW1/4 of section 14 and at 528.30
feet southerly from the NE-NW 1/64 section corner of section 14; thence on the exclusion boundary line, S. 90° 00' 00" E., 317.70 feet; thence, S. 55°21' 33" E., 1741.06 feet; thence N. 38° 32' 16" E.,
1422.65 feet, to a point on the N-S center line of the NE1/4NE1/4 of said section; thence northerly on the N-S center line of the NE1/4NE1/4 of
said section to the NE-NE 1/64 section corner of said section; thence easterly on the E-W center line of the NE1/4NE1/4 of said section to the N-N
1/64 section corner of sections 13 and 14; thence southerly on the section line between sections 13 and 14 to the N-S-S 1/256 section corner of sections 13 and 14; thence westerly on
the E-W center line of the NE1/4SE1/4SE1/4 of section 14 to the NE-SE-SE 1/256 section corner of said section; thence northerly on the N-S
center line of the NE1/4SE1/4SE1/4 of said section to the C-E-E-SE 1/256 section corner of said section, on the E-W center line of the SE
1/4 of said section; thence westerly on the E-W center line of the SE 1/4 of said section to the C-E-SE 1/64 section corner of said section; thence northerly on the N-S
center line of the NE1/4SE1/4 of said section to the C-S-NE-SE 1/256 section corner of said section; thence westerly on the E-W center line of the
SE1/4NE1/4SE1/4 of said section to the C-S-N-SE 1/256 section corner of said section; thence northerly on the N-S center line of the SE
1/4 of said section to the C-E 1/16 section corner of said section; thence westerly on the E-W center line of said section to the C 1/4 section corner of said section;
thence northerly on the N-S center line of said section to the C-S-N 1/64 section corner of said section; thence westerly on the E-W center line of the S 1/2 of the NW 1/4
of said section to the SW-NW 1/64 section corner of said section; thence northerly on the N-S center line of the SW1/4NW1/4 of said section to the C-W-NW
1/64 section corner of said section; thence easterly on the E-W center line of the NW 1/4 of said section to the C-E-NW 1/64 section corner of said section; thence
northerly on the N-S center line of the NE1/4NW1/4 of said section to the point of beginning, containing 137.70 acres, more or less.
	

 	

Sec. 24:	
 	

N1/2NE1/4NW1/4

        Total:
425.2 acres 

Tract
2: 

T.
8 S., R. 39 E., P.M.M. 

	 	Sec. 15:	 	W1/2SW1/4SE1/4, SE1/4SW1/4SE1/4
	

 	

Sec. 22:	
 	

NE1/4NE1/4, N1/2NW1/4NE1/4,
SE1/4NW1/4NE1/4, NE1/4SE1/4NE1/4,
NE1/4NE1/4NW1/4
	

 	

Sec. 23:	
 	

SW1/4SW1/4NW1/4NE1/4, S1/2N1/2NW1/4,
S1/2NW1/4

        Total:
242.5 acres 

Tract
3: 

T.
8 S., R. 39E., P.M.M. 

	 	Sec. 25:	 	SW1/4SW1/4
	

 	

Sec. 26:	
 	

SW1/4NE1/4NE1/4SW1/4, W1/2NW1/4NE1/4SW1/4,
SE1/4NW1/4NE1/4SW1/4, S1/2NE1/4SW1/4,
NW1/4SW1/4, N1/2SE1/4SW1/4, S1/2NW1/4SE1/4,
 S1/2SE1/4
	

 	

Sec. 27:	
 	

SW1/4NW1/4SE1/4NE1/4, S1/2SE1/4NE1/4,
NW1/4NE1/4SW1/4NE1/4, S1/2NE1/4SW1/4NE1/4,
W1/2SW1/4NE1/4, SE1/4SW1/4NE1/4,
E1/2SE1/4NW1/4, N1/2NE1/4SE1/4,
SE1/4NE1/4SE1/4, NE1/4NW1/4SE1/4

        Total:
350.0 acres 

Tract
4 

T.
8 S., R. 40 E., P.M.M. 

	 	Sec. 30:	 	S1/2NW1/4SE1/4, S1/2SE1/4

        Total:
100.0 acres 

Containing
approximately 1,117.700 acres in Big Horn County, Montana 

 

  
EXHIBIT B 

COAL
LEASE SPECIAL STIPULATIONS 

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 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 (hereinafter referred to as the Authorized Officer) on portions of the mine plan area, 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. Cultural resources are defined as a broad, general term meaning any cultural property or any traditional lifeway
value, as defined below: 

Cultural
property: a definite location of past human activity, occupation, or use identifiable through field inventory (survey), historical documentation, or oral evidence. The term includes
archaeological, historic, or architectural sites, structure, or places with important public and scientific uses and may include traditional cultural or religious importance to specified social and/or
cultural groups. Cultural properties are concrete, material places, and things that are classified, ranked, and managed through the system of inventory, evaluation, planning, protection, and
utilization. 

Traditional
lifeway value: the quality of being useful in or important to the maintenance of a specified social and/or cultural group's traditional systems of (a) religious belief,
(b) cultural practice, or (c) social interaction, not closely identified with definite locations. Another group's shared values are abstract, nonmaterial, ascribed ideas that one cannot
know about without being told. Traditional lifeway values are taken into account through public participation during planning and environmental analysis. 

	

	The
cultural resources inventory shall be conducted by a qualified professional cultural resource specialist; i.e., archaeologist, anthropologist,
historian, or historical architect, as appropriate and necessary, and approved by the Authorized Officer (BLM if the surface is privately owned). A report of the inventory and recommendations for
protection of any cultural resources identified shall be submitted to the Assistant Director of the Western Support Center of the Office of Surface Mining (hereinafter referred to as the Assistant
Director) by the Authorized Officer. Prior to any on-the-ground cultural resource inventory, the selected professional cultural resource specialist shall consult with the BLM,
the Northern Cheyenne Cultural Protection Board, and the Crow Historic and Cultural Committee. The purpose of this consultation will be to guide the work to be performed and to identify cultural
properties or traditional lifeway values within the immediate and surrounding mine plan area. The lessee shall undertake measures, in accordance with instructions from the Assistant Director, 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 in consultation with the
Authorized Officer. 

1

 

	(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 carrying out the approved site 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 the Authorized Officer
if the Assistant Director is not available. The lessee shall not disturb such resources except as may be subsequently authorized by the Assistant Director. Within two (2) working days of
notification, the Assistant Director 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.

