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the Leased Premises, any part thereof, or any improvements thereon any liens <br /> arising from, or any claim for damage arising in any way from Lessee's operation. <br /> Lessee shall pay or cause to be paid all of said liens, claims, or demands before <br /> any action is brought to enforce the same against the Leased Premises or <br /> improvements. Lessee agrees to defend, indemnify and hold Lessor and the <br /> Leased Premises free and harmless from all liability for any and all liens, claims, <br /> demands, and actions together with reasonable attorney fees and all costs and <br /> expenses in connection therewith. Lessee shall be liable for all taxes, <br /> assessments, and other charges assessed on the Leased Premises or any <br /> property related thereto. <br /> Lessee shall, upon execution of this Lease at its cost, prepare a Notice, <br /> pursuant to C.R.S. 1973, § 38-22-105 and cause the same to be posted <br /> for the purpose of protecting Lessor against any liens or encumbrances <br /> upon the Leased Premises by reason of work, labor, services or <br /> materials contracted for or supplied to Lessee. <br /> 28. JONQ: No operations are to be commenced on the lands herein described unless <br /> and until Lessee has fled a good and sufficient bond with Lessor in an amount <br /> fixed by Lessor, to secure the payment for damages caused by Lessee's or <br /> Lessee's agent's operations on said lands. Lessor may require such bond to be <br /> held in full force and effect for an extended period after cessation of operations <br /> for which the bond was intended with approval of Lessor. This requirement may <br /> be waived in favor of the requirements of the DRMS. <br /> 29. WATER: Lessee shall not establish a water use, water permit, or water right <br /> unless approved by Lessor. Any water right, use or permit, on the Leased <br /> Premises, for any use on or off Leased Premises, shall become and remain the <br /> property of Lessor without cost to Lessor. <br /> 30. : Lessee may, at any time, by paying <br /> to Lessor all amounts then due as provided herein, surrender and cancel this <br /> Lease as to all or any portion of the Leased Premises and be relieved from further <br /> obligations or liability hereunder with respect to the lands so surrendered except <br /> for environmental conditions caused or created by Lessee or its agents prior to <br /> such surrender or relinquishment; provided that no partial surrender or <br /> cancellation shall be for less than tracts of approximately 40 acres or <br /> governmental lot corresponding to a quarter-quarter section, and the rental will <br /> be reduced proportionately. <br /> This right of Lessee to surrender this Lease shall cease and become <br /> absolutely inoperative immediately upon the institution of any suit in any court <br /> of law to enforce this Lease or any of its terms, expressed or implied. In no case <br /> shall surrender be effective until Lessee has made full provision for conservation <br /> of the minerals and protection of the surface rights of the Leased Premises as <br /> Page 13 of 20 <br />