EXHIBIT 10


Form 3400-12                                                Serial Number
(April 1986)                   UNITED STATES
                         DEPARTMENT OF THE INTERIOR         UTU-76195
                         BUREAU OF LAND MANAGEMENT

                               COAL LEASE
- --------------------------------------------------------------------------------
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)

                         Canyon Fuel Company, LLC
                         6955 S. Union Park Center, Suite 540
                         Midvale, UT 84047

hereinafter  called the lessee,  is effective (date) OCT 1 1999, 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 issued  pursuant and 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 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:

T. 20 S., R. 5 E., SLM, Utah              T. 21 S., R. 5 E., SLM, Utah
   Sec. 35, S2NE,SENW,NESW,S2SW,SE;          Sec. 1, lots 3,4,S2SW,SWSE;
   Sec. 36, W2SW,SESW.                       Sec. 2, lots 1-4,S2S2;
                                             Sec. 10, E2;
T. 21 S., R. 6 E., SLM, Utah                 Sec. 11, all;
   Sec. 19, lots 3,4,E2SW;                   Sec. 12, all;
   Sec. 30, lots 1-3,E2NW,NESW.              Sec. 13, all;
                                             Sec. 14, all;
                                             Sec. 15, E2;
                                             Sec. 22, E2;
                                             Sec. 23, all;
                                             Sec. 24, all;
                                             Sec. 25, N2,N2S2;
                                             Sec. 26, N2,NESW,E2NWSW,SE.

containing  7,171.66 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 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/acre 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 8 per cent 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 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  $13,686,000.  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.  Lessee shall  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 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  stipulation  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 authorized 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 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  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 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 -

This coal lease is subject to  termination  if the lessee is  determined  at the
time of  issuance to be in  noncompliance  with  Section 2(a)2(A) of the Mineral
Leasing Act.



SEC. 15.  SPECIAL STIPULATIONS (Cont'd.)-



                           SEE ATTACHED STIPULATIONS




- --------------------------------------------------------------------------------
                                         The United States of America

Canyon Fuel Company, LLC                 By Bureau of Land Management
- ------------------------------------     ------------------------------------
Company or Lessee Name

   /s/ Jeffry N. Quinn                     /s/ Christopher J. Merritt
- ------------------------------------     ------------------------------------
     (Signature of Lessee)                       (Signing Officer)

                                         Acting Branch Chief,
Vice President and Secretary                 Minerals Adjudication
- ------------------------------------     ------------------------------------
           (Title)                                   (Title)

July 1, 1999                             September 1, 1999
- ------------------------------------     ---------------------------------------
           (Date)                                    (Date)


================================================================================
Title 18 U.S.C.  Section  1001,  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.
================================================================================
This form  does not constitute an information collection as defined by 44 U.S.C.
3502 and therefore does not require OMB approval.
================================================================================




                        Special Coal Lease Stipulations
                                  Pines Tract
                                   UTU-76195

Federal  Regulations 43 CFR 3400  pertaining to Coal  Management make provisions
for  the  Surface   Management  Agency,  the  surface  of  which  is  under  the
jurisdiction of any Federal Agency other than the Department of the Interior, to
consent to leasing and to prescribe  conditions to insure the use and protection
of the lands.  All or part of this lease  contain lands the surface of which are
managed   by   the   United   States    Department   of   Agriculture,    Forest
Service-Manti-LaSal National Forest.

The  following  stipulations  pertain  to the Lessee  responsibility  for mining
operations  on the  lease  area and on  adjacent  areas  as may be  specifically
designated on National Forest System Lands.

Stipulation #1.
- ---------------

Before  undertaking  activities  that may  disturb  the  surface  of  previously
undisturbed  leased  lands,  the  Lessee may be  required  to conduct a cultural
resource inventory and a paleontological appraisal of the areas to be disturbed.
These studies  shall be conducted by qualified  professional  cultural  resource
specialists or qualified paleontologists,  as appropriate, and a report prepared
itemizing the findings. A plan will then be submitted making recommendations for
the  protection  of, or measures to be taken to mitigate  impacts for identified
cultural or paleontological resources.

If cultural  resources  or  paleontological  remains  (fossils)  of  significant
scientific  interest are  discovered  during  operations  under this lease,  the
Lessee prior to disturbance shall immediately bring them to the attention of the
appropriate  authority.   Paleontological   remains  of  significant  scientific
interest do not include leaves,  ferns or dinosaur  tracks commonly  encountered
during underground mining operations.

The cost of  conducting  the  inventory,  preparing  reports,  and  carrying out
mitigating measures shall be borne by the Lessee.

Stipulation #2.
- ---------------

If there is reason to believe that  Threatened  of  Endangered  (T&E) species of
plants or animals,  or migratory bird species of high Federal  interest occur in
the area, the Lessee shall be required to conduct an intensive  field  inventory
of the area to be disturbed and/or impacted. The inventory shall be conducted by
a qualified specialist and a report of findings will be prepared. A plan will be
prepared  making  recommendations  for the protection of these species or action
necessary to mitigate the disturbance.

