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OPERATING AGREEMENT <br /> Russell Taylor hereby gives access to Bower Brothers(the Operator)to the following property: <br /> Permit numbers M-2013-006 and M-1981-276. Lands located in Sections 1 through 12 of Township 6 North, <br /> Range 95 and Section 6 and 7 of Township 6 North,Range 94 West in Moffat County,Colorado. This property <br /> is located south of highway 40 and west of County Road 74 and runs along the east side of the Yampa River. <br /> For the purpose of to explore, remove and stockpile rock,sand and gravel. <br /> To include all operations necessary to make marketable products. This access will begin its operations in a double pit <br /> and shall proceed there from in a solid continuous pattern. The Operator shall have the right to open additional pits <br /> as long as this course of action is not capricious. The Operator will have the right to process and remove materials <br /> from said property and the right to erect construction of any buildings,plants, structures,equipment,appliances and <br /> other facilities which may be convenient or necessary for carrying out the purposes here of upon the property. The <br /> Operator shall have the right to use, strip and remove parts of the surface of the property and may be reasonably <br /> required in the exercise of the rights granted hereby,including,but not limited to the right to place,pile or dump dirt, <br /> refuse or material or substances of any kind normally produced by the type of operation contemplated hereby. <br /> This access shall begin on the date that all necessary permits and bonds are in place and shall extend up to 1/22/23,at <br /> which time the agreement will need to be renegotiated. <br /> Royalties are to be paid at$1.45 per ton during this agreement. <br /> During the agreement the Operator shall seasonably pay any and all ad valorum taxes or other taxes, assessments or <br /> license fees upon the property caused or assessed by reason of their operations. <br /> The Operator shall keep and maintain true and accurate accounts of all production hereunder and Rusty Taylor shall <br /> be entitled to examine and reproduce the same at all reasonable times and places. Reclamation of the affected <br /> portions of the property shall be in accordance with the Colorado Land Surface Reclamation Act, and to applicable <br /> Federal laws,if any. <br /> - <br /> Bud Bower Operator <br /> Russell Taylor <br /> Bower Brothers <br /> STATE OF COLORADO <br /> COUNTY OF MOFFAT <br /> The above and foregoing agreement was subscribed and sworn to before me this <br /> By Russell Taylor. <br /> Witness my hand and official seal. <br /> My commission expires: O .9D <br /> 410 JENNIFER RIDNOUR <br /> Notary Public NOTARY PUBLIC <br /> STATE OF COLORADO <br /> *Commission October- 2020 <br />