Laserfiche WebLink
Section 10.3 Without regard to the warranties of title given to Lessee by Lessor, if Lessor own <br /> less than 100% of the Materials under all or any portion of the Property, then the amounts payable to <br /> Lessor hereunder shall be reduced in the proportion that the interest of the Lessor in the Materials bears to <br /> 100%of the Materials within the Property. <br /> Section 10.4 Lessor shall not enter into any new oil and gas leases or other new agreements <br /> regarding oil and gas operations of the Property during the Lease Term, except under conditions which <br /> prohibit surface entry or occupancy in any manner which would unreasonably interfere with Lessee's <br /> operations on the Property. With respect to new wellsites and other surface facilities under existing oil <br /> and gas leases, Lessor shall promptly notify Lessee of any notices or requests by an oil and gas operator <br /> regarding surface use and hereby authorizes Lessee to use reasonable efforts to obtain understandings <br /> with the oil and gas lessees or operators to minimize impact of such wellsites and other surface facilities <br /> on Lessee's sand and gravel operations on the Property. Lessor shall reasonably cooperate with requests <br /> by Lessee for assistance in Lessee's efforts to negotiate surface use agreements with the oil and gas <br /> operators relative to existing leases. <br /> Section 10.5 Notwithstanding anything to the contrary in this Lease, Lessor has disclosed to <br /> Lessee all existing oil and gas leases and Lessee takes this Lease subject to all existing oil and gas leases. <br /> Lessor and Lessee agree to cooperate to manage current or future oil and gas operations in a manner that <br /> is mutually beneficial. <br /> Section 10.6 Notwithstanding anything to the contrary in this Lease, Lessor reserves the right <br /> to graze and/or farm the property, use the surface water, hunt the property, or issue other surface use <br /> licenses that do not unreasonably interfere with ongoing mining or production activities of Lessor. <br /> ARTICLE XI <br /> TAXES <br /> Section 11.1 During the Lease Term, Lessee shall pay when due all ad valorem property taxes <br /> assessed on the production, severance or extraction of Materials from the Property. In addition, Lessee <br /> shall pay all personal and real property taxes assessed against machinery, tools, equipment, supplies, <br /> buildings, improvements, pipelines, stockpiles of Materials, and other property and/or fixtures placed by <br /> Lessee on the Property. Lessor shall pay all other real property taxes on the Property and on any <br /> improvements thereon, including without limitation, improvements that Lessor installs on the Property for <br /> Lessor's own purposes and any taxes attributable to the production royalty or to Lessor's farming <br /> operations. <br /> ARTICLE XII <br /> LABOR AND MATERIALS <br /> Section 12.1 Lessee agrees to keep the Property free and clear of liens, charges, claims or <br /> demands arising from Lessee's operations hereunder and to promptly pay for all labor performed on the <br /> Property and for all supplies, materials, and equipment used or placed on the Property. Lessee shall <br /> defend, indemnify and hold harmless Lessor from and against any and all claims, charges, demands, <br /> causes of action, damages and liability, including reasonable attorneys fees and expert fees, that arise <br /> from or are connected to the acts or omissions of Lessee hereunder or to those of its contractors, <br /> subcontractors, employees, officers, agents or lessees in regard to providing labor and acquiring or <br /> installing materials, equipment and supplies for operations under this Lease. Lessee may in good faith and <br /> at its own expense, contest any lien by appropriate proceedings so long as Lessee posts a bond or takes <br /> other steps acceptable to Lessor that stay enforcement of such lien. <br /> 7 <br />