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Feb-07-00 07:38a
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<br />to the Company to secure all payments due the Compar}~ from Lessor under this Sectron. From aid
<br />after the date on wh.ch Lessee has completed mining o;r the Property, Lessor shall bz res?onsible
<br />for payment of a'.I costs associated with the temporary substitute supply plan or plan for
<br />augmentation then covering the Property, and Lessor will apply Cor. at his sole cost and expense, a
<br />permanent augmentation plan to :.over an}• ova?orativz losses reselling Gom the mining operation
<br />after tcrrr.inatier. of operations undo the Lease.
<br />5. COR1~dRY 5 Operations. The Company may install a processing and'or
<br />crushing plant or plants on the Property. The Compa:ty shall install a certified scale on the Properly
<br />or at a location mutually agreeable with Lessor to weigh Materials removed Gom the Property. The
<br />Company shall have the right to install, constntct, operate, maintain, dismantle, and remove all of
<br />its plants, machinery, equipment, improvements, and other Facilities including, but not limited to,
<br />roads, conveyors, pipe lines, pow-er lines, telephone lines, water courses, wells, dams, ponds, and
<br />stockpile areas on the Propert}~. The Compan}• shall have the right, during the Term of the Lease,
<br />and without any payment to Lessor (except for production acrd minimum advance royalty), to strip
<br />and remove overburden on and from the Property, and otherwise to use and occupy the Property even
<br />in conjunction with other properties, all as reasonably required in connection with mining, euarrying,
<br />extracting, processing, storage, salt and removal pf stone, sand and gzvel, in, on, under, or from the
<br />Properly.
<br />6. Lessor's Operations. Lessor is obligatzd to remove all imgalion equipment,
<br />improvements, and fixtures (including without limitation pumps, near surface well casing, electrical
<br />supply lines, electrical substations, imgation pivots and spriril:lers) that the Company determines
<br />may interfere with the Company's operations hereunder. boring the term of the Lease, Lessor will
<br />not conduct or authorize (by lease or other ageement) others [o conduct operations for exploration,
<br />devzlopmerrt or production of oil and gas Crom the Property except to the extent any such operations
<br />are conducted ~vilhout entry upon or disturbance of the surface of the Property and without any
<br />interference whatsoever with the Company's rights under the Lease.
<br />7. Termination. Upon at least r,inely (90} days prior written notice to Lessor,
<br />the Company shall have the right to terminate the Lease as of the date the Company has completed
<br />removal of all materials it determines, in its sole discretion, are economically recoverable. After
<br />termination becomes effective, the Lessor shall not be entitled to any additional compensation for
<br />termination prior to the end of the Temr other than production royalties due.
<br />i3. End of Term. The Company shall have llte right, for a period of two yeazs
<br />from and after the expiration of the Ternt of the Lease or the earlier termination hereof, to dismantle
<br />and remove plants, machinery, equipment, improvements, and other facilities installed or constructed
<br />on the Property b}• the Company, to sell and remove Materials then stockpiled on the Property,
<br />subject to payntent of production royalty. and [o complete reclamation.
<br />9. Assignment. The rights and obligations of the Company hereunder may not
<br />be ass!gned w-ahout the prier written consent oC Lessor except to an affiliate company of the
<br />Company.
<br />10. Notice; Additional lnfotmation. This M1temorandum is executed in order to
<br />provide noricz of the existence of the Leasz. For additional information regarding the Lease, the
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