2017-04-27_REVISION - M1977057 - Laserfiche WebLink

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Sep-01-98 11:11A PSC Schnurr 970 824 8443 970-824-8443 P_06 KA e3 U-1 r - .d •. �3arPSc. c�3a.r,�+ .�a i L _ME AGREEMENTC This LeM Agreethherht made and entered Into ties 12th day of March, IM,by Owks Lem Fedgnec,herekhal'ter referred to as the"Lessor"and Pioneer Sand Company,Inc-,a Colorado Corporat#pn,hereinafter referred to as the"Lessee". WrITIESSETli: 1. GRANT. The in",In conWeRArr OF the terms'Of this Lease AWeenwtr does hereby grant ratito the tessee,i13 SErocemrs,and assigns,the exclusive night to ate, expkxe,prospect,mft produce,dean,treak extract,remove and dim of sand,dirt,day, gravel,and rock►hoeinaftr referred toes"Rock",from the property described as Rftm: Description in exhibit"A"afitxed- 2. UA& The initial term of this Lease Agreement shall be for Ten(10)years beginning on the date stateed above. The Lessor giants to the Lessee the option to renew this Lease Agreement for an additional teen(10)year period on the sane terms and conditions hereof, provtded that Lessee shall,at least thirty(30)days prior to the eWratfon date of this tie Agreement,nor the Lessor in wetting of the lessee's Intentions. J, CONS ERAUQU, Lessee shall pay to Lessor$1.00 per ton for"Rock"removed for the first 12 months of operation There shall be a five cents per born increase on each 12 Month anniversary but to no event shag exceed$1.50 per ton. lessee shalt pay Lessor for the amount of "Rock"removed on a monthly basis,payable on the twenty fifth(25)day of the month following the month during which the"Rock was reproved. In the event Lessee Is contracting to bid a construction or commercial project,lessor and Lessee agree to negotiate tine trice per ton paid to Leer. Lessee shall keep daffy reands of the amount of"Rock"removed ko n the property. The lessor shall have the right to audit Lessee's records during normal business hours. The Lessee's payment for"Rock"will be considered all Inclusive for the amount of any bLves,levies,or amewnents made by the governmental authority upon such removed"Rock." 4. TAXES, lessee agrees to pay all taxes lawfully assessed against all machinery,tools, anent;supplies and all oilier property placed by It on the real proper desgibed in Exhibit "A". Lessee agrees to resell all material removed or disposed of in a maw as to cause no sales tar liability to be imposed on Lessor. 5, INDEMMRGA=. Lessee agrees to defend,save harmless and tndemnifY Lessor from any liability arising out of Lessee's operations on said property. lessor shall hold kssee harmless from any and all prior violations,fines,penalties and/or claim. 6. MINING PERMIT. Lessor Shall transfer all permits to Lessee including permit#M-77- 057. Lessee shall review+fig permits and/or any changes Proposed by any governmental authorities and at its sole disquetion may void this lease prior to permit translier. Lessee at it's wgxm shall obtain the reclamation band Muhvd by the approvals and mining permits and fife any required annual reports. All approvals and mining permits sdnatl remain the property of and in Lessee's name.I shall apply for a contract for the Cash sale of mineral materials from the Oepartrent of the Inb wW,Bureau of terhd Management and if such contract Is riot reasonably granbed,or a reasonable royally is not assessed,Lessee shall have no obligation to accept transfer of permit#M-77-057.If subsequent to issuance of permits and approvals any governmental eribly shalt cannel;withdraw or We any other action that would prevent Lessee from edraction and working,lessee at its option may void this agreement and Lessft shag have no further �oblligations or liabilities hereunder except reclamation and to pay for lease obligatiorns prorated to j �.{�ir day"roW removal ceases. Such transfer of hermit#M-77-M shall take place upon satlsfaCbw approval and ao r P ce of BLM Gontrad to sell materials. The berms and consideration of thtss Leese Agreement snail begin as such time as transfer takes place.