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<br />the execution of this lease as it pertains to such removal. All improvements and equipment remaining on the
<br />leased premises six months after the terntination hereuf shall be forfeited automatically to Lessor without
<br />compensation and without necessity of execution of additional documents.
<br />30. CONDEMNATION -- If the Leased Premises shall be taken in any condemnation proceeding, this lease shall
<br />automatically terminate as of the date of taking. The award for such condemnation shall be paid to Lessor, except
<br />for any specific award(s) paid to Lessee for severed minerals reserves, in which event a percent of such specific
<br />award(s) equal to royalty shall be paid o~ Lessor in lieu of royalty lost by virtue of the condemnation.
<br />Improvements shall be removed by Lessee Iter terms in the RIGHT OF REMOVAL paragraph herein. If only a
<br />portion of the leased land is taken by condemnation, Lessor may, at its option, terminate this lease or terminate
<br />only that portion of the lease so taken.
<br />31. COMPLIANCE WITH LAW --Lessee shall comply fully with all the provisions, terms, conditions of all laws,
<br />whether state or federal, and orders issued thereunder, which may be in effect during the continuance hereof,
<br />which in any manner affect or control mining or other operations of Lessee, and Lessee further agrees that good
<br />training methods shall be used at all times of active mining so long as said methods are consistent within the law.
<br />Lessee shall comply with all applicable federal, state and local environmental, wetlands protection, health and
<br />hazardous waste laws, ordinances and regulations. [n addition to the foregoing, and not in limitation thereof,
<br />' Lessee shall not cause or permit any Hazardous Material to be brought upon, kept or used in or about the Leased
<br />Premises by Lessee or Lessee's agents, employees, contractors or invitees, without the prior written consent of
<br />Lessor. If Lessee breaches the obligations stated in the preceding sentence, or i( the presence of Hazardous
<br />Material on the Leased Premises caused or permitted by Lessee results in contamination of the Leased Premises,
<br />or if contamination of the Leased 1remises. by Hazardous Material otherwise occurs for which Lessee is legally
<br />, liable, [hen Lessee shall indemnil.'y, defend and hold Lessor harmless from any and all claims, judgments,
<br />damages, penalties, fines, costs, liabilities or losses (including, without limitation, diminution in value of the
<br />Leased Premises, damages for [he loss or restriction on use of the Leased Premises, damages arising from any
<br />adverse impact on future leasing of the Leased Premises, and sums paid in settlement of claims, attorney fees,
<br />consultant fees and expert fees) which arise during or after the lease term as a result of such contamination. This
<br />indemnification of Lessor by Lr:ssee includes, without limitation, costs incurred in connection with any
<br />investigation of site conditions or ~tny cleanup, remedial, removal, or restoration work required by any federal,
<br />state, or local governmental agency or political subdivision because of Hazardous Material present in the soil or
<br />ground water on or under the Leased Premises. Without limiting the foregoing, if the presence of any Hazardous
<br />_ Material on the Leased Premises caused or~ermitted by_ Lessee results in any contamination of the Leased
<br />Premises, Lessee shall promptly take all a•~tions at Lessee's sole expense as are necessary to return the Leased
<br />Premises to the condition existing prior to the introduction of any such Hazardous Material to the Leased
<br />Premises; provided that Lessor's approval of such actions shall first be obtained. As used herein, the term
<br />"Hazardous Material" means any hazardous or toxic substance, material or waste which is or becomes regulated
<br />by any local governmental authority, the State of Colorado or the United States Government. The term
<br />"Hazardous Material" includes, without limitation, any material or substance that is (i) defined or designated as a
<br />"hazardous substance", "hazardous waste" or a "regulated substance" under appropriate state or federal law.
<br />32. ARCHAEOLOGY -- It is contrary to State law to excavate, appropriate or disturb any historical, prehistoric or
<br />archaeological site or resource on any lands administered by Lessor. Discovery of a suspected site or resource
<br />shall be immediately brought to the attention of Lessor and the State Archaeologist or Lessee shall provide
<br />evidence that no significant archaeological:>ites exist on the leased premises which could be destroyed by Lessee's
<br />operations.
<br />33. DEFAULT AND FORFEITURE -- I( for any reason Lessee fails to keep each and every one of the covenants
<br />and conditions herein, and if such default continues for a period of thirty (30) days after service of written notice
<br />theree' b~~ rertified mail upon Lessee, Lessor shall h.a.~e the right to derlcre !his !ease fr.rfei!:d, and ,o enter onto
<br />the leased premises either with or without process of law, and to expel, remove and put out Lessee or any person
<br />occupying the premises, using such force as may be necessary to do so.
<br />In the event of the termination of the lease by reason of breach of the covenants herein contained, Lessee
<br />shall surrender and peaceably deli ver to Lessor the above-described premises, and such premises shall be in good
<br />mining condition. If, upon terntinationof this lease for any reason, whether by surrender, forfeiture or expiration
<br />of teen or otherwise, Lessee shall not have fully complied with the terms of the lease, Lessor shall hold and retain
<br />possession of the property, improvements, and equipment of Lessee as security unto Lessor for the payment of
<br />rents and royalties due Lessor, or [o protect Lessor against liens, or to indemnify Lessor against any loss or
<br />damage sustained by Lessor by reason of the default of Lessee, for which purpose Lessor is hereby given a lien
<br />upon all such property, improvements, and equipment, which lien shall attach as the same are placed upon the
<br />premises. In the event Lessor shall foreclose the lien in this article given to Lessor by Lessee, Lessor may itself
<br />be a purchaser at any sale thereof under :>uch foreclosure. Upon the termination of this lease for any cause, if
<br />F'age 6 of 7
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