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• INDEMNIFICATION AGREEMENT • <br /> THIS AGREEMENT is made and entered into this day of February, 1997 <br /> by and between Western Slope Flagstone, a sole pri etorship, hereinafter <br /> referred to as "Western Slope" and Powder Mountain Ranch, a Colorado partnership, <br /> hereinafter referred to as "Powder Mountain". <br /> WHEREAS, Powder Mountain currently operates an irrigation ditch, known as <br /> Martin/Crawford Ditch, lying in the SW 1/4 SW 1/4 of Section 35, Township 10 <br /> South, Range 98 West, of the 6th P.M. , Mesa, County, Colorado. <br /> WHEREAS, Western Slope is in the process of obtaining a mining permit from <br /> the Colorado Division of Minerals and Geology for the purpose of mining and <br /> removing rock and related activities within 200 feet of the Martin Crawford Ditch <br /> owned by Powder Mountain. Such mining activity is known and referred to as <br /> Western Slope Flagstone Quarry No. 2 - Reference File No. M-96-076. <br /> WHEREAS, the Colorado Division of Minerals and Geology has conditioned such <br /> mining permit on Western Slope indemnifying and holding Powder Mountain harmless <br /> for any damages that may occur to its irrigation facilities within said 200 feet. <br /> Western Slope agrees to provide compensation to Powder Mountain for the repair <br /> of any damage to said irrigation facilities as a result of conducting such rock <br /> mining activities authorized by said mining permit. <br /> NOW THEREFORE, except to the extent caused by the negligence of Powder <br /> Mountain, its agents, employees or assigns, Western Slope shall defend, indemnify <br /> and hold harmless Powder Mountain, its agents, employees or assigns for any loss, <br /> cost or damage to said irrigation facilities, including, without limitation, <br /> reasonable attorneys' fees and court costs, arising from or related to the <br /> exercise of the rights granted under such mining permit. Western Slope shall <br /> conduct its activities in a safe and prudent manner and shall comply with <br /> applicable rules and regulations promulgated by federal, state and county <br /> agencies, including, but not limited to reclamation obligations relating its <br /> mining operations. <br /> All of the covenants and agreements set forth in this Indemnification <br /> Agreement are intended to be and shall be construed as covenants (and not <br /> conditions) running with the land, binding upon, inuring to the benefit of and <br /> enforceable by Powder Mountain, and Powder Mountain's successors and assigns. <br /> IN WITNESS WHEREOF, Western Slope has caused this Agreement to be executed <br /> and it shall become effective as of the day and year first above written. <br /> t Rwelml <br /> Received Western Slope Flagstone, <br /> a sole proprietorship <br /> FEB $ 01997 <br /> FEB 1 , --17 By:/� "—/Z l <br /> ry Du�ta��ypa�FWkJ on�ke��y <br /> Durango F8b�be �"IND2VIISft AL'1Q70W1SSDGMENT <br /> Dmwon Of Vencr -,, &GoOkw <br /> STATE OF COLORADO)gs DEWVER <br /> COUNTY OF MESA ) OFME <br /> lT,.he foregoing instrument was acknowledged before me this �_ day of <br /> 1997 by Rudy Fontanari, sole proprietor of Western Slope <br /> Flagst <br /> PRY•PV9 <br /> _ tness ` d and official seal. <br /> �1 + � JJJ Notary lic <br /> i0 <br /> .n�y,E CO�QP� My commission expires: O9/3— , <br />