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~ • 3. Lessee agrees to proceed with due diligence and to make any necessary application to Mesa County, Colorado, for a permit to extract sand and gravel and make application to the Colorado Mined Land Reclamation Board for the issuance of a gravel permit relating to that portion of the Leased Premises lying within said Section 35. If such permits shall be granted, the lease term shall become effective as to the portion of the Leased Premises within Section 35 upon the date of issuance of the last necessary permit and the advance royalty required by the terms set forth hereinafter shall be payable within thirty (30) days thereafter. 4. Lessee shall have the privilege of access to that ~• portion of the Leased Premises within Section 35 prior to the effective date of the lease term relating to such lands for the purpose of performing any preliminary work necessary to perfect the application for permits referred to above. 5. Lessee shall have the right to install machinery, equipment, personal property, telephone lines, electric lines and water lines in and on the Leased Premises and shall have the right to remove such property from the premises at the end of the lease term. 6. Lessee shall save Lessor harmless .from all taxes which may be assessed or levied against the property installed by Lessee on the Leased Premises. Zn addition thereto, if the ad valorem real property taxes shall be increased solely by virtue of the mining activities of Lessee, the amount of such increase shall be paid by Lessee to Lessor during the term hereof. All such payments shall be made before the respective taxes become delinquent. 7. The Agreement shall be effective as to the portion of the Leased Premises lying within Section 34 from the date of signing of the Agreement but shall not be effective as to that portion of the Leased Premises lying within Section 35 unless and until the necessary permits -2-