2019-08-19_PERMIT FILE - M2019046 ‎(4)‎

• Permit No: M2019046
• IBM Index Class Name: PERMIT FILE
• Doc Date: 8/19/2019
• Doc Name: Application
• From: Southway Construction
• To: DRMS
• Email Name: JPL
• Email Name: MAC
• Media Type: D
• Archive: No

9. PENALTIES -- A penalty may be imposed for, but not limited to, late payments, improper payments,
errors-on production reports, violation of any covenant of this Lease, or false statements made to
Lessor. Penalties, taking into account the nature of the claimed deficiency, shalt be determined by
Lessor and may be in the form of, but not limited to, interest, fees, fines, and/or Lease
cancellation. Interest shall accrue on any delinquent annual rental, royalty, and other fees due
under this Lease from the date the payment becomes due. Interest shalt be calculated at the rate of
one and one-half percent (1.5%) per month, or any fraction thereof, compounded monthly, until full
payment is received by Lessor. In addition, the Lessor may charge penalties as provided in the
Lessor's published fee schedules, as they may be amended from time to time.
10. ASSIGNMENT -- Lessee, only with written consent of Lessor, may assign this tease as to the teasehold
interest of such Lessee in at[ or part of the lands covered hereby; not less, however, than tracts of
approximately forty (40) acres or governmental tots corresponding to a quarter-quarter section for
any partial assignment.
No assignment of undivided interests or retention or reservation of overriding royalties wilt
be recognized or approved by Lessor, and the effect, if any, of any such assignments or reservations
wit( be strictly and only as between the parties thereto and outside the terms of this lease. No
dispute between parties to any assignment or reservation shalt operate to relieve Lessee from
performance of any terms or conditions hereof or to postpone the time therefor. Lessor wilt at all
times be entitled to took solely to Lessee or his assignee shown on Lessor's books as being sole owner
hereof, and for the sending of at( notices required by this Lease, for the performance of all terms
and conditions hereof.
If an assignment of a part of this Lease is approved, a new lease designated as an assignment
tease wilt be issued to the assignee covering the lands assigned for the balance of the term of the
base lease on the mining tease form in use at the time of assignment and limited as to term as said
tease is limited. The assignor will be released and discharged from all further obligations for such
lands assigned, as if the same had never been a part of this Lease.
11. ASSIGNMENT CONSIDERATION -- The consideration for approval of assignment by Lessor shalt be 10%
of the value of any consideration tendered to Assignor by Assignee for the assignment. Divulgence
of the value of these considerations shalt be mandatory, in affidavit form, which form shalt be
presented to Lessor along with the other assignment instruments in order to obtain Lessor's approval
for the assignment. An assignment does not constitute a new lease but is a continuation of the base
tease. Any attempt to withhold this information shalt be construed as an attempt to defraud the
State of Colorado and shalt render this lease null, void and nonexistent, and all moneys paid to
Lessor shalt be forfeited to Lessor. In addition, the current statutory fees will be paid at the time
the assignment record form is submitted.
12. WEIGHTS -- it is agreed that all ores, minerals and other materials mined and taken from the Leased
Premises shall be weighed and assayed and the weight and assay thereof shalt be entered in due
form in weight and assay records kept for such purposes by Lessee.
Ton means 2000 pounds. Ton shalt be determined by Colorado State certified scales or other
methods approved by Lessor.
13. STEWARDSHIP TRUST STIPULATION-- Lessor shalt specify certain stipulations with respect to use of
the surface if said surface is included in the Stewardship Trust prior to the issuance of this Lease.
GL 112629 Revised DOL 11/2018
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