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12. Water Rights — Water Use. Kilgore shall have the right to use any water rights
<br />owned by Parkerson related to each individual pit for production and dust control. Kilgore may
<br />have to modify the water rights or well permit application associated with the 23% Road Properties.
<br />If such modification is necessary in order to continue the Activities, then Parkerson shall not
<br />unreasonably withhold any modifications to said water rights and shall aid in any submittal for the
<br />applications that may require any signatures by the landowner.
<br />13. Hazardous Substances. "Hazardous Substances" shall mean any product,
<br />substance, or waste whose presence, use, manufacturer, disposal, transportation, or lease, either by
<br />itself or in combination with other materials expected to be on the Properties, is either:
<br />(i) potentially injurious to the public health, safety or welfare, the environment or the Properties;
<br />(ii) regulated or monitored by any governmental authority; or (iii) a basis for potential liability of
<br />Parkerson or Kilgore to any governmental agency or third party under any applicable statute or
<br />common law theory. Hazardous Substances shall include, without limitation, hydrocarbons,
<br />petroleum, gasoline, and/or crude oil or any products, by-products or fractions thereof. If Kilgore
<br />knows, or has reasonable cause to believe, that a Hazardous Substance has come to be located in,
<br />on, under or about the Properties, other than as previously consented to by Parkerson, Kilgore shall
<br />immediately give written notice of such fact to Parkerson. Kilgore shall not be responsible for any
<br />Hazardous Substance present on the Properties before the Effective Date. Kilgore shall not store
<br />any Hazardous Substance on the Properties. Kilgore shall be responsible and liable for any
<br />Hazardous Substance which Kilgore causes to contaminate the Properties or that Kilgore knows,
<br />or has reasonable cause to believe, has come to be transported to or form the Properties or located
<br />in, on, under or about the properties.
<br />14. Insurance.
<br />(a) Commercial General Liability Insurance. Kilgore shall obtain and keep in
<br />force a Commercial General Liability policy protecting Kilgore, and naming Parkerson as an
<br />additional insured, against claims for bodily injury, personal injury and property damage based
<br />upon or arising out of the ownership, use, occupancy or maintenance of the Properties, and all
<br />areas appurtenant thereto. Such insurance shall be on an occurrence basis providing single limit
<br />coverage in an amount not less than $1,000,000 per occurrence with a general aggregate of not
<br />less than $2,000,000. Kilgore shall add Parkerson as an additional insured by means of an
<br />endorsement at least as broad as ISO Form CG 2010. The policy shall not contain any intra -
<br />insured exclusions as between insured persons or organizations, but shall include coverage for
<br />liability assumed under this Lease as an "insured contract" for performance of Kilgore"s indemnity
<br />obligations under this Lease. The policy shall also cover (a) premises and operations coverage,
<br />(b) owners and contractors' protective coverage, (c) products and completed operations coverage,
<br />(d) full blanket contractual coverage, (e) broad form property damage coverage (including
<br />completed operations), (f) personal injury and explosion, and (g) collapse and underground
<br />hazards. The limits of said insurance shall not, however, limit the liability of Kilgore nor relieve
<br />Kilgore of any obligation hereunder. Kilgore shall provide an endorsement on its liability
<br />policy(ies) which provides that its insurance shall be primary to and not contributory with any
<br />similar insurance carried by Parkerson, whose insurance shall be considered excess insurance only.
<br />Furthermore, Kilgore agrees to maintain the products/completed operations coverage naming
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