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Pc rrn 1402- U' OPERATING AGREEMENT Russell Taylor hereby gives access to Bower Brothers(the Operator)to the following property: Permit numbers M-2013-006 and M-1981-276. Lands located in Sections 1 through 12 of Township 6 North, Range 95 and Section 6 and 7 of Township 6 North,Range 94 West in Moffat County,Colorado. This property is located south of highway 40 and west of County Road 74 and runs along the east side of the Yampa River. For the purpose of to explore, remove and stockpile rock,sand and gravel. To include all operations necessary to make marketable products. This access will begin its operations in a double pit and shall proceed there from in a solid continuous pattern. The Operator shall have the right to open additional pits as long as this course of action is not capricious. The Operator will have the right to process and remove materials from said property and the right to erect construction of any buildings,plants,structures,equipment,appliances and other facilities which may be convenient or necessary for carrying out the purposes here of upon the property. The Operator shall have the right to use, strip and remove parts of the surface of the property and may be reasonably required in the exercise of the rights granted hereby,including,but not limited to the right to place,pile or dump dirt, refuse or material or substances of any kind normally produced by the type of operation contemplated hereby. 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 which time the agreement will need to be renegotiated. Royalties are to be paid at$1.45 per ton during this agreement. During the agreement the Operator shall seasonably pay any and all ad valorum taxes or other taxes, assessments or license fees upon the property caused or assessed by reason of their operations. er and The Operator shall keep and maintain true and accurate accountsreasonableall production timesand places.f eRecamat on ofstheTaylor affected be entitled to examine and reproduce the same at all Inc affected portions of the property shall be in accordance with the Colorado Land Surface Reclamation Act, and to app e Federal laws,if any. / Bud Bower Operator Russell Taylor Bower Brothers STATE OF COLORADO COUNTY OF MOFFAT The above and foregoing agreement was subscribed and sworn to before me this_112111 By Russell Taylor. Witness my hand and official seal. My commission expires: JENNIFER RIDNOUR Notary Public NOTARY PUBLIC STATE OF COLORADO *SID October �