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22. NOTiFiCATiON OF MINING OPERATIONS--it is understood that Lessor may not own, or control the
<br /> surface estate of Leased Premises, or Lessor may fiave issued a surface use tease to another lessee.
<br /> Lessee shaft be responsible for identifying such o,,vnership or determining the surface lessee or lessees,
<br /> and shalt notify all such parties in advance of any on-site activity. Notification will be given at least
<br /> thirty (30) days iri advance for unrifled o- grazing acrea,e and at least sixty (60) days in advance for
<br /> titled farm ground prior to any on site activity. Lessee shalt ciosety coordinate any on-site activity with
<br /> the surface owner or lessee, and make a reasonable effort to protect the integrity of surface owner's or
<br /> surface lessee's fences, gates, cattleguar ds, and other property.
<br /> 23. PROTECTION AGAINST SURFACE DAMAGE -- Lessee has the right to utilize as much of the surface of
<br /> the lands as is reasonably necessary for mining operations: however, Lessee shall be liable and agrees
<br /> to pay for aft damages to the surface, livestock„ growing crops, water wells, reservoirs, or other
<br /> improvements caused by Lessee's operations on said Lands.
<br /> 24. HOLD HARMLESS - Lessee sha indcn-,n;fy Lessor against all liability and toss, and against all claims
<br /> and actions, including the cefense of such ciainis or actions, bases upon or arising out of damage or
<br /> Injury, incuudin death, to persons or property caused by or sustained in connection with this lease or
<br /> by conditio�is created thereby, or based upon any violation of any statute, ordinance, or regulation.
<br /> 25. LIENS AND CLAIMS -- Lessee shall not suffer or permit to be enforced against the Leased Premises, or
<br /> any part ,,hereof, or any improvements thereon, any tiens arising from,, or any claim for damage
<br /> growing out of the work of any construction, repair, restoration; replacement or improvement, or any
<br /> other claims or demand ho�,vsuever me same may arise, but Lessee shaft pay or cause to be paid atl of
<br /> said liens, claims, or demands before any action is brought to enforce the same against the Leased
<br /> Premises or improvements. Lessee agrees to defend, indemnify and hold Lessor and the Leased
<br /> Premises fire✓ ar:c harmless from aft liability for any and att such liens, claims, demands, and actions
<br /> togethe,r`yJith reasonable aliorne'y' fees and all costs a-d expenses in connection therewith.
<br /> Lessee shall, upon c'x4:Cut10n of this lease, a. its cost, prepare a Notice, pursuant to C.R.S. t973,
<br /> 5 38-22-105 a.•id cause tn;, same to be posted for tine aurpose of protecting Lessor against any liens or
<br /> e cum7)ra,i':es ;;Pon the'' Leaseii Pr'�trials by reas.w ,, of b`.'Or r , :UJ'vi, Sc'N1CeS or materials contracted for
<br /> or supplied to Lessee.
<br /> 25. BOND -- it is agi`ed that no operation., are tole comrne.-iced on the taiids herein described unless and
<br /> until Lessee or Lessees agent has fite,a a rood %,id sufficient bond with Lessor in an amount fixed by
<br /> Lessor, tc secure ti;e p ymer,t for darriages ca'•uscd by Lessee's or Lessee's agents operations on said
<br /> lands. Lessor reselrves the right to grant relief from the for egoin, bond requirements. Lessor may
<br /> require s_: n o3cd ca be held in Tull force and effect rot one year after cessation of operations for
<br /> `ihich the bond :vas ir,te:nded. Tr,is requirenierit may be waived in favor of the requirements of DRMS.
<br /> 27. WATER -- h Lesser initiates or establishes any water rights for which tree point of surface diversion or
<br /> ground water `:ithorarral is on the Leased Premises, title to such water rights shaft, upon termination
<br /> of the tease, become the property of the s.-irface o'r,ner without cost, and titre to the water rights shall
<br /> be conveyed to the surface o`,vner iFnmediately upon termination, except that if Lessor is the surface
<br /> owner the water ri,nt shalt be taken in the name of Lessor in the first instance and shalt be the
<br /> property of Lessor viithout cost.
<br /> 2$. SURRENDER AND RELINQUISHMENT -- Lessee may, at any time, by paying to Lessor aft amounts then
<br /> due as provided herein, surrender and cancel this tease insofar as the same covers at[ or any portion of
<br /> the lands herein leased and be relieved from further obligations or liability hereunder with respect to
<br /> the lands so surrendered; provided that no partiat surrender or cancellation of this tease shalt be for
<br /> less than tracts of approximately forty (410) acres or governmental lot corresponding to a
<br /> quarter-quarter section, the rentat bein, reduced proportionately.
<br /> G_ 11�b81 Revised 9/2015
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