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

	(6)
	Spring
Creek Coal Company shall conduct site recordation and site testing at Cultural Resource Site 24BH404 in accordance with Tasks 1 through 4 of the petroglyph mitigation plan
found in Appendix D of the EA and as modified below. The recordation will be a non-invasive technique that does not alter the rock surface, and can be digitally stored for future
study and possibly to recreate the rock art figures. Site testing will include up to five, 1-meter by 1-meter shallow excavations. Testing will be coordinated with the Northern
Cheyenne THPO and any findings will be shared with the THPO. Coordination will include prior notification of any field work, with sufficient time to allow the Northern Cheyenne to schedule their
attendance during the field work, and will allow the Northern Cheyenne the opportunity to provide comments on the locations of each excavation.

	(b)
	PALEONTOLOGICAL
RESOURCES—

	

	If
a paleontological resource, either large and conspicuous, and/or of significant scientific value is 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 interest discovered during the operation.

	(c)
	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 locations, using surveying procedures in accordance with the "Manual of Surveying Instructions for the Survey of
Public Lands of the United States." The survey will be recorded in the appropriate county records, with a copy sent to the authorized officer. 

2

 

	(d)
	RESOURCE
RECOVERY AND PROTECTION PLAN (R2P2)—

	

	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 3480.0-5.2(21)] of the
recoverable coal reserves or (ii) the operator/lessee is determined to have caused a wasting of recoverable coal reserves. Damages shall be measured on the basis of the royalty that would have
been payable on the wasted or unrecovered coal.

	

	The
parties recognize that under an approved R2P2, conditions may require a modification by the operator/lessee of that plan. In the event a coal bed or
portion thereof is not to be mined or is rendered unmineable by the operation, the operator shall submit appropriate justification to obtain approval by the authorized officer to leave such reserves
unmined. Upon approval by the authorized officer, such coal beds or portions thereof shall not be subject to damages as described above. Further, nothing in this section shall prevent the
operator/lessee from exercising its right to relinquish all or a portion of the lease as authorized by statute and regulation.

	

	In
the event the authorized officer determines that the R2P2 as approved will not attain MER as the result of changed conditions, the authorized officer
will give proper notice to the operator/lessee as required under applicable regulations. The authorized officer will order a modification if necessary, identifying additional reserves to be mined in
order to attain MER. Upon a final administrative or judicial ruling upholding such an ordered modification, any reserves left unmined (wasted) under that plan will be subject to damages as described
in the first paragraph under this section.

	

	Subject
to the right to appeal hereinafter set forth, payment of the value of the royalty on such unmined recoverable coal reserves shall become due and
payable upon determination by the authorized officer that the coal reserves have been rendered unmineable or at such time that the 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
non-compliance. A decision or notice of non-compliance issued by the lessor that payment is due under this stipulation is appealable as allowed by law.

	(e)
	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.

	

	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 R2P2 for coal operations
on those lands covered by Federal mineral leases so as to obtain maximum resource recovery.

	(f)
	LAND
USE—

	

	Spring
Creek Coal Company will be required to relinquish the affected portions of Land Use Lease MTM 74913 when the subject lands are leased.

	(g)
	RECLAMATION/WILDLIFE—

	

	Spring
Creek Coal Company will be required to reclaim disturbed habitats within the areas designated as Unsuitable for Lease with Exceptions and Suitable
with Stipulations back to wildlife habitat as outlined in the reclamation requirements of state and federal mine permits that would be revised as a result of approving the lease by application.

	

	Spring
Creek Coal Company will be required to mitigate the loss of the prairie falcon eyrie in Section 14, T.8S., R.39E. according to the mitigation
plan outlined in Appendix C of the EA. 

3

 

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APPENDIX
C 

SPRING
CREEK MINE PRAIRIE FALCON

MITIGATION PLAN 

 

  
APPENDIX C 

SPRING
CREEK MINE PRAIRIE FALCON MITIGATION PLAN 

INTRODUCTION

The
Spring Creek Mine is located approximately eight miles north-northwest of Decker, Big Horn County, Montana. The mine has been in operation since 1980, and wildlife monitoring has been conducted
each year since then. Those monitoring efforts have revealed two prairie falcon (Falcon mexicanus) nests within a territory associated with the mine.
The operator is seeking a coal lease that would expand mining further north and eventually eclipse one of the prairie falcon nests. This document outlines the history of prairie falcons in the Spring
Creek area, the anticipated impacts of mine expansion on falcons and their nests, and a proposed strategy to mitigate those impacts down to non-significant levels. 

NESTING
HISTORY 

Wildlife
monitoring at the Spring Creek Mine has included annual surveys for nesting raptors since 1976. Since 1994, those surveys have included monitoring of all known nests and a thorough search for
new nests within the 45.4-mi2 wildlife study area that includes the permit area and an approximate two-mile perimeter. 

The
two known prairie falcon nest sites (hereafter eyries) in the Spring Creek wildlife survey area are located to the north and northwest of the mine. The eyries are about 3.7 miles apart, but are
presumed to be within the territory of a single pair of prairie falcons. PFla is northwest of the mine in SW1/4 SW1/4 Section 5, T8S, R39E, and PF1b is just north
of the mine in NW1/4 NE1/4 Section 14 (Figure C-1). 

Baseline
monitoring may have documented the existence of a raptor nest site in the vicinity of PFlb as early as 1978. Prairie falcons were documented nesting in the area in 1995
(Table C-1). In total, prairie falcons were documented in the Spring Creek area during 11 of the last 13 years (1994-2006). Comprehensive monitoring of territory
PF1 between 1995 and 2006 has determined: 

	•
	Territory
PF1 (Nests PFla and PF1b) was active at least nine of the last 11 years, with five successful attempts producing 18 young; (1996 and 1998 were not included
in the analysis since the status of both nests was not determined);

	•
	In
addition to the nine years prairie falcons nested in the area, they were also seen on one or more occasions during two other years (2004 and 2005);

	•
	Nest
PFla was active three of the 11 years, producing 11 young (3.7 young/attempt);

	•
	Nest
PF1b was active six of the 11 years, producing 7 young (1.7 young/attempt);

	•
	Nest
PF1a produced young three of the three years used (100%);

	•
	Nest
PF1b produced young two of the six years used (33%);

	•
	It
has been documented that falcons will use PFla if PFlb is not available (falcons were successful at PF1a in 2003 when great horned owls nested in PF1b). 

As
of 1989, at least 10 historic prairie falcon territories (14 nest sites) had been identified within approximately 12 miles of the cliff (Figure C-1) (DCC Unpublished Data). The
maximum number of active prairie falcon territories during any one year of monitoring was seven territories (1989). Regional monitoring by Decker Coal Company (DCC) was discontinued in 1989. Since
1994, surveys conducted by Spring Creek Coal Company (SCCC) have included monitoring of all known
nests and a thorough search for new nests within the 45.4-mi2 SCCC wildlife study area that includes the permit area and an approximate two-mile perimeter. SCCC
monitoring includes only one (PF1) of the 10 territories monitored by DCC. 

