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can mine Materials under the Permit for Mining Pod#1. Tenant has assumed Connell's future obligations <br /> under the Permit, with the exception of the Camilletti Pit reclamation referenced below. As soon as <br /> reasonably possible, but in no event later than June 30, 2017, Connell shall complete any reclamation <br /> (including all grading and the initial seeding of vegetation)required with respect to the Camilletti Pit(which <br /> is also covered by the Permit). Other than the Permit,Tenant shall be responsible,at Tenant's sole cost, <br /> for obtaining any permits which may be necessary for the extraction of Materials from the Mining Pods and <br /> for any dedication of open space required by Routt County in connection with such permits,together with <br /> all costs associated with such dedication. <br /> (d) Access and Roads. Tenant shall have non-exclusive access to the Property <br /> outside the Mining Pods, other than the County Lease Areas,for the purposes of, at Tenant's sole cost, <br /> constructing,maintaining,and using haul roads between the Mining Pods and for accessing public roads. <br /> In addition,Tenant shall have the right at all times during the Term, at Tenant's sole cost, to construct, <br /> maintain,and use a 30 to 40 foot wide haul road through the County Lease Areas along the southern border <br /> of the Property provided that Tenant has obtained the prior written consent of Routt County for such road. <br /> Tenant shall reasonably cooperate with CWH regarding the location of such haul roads. CWH expressly <br /> acknowledges that Tenant plans to operate a hot-mix asphalt plant on Mining Pod#1 throughout the Term, <br /> and will need to efficiently haul Materials from the other Mining Pods to such plant. <br /> (e) Reserved Rights. CWH reserves the right to use, possess and occupy such <br /> areas of the Property as may not be in use by Tenant for agricultural purposes, so long as such use, <br /> possession and occupation does not interfere with Tenant's allowed operations under this Lease. <br /> Notwithstanding the foregoing,without the express authorization of Tenant,no person may enter any open <br /> mining area,plant site,or facility secured or otherwise physically controlled by Tenant on the Premises. <br /> (f) Mining Pod #4. Notwithstanding anything herein to the contrary, and in <br /> addition to any other governmental approval and permitting requirements,Tenant may not commence any <br /> mining operations on Mining Pod#4 unless and until Tenant and CWH have obtained any necessary rights <br /> from the-State of Colorado and agreed upon a royalty structure for Mining Pod#4,which structure shall be <br /> reasonably consistent with the structure applicable to Mining Pods#1-3 hereunder. <br /> 3. PAYMENTS. <br /> (a) Generally. All payments required to be made by Tenant hereunder shall be <br /> made by wire or ACH transfer to the account designated in writing by CWH. CWH and Connell agree that <br /> CWH is acting as Connell's agent in the collection of any sublease payments due to Connell,and that the <br /> making of such payments by Tenant to CWH shall be deemed to constitute adequate consideration to <br /> Connell for the agreements made by Connell herein. <br /> (b) Fixed Rent. As partial payment for the surface rights granted to Tenant herein, <br /> and in addition to any other payments made under this Lease,Tenant shall pay annual rent of$135,000(the <br /> "Fixed Rent") during the term of this Lease. Fixed Rent shall be payable in quarterly installments of <br /> $33,750 due in advance on the first business day of each calendar quarter,and shall be evenly prorated for <br /> any partial periods that may exist at the beginning or end of the Term. <br /> (c) Royalty. In exchange for the rights to mine Materials granted to Tenant <br /> hereunder,and Tenant's surface area disturbance of the Premises,Tenant shall pay CWH a royalty equal <br /> to(a)$1.65(the"Royalty Rate")per ton of Products sold by Tenant plus(b)the Imported Royalty Rate <br /> per ton of Imported Products sold by Tenant (together referred to as the "Royalty"). The "Imported <br /> Royalty Rate"shall be equal to the then-current Royalty Rate minus$0.40,then multiplied by 50%. By <br /> way of clarification, the Royalty Rate for Mining Pod #1 is initially comprised of the following: (a) <br /> compensation to CWH for the Products removed and sold by Tenant in the amount of$1.00 per ton,(b) <br /> sublease payment to CWH, as agent for Connell, in the amount of$.40 per ton, and (c) surface area <br /> disturbance payment to CWH of$.25 per ton. The allocation of the Royalty Rate of Mining Pods#2 and <br /> 3 <br /> 4 <br /> t <br />