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deeds, and certificates of purchase, and Lessee shall assume responsibility for all claims azising from <br />damages to the surface caused by Lessee's operations. <br />22. HOLD HARMLESS -Lessee shall indemnify Lessor against all liability and loss, and against all claims <br />and actions, including the defense of such claims or actions, based upon or azising out of damage or <br />injury, including death, to persons or property caused by or sustained in connection with this lease or by <br />conditions created thereby, or based upon any violation of any statute, ordinance, or regulation. <br />23. BOND - It is agreed that no operations are to be commenced on the lands herein described unless and <br />until Lessee or Lessee's agent has filed a good and sufficient bond with Lessor in an amount fixed by <br />Lessor, to secure the payment for damages caused by Lessee's or Lessee's agent's operations on said <br />lands. Lessor reserves the right to grant relief from the foregoing bond requirements. Lessor may require <br />the bond to be held in full force and effect for one yeaz after cessation of operations for which the bond <br />was intended. This requirement may be waived in favor of the requirements of the Mined Land <br />Reclamation Division. <br />24. COAL MINE GAS -Methane Gas or other volatile gases produced, saved andlor sold by the wal mining <br />Lessee from mineable coal measures and from roofs and floors of mineable coal measures shall be the <br />property of that Lessee provided that the gas is removed as a mining safety procedure prior to mining and <br />that a royalty be paid to Lessor per the terms set forth in Lessor's then current oil and gas leases. Gas <br />that is uneconomical to produce may be vented or Hazed provided that the venting or Hazing complies with <br />all Federal, State and Local requirements. Methane gas or other volatile gases produced by the oil and <br />gas lessees from the mineable wal measures and from roofs and floors of mineable coal measures prior <br />to mining shall be the property of the oil and gas lessee under the terms of the oil and gas lease, so long <br />as the terms in this pazagrap6 aze consistent within the law. °Roof" means the rock immediately above <br />and in contact with the mineable coal measure. "Floor" means the rock immediately below and in contact <br />with the mineable coal measure. <br />25. WATER RIGHTS - If Lessee initiates or establishes any water right where the point of diversion or <br />groundwater withdrawal is on the leased premises and where the surface is owned by the State, such water <br />right must be obtained in the name of and with the consent of the State acting by and through its Boazd <br />of Land Commissioners. <br />Water rights and any improvement required to bring this water to the surface shall become the <br />property of the State, without cost, upon termination of this lease for any cause whatsoever. <br />Under no circumstance may ground water be withdrawn without first having secured the <br />permission of Lessor and may not be withdrawn at a rate higher than necessary for the mining and/or <br />processing of State minerals only. Additional payment may be required for the use of any waters as may <br />be defined as tributary or non-tributary. <br />26. :LIENS AND CLAIMS -Lessee shall not suffer or permit to be enforced against the leased premises, or <br />any part thereof, or any improvements thereon, any liens azising from, or any claim for damage growing <br />out of the work of any construction, repair, restoration, replacement or improvement, or any other claims <br />or demand howsoever the same may arise, but Lessee shall pay or cause to be paid all of said liens, <br />claims, or demands before any action is brought to enforce the same against the leased premises or <br />improvements. Lessee agrees to defend, indemnify and hold Lessor and the leased premises free and <br />Page 8 of 11 <br />