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<br />15. INSPECTION - It is agreed that during all proper hwrs std at ell times during the continuance of this lean, L.essar or iv duly authorized
<br />' agem, shall be std is hereby authorized to check stela a, to their accuracy, to go through any of the slops, entries, shatb, openings, or workings
<br />on said premises, and to examine, inspect, survry std take measurcmems of the same and to examine and make exaacls from or copies of
<br />all books and weight sheets std records which show in arty way the coal output, coal values, payments and royalties from and of the leased
<br />premiss, and that all Eonvenicrroes nexwry for said inspection, survey, or examination shall be famished to Lessor. Lever may require Lessee
<br />to provide all insttumertts and documents of arty kiM std nature whatever which affect Lessee's imerests.
<br />16. MIMNG METHODS - In the underground and open pit workings, al! shahs, inclines, and tunnels shall be well timbered (when good mining
<br />requires timbering) and all pans of workings where coal is not exhausted shall be kept free from water and ware materials. The urderground end
<br />open pit workings stall be protected against fire, Hoods, creeps and squares. [f such events do occur, they ere to be checked in a manner which
<br />is in kceping with good methods of mining. Such methods of mining shall be used az willvuurc the extraction of the greatest possible amount of
<br />coal consistent within dre law and with prevailing good mining praaitt, and Lessee agrees to protect the coal beds above std below the coal bed
<br />being mirrod.
<br />17. NOTICES - It is agreed that any ratite required to be given to lessee under the provision of this leax shall be xm by certified mail to the
<br />address set forth at the beginning of this lease or to such other address az Lessee may indicate in writing to Lessor, and such xrvitt by mail
<br />shall be deemed sufficient and in (all compliarrce with flee terms of this Isx. Notice to Lessor shall be given in like manner, addressed to the
<br />State Board of Land Commissioners' Denver, Colorado address.
<br />1 g. PROSPECTING - A permit to prospect is required and Lsstt agrees that while using std operating any drill on said premises, [.essee shall keep
<br />an accurate log on all work so done and performed, showing geological formations penetrated, the depth std thickness of aeh, the mircral character
<br />of each, espaially coal end water-bearing strata, the location and elevation of same erd tie to a turner established by United Stara survey, and
<br />aeh and every thing necessary to make t complete log of the hole throughout its entire depth, a true copy of said log shall be furnished to Lessor.
<br />h is understood and agreed that the methods used in tarrying out any program of exploration, and the me of progreu of such program shall
<br />6e determined by Lessee. if Cessce carries on any program of exploration, other than dolling, lessee shall submit to lessor written reporu showing
<br />the character and extent of coal prospecting being carried at on the leased premiss and giving any details of coal outcroppings or seams which
<br />may have been encountered; and lessor agrees that during the term of this leax all such information so supplied by lessee shall remain confidential
<br />and unpublished insofar az it is consistent within the law.
<br />19. PROTECTION AGAINST' SURFACE DAMAGE - Lessor has the right to utilize as much of the surface of the lards as is necessary for mining
<br />operation, std shall be liableard agrees to pay for all damages to the surface, livestock, growing crops, water wells, reservoirs, orother improvements
<br />caused by Lessee's operation on said lands. Further, it is understood that this Itax is subject to surface petenb, deeds, end ttrtifrcata of purchase,
<br />and Lessee shall assume responsibility for all claims arising from damages to the surface eased by Lessee's operations.
<br />20. INDEMNIFICATION OF LESSOR -Lessee further agrees to hold Lessor harmless (or any std all manner of cleirro arising or to aria from
<br />the said leased premiss whether from soil or surface subsidence or from any other aux caused by Lessee's operations.
<br />2I . BOND - It is agreed and understood that fro operations arc to be commenced on the lands hertinabove described unlev and until Lessee or his
<br />agent has filed a good and sufficient bond with Lessor in an amwnt Rsed by leaser, to secure the paymem for damage eased by Lessee's or his
<br />agent's operations on said lands. Lessor rserves the tight to grant relief from the foregoing bond «quircmenu. Lessor may require the bond to
<br />be held in full force and effect for one year after cessation of operations for which the bond was intended.
<br />22. COAL MINE GAS -Methane Gas or other volatile gases produced, saved and/or sold by the goal mining Lessee from mineable coal measures
<br />and from reefs and floors of minable coal messures shall be the property of that [uses provided that the gas is removed as a mining safety pracedurc
<br />prior to mining and that a royalty be paid to Lessor per the terms set torah in Lessor's then current oil and gas leases. Gas that is uneconomical
<br />to produce may 6e vented or Flared provided that the venting or Rating complies with all Federal, State end Local roquirtments. Methane gas or
<br />other volatile Bass produced by the oil and gas lessees from the mineable coal measures and from roofs and Roors of mineable coal measures poor
<br />ro mining shall be the property of the oil end gas lessee under the temu of the oil and gas leax, so long az the terms in this paragraph arc conistent
<br />within the law.
