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<br />7. COMPLIANCE WITH REGULATIONS -Lessee covenants and agrees that during the continuance of <br />this lease he will fully comply with all of the provisions, terms and conditions of all laws, whether <br />Federal, State, or Local, and orders issued thereunder, which may be in effect during the continuance <br />hereof relating to the operatioac of Lessee under this lease, and the marketing of any produa thereof, or <br />labor relations in connection with such operations or marketing. <br />8. $~BT,~ - On or before the last day of each and every calendar month during the term of this lease, <br />Lessee shall make a sworn, verified, written report to Lessor in which shall be entered and set down the <br />exact amount in tons of all material removed from said premises during the preceding calendaz month. <br />Such sworn, verified, written statements shall cleazly set forth the tonnage as shown by produaion report, <br />and shall also show the use or disposal by Lessee of such material. <br />9. SURRENDER -Lessee tray at any time surrender and cancel this lease insofaz as the same covers all <br />or any portion of the lands herein leases and be relieved from further obligations or liability hereunder <br />with respea to the lands so surrendered; provided that no partial surrender or cancellation of this lease <br />shall be for less than contiguous trans of approximately forty (40) acres or Governmental lot <br />corresponding to aquarter-quarter seaion; provided further that this surrender clause and the option herein <br />reserved to Lessee shall cease and become absolutely inoperative immediately and concurrently with the <br />institution of any suit in any court of law by Lessee, Lessor or any assignee of either to enforce this lease, <br />or any of its terms, express or implied, but in no case shall surrender be effective until Lessee shall have <br />made full provision for proteaion of the surface rights of the leases premises. <br />10. @QNDS AND SURFACE DAMAGE -Lessee shall be liable and agrees to pay for all damages to the <br />surface of the land, livestock, growing crops or improvements caused by Lessee's operations on said <br />lands. It is agreed and understood that no operations shall be commenced on the lands hereinabove <br />described unless and until Lessee or his assignee shall Gave filed a good and sufficient bond with Lessor <br />in an amount to be fixed by Lessor, to secure the payment for such damage to the surface of the land, <br />livestock, growing crops or improvements as tray be caused by Lessee or his assignee's operations on said <br />lands. With Lessor's approval the bond may be waived in favor of that which may be required by the <br />Colorado Mined Land Reclamation Division. <br />There shall be no removal of timber without prior notice to Lessor. Any merchantable timber cut in <br />conjunction with the approved mining plan is to remain the property of the State. All other timber, slash, <br />stumps, and boughs are to be disposed of by Lessee. <br />11. HOLD HARMLESS -Lessee shall indemnify Lessor against all liability and loss, and aeainst all claims <br />and actions, including the defense of such claims or actions, based upon or azising out of damage or <br />injury, including death, to persons or property caused by or sustained in connection with this lease or by <br />conditions created thereby, or based upon any violation of any statute, ordinance, or regulation. <br />12. OPERATION PLAN -All plans for mining may be requested by Lessor for review and approval before <br />these operations begin. <br />13. ENVIRONMENTAL ANALYSIS - Submittal of an environmental analysis may be required for approval <br />by Lessor before any exploration or mining begins on leased premises. <br />Page 4 of ~ <br />