Execution Copy
EXHIBIT 10.8
COAL MINING LEASE
(FEDERAL #2 RESERVES)
Between
SUNCREST RESOURCES LLC
And
STERLING SMOKELESS COAL COMPANY
Dated December 19, 2002
COAL MINING LEASE
INDEX
ARTICLE 1
TERM OF LEASE
Section 1.1
Term
2
ARTICLE 2
MINING OPERATIONS
Section 2.1
Mining Operations
3
ARTICLE 3
ROYALTIES
Section 3.1
Minimum Rental Payments
3
Section 3.2
Production Royalty Payments
4
ARTICLE 4
DEFAULT
Section 4.1
Events of Default
6
Section 4.2
Remedies
8
Section 4.3
Arbitration
10
ARTICLE 5
INDEMNIFICATION
Section 5.1
Indemnification of Lessor
11
ARTICLE 6
TAXES AND INSURANCE
Section 6.1
Payment of Taxes
11
Section 6.2
Insurance
12
ARTICLE 7
INSPECTION AND MINE PLANS
Section 7.1
Lessor’s Right to Inspect
14
Section 7.2
Mine Plans
14
ARTICLE 8
COAL MINING LEASE
INDEX
ARTICLE 1
TERM OF LEASE
Section 1.1
Term
2
ARTICLE 2
MINING OPERATIONS
Section 2.1
Mining Operations
3
ARTICLE 3
ROYALTIES
Section 3.1
Minimum Rental Payments
3
Section 3.2
Production Royalty Payments
4
ARTICLE 4
DEFAULT
Section 4.1
Events of Default
6
Section 4.2
Remedies
8
Section 4.3
Arbitration
10
ARTICLE 5
INDEMNIFICATION
Section 5.1
Indemnification of Lessor
11
ARTICLE 6
TAXES AND INSURANCE
Section 6.1
Payment of Taxes
11
Section 6.2
Insurance
12
ARTICLE 7
INSPECTION AND MINE PLANS
Section 7.1
Lessor’s Right to Inspect
14
Section 7.2
Mine Plans
14
ARTICLE 8
LOST COAL QUANTITY
Section 8.1
Agreement to Acquire Adverse Interests
15
Section 8.2
Determination of Lost Coal Quantity
16
Section 8.3
Mandatory Sale of Lost Coal Quantities for Failure to Acqu