29. CONDEMNATION - If the Leased Premises shall be taken in any condemnation proceeding,
<br />this Lease shall automatically terminate as of the date of taking. The award for such
<br />condemnation shall be paid to Lessor, except for any specific award(s) paid to Lessee for
<br />severed minerals reserves, in which event a percent of such specific award(s) equal to
<br />royalty shall be paid to Lessor in lieu of royalty lost by virtue of the condemnation.
<br />Improvements shall be removed by Lessee per terms in the RIGHT OF REMOVAL
<br />paragraph herein. If only a portion of the Leased Premises is taken by condemnation,
<br />Lessor may, at its option, terminate this Lease or terminate only that portion of the
<br />Lease so taken.
<br />30. COMPLIANCE WITH LAW -- Lessee shall comply fully with all the provisions, terms,
<br />conditions of all laws, whether state or federal, and orders issued thereunder, which
<br />may be in effect during the continuance hereof, which in any manner affect or control
<br />mining or other operations of Lessee, and Lessee further agrees that good mining
<br />methods shalt be used at all times of active mining so long as said methods are
<br />consistent within the taw.
<br />Lessee shall comply with all applicable federal, state and local environmental,
<br />wetlands protection, health and hazardous waste laws, ordinances and regulations. In
<br />addition to the foregoing, and not in limitation thereof, Lessee shalt not cause or permit
<br />any Hazardous Material to be brought upon, kept or used in or about the Leased
<br />Premises by Lessee or Lessee's agents, employees, contractors or invitees, without the
<br />prior written consent of Lessor. If Lessee breaches the obligations stated in the
<br />preceding sentence, or if the presence of Hazardous Material on the Leased Premises
<br />caused or permitted by Lessee results in contamination of the Leased Premises, or if
<br />contamination of the Leased Premises by Hazardous Material otherwise occurs for which
<br />Lessee is legally liable, then Lessee shall indemnify, defend and hold Lessor harmless
<br />from any and all claims, judgments, damages, penalties, fines, costs, liabilities or losses
<br />(including, without limitation, diminution in value of the Leased Premises, damages for
<br />the loss or restriction on use of the Leased Premises, damages arising from any adverse
<br />impact on future leasing of the Leased Premises, and sums paid in settlement of claims,
<br />attorney fees, consultant fees and expert fees) which arise during or after the lease
<br />term as a result of such contamination. This indemnification of Lessor by Lessee
<br />includes, without limitation, costs incurred in connection with any investigation of site
<br />conditions or any cleanup, remedial, removal, or restoration work required by any
<br />federal, state, or local governmental agency or political subdivision because of
<br />Hazardous Material present in the soil or ground water on or under the Leased Premises.
<br />Without limiting the foregoing, if the presence of any Hazardous Material on the Leased
<br />Premises caused or permitted by Lessee results in any contamination of the Leased
<br />Premises, Lessee shalt promptly take all actions at Lessees sole expense as are necessary
<br />to return the Leased Premises to the condition existing prior to the introduction of any
<br />such Hazardous Material to the Leased Premises; provided that Lessors approval of such
<br />actions shalt first be obtained. As used herein, the term "Hazardous Material" means any
<br />hazardous or toxic substance, material or waste which is or becomes regulated by any
<br />local governmental authority, the State of Colorado or the United States Government.
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