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C. The Company hereby agrees to apply for zoning classifications, <br /> variances or exceptions, and governmental approvals, permits, licenses <br /> or rights related to and required for the Company's operations <br /> hereunder, at the Company's cost. The Lessor agrees to cooperate <br /> with the Company in obtaining such approvals and to execute or join <br /> in applications, plats and other documents which are required to obtain <br /> the same that are reasonably required in connection with the operations <br /> that are contemplated under this Lease; provided, however, the <br /> Company shall provide bonds or other financial assurance for its <br /> operations, including for the restoration, reclamation or rehabilitation <br /> of the Property, as may be required or advisable to obtain such permits <br /> and approvals. <br /> d. Lessor shall have the right to continue use of the surface of the <br /> Property during the Term of this Lease. The reserved surface use <br /> includes, but may not be limited to, residential, water hauling <br /> operations; equipment storage, cow-calf livestock operations, and hay <br /> stack yard. Any lease or other agreement for such use shall be made <br /> expressly subject to the Company's right hereunder, and the Company <br /> shall have no obligation to pay Lessor or any surface use for impairing <br /> such use in connection with the Company's operations hereunder. <br /> 4. Ingress and Egress. The Company shall have the right of ingress and egress to <br /> and from the said property until the project is complete, final reclamation has <br /> been accomplished, and the Division or Reclamation, Mining and Safety has <br /> fully released the site. <br /> 5. Liabilities. <br /> a. Company shall defend and indemnify and hold harmless the Lessor <br /> and Lessor's agents and employees from and against any and all <br /> claims, demands,judgments and liability, including reasonable <br /> attorney fees and expert fees, by or to any and all third parties that may <br /> arise as a result of the negligent acts or omissions of Company or its <br /> agents, representatives, officers, employees, lessees and contractors, in <br /> or about the Property. <br /> b. The Company shall defend, indemnify, and hold harmless Lessor from <br /> any and all liability resulting from the Company operations hereunder <br /> pursuant to all local, state and federal environmental laws, ordinances, <br /> rules and regulations, including but not limited to, the Comprehensive <br /> Environmental Response, Compensation and Liability Act of 1980 (42 <br /> U.S.C. § 9601 et seq.) and the Resource Conservation and Recovery <br /> Act(42 U.S.C. § 6901 et seq.), as any of such laws, ordinances, rules <br /> and regulations have been or are amended from time to time. <br /> 3 <br /> Lessor Initials QX3 <br /> Lessee Initials <br />