The cost of  conducting  the  inventory,  preparing  reports  and  carrying  out
mitigating measures shall be borne by the Lessee.



Stipulation #3.
- ---------------

The Lessee shall be required to perform a study to secure adequate baseline data
to quantify  the existing  surface  resources on and adjacent to the lease area.
Existing  data may be used if such data are adequate for the intended  purposes.
The  study  shall  be  adequate  to  locate,   quantify,   and  demonstrate  the
interrelationship of the geology, topography, surface and groundwater hydrology,
vegetation  and  wildlife.  Baseline  data will be  established  so that  future
programs of observation can be incorporated at regular intervals for comparison.

Stipulation #4.
- ---------------

Powerlines used in conjunction  with the mining of coal from this lease shall be
constructed  so as to provide  adequate  protection  for raptors and other large
birds. When feasible,  powerlines will be located at least 100 yards from public
roads.

Stipulation #5.
- ---------------

The limited  area  available  for mine  facilities  at the coal  outcrop,  steep
topography,  adverse winter  weather,  and physical  limitations on the size and
design of access roads,  are factors  which will  determine the ultimate size of
the surface area utilized for the mine. A site-specific  environmental  analysis
will be prepared for each new mine site  development and for major  improvements
to existing developments to examine alternatives and mitigate conflicts.

Stipulation #6.
- ---------------

Consideration  will be given to site selection to reduce adverse visual impacts.
Where  alternative  sites are  available,  and each  alternative  is technically
feasible,  the  alternative  involving the least damage to the scenery and other
resources  shall  be  selected.  Permanent  structures  and  facilities  will be
designed,  and screening techniques employed to reduce visual impacts, and where
possible,  achieve a final landscape  compatible with the natural  surroundings.
The creation of unusual,  objectionable,  or unnatural  landforms and vegetative
landscape features will be avoided.

Stipulation #7.
- ---------------

The Lessee shall be required to establish a monitoring system to locate, measure
and quantify the progressive and final effects of underground  mining activities
on the topographic  surface,  underground and surface  hydrology and vegetation.
The monitoring  system shall utilize  techniques which will provide a continuing
record of change over time and an analytical  method and measurement of a number
of points  over the lease  area.  The  monitoring  shall  incorporate  and be an
extension of the baseline data.

Stipulation #8.
- ---------------

The Lessee shall  provide for the  suppression  and control of fugitive  dust on
haul roads and at coal handling and storage  facilities.  On Forest  Development
Roads  (FDR),  Lessees  may  perform  their  share  of  road  maintenance  by  a
commensurate  share  agreement if a  significant  degree of traffic is generated
that is not related to their activities.



Stipulation #9.
- ---------------

Except at specifically  approved locations,  underground mining operations shall
be conducted in such a manner so as to prevent  surface  subsidence  that would:
(1) cause the creation of  hazardous  conditions  such as  potential  escarpment
failure and landslides, (2) cause damage to existing surface structures, and (3)
damage or alter the flow of perennial streams. The Lessee shall provide specific
measures for the protection of escarpments, and determine corrective measures to
assure that hazardous conditions are not created.

Stipulation #10.
- ----------------

In order to avoid surface disturbance on steep canyon slopes and to preclude the
need for surface access, all surface breakouts for ventilation  tunnels shall be
constructed from inside the mine, except at specific approved locations.

Stipulation #11.
- ----------------

If removal of timber is required for clearing of construction  sites, etc., such
timber  shall be removed  in  accordance  with the  regulations  of the  surface
management agency.

Stipulation #12.
- ----------------

The coal contained  within,  and authorized for mining under this lease shall be
extracted only by underground mining methods.

Stipulation #13.
- ----------------

Existing Forest Service owned or permitted surface  improvements will need to be
protected,  restored, or replaced to provide for the continuance of current land
uses.

Stipulation #14.
- ----------------

In order to protect  big-game  wintering  areas,  elk calving  and deer  fawning
areas,  sage grouse  strutting  areas,  and other key  wildlife  habitat  and/or
activities,  specific  surface  uses  outside the mine  development  area may be
curtailed during specified periods of the year.

Stipulation #15.
- ----------------

Support  facilities,  structures,  equipment,  and similar  developments will be
removed from the lease area within two years after the final  termination of use
of such facilities. This provision shall apply unless the requirement of Section
10 of the lease forms is applicable.  Disturbed areas and those areas previously
occupied by such  facilities  will be stabilized  and  rehabilitated,  drainages
reestablished, and the areas returned to a pre-mining use.




Stipulation #16.
- ----------------

The Lessee,  at the  conclusion  of the mining  operation,  or at other times as
surface  disturbance  related to mining may occur,  will  replace  all  damaged,
disturbed or displaced corner  monuments  (section  corners,  1/4 corners etc.),
their  accessories  and appendages  (witness  trees,  bearing trees,  etc.),  or
restore them to their  original  condition and location,  or at other  locations
that meet requirements of the rectangular  surveying system.  This work shall be
conducted  at the  expense  of  the  Lessee,  by a  professional  land  surveyor
registered in the State of Utah,  and to the standards and  guidelines  found in
the Manual of Surveying Instructions, United States Department of the Interior.

