Laserfiche WebLink
Feb-07-00 07=37A <br />• <br />l1E`iORANDU91 SAND AND CR4V'EL LEASE <br />THIS MEMORA.\DUhi SAND AND GRAVEL LEASE. dated tF.is _ day oC <br />2000 (hereinafter referred to as this "~emorandum"), by and behveen C. R. EVANS (herein called <br />"Lessor"), ~vit:n an address (er no~.ice at 331 Nyberg Road, Pueblo, CO 81006, and ~dli~-ERAL <br />RESERVES, INC., a Colorado corporation (herein called the "Company"), with its address at 3390 <br />Drennan Industrial Loop S, Colorado Springs, Colorado 80910 (personal or courser delivery•). P.O. <br />Box 15677, Colorado Springs, Colorado 8093d (mail). <br />1. Grant. By a certain Sand and Gravel Lease o: even date ("the Lease"), and <br />en aid subject to the terms and conditions provided in the Lease, the Lessor has leased, let and <br />demised and hereby leases, lets and demises to the Company all stone, clay, sand, and gravel in, on <br />and under the real propem; situate in Pueblo County and described in Exhibit A attached hereto and <br />made a part of the Lease (hereinafter referred to as the "Property"), and the exclusive right to sample, <br />drill, and test for, develop, mine, quarry, extract, process, sell and remove them during the Tetm of <br />the Lease, together with any topsoil and overburden and any valuable solid minerals (not including <br />oil and gas) removed incident to such extraction, all of which are sometimes hereinafter referred to <br />as'blaterials'". The Lease is an amendment of and addition of'properiy to a Lease Agreement with <br />Option to Buy Material dated the ] Sei day of May, 1997 by and behveen Lessor and Henry Southway <br />and John Sliman dba JBCO which was assigned to the Company by a Lease Assignment and <br />Assumption made and entered into the 30 day of January, 1998 ("Lease Assignment and <br />.4s>umption") and aNon-Disturbance and Attomment Agreement made in January, 1998 by and <br />betµ•een Farm Credit Banlr of Wichita ("Farm Credit") a; a Mortgagee and the Company as Assignee <br />("Attomment Agreement"). \ <br />2. 'T'erm, The Term of the I.ea;e is a period of ten (10) years from the date <br />hereof, with an option in the Company to extend for an additional ten (10) years, unless sooner <br />terminated by Lessee. <br />3. Payments and Production Royalties. The Company is obligated to pay certain <br />production royalties under the Lease in conner.tion wit'n its mining and removal of Materials. The <br />Company is also obligated to make certain annual advance minimum royalty payments. Amounts <br />paid as advance minimum royalty are to be credited against and applied to reduce amounts otherwise <br />payable as productior. royalty. <br />4. Water. During the term of the Leave, and until reclamation of the Property <br />is completed, the Company shall provide at its sole cost and expense any and all yvater required to <br />satisfy the requirements of state law. If any portion of the mined Property has been reclaimed, <br />approval of the reclamation hzs been obtained and fiat portion of the Propert}• has been fumed back <br />to t`te Lessor tie Company shall keep its temporary substitute supply plan or augmentation plan in <br />effect and Lessor shall pay to the Company the proportionate cost of the temporary subs'itute st:pply <br />plan or augrr~cntation plan necessary to compensate the Company for augmentation of evaporative <br />losses on the reclaimed, retumed portion ofthe Propea}•. Lessor shall hate no right to use er occupy <br />any' reclaimed, retumed portion of the Property unless and until Lessor and Lessee agree on the <br />proponionntc compensation Lessor is to pay to [hc Company as reimbursement for ttte Company's <br />costs under its temporary substitute supply plan or augmentation plan and, if requested by the <br />Company, Lessor has granted a deed oftrust encumbering the Property or other security satisfactory' <br />Y-UL <br />N-1 <br />