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Docusign Envelope ID.2AEFE7F6-AB44-417F-969E-AA4F283CF777
<br /> 11. INDEMNIFICATION - Lessee assumes all liability arising from the use, occupation or control of the
<br /> Leased Land by Lessee under this Lease. This assumption includes, but is not limited to,
<br /> liability for all personal injuries (including death) and environmental and property damage and
<br /> destruction. Lessee agrees to defend, indemnify and hold harmless the Board from and against
<br /> any and all liabilities, losses, damages, liens, expenses, claims, demands, debts, obligations,
<br /> fines, penalties, suits or actions, judgments, and costs of any kind whatsoever arising from the
<br /> use, occupation or control of the Leased Land, caused by any act, omission or neglect of Lessee,
<br /> or Lessee's employees, agents, guests, invitees, contractors or assigns. Lessee further agrees to
<br /> indemnify the Board for any costs, including costs of suit and fees for consultants, experts, and
<br /> attorneys, incurred by the Board in terminating or canceling, enforcing obligations or defending
<br /> itself against any matter arising under this Lease caused or permitted by Lessee or Lessee's
<br /> employees, agents, guests, invitees, contractors or assigns. This provision shall survive
<br /> termination, surrender, or relinquishment of this Lease and any cause of action by the Board to
<br /> enforce it shall not be deemed to accrue until the Board's actual discovery of said liability,
<br /> claim, loss, damage, or exposure. This indemnity is in addition to any other indemnity provided
<br /> for in this Lease. Lessee will not be responsible for any liability caused by persons granted
<br /> other uses of the Leased Land by the Board.
<br /> 12. INSURANCE - Lessee, at its sole cost and expense, shall during the entire term of this Lease
<br /> procure, pay for and keep in full force and effect an occurrence based general liability
<br /> insurance policy from an insurance carrier licensed to do business in Colorado, in an amount not
<br /> less than one million dollars ($1,000,000.00) per occurrence and two million dollars
<br /> ($2,000,000.00) aggregate. Lessee, at its sole cost and expense, shall during the entire term of
<br /> this Lease procure, pay for and keep in full force and effect a property insurance policy from an
<br /> insurance carrier licensed to do business in Colorado covering all insurable improvements owned
<br /> by the State Land Board located on the Premises in an amount not less than necessary to cover
<br /> the replacement cost. All policies shall name the Board as an additional insured, shall provide
<br /> that the coverage is primary and noncontributory over any other insurance coverage available to
<br /> the Board, its agents and employees and shall include a clause waiving all rights of recovery,
<br /> under subrogation or otherwise against the Board, its agents and employees. Failure to buy and
<br /> maintain the required insurance is a default of this Lease. Before starting work under this
<br /> Lease, Lessee shall, at the Board's request, furnish a certificate of liability insurance,
<br /> referencing the lease number and reflecting the above requirements. The Board may alter any
<br /> requirements of this section to meet the requirements of the Colorado Governmental Immunity
<br /> Act or any requirements determined by the Colorado Office of Risk Management.
<br /> 13. EXCLUSIVE RIGHT TO NEGOTIATE A PRODUCTION LEASE OR EXPLORATION LEASE EXTENSION
<br /> The Lessee may at any time prior to the expiration of this Lease exercise an exclusive right to
<br /> negotiate a production lease or an extension of this Lease by giving the Board written notice of
<br /> intent to enter into such lease for the Leased Land at least ninety (90) days prior to the
<br /> expiration of this Lease. This right does not guarantee the Lessee a production lease or a Lease
<br /> extension, only the exclusive right to negotiate with the Board during the Lease Term, subject
<br /> to the terms and conditions contained herein. The exclusive right to negotiate, if exercised,
<br /> shall expire at the end of the Lease Term unless otherwise expressly agreed by the Parties in
<br /> writing. Lessee acknowledges that the terms and conditions of any production lease or
<br /> extension of this Lease negotiated between staff for the Board and Lessee may be subject to
<br /> the approval of the commissioners of the Board at a public meeting of the Board.
<br /> 14. OPERATIONS - All work shall be done in a reasonable manner that will protect the public
<br /> health, safety, and property and prevent unnecessary impacts on the surface and subsurface
<br /> EP 116819 Page 4 of 14 Revised_DOL_20240701
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