Laserfiche WebLink
consist of field surveys). AU said books and records shalt be retained by Lessee and made <br />available in Colorado to Lessor for a period of not less than 10 years. If any such <br />examination shalt reveal, or if either party shalt discover any error or inaccuracy in its <br />own or the other party's statement, payment, calculation, or determination, then <br />proper adjustment or correction thereof shalt be made as promptly as practicable <br />thereafter, except that no adjustment or correction shalt be made if more than 10 years <br />have elapsed between the time the error or inaccuracy occurred and the discovery by <br />either party of said error or inaccuracy; provided such error or inaccuracy was not <br />intentional or willful. <br />Further, Lessee (or Lessee's operator) shalt furnish annually a complete <br />operations report to Lessor disclosing the number of tons or cubic yards and the assay <br />thereof of all ores, minerals and other materials mined from the Leased Premises during <br />the preceding year. Lessee shalt also furnish in said report any geologic interpretations <br />and recoverable reserve calculations, and maps and cross sections showing location of <br />any minerat- bearing outcrops, drill holes, trenches, and other prospecting and <br />exploration activities, completed during the previous year. The records required to be <br />maintained by Lessee and provided to Lessor upon request include logs of all strata <br />penetrated and at[ geologic and hydrologic conditions encountered, and copies of in -hole <br />surveys; this information to be cottected and prepared under the supervision of a <br />qualified geologist, geological engineer, or civil or mining engineer. Other qualified <br />persons may collect and prepare this data, if agreed to in writing between Lessee and <br />Lessor. Any request to keep certain information confidential should be in writing to <br />Lessor at the time such information is submitted to Lessor, and such data may be kept <br />confidential as consistent with State taw. Lessee shalt submit, if requested by Lessor, <br />such additional reports, records or documents regarding Lessee's operation on the <br />Leased Premises as necessary for the compliance with Lease provisions. <br />6. OVERRIDING ROYALTY LIMITATIONS - It is agreed that this Lease or any subsequent <br />assignment hereof shalt not be burdened with overriding royalties the aggregate of <br />which exceeds two percent (2 %) of the gross value of the minerals or ore at the first <br />point of sale. Lessor must be notified of all overriding royalties accruing to this Lease. <br />7. DEVELOPMENT -- Lessee will diligently explore and develop the Leased Premises by <br />utilizing methods of exploration commonly used in the industry, such as mapping, <br />sampling, drilling, trenching, geophysical exploration, and laboratory analysis and will <br />expend as a minimum annually the amounts set forth below: <br />LEASE YEAR MIN EXPEND LEASE YEAR MIN EXPEND <br />NA NA NA NA <br />Indirectly related exploration and development work such as work done on adjacent <br />properties, or design or construction of a mill will not be considered as diligent <br />development of the Leased Premises unless approved by Lessor. <br />Page 4 of 13 <br />