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21. ANCILLARY USE -- Lessee may remove coal, and place on the Leased Premises stock piles of coal mined
<br />from the Leased Yrem~ses and such facilities and equipment as may be necessary for this removal. All ancillary
<br />uses related [o the developmen( and mining of coal from the Adjacent Lands, such as the storage of coal,
<br />• retention ponds, office buildings, parking lots, accessory equipment, and any other uses no[ specifically
<br />men[toned herein, will be subject [~ the review of Lessor and require a yearly rental payment of not less than
<br />5500.00 per acre, or fraction thereof, for any such surface lands physically occupied and so utilized by Lessee.
<br />Any and all haul roads which do opt directly benefit the Leased Premises or the Adjacent Lands will be subject
<br />[o a separate permit and approval of Lessor.
<br />22. PURCHASE --Tn the even[ Lessor determines, in its discretion, that Lessee has caused significant harm to the
<br />surface estam of the Leased Premises, resulting in any impairment on the Lezsor's part [o either sell or tease the
<br />parcel, [hen, the Lessor may compel Lessee to purchase [he surface estate at the termination of this Lease. The
<br />pm~chase price will be determined zs d the harm did not exist by an appraisal prepared by a qualified appraiser
<br />selected by the Lessor. The surface estate for purchase shall include as a mirimum the NW I/4, N]/2SW 1/4 of
<br />Section 36, T35N, RYLW, NMPM, lying northwest of Hay Gulch Road, comprising approximately 235 acres.
<br />Moneys paid to Lessor Cot ~.ncillary uses as defined in Paragraph 21 shall be subtracted from [hc
<br />purchax price. Any purchase of stn±e lands must comply with all state, local and federal statutes, including
<br />C.R.S. 36-1-115
<br />?3. PRO"CECCION AGAINST SURFACE DAMAGE -- Lessee has the right to utilize pursuant to this Lease as
<br />much of the surface of the Leased Premises as is reasonably necessary for mining operations; provided that
<br />Lessee shall be liable and agrees to pay for all damages to the surface, livestock, growing crops, water wells,
<br />reservoirs, or aher improvements caused by Lessee's operations on [he Leased Premises. Further, it is
<br />understood that this Lease is subject [o surface patents, deeds, and certificates of purchase, and Lessee shall
<br />assume responsibility for all claims arising from damages to [he surface caused by Lessee's operations.
<br />24. STEWARDSHIP TRUST STIPUC?_TION-This paragraph deleted
<br />25. LESSOR'S APPROV.AI, -- Whenever approval by Lessor is required or cont.:m?laced by Lessee, approval must
<br />be in writing and sha:i be optional an;E shall be within the sole and absolute disc; etimt of Lessor.
<br />2G. HOLD HARMLESS -- Lessee shall 5ndemnify Lessor against akl liability a::d-loss, and agaius[ all claims and
<br />actions, including the defense of ~rsch claims or actions, based upon or arising out of damage or injury,
<br />• including death, to persons or propc::y caused by or sustained in connectio.; with this Lease or by conditions
<br />created [hereby, or based upon any violation of any statute, ordinance, or regu ~:ion.
<br />27. COAL- h4INE GAS -- Methane gas ,^; other volatile gases produced, saved ^.nd sold by Lessee from mineable
<br />coal measures and from roots and-ti~ors of mineable coal measures withir. foe Leased Premises shall be the
<br />property of Lessee, provided that t,: gas is removed as a mining safety pre:.edure prior or pursuant to mining
<br />and drat a royalty be paid to Lessor ~rer the [eons set forth in Lessor's then crrrcnt oil and gas leases. Cas [bar is
<br />uneconomical to prodace may be c2-:ed or flared, provided that the venting it flaring complies with all federal,
<br />store and local requi^.ments. Meth.:.:.-gas or other volatile gases produced by Lr:e oil and gas lessees prior to the
<br />commencement of development at c: mining from the mineable coal meas~res and from roofs and floors of
<br />mineable coal measures within the _eased Premises shalt be the property ~; 'he oil and gas lessee under the
<br />terms' of the oi] and has lease, so 1: ~:; as the terms in this Paragraph 27 arc consistent within the law. "Roof'
<br />means the rock imnvrdiately abov~a '.nd m contact with [he mineable coal'nt0asure. "Floof' means the rock
<br />immediately below a!,d in contact H ~i the mineable coal measure. ~ '
<br />2S. WA"CER RIGA'CS -- If Lessee i..a:ates or establishes any water right iihere the poini of diversion or
<br />groundwater withdrawal is on the C`tased Premises and where [he surface is~owned by [he Stale, such water
<br />right must be obtained in the name eland with the consent of [he State actin;; Gy and through its Board oCLand
<br />Commissioners. Water rights and r.:y improvement required to bring this"dater to the surface shall of the
<br />1-eased Premises become [he prope;iY of the Stale, without cost, upon termhrztion of [his Lease for any cause
<br />whatsoever. Under no circumstarr° may b+round water be withdrawn •a~ithout fust having secured the
<br />permission of Lessor>ad may not be withdrawn at a rate higher than necessary'for the mining and/or processing
<br />pursuant [o this Lease. Additional payment may be required for the use of ady waters as may be defined as•
<br />tributary or nartributary.
<br />29. LIENS AND CLARjj -- Lessee sF~ii not suffer or permit to be enforced ag~~ns[ the Leased Premises, or any
<br />part thereof, or any improvements Ltiereon, any liens arising Crom, or any clitn for damage growing out of the
<br />work of any constru:Yion, repair, tbetomion, replacement or improvement, br any other claims or demand
<br />hoasoever [Ire same'may arise, beYlessee shall pay or cause to be paid all of said liens, claims, or demands
<br />• be('aY any action is brought [o enfdrsc the same against the Leased Premises ar improvements. Lessee agrees io
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