C-1

 
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2007
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[MAP] 

Figure C-1.
Known Prairie Falcon Nests/Territories and Potential Nest Sites. 

Table C-1.
Status and productivity of the two known prairie falcon eyries at the Spring Creek Mine. 

	Year
	 	PFla
	 	PF1b/GHO8

	1993	 	—	 	—
	

1994	
 	

—	
 	

Inactive
	

1995	
 	

Active, 4 yg fledged	
 	

Inactive
	

1996	
 	

Unknown	
 	

Inactive
	

1997	
 	

Active, 3 yg fledged	
 	

Inactive
	

1998	
 	

Unknown	
 	

Active, unsuccessful
	

1999	
 	

Inactive	
 	

Active, 5 yg fledged
	

2000	
 	

Inactive	
 	

Active, unsuccessful
	

2001	
 	

Inactive	
 	

Active-tended
	

2002	
 	

Inactive	
 	

Active, 2 yg fledged
	

2003	
 	

Active, 4 yg fledged	
 	

Active (great-horned owls), 1 yg fledged
	

2004	
 	

Inactive	
 	

Inactive
	

2005	
 	

Inactive	
 	

Inactive
	

2006	
 	

Inactive	
 	

Active, unsuccessful

At
least seven other active prairie falcon territories and 14 viable prairie falcon nests were documented within 12 miles of PF1b in 1989 (DCC Unpublished data). A fixed-wing aerial raptor
survey conducted for the BLM in 2004 covering approximately 3,209,408 acres in Bighorn County, of which SCCC ownership was included, did not identify any new or active prairie falcon nests within the
targeted survey area (Greystone, 2004). It is acknowledged that it is difficult to determine the status of prairie falcon nests during fixed-wing aerial surveys. Two other active prairie
falcon territories were documented within 12 miles of PF1b in 2006, although surveys of the entire area were not conducted. Recent comprehensive territory/nest status surveys have not been conducted
over the entire 12:-mile area. 

POTENTIAL
IMPACTS 

As
of July 2006, the PF1a nest was 2.8 miles beyond the Spring Creek permit area and well buffered from mining activities. PFlb was within the permit area and 1,000 feet from the closest lease
boundary, but mining activities were not visible from the nest cavity. Site PFlb is within a tract of land that has been designated unsuitable for coal leasing without exception by the Bureau of Land
Management 

C-2

 

(BLM).
Unsuitability criterion number 13 states that Federal lands containing a falcon (excluding kestrel) cliff nesting site with an active nest and a buffer zone of Federal land around the
nest site shall be considered unsuitable. This designation could be changed in accordance with the regulations found at 43 CFR 3461, 2-1. SCCC has applied for a Lease by Application (LBA)
to acquire the Federal coal on approximately 1207 acres within the current SCCC permit boundary. The Proposed Action described in the LBA environmental assessment document would remove the unsuitable
without exceptions designation and allow the removal of the cliff feature, provided specific stipulations and mitigation measures were implemented prior to removal (refer to Sections 1.5 and
2.1 and Appendix B to the Spring Creek Mine Expansion EA document). Alternative 2 would preserve the integrity of the feature but allow disturbance within the 1,200-foot buffer
(refer to Sections 1.5 and 2.3 and Appendix B in the Spring Creek Mine Expansion EA document). Alternatives 1 and 3 would prohibit disturbance within the foot buffer (refer to
Sections 1.5, 2.2, and 2.4 in the Spring Creek Mine Expansion EA documents. 

Physical
destruction of an inactive migratory bird nest/nest site is not, in and of itself, a violation of the Migratory Bird Treaty Act (MBTA). However, any activity that results in the destruction
of eggs or death of birds (including nestlings) constitutes a 'take', and is a violation of MBTA. As the lead Federal agency on coal leasing actions, the BLM is obligated to assess the potential
environmental impacts of proposed actions and has the discretion to restrict or deny leases, or impose conditions to prevent or mitigate negative impacts. 

MONITORING
AND MITIGATION 

SCCC
is proposing strategies that would minimize the potential negative impacts of encroachment on and the eventual elimination of the PF1b nest site. These strategies would be implemented if the
unsuitable for lease without exception designation were changed to allow leasing and eventual mining. The following strategy would: 1) prevent the disruption or failure of any nesting attempts
at PFlb prior to its actual removal, and 2) enhance the long-term nesting opportunities for prairie falcons in the area by creating several suitable nest sites on mine property. 

Avoidance/Deterrence

To
minimize negative impacts as mining approaches PFlb, surface disturbing activities and prolonged human activity will be restricted within 1,200 feet of the nest from 1 April through
15 July. If biologists confirm that the nest is not active by early May of any given year, activities can resume in the vicinity of the nest. If nest site removal is anticipated to occur during
the subsequent breeding season, SCCC will deter nesting activities at PFlb prior to the onset of breeding activities. Deterring methods could include screening/blocking the known site and any other
possible sites on the cliff face, or other techniques approved by the USFWS. 

Enhanced
Visual Monitoring 

Additional
time will be allocated each year (beginning in 2007) to monitor known nests within the territory more closely. When a nest is active, SCCC will document the presence and behavior of prairie
falcons and also attempt (through visual observations) to glean some understanding of the pair's home range. Familiarity with a raptor pair's home range and movements can increase the likelihood of
successful nest relocation (Postovit et al. 1982). To assess the effects of PFlb removal SCCC will monitor the status of the 10 prairie falcon territories indicated on Figure C-1
starting one breeding season prior to the removal of the cliff feature. This additional monitoring will continue for two breeding seasons after the feature is removed. 

Habitat
Enhancements 

To
mitigate the eventual removal of the sandstone feature that hosts PF1b and ensure the long-term availability of adequate nesting sites for prairie falcons, the mine will construct at
least three additional artificial eyries. Specifically, standard and alternative reclamation practices will be used to create at 

C-3

 

least
one suitable cliff/bluff with at least two nest cavities per bluff on Spring Creek final reclamation. SCCC will also construct at least one additional eyrie on a suitable native cliff/bluff. 

From
a regulatory standpoint, bluff features can be developed from competent highwall segments when such features were components of the original topography (WCFWRU 1994). Highwall remnants can be
successfully modified to simulate natural rimrocks or cliffs if the final highwall is cut through competent, erosionally resistant materials (Green and Salter 1987; Ward 1987). The construction of
artificial nest holes and ledges has been employed to mitigate impacts of other development projects on prairie falcons. Follow-up studies have revealed that prairie falcons readily accept
artificially created eyries [ILLEGIBLE] Steel 1976, Fyfe and Armbruster 1977, Fyfe 1989, Mayer and Licht 1995, Banasch and Barry 1998, Paton 1999). Artificial eyries have also
been created in mine highwalls as part of reclamation efforts (Tessmann 1982, Waage 1986, Green and Salter 1987, Anderson and Squires 1997). 

