2017-02-15_PERMIT FILE - M2017004

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which the bond was intended. This requirement may be waived in favor of the requirements of the Colorado Division of Reclamation,Mining, and Safety. 27. WATER -- If Lessee initiates or establishes any water rights for which the point of surface diversion or ground water withdrawal is on the Leased Premises, title to such water rights shall, upon termination of the lease, become the property of the surface owner without cost, and title to the water rights shall be conveyed to the surface owner immediately upon termination, except that if Lessor is the surface owner the water right shall be taken in the name of Lessor in the first instance and shall be the property of Lessor without cost. 28. SURRENDER AND RELINQUISHMENT -- Lessee may, at any time, by paying to Lessor all amounts then due as provided herein, surrender and cancel this lease insofar as the same covers all or any portion of the lands herein leased and be relieved from further obligations or liability hereunder with respect to the lands so surrendered; provided that no partial surrender or cancellation of this lease shall be for less than tracts of approximately forty (40) acres or governmental lot corresponding to a quarter-quarter section, the rental being reduced proportionately. This surrender clause and option herein reserved to Lessee shall cease and become absolutely inoperative immediately and concurrently with the institution of any suit in any court of law by Lessee, Lessor or any assignee of either to enforce this lease, or any of its terms, express or implied, but in no case shalt surrender be effective until Lessee shall have made full provision for conservation of the minerals and protection of the surface rights of the Leased Premises as may be determined by Lessor. Notwithstanding the foregoing, no surrender and relinquishment of this lease shall be effective unless and until all reports, documents and information of any kind required to be submitted to Lessor under this lease, or to such state agencies as provided in this lease have been submitted to Lessor or such state agency. 29. RIGHT OF REMOVAL -- In the event this lease is terminated by surrender, or the expiration of its term, and all obligations of Lessee under this lease are satisfied, all Lessee's improvements, equipment, man-made objects of any type, including stockpiles and dumps except as these stock piles and dumps may be disposed of pursuant to the reclamation plan, shall be removed from the Leased Premises within six months from the date of such termination at Lessee's expense. Such removal is to be accomplished without unnecessary waste or damage to the premises and Lessee shall restore the surface of the Leased Premises to the same condition as immediately prior to the execution of this lease as it pertains to such removal. All improvements and equipment remaining on the Leased Premises six months after the termination hereof shall be forfeited automatically to Lessor without compensation and without necessity of execution of additional documents. 30. CONDEMNATION -- If the Leased Premises shall be taken in any condemnation proceeding, this lease shall automatically terminate as of the date of taking. The award for such condemnation shall be paid to Lessor, except for any specific award(s) paid to Lessee for severed minerals reserves, in which event a percent of such specific award(s) equal to royalty shall be paid to Lessor in lieu of royalty lost by virtue of the condemnation. Improvements shall be removed by Lessee per terms in the RIGHT OF REMOVAL paragraph herein. If only a portion of the leased land is taken by condemnation, Lessor may, at its option, terminate this lease or terminate only that portion of the lease so taken. 31. COMPLIANCE WITH LAW --Lessee shall comply fully with all the provisions, terms, conditions of all laws, whether state or federal, and orders issued thereunder, which may be in effect during the GL 110167 Revised 9/2015 Page 8 of 13