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agrees to give Lessee the first right to purchase the property at the same price and on the <br />same terms as any bona fide third -party offer which may be made to the Lessor. The <br />foregoing notwithstanding, Lessor shall give the Lessee written notice of the offer and not <br />less than sixty (60) days to accept the offer and not less than an additional thirty (30) days <br />thereafter to close. <br />7. REPORTS AND RECORDS. After operations begin, it is agreed that on or before the last <br />day of each month during the term of this Lease, Lessee shall submit a written report to <br />Lessor, in which report shall be entered and set down the exact amount in weight of all <br />products mined and removed from said Leased Premises during the preceding calendar <br />month, if any. Lessee agrees to keep and to have in possession complete and accurate books <br />and records showing the production and disposition of any and all substances produced on <br />the Leased Premises. All said books and records shall be retained from Lessee to Lessor <br />for a period of not less than three (3) years. If any such examination shall reveal, or if either <br />party shall discover any error or inaccuracy in its own or the other party's statement, <br />payment, calculation, or determination, then proper adjustment or correction thereof shall <br />be made as promptly as practicable thereafter, except that no adjustment or correction shall <br />be made if more than three (3) years have elapsed between the time of the error or <br />inaccuracy occurred and the discovery -by either party of said error or inaccuracy. <br />8. OVERRIDING ROYALTY LIMITATIONS. It is agreed that this Lease or any subsequent <br />assignment hereof shall not be burdened with overriding royalties the aggregate of which <br />exceeds two percent (2%) of the gross value of the minerals or ore at the first point of sale. <br />Lessor must be notified of all overriding royalties accruing to this Lease. <br />9. CONFIDENTIALITY. Lessor agrees to keep and maintain strictly confidential any and all <br />information received from Lessee or gained by way of inspection of Lessee's operation or <br />records as allowed hereunder, save and accept as the same may be required to be provided <br />to any state or federal agency or court of competent jurisdiction by way of proper operation <br />of law. <br />10. WEIGHTS. It is agreed that all ores, minerals and other materials mined and taken from <br />the Leased premises shall be weighed and the weight thereof shall be entered in due form <br />in the records kept for such proposes by Lessee. Wherever used in this Lease, Ton means <br />2,000 pounds. Tonnage shall be determined by Colorado state certified scales or other <br />methods mutually agreed by the Parties. <br />11. MINING METHODS. Lessee may use any mining methods that are allowed by law and <br />with prevailing good mining practice. <br />12. OPERATION PLAN. All plans for exploration and mining shall be submitted to Lessor <br />for approval by Lessor before such operations begin. Such approval by lessor shall not be <br />unreasonably withheld. <br />