Cavities
should be built in solid, non-eroding rock (Call 1979). Cliff instability can be a serious problem in both construction and maintenance of artificial eyries, especially in areas
dominated by sedimentary materials (Fyfe and Armbruster 1977). Cavities can be efficiently excavated using manual or power hand tools (Fyfe and Armbruster 1977, Mayer and Allen 1987). Smith (1985)
describes a procedure for creating artificial prairie falcon nest cavities on native or reclaimed cliff/bluff features. Internal reinforcements against erosion can increase the persistence of
excavated sites (Mayer and Allen 1987, Mayer and Licht 1995). Mayer and Allen (1987) reinforced artificial eyries built in sandstone-clay substrate with building mortar over a frame of
metal, wood, or fiberglass. It is desirable to construct several alternate nest cavities in the same cliff to reduce competition with other cliff nesting raptors (Enderson 1964, Runde and Anderson
1986, Runde. 1987). 

Optimal
location and structure will increase the likelihood of occupancy at artificial nests (Boyce et al. 1982). Reported average heights of cliffs hosting prairie falcon nests and the nests
themselves range from 11-29 m and 7-18 m, respectively, and eyries are typically on the upper third of the cliff face (Enderson 1964, Runde and Anderson 1986, Allen 1987).
Eyrie aspect is quite variable, but they are typically oriented southeasterly to southwesterly (Enderson 1964, Allen 1987). Recommended specifications for artificial eyries include a floor of at least
7000 cm2, a height of >30 cm, a 5-10% slope toward the front, horizontal exposure of about 54 degrees, and gravel or loose material to create a nest cup (Enderson 1964, Fyfe
and Armbruster 1977, Runde 1987). 

Investigations
by SCCC indicate that the sandstone stratigraphic unit that outcrops at the PFlb cliff site is continuous to the north and would be available for creating a reclaimed cliff feature from
the final highwall, following coal removal (SCCC 2001 Volume 1B: 313 Addendum D—in review
by MDEQ). Additional core drilling and/or geotechnical analysis would be required to document the presence of competent, erosionally resistant material in any area considered for cliff feature
re-establishment. A tentative location for a post-mine bluff feature is presented on Figure C-1. To the extent possible, the reclaimed feature would mimic
the existing cliff feature. The actual design would be formulated in consultation with MDEQ during the permitting process. At least two artificial eyries would be constructed on the feature as a part
of final reclamation using one of the above-described methods. Specification for artificial eyries outlined above would be followed. This would provide additional long-term alternate nest
sites to replace the eventual loss of PFlb. 

At
least one artificial site would be created on a native cliff/bluff feature in the vicinity of PFlb. Twenty potential eyries were identified within a five-mile radius of PFlb. Those
sites were identified during an aerial survey conducted in April 2006 to search specifically for potential prairie falcon eyries. The sites ranged in suitability from competent sandstone cliffs to
loose, eroding scoria embankments. All 20 sites are depicted on Figure C-1 and described in Table C-2. Eleven were in sandstone outcrops and nine were scoria
cutbanks. It was decided following evaluation of these potential sites that the best alternative for the construction of an artificial eyrie was on the same cliff/bluff feature that currently hosts
eyrie PFla. This feature is obviously within the territory and falcons using the territory would 

C-4

 

likely
recognize any newly created eyrie on the cliff/bluff by as a potential alternate nest site. The artificial eyrie would be constructed prior to the 2008 breeding season using one of the
above-described methods. Specifications for artificial eyries outlined above would be followed. This would provide an almost immediate alternate nest site to replace the eventual loss of PFlb. 

Strategic
Relocation Contingency 

In
the unlikely event that, despite deterring efforts, prairie falcons resumed use of PFlb (or other sites on the same cliff) at a time that would conflict with mining activity, SCCC would evaluate
the potential for a strategic relocation of the nesting pair. By moving nestlings incrementally on an artificial platform to a new location where the adults could raise them to fledging, SCCC could
refocus the pair on a new nest site. The new location could be an actual cavity (natural or created) in a nearby cliff or an artificial nest box mounted to a pole. This has been done successfully with
other species of raptors. State and Federal permits would be required to undertake such an endeavor. 

CONCLUSIONS

The
territory that includes prairie falcons eyries PFla and PFlb is one of at least 10 historic falcon territories within approximately 10 miles of site PFlb. Falcons occupying the territory have an
irregular history of nesting success. One known nest site would be affected by the proposed expansion of mining operations. SCCC has formulated an adaptive, multi-faceted mitigation plan to offset
negative impacts
of the proposed development. The plan provides for: 1) protection of PFlb prior to nest removal, 2) further investigation of the movements and home range of falcons nesting in the area,
3) creation of new eyries and the replacement of lost nesting habitat, and 4) measures to prevent the displacement of active falcon pairs from the area. A deliberate and coordinated
approach will allow energy development objectives to be accomplished without imposing significant negative impacts on raptor resources in the area. 

REFERENCES

References
cited in Appendix C are found in Chapter 6 of the EA document 

C-5

 
	Table
	C-2:   Basic
descriptions of the 20 potential prairie falcon eyries identified in the vicinity of the Spring Creek Mine. 

	Site #1
	 	Substrate
	 	Description

	1	 	sandstone	 	Modest outcrop
	

2	
 	

sandstone	
 	

Small outcrop
	

3	
 	

sandstone	
 	

Modest outcrop
	

4	
 	

scoria	
 	

Low embankment
	

5	
 	

scoria	
 	

Low embankment
	

6	
 	

sandstone	
 	

Prominent cliff
	

7	
 	

sandstone	
 	

Modest outcrop
	

8	
 	

scoria	
 	

Loose rock, marginal site
	

9	
 	

sandstone	
 	

Prominent outcrop
	

10	
 	

sandstone	
 	

Prominent outcrop
	

11	
 	

sandstone	
 	

Modest outcrop
	

12	
 	

sandstone	
 	

Modest outcrop
	

13	
 	

scoria	
 	

Modest outcrop
	

14	
 	

sandstone	
 	

Prominent outcrop
	

15	
 	

scoria	
 	

Prominent outcrop
	

16	
 	

sandstone	
 	

Modest outcrop
	

17	
 	

scoria	
 	

Modest embankment
	

18	
 	

scoria	
 	

Prominent embankment
	

19	
 	

scoria	
 	

Modest embankment, loose material
	

20	
 	

scoria	
 	

Low embankment

	1
	Refer
to Figure C-1 for Site locations. 

C-6

 

