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<br />lo. Assi¢rtment -The Lessee, with the written consent of the Lessor, will have the right to assign this lease as to the
<br />• enure leasehold interest oC such Lessee In all or part of the lands covered hereby, not Ids, however, than tracts of
<br />appro:dmately Corry (40) acres or Governmental lot corresponding to a quarter-quarto etti n fur soy ppartial
<br />' usignment, and for approval of such assignment the Lessor will make a Charge of ' .+ti'~ Cor any
<br />one assignment. No anti~gnment oC undivided interests or retention or reservation of overriding royaltlrs will be
<br />recognized ar approved by Lessor; and the effect, If any, of any such assignments or reservations will be strictly
<br />and only as between cite parties thereto, and outside else terms of this lease, and no dispute between parties to any
<br />such assignment or reservation shall operate to relieve the Lessee from perionnante of any terms ar conditions
<br />hereof or to postpone the time therefor. Lessor will at all ['ones be entitled to look solely to the Lessee or his
<br />assignee shown on its books as being the sole owner hereof, and for cite sending of all notices required by this
<br />lease, and for the performance of all terms and conditions hereof. If an assignment of this lease, in whole or in
<br />art, is approved. a new lease will be issued to the assignee for the balance of the life of cite lease, covering the
<br />Ponds assigned. Said lease will be on cite mininp~ lease form hr use ar the llnre o(assigrrment, and limited as to term
<br />as said lease is limited, and cite assignor shall Oe released (ram all further obligations, and shall be Iseld to have
<br />released all rights and benefits tlrerea(ter accruing wills respect to the assigned land, as if the same had never been
<br />a part of the subJect matter of this lease.
<br />I1. Pros ecttn -Lessee agrees that while wing and operating an diamond,elmm, or other drill orc~HFi~~i">t#Yi•
<br />'~- said premises; it will keen an accurate log on all work so dons and performed, slsosvino geological
<br />Demotions penetrated, the depth or thickness of each, the mineral character oC each espeeiauy mineral veins and
<br />water bearing strata, the location of same, the elevation, and tie to a corner establlslsed by U. S. surveys of some
<br />legal subdivision, and each and every thing necessary to make a complete log of the hole throughout Its entire
<br />depth, a true copy oC which said log will be Cumishrd to the Lessor.
<br />It is understood and agreed that the methods used in carrying out any program of exploration, and the rate of
<br />progress of such program may be detemsined by the Lessee. 11 the Lessee carries on any program of exploration,
<br />other than drilling, Lessee will submit to Lessor written reports showing cite character and extent of prospecting
<br />being tarried out on the leased premiss and giving uty details of mineral outcroppings, seams, and veins which
<br />may have been encountered; and Lessor agrees that during the term oC this lease al•such information supplied to
<br />Lrssor by Lessee will remain confidential and unpublished ro far as consistent with law.
<br />l2. Surtender and Relin~vishmen~t -The Lessee may at any time, by paying the State of Colorado, acting through its
<br />'~ rate oar of Lind Commissioner, all unounts tiler due as provided herein, surrender and cancel this lease
<br />insofar'as the same covers all or any portion of the lands herein leased and be relieved from further obligations or
<br />'~ liability hereunder with respect to the lands so surrendered; provided, that no partial surrender or ca»cellation of
<br />tltis lease may be for less than tracts of approximately forty (40) acres or Governmental lot corresponding to a
<br />quartergsrarter section, the rental being reduced proportionately provided further, that this surrender clause and
<br />option herein reserved to cite Lessee will cease and become absolutely inoperative immediately and concurrently
<br />with the institution.o(aisy suit in any court of law by the Lessee, Lessor, or any assiv~nee of either, to enforce this
<br />lease ar any of its terms, express or implied, but In no case will surrender be effective until Lessee has made Cull
<br />provision for conservation of the minerals and protection of the surface. rights of the leased premises.
<br />All information in Pararuaphs 5 and 11, above, must love been filed with the Board before this (case may be
<br />terrrunatea.
<br />13. If lessee initiates or establishes arty water right for cite leased premises, lice point of surface diversion or round
<br />water withdrawal of which is on the leased premises, such right will, i( the surface rights of said prertuses are
<br />awned by lessor, become property of lessor, svitltout cost, at the termination of the lease.
<br />14. Protectin a ins[ Surface ama e~^Pond Requirements -Lessee has the right to utilise as much of the sur(zce .
