PERMFILE47460

• Permit No: M1987026
• IBM Index Class Name: Permit File
• Doc Date: 2/19/1987
• Doc Name: LIMITED IMPACT OPERATION 110 APPLICATION FORM
• Media Type: D
• Archive: No

• MINING LEASE •
This Lease, made and entered into this 25th day of October, 1982,
by and between Boyce Cook and Twila Sands, hereafter called "Lessors",
and Colorado Quarries, Inc., a Colorado Corporation, P. O. Box 1389,
Canon City, Colorado, 81212, hereinafter called "Lessee"
WITNESSETH:
That the Lessor, for and in consideration of royalties, covenants
and agreements hereinafter described and expressed to be performed by
the Lessee, has leased exclusively unto the Lessee for a period of
Five (5) years from and after the date of this Lease, the following
described premises, to wit:
.King of the Valley Lode, Hardscrabble Mining District,
Custer County, Colorado, Section 16, Twp. 225. Range 72w
of the 6th PM. Survey #11540
and Garnet Lode, Hardscrabble Mining District, Custer County, Colorado,
Section 16, Twp. 22S., Range 72W of the 6th PM. Survey #9449
with permission to build a road over the most feasible route
to the quarries, and to enter and haul stone from said quarries.
The Lessee agrees to enter upon and work the said premises in a
workmanlike and safe manner.
The Lessee agrees to pay the Lessor a royalty of Fifty Cents (5.50)
per ton on any materials hauled over 8,000 tons during the five-year
(5-year) term of this Lease. Accounting shall be made to the Lessor
by scale tickets from a certified scale with each royalty check payment.
Not withstanding the foregoing, during the term of this Lease, Lessee
shall pay Lessor a total minimum royalty of Four Thousand and 00/100
dollars ($4,000.00), payable at 5800.00 per year for the total five-year
lease. This minimum royalty must be paid in advance each year starting
with the date of this contract and on each anniversary thereafter. All
royalty and lease payments will be equally divided and distributed to
each Lessor.
The Lessee agrees to procure, pay for, and maintain all insurance
required by law and to protect the Lessor's property.
The Lease shall remain in force for a period of Five (5) years from
the date hereof, with the Lessee's having an option to renew for five (5)
additional years.
Should lessors decide to sell claims, les:;ee has first option to
purchase at a fair market price.
Lessee will pay property taxes on these claims and send verification
of same to Lessors.
If at any time during the term of this lease, Lessee shall be in
default of performance of any of it's obligations hereunder, specifically,
the payment of royalties and advance royalty payments, Lessee shall have
30 days after receipt of written notice, specifying such default, to
cure such default. If the default is not cured within the 30-day period,
then this Lease is cancelled subject to the Lessees right to remove it's
property and equipment from the leased property.
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