EXHIBIT 10.7
AMENDMENT TO OIL, GAS AND COALBED METHANE GAS LEASE
This amendment is made this 23rd day of November, 2004, by and among
AMERICAN PREMIER UNDERWRITERS, INC. and AFC COAL PROPERTIES, INC., (hereinafter
collectively referred to as "Lessor) and BPI INDUSTRIES INC., hereinafter
referred to as "Lessee").
W I T N E S S E T H
Whereas, Lessor and Lessee are parties to that certain Oil, Gas and
Coalbed Methane Gas Lease, dated April 3, 2001 (hereinafter referred to as
"Lease"), covering Lessor's interest in the oil, gas and coalbed methane gas in
certain coal tracts located in Franklin, Saline and Xxxxxxxxxx Counties,
Illinois.
WHEREAS section 11(b) of the Lease states, "Lessee has 120 days from the
date of the lease to have (i) plugged and removed the casing of at least
(1) of the Prior Xxxxx (the "First Plugged Prior Well" which shall be a
typical well - not shallow compared to remaining xxxxx) in accordance with
the requirements of this Lease and all Laws, (ii) provided Lessor with a
written certification and supporting documentation of such plugging and
removal, the actual costs thereof, and the full payment of the costs, and
(iii) made the deposits described above with respect to other Prior Xxxxx,
provided the amount of such deposits may be based on the actual costs for
removing the casing of the First Plugged Prior Well subject to increase as
provided in the last sentence of (a) above"; and
WHEREAS as of December 20, 2001, the aforesaid "Lease" was amended to
extend compliance with paragraph 11(b) to January 15, 2002; and
WHEREAS as of January 13, 2003, the deadline for compliance with paragraph
11(b) was extended to April 3, 2003; and
WHEREAS as of February 17, 2003, the deadline for compliance with
paragraph 11(b) was extended to June 15, 2003; and
WHEREAS as of August 4, 2003, the deadline for compliance with paragraph
11(b) was extended to November 15, 2003; and
WHEREAS as of November 15, 2003, the deadline for compliance with
paragraph 11(b) was extended to May 1, 2004; and
WHEREAS as of April 30, 2004, the deadline for compliance with paragraph
11(b) was extended to August 1, 2004; and
WHEREAS, Lessor and Lessee desire to amend the "Lease";
NOW THEREFORE, in consideration of the mutual covenants and conditions
herein contained, the parties hereby agree as follows:
1. AMENDMENT
This deadline of August 1, 2004, is hereby extended until January 1, 2005,
for compliance with Item 11(b) above.
2. NO FURTHER MODIFICATION
Excepted as amended hereby, the "Lease" and each and every term and
condition thereof shall remain in full force and effect.
IN WITNESS WHEREOF, the Parties have caused this Amendment to be executed
and delivered by their respective officers or representatives, thereunto duly
authorized as of the date first above written.
LESSOR LESSEE
AFC COAL PROPERTIES, INC.. BPI INDUSTRIES INC.
By: /s/ Xxxxx X. Xxxxxxx By: /s/ Xxxxx X. Xxxxxx
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Xxxxx X. Xxxxxxx, Vice President Xxxxx X. Xxxxxx, President
AMERICAN PREMIER UNDERWRITERS, INC.
By: /s/ Xxxxxx X. Xxxxxxx
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Xxxxxx X. Xxxxxxx, Vice President