<br />of t se an as is necessary for mututg operattun~, andis liable and agrees to pay (or all damages to livestock,
<br />growing crops, water wells, reservoirs, or improvements, e+used by Levee's operations on said lar.~s. Further, it is
<br />understood that this lease is granted subject to surface patents, deeds, and certificates of purchase,. and Lessee
<br />assumes resporisibillly for all claims arising from damages to the surface cawed by Lessee s operatrons on such
<br />lands. It is agreed a:td understood that no 0 orations tray I:e commenced ~on the lands Irerernabove described
<br />unless and until the Lessee or his assignee has (led a good ails sufficient bond with the Lessor in an amount to be
<br />rixed by Lessor, to secure else paynrenC fur such damage to livestock, growing crops, water, or'unpravements as
<br />may be caused by Lessee or his assignee's operations on said lands. The Lessor may grant relief from the foregoing
<br />bond requirement upon apptiation for such relief from the Lessee.
<br />I5. Indemnification'of Lessor -The Lessee further agrees to hold the Lessor harmless for any and all manner of
<br />c arms artsrng or to arise from cite said leased premises by Lessee whether from soil or surface subsidence or from
<br />any other eawe or any oilier nature whatsoever; tills paragraph is binding upon Lessee and upon the heirs, assismsr
<br />successors, and legal representatives of Lessee, and is a continuing obligation during and alter the expiration of
<br />this lease, so long as any possibility of soil ar surface subsidence remains.
<br />16. Ri it of Removal- In the event this lease is terminated by forfeiture, surrender, or Ilse expiration of term, and
<br />a~I o tga[ions o Lessee under this (ease are satisfied, Lessee may remove all his improvements and equipment
<br />from the said premises within six months from the date of such temtination, and such removal mwt be accom•
<br />fished without unnecesciry waste or injury to the premises. aVl Improvements and equipment remaining on cite
<br />Pealed premises six months after the termination hereof will be forfeited automatically to the Stale of Colorado,
<br />without compensatlan. ,
<br />I7. Comoliance with Law -Lessee further covenants and agrees that during the continuance uC!Itis lease it will fully
<br />comp-TwttTlf-i tf a provisions, terms, and conditions of all laws, whether Stau or Federal, anti order issued
<br />thereunder which may be in eiCect during Ilse continuance hereof relating to~mining or odser operations o(Lrssee
<br />hereunder.
<br />Ig. Forfeiture - It is agreed drat i(Cor any reason cite Lessee (ails to keep each grid every one of the covenants herein,
<br />an-tlirsueh default continues (or a period u( thirty (30) days after service of ~4ritterr notice thereof by terrified
<br />mad upon Ilse Lessee by cite Lessor, the Lessor Isas the right to declare tSis lease forfeited, and to enact onto the
<br />leased premises, or any part thereof, either with or without procds o(law, and to expel, remove, and i7ul out the
<br />Lessee or any person ncctipying the premises, using such force as may br, necessary to do so. In the event of the
<br />termination of this lease by reason of breach of the covenants herein contained, the Lessee will surrender and
<br />peaceably deliver up to tl:e Lessor cite above-described premises which premises are to be in good reining
<br />condition. If, upon termination of this lease (nr arty reason, whether by surrender, forfeiture, or expiration of
<br />"•~° ,•,h^•°•~•• r ^• ^-r~^~ ~~-,r r~mrq^d tbgysvirtt the terms of the lease, Lrssor will hold and retain eossesston
<br />' ~~~~•r^,r... i~~~i~~,. ~•~^u~s, .rod ~~~nlpn~ant ui Lase^, as security ump Lessor for the payment of rents and
<br />'•~•~ - ir, ar ~ ~ .^~t it '^.+ur.i liras. ~r t~ indemnify it against any loss or damage sustained by it by
<br />r ~~.~ •~f ~rh~ d•-i.pdr ~! .hr I_: seer, for which purpose Lessor is herebyy given lien upon all such property,
<br />hnprovements, and a nipnteat, which lien will attach as Uw same are pla[ed upon the premises. In the event
<br />I,rssnr (orecloaer the Jirn in chef article givar to it by Lessee, Lessor may itsel(be a purchaser at any sale thereof
<br />under such foreclosum. Upon the termination n( this lease for any cause, if the Lrssee remains in possession of
<br />saint ~•r^.rnises, he will hr q~rilty of an urrlaw(ul detainer under the statutes in such case msde and provided, and he
<br />~~ ° •^ snhi^"t to all ih^ rmniitinns and provisions thereof and to eviction and removal, forcibly or otherwise,
<br />+~uir yr s~rthout process of law, as above provided.
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