<br />"Roof" means the rock immediately above and in contact with the mineable opal messurc
<br />"Floor'" means the rock immediately betties aril in contact with the mineable coal messurc
<br />21. WATER - If Lessee initials or establishs any water tights for which the point o(surfatt diversion or ground water widrdrawal is on the leased
<br />premises, title to such water tights shall, upon termination of the Ieax, become the property of the surface owner without cost, and tide ro the water
<br />rights shall b< conveyed to the surface owner immediately upon lertnination, except that if Lessor is the surface owner the water ogln shall be taken
<br />in the name of Lessor in the first insuntt and shall be the property of Lessor without cost. '
<br />24. SURRENDER AND RELINQUISFBI1ENT -lessee may, st any time, by paying to the State of Colorado acting by its State Board of Land Com-
<br />missioners, all amounts then due az provided herein, surrender and canttl this lease insofaras the same covers all or any portion of the lands herein
<br />leased and be relieved from further obligations or liability hereunder with rtspect io the lards so surrendered; provided that rro partial surtender
<br />or cancellation of this Ilse shall be for less than tracts of approximately ferry (40) airs or Governmental for corresponding to aquarter-quarter
<br />section. the renal being reduced proportionately; provided further that this surrender claux and opion herein reserved to Lessee shall ceax and
<br />Necome absolutely inoperative immediately and concurtently with the institution of any suit in any court of law by Lessee, Lessor or any assignee
<br />of either Io enfortt this Isx, or arty of its terms, express or implied, but in rq tax shall surrender be eReaive until Lessee shall have made (all
<br />provision (or conservation of the minerals end protection o(the surface tights of the leased premises. All information in Paragraphs on Reporu
<br />and Prospecting above must have been filed with Lessor before this lesse maybe terminated.
<br />23. R[GHT OF REMOVAL - fn the event this lease is terminated by forteimrc, surrender, or the expiration of term, and all obligations of Lessee
<br />under this Isx arc satisfied, Lessee may remove all his improvements Boil equipment from the leased premiss within six months from the date
<br />of such termination, and such removal is to be aceomplished without unnecessary waste or injury to the premiss. All improvements aril equipment
<br />remaining on the Issa1 prcmixs six rtronths after the tenrdnation hereofshall be forfeited automatically to the State of Colorado, without compensa•
<br />lion. Within this time, at the option of Lessor, Lessor may order Lessee to remove any aril all improvements, equipment, man-made objets of
<br />any type, stockpile or dumps at cost of Lessee.
<br />26. COMPLIANCE WI771 LAW -lessee further covenants and ogres that dating the continuance of this Isx Lessee shall comply fully with ail
<br />the provisions, terms, and conditions of all laws, whether State of Federal, and orders issued thereunder, which maybe in effen dating the conti-
<br />nuance hereof, which in any menrter affect or control mining or other operations of I.esstt, and Lessee funkier agrees that good mining methods
<br />shall be used at all rims of active mining so long az said methods arc consistent within the law.
<br />2~~ RICFITS-0F-WAY - It is agrad that Lessor reserve the right at any time to grant a rightof-way upon, over or across all or any pan of said
<br />premises for any ditch, rcxrvoir, railroad, communication system, electoc power line, or pipeline, schoolhoux or other (awful purpose; but than
<br />such grants shall be subject to the tights of Lessee.
<br />28. ARCHAEOLOGY - It is contrary to State and Federal law to excavate, appropriate or disturb any historical, prehistoocal or archaeological site
<br />or resource on any public lands or lands administered by the State Board of Land Commissioners. Discovery of a svspeaed site or resource shall
<br />be immediately brought to the attention of Lessor end the State Archaeologist or lessee shall provide evidence that no significant archacological
<br />sites exist on the Issed prcmixs which could be destroyed by Lessee's operations.
<br />29. FORFEITURE - It is agreed that if for any reason Lessee shall fail to keep each and every one of the eovettanu and conditioro herein, ant
<br />breaches any condition hereof, and such default continues for a period of thirty (JO) days eftu xrvice of written naive thereof by certifin
<br />mail upon Lssee, Lessor shall have the right to declare this Itax forfeited, std to enter onto the leased premises or airy part thereof, eithe
<br />with or without process of law, and to expel, rctrtove and put out Lessee or any person aceupying the premises, using such force as may b
<br />necessary to do so. In the event of the termination of the lease by reason of breath of the covenants herein contained, Lessee shall surterdc
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