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APPENDIX
D 

PROPOSED
MITIGATION OF PETROGLYPH SITE 24BH404 

 

 

 
 

Appendix D    
    

	 	 	DEPT. OF INTERIOR

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APPENDIX
D 

PROPOSED
MITIGATION OF PETROGLYPH SITE 24BH404 

Petroglyph
Site 24BH404 

Petroglyph
site 24BH404 is located in the SWSENWNE; NWNESWNE. Section 14, T8S R39E. The site is at the base of a 30 m high sandstone escarpment on the south side of the ridge
separating South Fork Monument Creek and Spring Creek drainage systems. It is on the south facing and west facing sides of a finger like projection of sandstone within the Spring Creek drainage
system. The linear site measures 35 m along the west face of the cliff and 60 m along the south face. The site consists of 46 panels of petroglyphs including modem, historic and prehistoric glyphs.
The prehistoric glyphs are exclusively on the south-facing wall (Munson and Ferguson 1998). 

The
prehistoric glyphs consist of anthropomorphic, zoomorphic and miscellaneous incised lines. Anthropomorphic figures include 19 shield bearers, four V-neck, one stick figure, one
square-shouldered figure, two neckless shouldered figures, and three "Y" stick figures. Four of the figures have horned headdresses and four have feathered headdresses. Material culture expressed in
the glyphs include two arrows and 11 spears. Zoomorphic figures include one bison, two bear, one antlered animal, one hoof print, two bear paws and three that do not have recognizable animal form.
Miscellaneous glyphs include 32 tally marks and two geometric designs. Historic/modern glyphs include initials and aircraft. 

Site
24BH404 is eligible for the NRHP under Criteria C and D because of the prehistoric rock art. The rock art contains clearly recognizable motifs whose styles have been documented elsewhere in the
region. The glyphs have the potential to add important information (Criterion D). The glyphs are examples of distinctive design and style (Criterion C) and reflect the cognitive expressions of
prehistoric inhabitants in a way that other site types and constructions cannot. 

Goals
and Objectives for Petroglyph Site 24BH404 

The
primary objectives of this mitigation plan are to document the glyphs in detail, to interpret the glyphs in terms of specific research questions, and to preserve the glyphs. 

Documentary
objectives include: 

	1)
	record
through photographic means all prehistoric glyphs at the site;

	2)
	record
through detailed scale drawings the prehistoric glyphs at the site;

	3)
	record
the prehistoric glyphs through detailed tracings on clear plastic sheeting; and

	4)
	describe
in detail each glyph with special emphasis on super-impositioning of elements. 

D-1

 

Interpretive
objectives include: 

	1)
	analyze
the glyphs through super-impositioning by overlaying the elements, as done by Keyser (1987);

	2)
	classify
the glyphs and elements descriptively (e.g., Loendorf and Porsche 1985);

	3)
	compare
and analyze the panels as a whole, as well as the individual elements within the framework of intrasite and intersite rock art, and;

	4)
	attempt
to classify the glyphs and elements by their cultural or historic tribal affiliation (e.g., Conner 1984 and 1989; Schuster 1987; Keyser 1975, Sundstrom and Keyser 1998,
Gebhard [ILLEGIBLE] 1994). 

Preservation
objectives include: 

	1)
	make
a latex casting of the appropriate panels so a plaster of Paris casting can be made and curated at the appropriate repository, preferably at the BLM Curation Facility in Billings;

	2)
	cut
and remove the appropriate panels from the sandrock outcrop (e.g., Waage and Bohman 1991), and;

	3)
	curate
and display the salvaged panels at a suitable site. 

Mitigation
Plan for Petroglyph Site 24BH404 

The
work is divided into six main tasks to mitigate impact to the site. Task 1 is the recordation of the glyphs, Task 2 is the testing in front of the glyph panels, Task 3. is the analysis of the
fieldwork and research, Task 4 is report preparation, Task 5 is the removal of the rock art panels, and Task 6 is the display and curation of salvaged rock art panels. 

        Task I.    Rock Art Recording Methods and Techniques 

A
map will be made of the site area. The map will record the topography in 1 m contour intervals. Using a total station, each of the glyphs will be tied into the grid vertically. 

Each
glyph will be given a number designation and each will be labeled by means of a small piece of masking tape. The labels provide a reference point to insure consistency in recording each glyph. 

Tracings
of the prehistoric glyphs will be made on clear plastic. Observations of superimpositioning and other glyph attributes will be made on sketches and on tracings as appropriate. 

Times
for the photography of the panels will be determined to take advantage of the angle of the sun. 

Black
and white photography as well as color transparency film will be used to document each glyph and element. Side lighting is recognized as essential to the photography of the glyphs and this will
be accomplished through synchronized flash, reflectors, natural lighting or a combination of methods. For each glyph or element, a black and white metric scale should be attached to the panel with
double-sided tape. Vertical scales (if used) will have an arrow designating "up". Scales will be attached using a hand level so they are exactly vertical or horizontal. A 50 mm lens will be used when
possible to minimize distortion although a wide-angle lens may be required in some instances. Where possible the photographs will be taken with the camera level and opposite the glyph to
minimize
distortion. The scale drawings of the glyphs will be checked for accuracy against the photographs. All superimpositions will be noted and separated as described by Keyser (1987). 

The
panels and site will be digitally recorded. A variety of enhancement techniques are available to enhance subtle details in the rock face and petroglyph. The images can be merged (stitched,
spliced, joined) to form a continuous image. This is useful for representing large panels at a very high resolution and for site overviews. The digital information can also be used for desktop virtual
reality 

D-2

 

where
panoramas of images can be accessed using interactive techniques. This makes it possible. to navigate through layers of various motifs or elements on a particular petroglyph panel
and for three-dimensional imaging of the site and panels. Digital video will also be included as part of the work at the site This media works well for not only documentation but also for
presentations. 

        Task 2.    Testing in Front of Petroglyph Panels 

Several
l-m2 units will be placed in front of the petroglyph panels in search for subsurface cultural remains that may add to the understanding of the panels. Generally,
little is found below rock and [ILLEGIBLE] but sometimes substantial cultural deposits are found (e.g., Loendorf 1990 and Fredlund and 1993). 

        Task 3.    Analysis and Research 

In
order to address the research objectives, analysis will entail examination of published reports for the region that addresses archaeological studies, rock art sites, ethnographic and ethnohistoric
information and other related materials. The glyphs will be discussed in terms of their type (after Loendorf and Porshe 1985) and classified according to a database system developed by GCM. Analysis
will follow suggestions and hypotheses presented in the rock art literature, e.g., Schuster (1987), Conner (1984 and 1989), Sundstrom (1987). 

