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• • <br /> MINING LEASE <br /> THIS MINING LEASE, made the day and year written below,by and between <br /> FRANCES L.LOUGHREY,Lessor,and DELTA SAND AND GRAVEL CO.,a Colorado <br /> Corporation,Lessee,all of Delta,Colorado,WITNESSETH: <br /> That the said Lessor,for and in consideration of the rents,covenants and agreements <br /> hereinafter expressed to be paid,kept and performed by the said Lessee,have leased to said Lessee, the <br /> following described property,to-wit: <br /> THE WEST 10 ACRES OF THE S1/2 SW 1/4 SE 1/4 OF SECTION 7, <br /> TOWNSHIP 15 SOUTH,RANGE 95 WEST OF THE 61E P.M.,AND <br /> THE FOLLOV/ING DESCRIBED TRACT,BEING A PART OF THE <br /> SE1/4 SW1/4 OF SAID SECTION 7,TOWNSHIP AND RANGE <br /> AFORSAID,DESCRIBED AS FOLLOWS: <br /> BEGINNING AT THE NORTHEAST CORNER OF THE SE 1/4 SW 1/4 <br /> OF SAID SECTION 7;THENCE SOUTH 80 RODS TO THE SOUTHEAST <br /> CORNER OF SAID SUBDIVISION;THENCE WEST 60 RODS; THENCE <br /> NORTH 80 RODS TO THE NORTH LINE OF SAID SUBDIVISION; <br /> THENCE EAST 60 RODS TO THE PLACE OF BEGINNING. <br /> To have and to hold,for the sole purpose of mining and removing sand and gravel and <br /> aggregates thereof,for the term of ten years;thereafter,this Lease shall be deemed to be automatically <br /> renewed for successive two-year terms,unless written notice is given by certified mail by either party to <br /> terminate the Lease at least thirty(30)days prior to the expiration of the initial term or any renewal term <br /> of this lease. <br /> The Lessee hereby covenants and agrees to pay to the Lessor a royalty for material mined <br /> from the subject property calculated at the rate offilialialge per ton, which royalty shall be <br /> payable in monthly installments due on or before the tenth day of each month following the month in <br /> which the aggregate material is removed from the property. Until such time as mining of the propoerty <br /> commences,an annual fee o shall be paid by the Lessee to the Lessor to <br /> maintain the lease. The first payment shall be paid when the final approval of the mining and <br /> reclamation permit is obtained from the Division fo Minerals and Geology,Colorado Department of <br /> Natural Resources. Subsequent annual payments are due on the anniversary date of the first payment. <br /> When mining of the property commences,all annual fees previously paid shall be applied to thelle <br /> per ton owed by the Lessee to the Lessor,with no more than <br /> to be applied in any single month. Measurement of material mined shall be accomplished by <br /> weighing at least two loads a day in each truck hauling to get an average weight for that truck and then <br /> keeping a count of loads hauled that day. For rock trucks that can't be scaled,a load weight will be <br /> estimated based on the volume loaded on the trucks. This will be jointly agreed on by the Lessor and the <br /> Lessee after mining operations have commenced and will be added to this Lease as APPENDIX"B". <br /> The Lessee will also supply monthly load count statements and weigh tickets with the monthly payment. <br /> If Lessee fails or refuses to pay the rental as aforesaid promptly when due or fails for any <br /> reason to perform and fulfill all of Lessee's promises and covenants herein stated,then it shall be lawful <br /> for Lessor,their agent or attorney,to declare this Lease terminated and of no effect thereafter,and <br /> without process of law to enter upon and take possession of said property. In the latter event, and also at <br />