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20. INSPECTION -- It is agreed that during all proper hours and at all times during the continuance of this
<br /> lease, Lessor or Lessor's duly authorized agent, is authorized to check assays and scales as to their
<br /> accuracy, to go through or on any part or all of the Leased Premises to examine, inspect, survey and
<br /> take measurements of the same and to take samples of any kind and to examine and make extracts
<br /> from or copies of all books and weight sheets and records which show in any way the ore output, ore
<br /> values, payments and royalties from and of the Leased Premises. All conveniences necessary for such
<br /> inspection, survey, or examination shall be furnished to Lessor. Lessor may require Lessee to provide
<br /> all instruments and documents of any kind and nature whatever which affect Lessor's interests.
<br /> 21. NOTICES -- Any notice. demand, request, designation, consent, approval or other document or
<br /> instrument required under the provisions of this Lease shall be in writing, shall be deemed to have been
<br /> duly served on the day of receipt or rejection and shall be sent by registered or certified United States
<br /> mail, postage prepaid, return receipt requested, or by a nationally recognized overnight courier service
<br /> that provides written evidence of delivery, as addressed to the Parties hereto. The Parties may change
<br /> the place for serving such papers on it, or provide for the delivery of not more than 2 additional copies,
<br /> by giving the other party at least 30 days prior written notice to such effect. Notices shall be sent to:
<br /> Lessee: State Land Board:
<br /> Tezak Heavy Equipment Co, Inc. Colorado State Board of Land Commissioners
<br /> 205 Tunnel Drive Minerals Director
<br /> Canon City, CO 81212 1127 Sherman Street Suite 300
<br /> Denver Colorado 80203
<br /> 22. NOTIFICATION OF MINING OPERATIONS--It is understood that Lessor may not own or control the
<br /> surface estate of Leased Premises, or Lessor may have issued a surface use lease to another lessee.
<br /> 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 shalt 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 /> 23. 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 Lessees operations on said lands. There shall be no removal of timber without
<br /> prior notice to Lessor. Any merchantable timber cut in conjunction with the approved mining plan is to
<br /> remain the property of the State. Alt other timber, slash, stumps, and boughs are to be disposed of by
<br /> Lessee. There shall be no importing of material, including fill material, soil, rock, debris and trash,
<br /> from outside the Leased Premises, unless the import material is used for improvements or direct
<br /> benefit to the existing roadways or quarry operations.
<br /> 24. LIABILITY --
<br /> a) The Lessor shall not be liable to the Lessee, its agents, employees, invitees, patrons or any
<br /> other person whomsoever, for injury to or death of any person or damage to or loss of property
<br /> in, upon or adjacent to the Premises or other property contiguous or appurtenant thereto, which
<br /> may arise during the Lessee's development, use or occupancy of the Leased Premises or by any
<br /> SM 102453
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