2015-10-07_REVISION - M1977443 (3)

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Gravel Lease W/K Land Company, Lessor Northwest Aggregates, Inc., Lessee GENERAL INFORMATION: k" m RECEIVED OCT 0 6 2015 DIVISION OF RECLAMATION MINING AND SAFETY This LEASE AGREEMENT is made and entered into this 1" day of June, 2014, between W/K Land Company, 911 Kimbark Street, Longmont, CO 80501("Lessor"), and Northwest Aggregates, Inc., 2930 E US Hwy 40, Craig, CO 81625 ("Lessee"). WITNESSETH: The legal description of the property is Weber Minor Subdivision; -lots-2, 3 and 4: Subdivision +s- - in Moffat County, Colorado, and contains 28 acres. a. Much of the land has previously been mined and the sand product was extracted and sold away. b. Some sand product remains for mining and the Lessee are desirous of completing the sand mining. C. The Colorado Mine Land Reclamation Bond Permit is 197743-�' d. A Colorado Mine Reclamation Bond is in place for reclaiming the land in the total principal amount of $16,500.00. The bond and reclamation of the property to the agreed upon reclamation terrain and topography as specified in the original application and permit, dated 1977. GENERAL TERMS DESCRIPTION: The Colorado Mind Land Reclamation Bond permit number which is currentl�,M1977-143 and may change upon transfer from Hard Rock Sand and Gravel to Northwest Aggregates wi a fisted in an addendum as necessary. The mining operation will be conducted under that permit and by this name and the obligation for reclamation will continue between the Lessee and the State of Colorado Mine Land Reclamation, and the Lessor. The Lessor is to be held harmless from liability to the State. TERMS OF THE LEASE AND ROYALTY: The lease hereiwsha#,begtn on -June 1; 24014; and shell.exist.for-ate initiaLpe-dod_of two -tears, _ _ The Lessee agrees to comply with all Mine Land Reclamation Regulations and provide annual reporting, comply with all State of Colorado laws for workman's compensation insurance, all property and liability insurance, naming Lessor as an additional insured on all insurances, and promptly pay all royalty payments, at least, monthly during mining operations. The Royalty payment shall be $1.50 per ton for the initial lease term. Advance Royalty Payment of $2,000.00 per year shall be paid annually, beginning on the date of closing and each anniversary of the lease thereafter. Advance Royalty shall be counted against production royalties, and if the Lessee fails to produce sufficient offset, then the Advance Royalty payment shall not carry forward from one year to the next. Lessor shall pay all Real and Personal Property Taxes; Lessee shall pay all severance and taxes. Lessee and representatives shall have the right to egress in ingress for all activities related to mining and to perform all activities necessary to extract mining products.