        Task 4.    Report Preparation 

The
draft report will include an introduction explaining the purpose, background, and goals of the project. A general physical description of the site and the area will be included. A discussion of
rock art in local and regional context will be included. The glyphs will be displayed by using a superimposed graph similar to Keyser's 1987 work. Black and white, and/or color photographs will be
included for each glyph or element. Each glyph, element or motif will be described in detail. 

The
final section of the report will summarize the results of the research. Interpretation of the glyphs will relate to the superimpositioning of the glyphs and possible rock art chronology as has
been proposed by others (e.g., Keyser 1987, Loendorf 1988, Conner 1984 and 1989. 

The
report will be written in a form readily publishable in a professional journal, such as Archaeology in Montana. 

        Task 5.    Removal of Rock Art Panels 

Three
successful attempts at removal of rock art panels in southeast Montana have been documented. The procedures involved are discussed below to facilitate the discussion regarding site 24BH404. 

The
first salvage removal of local petroglyph panels took place in 1987 at Ellison's Rock (24RB1019), located on Western Energy Company's (WECO) Rosebud Mine property (Waage and Bohman 1991). The
petroglyph panels at Ellison's Rock were described in detail prior to their removal (Conner 1984). An electric rotary drill was used to drill a series of holes around individual petrogylph panels. The
detached panels were dropped onto cargo pallets covered with sand. Then a forklift was used to lift the loaded pallets onto a truck bed. One of the panels is on display at the Historical Society
Museum in Helena. The remaining panels are in Western Energy Company's warehouse awaiting a permanent place for curation. 

In
1999 petroglyph site 10 Warrior (24RB513) at the Rosebud Mine was to be destroyed by mining activities. The panel was described and extensively photographed prior to its removal (Munson and
Ferguson 1992). The salvage of this petroglyph panel was done under the direction of Jack Erwin, then with WECO. Gene Munson, GCM Services, observed the method used to remove the panel. Since the site
consisted of one large panel, the goal was to remove it in one piece. Achieving this goal was extremely difficult since there was a natural fracture in the rock face near one end of the panel. The 

D-3

 

approach
used by Waage worked for smaller panels but would not work on a large panel as at 10 Warrior. Ervin removed the sandstone outcrop above the panel prior to removing the panel. This entailed
the removal of the top five meters of the outcrop. The panel was first covered with plastic sheeting taped to the rock face. A chain saw equipped with a chain used for cutting wood was used to cut the
sandstone rock. A garden hose with a small stream of water was directed onto the cutting bar. A ramp was constructed for forklift access to aid in the removal of the panel. A cut was made immediately
below and at each end of the panel. Then a cut was made approximately 60 cm behind the panel face. The approximately 2.3 m long by 0.8 m high by 0.6 m thick block of sandstone containing the panel was
then slid onto a steel plate that was on the forks of a fork lift. The forklift then placed the panel on a flatbed truck. The natural fracture in the rock did not expand during the removal of the
panel. This approach to removing the large panel was very successful. The panel is now on display in a glassed wooden case at the new medical facility in Lame Deer. 

In
1999, personnel from GCM Services and SCCC salvaged the most intact panel at site 24BH1046. The petroglyph panels were rapidly deteriorating and planned mining activities were likely to destroy the
site. The site was recorded prior to salvage (Taylor, et al. 1984). A latex mold was made of the panel prior to its removal. The method used to remove the panel was a combination of that used by Waage
and by Erwin. A series of holes were drilled with a hammer drill and a chainsaw equipped with a chain for cutting wood was used to cut the spaces between the holes. A natural cavity in the rock face
beside the panel was enlarged and used to drill and make the cut behind the panel. The panel was then slid onto a steel plate and onto the front bucket of a rubber tired backhoe. From there it was
loaded onto a truck and taken SCCC mine facilities for storage. 

The
height of the cliff feature and the size and number of rock art panels associated with Site 24BH404 present unique salvage challenges. It is likely that not all of the 46 panels would be salvaged.
The specific panels to be salvaged will be determined through consultation with the BLM, MDEQ, Montana State Historic Preservation office, the Advisory Council on Historic Preservation, and
appropriate Native American tribes. Safety will be a primary factor in determining if and how individual panels will be removed. Detailed plans for individual panel salvage will vary according to
situations encountered at each panel site. Methods will likely be a combination of those used by Waage and Erwin. A rock cutting chain would be used instead of one designed for cutting wood for the
removal of the petroglyph panels at Petroglyph Site 24BH404. Removal of portions of the sandstone cliff above each salvaged panel will also be considered, which would facilitate the controlled removal
of large rock art panels. 

        Task 6.    Curation and Display of Petroglyph Panels 

There
are four options for the curation and display of the salvaged panels: 

	•
	SCCC
would donate the panels to a Sheridan County, Wyoming museum,

	•
	SCCC
would donate the panels to an appropriate Native American tribe,

	•
	SCCC
would retain possession of the panels or

	•
	a
combination of the above options. 

This
task should be started well in advance of the actual salvage operation to ensure that the action would adequately preserve Native American history and culture. 

REFERENCES

References
cited in Appendix D are found in Chapter 6 of the EA document. 

D-4

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Exhibit 10.15

Appendix DQuickLinks
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Exhibit 10.16    
    

DS-459

9/26/95 

STATE OF MONTANA  

 COAL LEASE  

 C-1101-00  

        THIS LEASE, is made and entered into between the State of Montana, by and through its lawfully qualified and acting Board of Land Commissioners, hereinafter
referred to as "Lessor", and 

Spring
Creek Coal Company

P.O. Box 67

Decker, MT 59025 

hereinafter
referred to as "Lessee", under and pursuant to the authority granted Lessor by the terms and provisions of Section 77-3-301, et
seq .. MCA, all acts amendatory thereof and supplementary thereto, and all rules adopted pursuant thereto. 

        IT
IS MUTUALLY UNDERSTOOD, AGREED AND COVENANTED BY AND BETWEEN THE PARTIES TO THIS LEASE AS FOLLOWS: 

        1.    GRANTING CLAUSE.    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, for the purpose of mining and disposing of coal and constructing all such works, buildings,
plants, structures and appliances as may be necessary and convenient to produce, save, care for, dispose of and remove said coal, and for the reclamation thereafter, all the lands herein described, as
follows: 

Land
located in Big Horn County 

	Description of land:	 	Township South, Range 39 East

Section 23: N2N2NW, NWHRNE

Total
Number of Acres: 50, more or less, belonging to School grant. 

