2015-12-07_GENERAL DOCUMENTS - M1973007

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MINERAL LEASE THIS MINERAL LEASE ("Lease") is made and is effective as of July 1, 2004, by and between the parties hereinafter named, for the term and upon and under the terms and conditions hereinafter set forth. 1 Parties. The parties to this Lease, and their addresses for all purposes hereof, are: (a) Security Water District acting by and through its Water Activity Enterprise, LESSOR; and (b) Transit Mix Concrete Co., whose address is 444 East Costilla, Colorado Springs, Colorado 80903, LESSEE. 2. Grant of Lease. (a) Lessor represents and warrants that it is the owner in fee of certain Property situated in El Paso County, Colorado, more particularly described on Exhibit "A" attached hereto (the "Property"), consisting of 60 acres, more or less. The Property, excluding any appurtenant water rights, but together with the sand and gravel reserves, overburden, topsoil, loose rock or any combination thereof on or contained within the Property or formed in association therewith and any portion or part of any earth, rock, or other material that may be attached, combined with, or constitute a,part thereof, to the extent that any of the foregoing occur and are found between the surface and top of the uppermost underlying shale formation (the "Leased Strata"), are the subject of this Lease and are hereinafter referred to together as the "Property and Mineral Rights." The Mineral Rights and Minerals are limited to sand, rock and gravel aggregate materials located within the Leased Strata. The Property and this Lease are subject to (1) an existing License Agreement as discussed in Paragraph 13 hereof, and (2) the ingress, egress, maintenance and operation easement rights of Fountain Mutual Irrigation Company for the existing ditch within the Property. Lessee shall not impair Fountain Mutual's use and enjoyment of its ditch easement. (b) For the consideration (as defined in Paragraph 7) and the covenants herein agreed to be paid and performed by Lessee, and subject to the terms and conditions hereof, Lessor hereby grants, leases and lets the Property and Mineral Rights exclusively unto Lessee, its successors and permitted assigns, to have and to hold the same for the term hereof, and warrant the title to the same, unto Lessee, its successors, and permitted assigns against all those who may claim the same by and through the Lessor, his successors and assigns, there are no, and during the term of this Lease Lessor will not create any outstanding non-operating interests in the Property and Mineral Rights (such as overriding royalty interests) or liens on the Property and Mineral Rights securing obligations of Lessor or his affiliates 1