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Haulage Royalty oi'no less [har~is paid annually. Cessation of production for a period in excess of 1S0
<br />consecutive days, except for reasons pursuant to Paragraph 35 (Force Majeure) herein, will automatically
<br />• tenninute this Lease unless otherwise agreed to in writing by Lessor. Lessee shall notify Lessor of each
<br />cessation of production, the reasons therefor, and the time period during which production will or did cease.
<br />Force Majew-e shalt not relieve Lessee of any obligation to pay rent, advance minimum royalty, or advance
<br />minimum haulage royalty to Lessor.
<br />9. YL'-NALTIES -- A penalty shall be imposed for, but not limited to, late payments, improper payments,
<br />violations o[ any covenants of this Lease, or any false statements made to Lessor. Penalties shall be determined
<br />by Lessor and may be in the form of, but not limited to, interest, fees, and fines.
<br />I0. OVERRIDING ROYALTY LIMITATIONS -- It is agreed that this Lease or any subsequent assignment hereof
<br />shall nut be burdened with overriding royalties the aggregate of which exceed~ercent~of the Gross Sale
<br />Price at tbe first point of salt for coat mined, removed, sold, and shipped from the Leased Premises. Lessor
<br />must be notified of all overriding royalties burdening this Lease. Vio[adon of the above may subject this Lease
<br />to cancellation by Lessor.
<br />11. ASSIGNMEN"f -- Lessee, with written consent of Lessor, may assign this Lease as to the leasehold interest of
<br />Lessee in all or part of the Leased Premises; provided that tracts may not be less than approximately 40 acres or
<br />Oovermnen[al lots corsesponding ro aquarter-quarter section for partial assignment. For approval of such
<br />assignment Lessor may charge an assignment fee in an amount cursently in effect at the time of the assignment.
<br />if an assigmment of a part of this Lease is approved, a new (ease designated as an assignment will be
<br />issued to the assignee coverirg the lands assigned for the balance of the term of fne base lease on the mining
<br />least form ir. use at the time of assignment and limited as to terrrt as said lease is limited. The assignor will be
<br />released and dischazged from all further obligations for such lands assigned, as if the same had never been a per[
<br />of [his Lease.
<br />Nu assie tment or transfer of this Lease will be held valid by Lessor unless made with its consent in
<br />writing and duly entered N the books or records of Lessor.
<br />Noty. 3hstanding the fcre5oing provisions of this Paragraph I1, Lessee shall have the right, without the
<br />• approval o= Lessor, to assign a:.;ublease its rights hereunder to any parent corpomGon, affiliate, or subsidiary of
<br />Lessee.
<br />IZ. ASSIGNIViFNT CONSIDERA71ON -The consideration for approval of assignment by Lessor shall be ten
<br />percent of the value of any consideration tendered to assignor b assignee for the assignment of this
<br />Lease, but not less than ~ Diwlgrnce of the value of these
<br />considerations shall be man story, m a a avt[ orm, w c t orsn shall be presented to Lessor along with the
<br />other assignment instruments in order to obtain Lessor's approval for the assignment. An assignment does not
<br />constitute a new lease but is a centidua[ion of the base lease. Any attempt to withhold this information shall be
<br />construed z5 sn attempt [o defraud [he Stale of Colorado and shall render this Lease null, void and nonexistent,
<br />and all mo:-:ies paid to Lessor ~I:ali be forfeited to Lessor. 1n addition, the current statutory fees will be paid at
<br />the time the assignment record fotm is submitted.
<br />l3. AGREEMENTS OUTSIDE THE TERMS OF THIS LEASE - No assignme.~t of undivided interests or
<br />retention or rtservatiun of ovari~ing roya]ties will 6e recognized or approved by Lessor; and the effect, if any,
<br />of any sue'-: assignments or reset vations will be strictly and only as between the pubes thereto, and outride the
<br />terms of this Lease, and no dispute between parties to any such assignment or reservation shall operate to relieve
<br />T.essee tiara perfomtance of any [emits or conditions hereof or to postpone the tine therefor. Lessor will and
<br />shall at all nines' be entitled to look solely to Lessee or its assignee shown on Lessor's books as being the sole
<br />owner hereof, and for the sending of all notices required by this Lease and for the performance of all temts and
<br />conditions hereof.
<br />-4lthough not binding on Lessor, all instruments of every kind and nature whatsoever, including but not
<br />limited to sublease agreemens and operating agreements, affecting this Lease shall be filed in the records of the
<br />Mineral Depamnent of Lessor. Jpon request, such instruments famished may be kept confidential as consistent
<br />within the law.
<br />14. REPORTS AND RECORDS-- After operations begin, it is agreed that on or before [he last day of each month
<br />dwing the term of this Least, Lessee shall submit a sworn, written report to Lessor, in which report shall be
<br />. entered and se[ down the ama:nt in weight of all coal mined, removed, sold, and shipped [tom the Leased
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