All
rights granted to Lessee under this Lease are contingent upon Lessee's compliance with the Montana Strip Mine Siting Act and the Montana Strip and Underground Mine Reclamation Act
(Title 82, Chapter 4. Parts 1 and 2. MCA). If these acts are repealed subsequent to the issuance of this Lease, all rights granted Lessee are contingent upon Lessor review and
approval of Lessee's mine operation and reclamation plan. The rights granted under this Lease are further subject to agency responsibilities and authority under the provisions of the Montana
Environmental Policy Act. 

        2.    EFFECTIVE DATE AND TERM.    This lease takes effect on November 20, 2000 and is
granted for a primary term of ten (10) years and so long thereafter as coal is produced from such lands in commercial quantities, subject to all of the terms and conditions herein set forth. A
lease not producing coal in commercial quantities at the end of the primary term shall be terminated, unless the leased lands are described in a strip mine permit issued under
Section 82-4-221, MCA, or in a mine site location permit under Section 82-4-122, MCA, prior to the end or the primary term, and the lease
shall not be terminated so long as said lands are covered and described under valid permit. 

        3.    RIGHTS RESERVED.    Lessor expressly reserves the right to sell, lease, or otherwise
dispose of any interest or estate in the lands hereby leased, except the interest conveyed by this Lease; provided, however, that Lessor hereby agrees that subsequent sales, leases or other
dispositions of any interest or
estate in the lands hereby leased shall be subject to the terms of this Lease and shall not interfere with the Lessee's possession or rights hereunder. 

        4.    BOND.    Lessee shall immediately upon the execution of the Lease furnish a surety band
in the amount of $1,000, conditioned upon compliance with the provisions of this Lease, or, in the option 

 

of
the Lessor, a cash deposit in the amount of $1,000, or an irrevocable letter of credit in a form approved by Lessor drawn upon an approved bank, in the same amount. All rentals, royalties and
interest must be paid and all disturbance must be reclaimed to the satisfaction of Lessor prior to release of any bond. Additional bonding may be required, or reduced bonding allowed, whenever Lessor
determines it is necessary, or sufficient, to ensure compliance with this Lease. 

        5.    RENTAL.    Lessee shall pay Lessor annually, in advance, for each acre or fraction
thereof covered by this Lease, beginning with the date this Lease takes effect, an annual money rental of $3.00 par acre. Rental terms are subject to readjustment as provided in Paragraph 7,
but in no case shall it be less than two (2) dollars per acre. 

        6.    ROYALTY.    Lessee shall pay Lessor in money or in kind at Lessor's option a royalty on
every short ton (3,000 pounds) of coal mined and produced during the term of this Lease, calculated upon the f.o.b. mine price of the coal prepared for shipment, including production-based taxes.
Lessee shall pay a royalty of 12.5% upon coal removed by strip, surface, or auger mining methods and a royalty of 10.0% for coal removed by underground mining methods. Royalty terms are subject to
review and readjustment as provided in Paragraph 7, but in no case shall the royalty for the coal mined be less than ten (10) percent of the f.o.b. price of a ton prepared for shipment. 

        7.    READJUSTMENT OF RENTAL AND ROYALTY TERMS.    The rental and royalty terms of this Lease
shall be subject to readjustment to reflect fair market value at the end of the primary term of ten (10 years) and at the end of each five (5) year period thereafter if the lease is
producing coal in commercial quantities. 

        8.    OFFSETTING PRODUCTION.    The obligation of Lessee to pay royalties under this Lease may
be reduced by the Board for coal produced from any particular tract within the Lease upon a showing by Lessee to the Board that the coal is uneconomical to mine at prevailing market prices and
operating coats unless Lessor's royalty it reduced. Under no circumstances may Lessor's royalty be reduced below ten (10) percent of the coal produced and sold f.o.b. the mine site, prepared
for shipment, including taxes based on production or value. 

        9.    LESSOR NOTIFICATION AND REPORTS.    Lessee shall notify Lessor prior to the commencement
of any prospecting, exploration, development or production operations. As soon as any mining operations are commenced, Lessee shall submit to Lessor, on or before the last day of each month, a royalty
report and payment covering the preceding calendar month, which report shall be in such form and include such information as Lessor shall prescribe. Upon request, Lessee shall also furnish to Lessor,
reports, plats, and maps showing exploration data, development work, improvements, amount of leased deposits mined, contracts for sale and any other information with respect to the land leased which
Lessor may require. Lessor's point of contact for all matters related to this Lease is: 

Department
of Natural Resources & Conservation

Minerals Management Bureau

P.O. Box 201601

1625 Eleventh Avenue

Helena, MT 59620-1601 

Lessor
will notify Lessee of any subsequent change in point of contact. 

        10.    INSPECTION.    Representatives of the Lessor shall at all times have the right to enter
upon all parts of the leased premises for the purposes of inspection, examination, and testing that they may deem necessary to ascertain the condition of the Lease, the production of coal, and
Lessee's compliance with its obligations under this Lease. Representatives of Lessor shall also, at all reasonable hours, have free access to all books, accounts, records, engineering data, and papers
of Lessee insofar as they contain information relating to the production of coal under this Lease, the price obtained therefor, and the fair market value of the production. Lessor shall also have free
access to agreements 

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relating
to production of coal under this Lease. Lessor may copy at its own expense any book, account, record, engineering data, papers, or agreements to which it has access pursuant to this
paragraph. 

        11.    CONFIDENTIALITY.    Lessor agrees that Lessee may request, any materials obtained by
Lessor pursuant to this Lease be designated as confidential. Lessor shall agree to keep any information so designated strictly confidential if Lessor determines that confidentiality is not unlawful.
Further, the parties agree that the information Lessee is obliged to provide pursuant to this Lease is only that information relating to the reasonable administration and enforcement by Lessor of the
provisions of this Lease and state law. 

        12.    ASSIGNMENT.    This Lease may not be assigned without the prior approval of Lessor in
writing. Assignments must be made in accordance with any statutes or administrative rules pertaining to
assignments in effect at the time of assignment. Assignments may not extend the expiration date of this Lease. 

        13.    TERMINATION.    Lessee may surrender and relinquish this Lease by giving written notice
to the Board at least thirty (30) days previous to the anniversary date of the Lease. It is understood and agreed that the Lessor hereby reserves the right to declare this Lease forfeited and
to cancel the same through the Board of Land Commissioners upon failure of Lessee to fully discharge all the obligations provided herein, after written notice from the Department and reasonable time
fixed and allowed by it to Lessee for the performance of any undertaking or obligation specified in such notice concerning which Lessee is in default. Lessee, upon written application therefor, shall
be granted a hearing on any notice or demand of the Department before the Lease may be declared forfeited or canceled. 

