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18. EXPLORATION-- An exploration permit is required and must be obtained <br /> before any field work of any type or kind is undertaken. A restoration <br /> bond is required in conjunction with this exploration permit. The bond <br /> required by the Colorado Mined Land Reclamation Division for exploration <br /> activities may be substituted for this bond. The proposed type and <br /> method of exploration shall be outlined on the application for an <br /> exploration permit. <br /> Lessee is required to keep an accurate log or record of all surface <br /> and subsurface exploration. This exploration work shall be tied to a <br /> corner established by an official USGS survey. All such logs and/or <br /> records may be requested by Lessor at any time, but Lessor agrees that <br /> during the term of this lease all such information so supplied by Lessee <br /> shall remain confidential and unpublished insofar as it is consistent <br /> within the law. <br /> 19. PROTECTION AGAINST SURFACE DAMAGE -- Lessee has the right to utilize as <br /> much of the surface of the lands as is necessary for mining operations, <br /> and shall be liable and agrees to pay for all damages to the surface, <br /> livestock, growing crops, water wells, reservoirs, or other improvements <br /> caused by Lessee's operations on said lands. Further, it is understood <br /> that this lease is subject to surface patents, deeds, and certificates of <br /> purchase, and Lessee shall assume responsibility for all claims arising <br /> from damages to the surface caused by Lessee's operations. <br /> 20. HOLD HARMLESS -- Lessee shall indemnify Lessor against all liability and <br /> loss, and against all claims and actions, including the defense of such <br /> claims or actions, based upon or arising out of damage or injury, <br /> including death, to persons or property caused by or sustained in <br /> connection with this lease or by conditions created thereby, or based <br /> upon any violation of any statute, ordinance, or regulation. <br /> 21. BOND -- It is agreed that no operations are to be commenced on the lands <br /> herein described unless and until Lessee or Lessee's agent has filed a <br /> good and sufficient bond with Lessor in an amount fixed by Lessor, to <br /> secure the payment for damages caused by Lessee's or Lessee's agent's <br /> operations on said lands. Lessor reserves the right to grant relief from <br /> the foregoing bond requirements. Lessor may require such bond to be held <br /> in full force and effect for one year- after cessation of operations for <br /> which the bond was intended. This requirement may be waived in favor of <br /> the requirements of the Mined Land Reclamation Division. <br /> 22. WATER RIGHTS -- If Lessee initiates or establishes any water right where <br /> the point of diversion or groundwater withdrawal is on the leased <br /> premises and where the surface is owned by the State, such water right <br /> must be obtained in the name of and with the consent of the State acting <br /> by and through its Board of Land Commissioners. <br /> Water rights and any improvement required to bring this water to the <br /> surface shall become the property of the State, without cost upon <br /> termination of this lease for any cause whatsoever. <br /> Under no circumstance may ground water be withdrawn without first <br /> having secured the permission of Lessor and may not be withdrawn at a <br /> rate higher than necessary for the mining and/or processing of State <br /> minerals only. Additional payment may be required for the use of any <br /> waters as may be defined as tributary or non-tributary. <br /> 23. LIENS AND CLAIMS -- Lessee shall not suffer or permit to be enforced <br /> against the leased premises, or any part thereof, or any improvements <br /> thereon, any liens arising from, or any claim for damage growing out of <br /> the work of any construction, repair, restoration, replacement or <br /> improvement, or any other claims or demand howsoever the same may arise, <br /> but Lessee shall pay or cause to be paid all of said liens, claims, or <br /> demands before any action is brought to enforce the same against the <br /> leased premises or improvements. Lessee agrees to defend, indemnify and <br /> hold Lessor and the leased premises free and harmless from all liability <br /> for any and all such liens, claims, demands, and actions together with <br /> reasonable attorney fees and all costs and expenses in connection <br /> therewith. <br /> Lessee shall, upon execution of this lease at its cost, prepare a <br /> Notice, pursuant to C.R.S. § 38-22-105, and cause the same to be posted <br /> for the purpose of protecting Lessor against any liens or encumbrances <br /> upon the leased premises by reason of work, labor, services or materials <br /> contracted for or supplied to Lessee. <br />