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16 ENVIRONMENTAL. ANALYSIS -- Lessor may require that Lessee submit an environmental analysis for <br /> approval by Lessor before any exploration or mining begins. <br /> 17 RECLAMATION --Lessee shall submit aP,plaits for restoration and reclamation of leased premises to Lessor for <br /> Lessor's approval before submitting the appropriate permit or permits pursuant to the Colorado Mined Land <br /> Reclamation Act 34-32-101 ET SEO., C.R.S 1973 as amended Rules and regulations as set forth by the <br /> Division of Minerals and Geology for recovery and restoration of mined land will apply where applicable to the <br /> Leased Premises. Variations from the reclamation plan as originally submitted to the Board for approval may be <br /> granted only with the written approval of Lessor. <br /> 18 LESSOR'S APPROVAL. --Whenever approval by Lessor is required or contemplated by Lessee,approval must <br /> be in writing and shall be optional and shall be within the sole and absolute discretion of Lessor. <br /> 19, OTHER STATE AGENCIES -- Lessor may determine that instruments and documents required by other State <br /> agencies satisfy certain requirements of this lease. In the event that Lessee is required to file instruments and <br /> documents w ith other State agencies,including the Division of Minerals and Geology.Lessee shall notify Lessor <br /> of said filing and Lessor reserves the right to request and obtain copies of such instruments and documents from <br /> the agency or from Lessee. <br /> 20 INSPECTION -- It is agreed that during all proper hours and at all times during the continuance of this lease, <br /> Lessor or Lessor's duly authorized agent, is authorized to check assays and scales as to their accuracy, to go <br /> through or on any part or all of the leased premises to examine, inspect,survey and take measurements of the <br /> same and to take samples of any kind and to examine and make extracts from or copies of all books and weight <br /> sheets and records which show in any way the ore output,ore values,payments and royalties from and of the <br /> leased premises All conveniences necessary for such inspection.survey, or examination shall he furnished to <br /> Lessor. Lessor may require Lessee to provide all instruments and documents of any kind and nature whatever <br /> which affect Lessor's interests <br /> 21 NOTICES--Any notice required to be given to Lessee under the provisions of this lease shall he sent by certified <br /> mail to the address set forth at the beginning of this lease or to such other address as Lessee may indicate in <br /> writing to Lessor, and such service by mail shall he deemed sufficient and in full compliance with the terms of <br /> this lease as of the date it is postmarked. Notice to Lessor shall he given in like manner, addressed to the State <br /> Board of Land Commissioners'Denver,Colorado address. <br /> 22. PROSPECTING --Lessee agrees that while using and operating any drill on said premises,Lessee shall keep an <br /> accurate log on all work so done and performed, showing geological formations penetrated, the depth and <br /> thickness of each, the mineral character of each including but not limited to coal and water-hearing strata, the <br /> location and elevation of each tied to a corner established by United States survey, and each and Every thing <br /> necessary to make a complete log of the hole throughout its entire depth,a true copy of said log shall be furnished <br /> to Lessor. <br /> It is understood and agreed that the methods used in carrying out any program of exploration,and the rate <br /> of progress of such program shall be determined by Lessee. If Lessee carries on any program of exploration, <br /> other than drilling,Lessee shall submit to Lessor written reports showing the character and extent of prospecting <br /> being carried out on the leased premises and giving any details of mineral occurrences which may have been <br /> encountered;and Lessor agrees that during the term of this lease all such information so supplied by Lessee shall <br /> remain confidential and unpublished for the duration of this lease insofar as such confidentiality is consistent <br /> within the law. <br /> 23. NOTIFICATION OF MINING OPERATIONS--It is understood that Lessor may not own or control the surface <br /> estate of leased premises,or Lessor may have issued a surface use lease to another lessee.Mineral Lessee shall he <br /> responsible for identifying such ownership or determining the surface lessee or lessees,and shall notify all such <br /> parties in advance of any on-site activity.Notification will be given thirty(30)days for untitled or grazing acreage <br /> and sixty(60)days for tilled farm ground prior to any on site activity.Mineral Lessee shall closely coordinate any <br /> on-site activity with the surface owner or lessee,and make a reasonable effort to protect the integrity of surface <br /> owner s or surface lessee's fences,gates,cattleguards,and ether property. <br /> 24 PROTECTION AGAINST SURFACE DAMAGE -- Lessee has the right to utilize as much of the surface of the <br /> lands as is reasonably necessary for mining operations;however,Lessee shall be liable and agrees to pay for all <br /> damages to the surface, livestock, growing crops, water wells, reservoirs, or other improvements caused by <br /> Lessee's operations on said lands. There shall be no removal of timber without prior notice to Lessor. Any <br /> merchantable timber cut in conjunction with the approved mining plan is to remain the property of the State. All <br /> other timber,slash,stumps,and boughs are to be disposed of by Lessee. <br /> Page 5 of 8 <br />