        14.    SURRENDER OF PREMISES.    Upon the termination of this Lease for any cause, Lessee
shall surrender possession of the leased premises to Lessor, subject to Lessee's right to re-enter (1) for the purpose of removing all machinery and improvements belonging to
Lessee, hereby granted at any time within six (6) months after the date of such termination, except those improvements as are necessary for the preservation of the deposit and access to the
deposit, which improvements shall become the property of Lessor; and (2) for the purpose of complying with State and Federal laws adopted pursuant to the police power of State or Federal
government. If any of the property of Lessee is not removed from the leased premises as herein provided, the same shall be deemed forfeited to Lessor and become its property. 

        15.    PROTECTION OF THE SURFACE, NATURAL RESOURCES, AND IMPROVEMENTS.    Lessee agrees to
take such reasonable steps as may be needed to prevent operations front unnecessarily: (1) 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 Lessor or by its grazing permittees or lessees. Upon any partial or total relinquishment or the cancellation or expiration of this Lease, or at any other time prior
thereto when required by Lessor and to the extent deemed necessary by Lessor, Lessee shall fill any sump holes, ditches and other excavations, remove or cover all debris, and, so far as reasonably
possible, reclaim the disturbed area to a condition in keeping with the concept of the heat beneficial use, including the removal of structures as and if required. Lessor may prescribe the steps to be
taken and reclamation to be made with respect co the land and improvements thereon. Nothing in this section limits Lessee's obligation to comply with any applicable state or federal law, rule, or
regulation. 

        16.    TAXES.    Lessee shall pay when due all taxes lawfully assessed and levied upon
improvements, output of mines, or other rights, property or assets of the Lessee. 

        17.    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 and assigns of the respective parties hereto. 

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        18.    COMPLIANCE WITH LAWS AND RULES.    Lessee agrees to comply with all applicable laws and
rules in effect at the date of this lease, or which may, from time to time, be adopted and which do not impair the obligations of this lease and do not deprive the Lessee of an existing property right
recognized by law. 

        19.    WATER RIGHTS.    Lessee may not interfere with any existing water right owned or
operated by any person. Lessee shall hold Lessor harmless against all claims, including attorney fees, for damages claimed by any person asserting interference with a water right. 

        20.    MINE SAFETY.    Lessee agrees to operate the mine in accordance with rules promulgated
by the Mine Safety and Health Administration for the health and safety of workers and employees. 

        21.    WASTE PROHIBITED.    All mining operations shall be done in good and workmanlike manner
in accordance with approved methods and practices using such methods to insure the extraction of the greatest amount of economically minable and saleable mineral, having due regard for the prevention
of waste of the minerals developed on the land, the protection of the environment and all natural resources, the preservation and conservation of the property for future use, and for the health and
safety of workers and employees. If the Lessor has reasonable belief that the operations are not so being conducted, it shall so notify the lessee in writing, and if compliance is not promptly
obtained and the delinquency fully satisfied, the Lessor may, at its option, cancel the Lease pursuant to the provisions of paragraph 23 of this Lease. 

        22.    SURRENDER OF DATA.    All geological data pertaining to the leased premises, including
reports, maps, logs and other pertinent data regarding trust resources shall be given to the Lessor upon surrender, termination, or expiration of the Lease. Lessor may refuse to release bond until
surrender of such data to the Lessor. All drill core unused or undamaged by testing shall be saved. Upon surrender, termination, or expiration of the lease. Lessee shall contact the State Geologist,
Montana Bureau of Mines and Geology, Butte, Montana, to determine if such drill core is of interest to the State Geologist for the drill core library. Any drill core determined by the State Geologist
to be of interest Shall be forwarded by Lessee, at Lessee's cost, to the drill core library. 

        23.    WEED CONTROL.    Lessee is responsible for controlling noxious weeds on the leased
premises and shall prevent or eradicate the spread of noxious weeds onto land adjoining the leased premises. 

        24.    COAL MINE GAS.    Lessee may remove and vent, flare, or sell coal bed gas from the coal
formation being mined only if such removal is a necessary safety procedure directly related to the normal physical process of mining the coal under this Lease. If Lessor owns oil and gas rights to
lands herein described, Lessee must pay Lessor a royalty on any coal bed gas removed and sold. Coal bed gas royalty will be calculated according to Lessor's then current oil and gas lease terms.
Venting or flaring of coal bed gas that is uneconomical to sell must comply with all applicable laws and rules. The right to remove and vent, flare, or Bell coal bed gas, except under the circumstance
described above, is specifically retained by Lessor. 

        25.    SURFACE OWNER AND SURFACE LESSEE RIGHTS.    Lessee, shall notify the surface owner, if
the surface owner is not the Lessor, and any surface lessee of the location of any facilities or access roads on the leased premises prior to their construction. 

        26.    DAMAGES.    Where Lessor owns the surface estate above the leased premises, Lessee
shall compensate Lessor or Lessor's surface lessees or permitted for all damages to authorized improvements on the leased premises, including penalties and charges assessed by the ASCS on CRP lands,
as a result of Lessee's prospecting, exploration, development or mining operations. All such damages will be, assessed by and paid directly to the Lessor. Lessee shall also make all payments required
by law to surface owners and lessees if Lessor is not the owner of the surface estate above the leased premises. 

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        27.    SPECIAL CONDITIONS.    

Lessee
must enter into an offsite mitigation plan acceptable to the Bureau of Land Management and the Montana Department of Fish, Wildlife & Parks before mining or utilization of the lease
premises will be allowed. 

        IN
WITNESS WHEREOF, the parties hereto set their hands and Lessor has caused this agreement to be executed with the official seal of the State Board of Land Commissioners on this
18th day of December, 2000. 

	THE STATE OF MONTANA

    Lessor	 	Spring Creek Coal Company

    Lessee

	 

	By Its State Board of Land

Commissioners	 	 
	

/s/ Curtis W. Weittenhiller
 DIRECTOR	
 	

By: /s/ Curtis W. Weittenhiller

    Its General Manager

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	STATE OF MONTANA	 	)
	 	 	) ss.
	COUNTY OF BIG HORN	 	)

        The
foregoing document was subscribed and sworn to before me this 14th day of December, 2000, by Curtis W. Weittenhiller as General Manager for Spring Creek Coal
Company. 

	[SEAL]	 	/s/ Isabell Trevino
 Notary Public in and for the State of Wyoming, County of Sheridan, residing at Sheridan, Wyoming
	

My commission expires: Sept. 30, 2002	
 	

 

	 

	STATE OF MONTANA	 	)
	 	 	) ss.
	COUNTY OF	 	)

        The
foregoing document was subscribed and sworn to before me this            day of December, 2000,
by                                    as     
                               . 

	 	 	

	 	 	Notary Public
	

My commission expires:	
 	

 

6

QuickLinks

Exhibit 10.16

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