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Lessee shall be responsible for identifying such ownership or determining the surface lessee or lessees,
<br /> and shall notify all such parties in advance of any on-site activity. Notification will be given at least
<br /> thirty (30) days in advance for untitled or grazing acreage and at least sixty (60) days in advance for
<br /> tilled farm ground prior to any on site activity. Lessee shall closely coordinate any on-site activity with
<br /> the surface owner or lessee, and make a reasonable effort to protect the integrity of surface owner's or
<br /> surface lessee's fences, gates, cattleguards, and other property.
<br /> 22. PROTECTION AGAINST SURFACE DAMAGE -- Lessee has the right to utilize as much of the surface of
<br /> the lands as is reasonably necessary for mining operations; however, Lessee shall be liable and agrees
<br /> to pay for all damages to the surface, livestock, growing crops, water wells, reservoirs, or other
<br /> improvements caused by Lessee's operations on said lands. If requested in writing by Lessor, Lessee will
<br /> erect fencing around mining operations.
<br /> There shall be no removal of timber without prior notice to Lessor. Any merchantable timber cut in
<br /> conjunction with the approved mining plan is to remain the property of the State. All other timber,
<br /> slash, stumps, and boughs are to be disposed of by Lessee.
<br /> There shall be no importing of material, including fill material, soil, rock, debris and trash, from
<br /> outside the Leased Premises.
<br /> 23. LIENS AND CLAIMS -- Lessee shall not suffer or permit to be enforced against the Leased Premises, or
<br /> any part thereof, or any improvements thereon, any liens arising from, or any claim for damage
<br /> growing out of the work of any construction, repair, restoration, replacement or improvement, or any
<br /> other claims or demand howsoever the same may arise, but Lessee shall pay or cause to be paid all of
<br /> said liens, claims, or demands before any action is brought to enforce the same against the Leased
<br /> Premises or improvements. Lessee agrees to defend, indemnify and hold Lessor and the Leased
<br /> Premises free and harmless from all liability for any and all such liens, claims, demands, and actions
<br /> together with reasonable attorney fees and all costs and expenses in connection therewith.
<br /> Lessee shall, upon execution of this lease, at its cost, prepare a Notice, pursuant to C.R.S. 1973,
<br /> S 38-22-105 and cause the same to be posted for the purpose of protecting Lessor against any liens or
<br /> encumbrances upon the Leased Premises by reason of work, labor, services or materials contracted for
<br /> or supplied to Lessee.
<br /> 24. BOND -- Lessee shall execute a bond (or other sureties as may be approved by Lessor) at the time
<br /> this Lease is executed by the Parties in an amount fixed by Lessor. The bond shall guarantee
<br /> performance of this Lease by Lessee, which includes, but is not limited to, security for payment for
<br /> damages caused by Lessee's or Lessee's agent's operations on said lands. The bond shall consist of
<br /> cash, letter of credit, or other sureties as may be approved by the Lessor. However, if the bond is
<br /> other than cash, the bond must be in a form that will guarantee payment in cash to the Lessor upon
<br /> receipt by any bank or insurance company of written demand by the Lessor, without further
<br /> condition. The Lessor shall return the bond to the Lessee if and when Lessee has fully complied with
<br /> the terms of this Lease; however, Lessor may require such bond to be held in full force and effect
<br /> for one year after cessation of operations. The Lessee is aware and understands that certain
<br /> covenants and agreements relating to surface reclamation may require additional time beyond the
<br /> Term, and agrees to keep this bond in place until all agreements related to surface reclamation have
<br /> been satisfied by inspection and approved by the Lessor's staff or their designee. In the Lessor's
<br /> discretion, the Lessor may draw upon the bond after Lessee has failed to perform its obligations
<br /> under the Lease beyond the stated cure periods provided in the Lease. Lessor reserves the right to
<br /> GL 112574 Revised DOL 11/2018
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