Stipulation #17.
- ----------------

The Lessees, at their expense,  will be responsible to replace any surface water
and/or developed ground-water source identified for protection, that may be lost
or adversely affected by mining operations,  with water from an alternate source
in  sufficient  quantity  and quality to  maintain  existing  riparian  habitat,
fishery  habitat,  livestock and wildlife use, or other land uses (authorized by
36 CFR 251).

Stipulation #18.
- ----------------

              STIPULATION FOR LANDS OF THE NATIONAL FOREST SYSTEM
                             UNDER JURISDICTION OF
                         THE DEPARTMENT OF AGRICULTURE

The  licensee/permitee/lessee  must comply with all the rules and regulations of
the Secretary of  Agriculture  set forth at Title 36, Chapter II, of the Code of
Federal  Regulations  governing the use and  management  of the National  Forest
System (NFS) when not  inconsistent  with the rights granted by the Secretary of
the Interior in the  license/permit/lease.  The Secretary of Agriculture's rules
and  regulations  must be complied with for (1) all use and occupancy of the NFS
prior to approval of a  permit/operation  plan by the Secretary of the Interior,
(2) uses of all existing improvements,  such as Forest Development Roads, within
and outside  the area  licensed,  permitted  or leased by the  Secretary  of the
Interior,   and  (3)  use  and  occupancy  of  the  NFS  not   authorized  by  a
permit/operating plan approved by the Secretary of the Interior.

All matters related to this stipulation are to be addressed to:

                               Forest Supervisor
                          Manti-LaSal National Forest
                           599 West Price River Drive
                               Price, Utah 84501
                            Telephone: 435-637-2817

who is the authorized representative of the Secretary of Agriculture.




Stipulation #19.
- ----------------

ABANDONMENT OF EQUIPMENT:  The lessee/operator is responsible for compliance and
reporting  regarding toxic and hazardous  material and substances  under Federal
Law and all  associated  amendments  and  regulations  for the  handling of such
materials on the land surface and in underground mine workings.

The  lessee/operator  must remove mine  equipment  and  materials not needed for
continued  operations,  roof support and mine safety from  underground  workings
prior  to  abandonment  of mine  sections.  Exceptions  can be  approved  by the
Authorized Officer (BLM) in consultation with the surface management agency. Any
on-site  disposal of non-coal  waste must comply with 30 CFR section  817.89 and
must be approved by the regulatory authority  responsible for the enforcement of
the  Surface  Mining  Control and  Reclamation  Act (30 U.S.C.  1201,  et seq.).
Creation  of a  situation  that  would  prevent  removal  of such  material  and
equipment by retreat or abandonment of mine sections without prior authorization
would be considered noncompliance with lease terms and conditions and subject to
appropriate penalties under the lease.

All safe and  accessible  areas shall be inspected  prior to being  sealed.  The
lessee  shall  notify  the  Authorized  Officer  in writing 30 days prior to the
sealing  of any areas in the mine and state the  reason  for  closure.  Prior to
seals  being put into  place,  the lessee  shall  inspect  the area and  certify
through documentation any  equipment/machinery,  hazardous substances,  and used
oil  that is  intended  to be  left  underground.  The  Authorized  Officer  may
participate in this  inspection.  The purpose of this inspection will be: (1) to
provide  documentation  for  compliance  with 42 U.S.C.  9620 section 120(h) and
State  Management  Rule  R-315-15,  and to  assure  that  certification  will be
meaningful at the time of lease  relinquishment,  (2) to document the inspection
with a mine map showing location of  equipment/machinery  (model, type of fluid,
amount remaining,  batteries etc.) that is proposed to be left  underground.  In
addition,  these items will be photographed at the lessee's expense and shall be
submitted to the Authorized Officer as part of the certification.

WASTE  CERTIFICATION:  The lessee  shall  provide on a yearly basis and prior to
lease  relinquishment,  certification  to the lessor that, based upon a complete
search of all the  operator's  records for the mine and upon their  knowledge of
past operations,  there has been no hazardous  substances defined as per (40 CFR
302.4) or used oil as per Utah State Management Rule R-315-15,  deposited within
the lease,  either on the surface or  underground,  or that all remedial  action
necessary  has been  taken to protect  human  health  and the  environment  with
respect  to  any  such  substances  remaining  on  the  property.   The  back-up
documentation to be provided shall be described by the lessor prior to the first
certification  and shall include all  documentation  applicable to the Emergency
Planning and Community  Right-to-know Act (EPCRA),  Public Law 99-499, Title III
of the Superfund Amendments and Reauthorization Act of 1986 or equivalent.

Stipulation #20.
- ----------------

Notwithstanding  the approval of a resource  recovery and protection plan by the
BLM, lessor reserves the right to seek damages  against the  operator/lessee  in
the event (1) the operator/lessee fails to achieve maximum economic recovery [as
defined at 43 CFR section  3480.0-5(21)] of the recoverable coal reserves or (2)
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  unminable 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 the 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  unminable  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.