Laserfiche WebLink
C. Lessee sha;i furnish ad;:;luate g l7EJgi.=:;l evidence to Lessor that the acreage subject to the <br /> reriewFcl or new lease is in fact an integral part of and contains reserves in a logical mining <br /> Unit. Whetner the acreao_e is or is not a part of a top <br /> icaE mining unit wit[ be determined by <br /> Lessor. <br /> D. An extension,, of th's Lease as determined by Lessor would be in the best interest of Lessor. <br /> - EXTENSION BY PRODUCTION - The Lease may continue in effect for a Secondary Term of 10 years to <br /> the 15`'' day of September, 2036 as tong as sand and gravel are being produced in paying quantities <br /> frorn the Leased Premises. Paywo Guam{ties is defined as production and sates of a quantity sufficient <br /> to return to Lessor production royalty payr71ents of a minimum of $250.00 per year. <br /> 5. ANCILLARY USE - This paragraph deteted. <br /> 6. REPORTS AND RECORDS -- After operat'ons begin, it is agreed that on or before the last day of each <br /> month during the term o` this :ease Lessee shalt submit a sworn, verified, written report to Lessor, in <br /> which report shall be ent,�:red and set cow,-i the exact amount in weight of all products and the assay <br /> thereof mined and remo•/ed from said Leasec Premises during the preceding calendar month. Lessee <br /> agrees to keep and to have iii possession complete and accurate books and records showing the <br /> production and disposition of any and .ill substances produced on the Leased Premises and to permit <br /> Lessor at a,t reasonable hours, to examine the same or to furnish copies of same to Lessor within 60 <br /> days fo,'.owing written request along with purchaser's support documentation. All said books and <br /> records shalt be retained by Lessee and made available in Colorado to Lessor for a period of not less <br /> than 10 years. If any such examinatiori shall reveal, of if either party shall discover any error or <br /> iri,,ccurac:l in its o,,,rn or the other party's statement, payment, calculation, or determination, then <br /> proper ad;ustment or correction thereof shalt be made as promptly as practicable thereafter, except <br /> that no adjustmerit or correction shall be made if more than 10 years have elapsed 'between the time <br /> the error or inaccuracy occurred and the discovery by either party of said error or inaccuracy. <br /> I-u~then, Lessee shall furnish annually a complete operations report to Lessor disclosing the <br /> nuniber of tons aid the assay thereof of aU ores, rninerats and other materials mined from the <br /> premises during ti+e preceding y.z-ar. Lessee shall also furnish in said report geologic interpretations and <br /> recoverable reserve calcutatio;is, ane maps and cross sec.:ons showing location of any minerat-bearing <br /> outcrops. dill holes, trenches, ore bodies and other prospecting and exploration activities, along with <br /> assays showing the amo,-;nt of mineral contained in the o,e. The records required to be maintained by <br /> Lessee and provided to Lessor uour: requ:-st in-tude togs of all strata penetrated and all geologic and <br /> +'ydrotogic conditions e rcou,itered, and copies of iii-ho,e surveys; this information t0 be Collected and <br /> prepared under the supervlsio;i of a qualified Geologist, geological engineer or mining engineer. Other <br /> qualified persons may cott�_-ct and prepare this data. if agreed to in writino between Lessee and Lessor. <br /> Any request to keep certain information confidential should be in writing to Lessor at the time such <br /> information is submitted to Lessor, and such ciata may be kept confidential as consistent with State <br /> ta'rv. Lessee shalt s,_ibr-nt, 'f requested by Lessor, such additional reports, records or documents <br /> regarding Lessee's operation or the Leases! Pre:-riises as necessary for the compliance with lease <br /> provisions, <br /> OVERRIDING ROYALTY LIMITATIONS -- it is agreed that this Lease or any subsequent assignment <br /> hereof shall not be burdened with overriding royalties the aggregate of which exceeds two percent <br /> (2c") or the gross Value of the minerats or ore at the first point of sate. Lessor must be notified of all <br /> overriding royalties accruing to this Lease. <br /> DEVELOPMENT -- Lessee wits ditigently explore and develop the Leased Premises by utilizing methods <br /> of exploration commonly used in the industry, sucn as mapping, sampling, drilling, trenching, <br /> Gt- 111681 Revised 9/2015 <br />