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<br />26. BOND -- It is agreed that no operations are to be commenced on the lands herein described unless and until
<br />Permittee or.Permittee's,agent has filed a good and sufficient bond with Permitter in an amount fixed 6y
<br />Permitter, to secure the payment for damages caused by Permittee's or Permittee's agem's operations on said
<br />lands..Permitter reserves the right to grant relief from the foregoing bond requirements. Peimitter'may require
<br />such bond to be held in full force and effect for one year after cessationof operations for which the bond was
<br />intended. This requirement tttay be waived in favor of the requirements of the Division of Minerals and Geology.
<br />27. WATER -- if Permittee initiates or establishes any water rights for which the point of surface diversion or ground
<br />water withdrawal is on the leased premises, bile to such water rights shall, upon termination of the lease, become
<br />the property of the surface owner without cost,. and title to the water rights shall be conveyed to the surface owner
<br />immediately upon termination, except that if Permitter is the surface owner the water right shall be taken in the
<br />name of Permitter in the first instance and shall be the property of Permitter without cost.
<br />28. SURRENDER AND RELINQUISHMENT -- Permittee may, at any time, by paying to Permitter, all amounts
<br />then due as provided herein, surrender and cancel this lease insofar as the same covers all or any portion of the
<br />lands herein leased and be relieved from further obligations or liability hereunder with respect to the lands so
<br />surrendered; provided that no. partial surrender or cancellation of this lease shall be for lt:ss than tracts of
<br />approximately forty,(40) acres .or governmental lot corresponding to a quarter~uarter section, the rental being
<br />reduced proportionately. '
<br />This surrender clause and option herein reserved to Permittee shall cease and become absoltnely
<br />inoperative immediately and concurrently with the institution of any suit iti any court of law by Permittee,
<br />Permitter or any assignee of.either to enforce t(tis lease, or any of its terms; express or implied, but in no case
<br />shall surrender be effective until Permittee shall have made full provision for conservation of the minerals and
<br />protection of the surface rights of the leased premises as may be deterniineiJ by Permitter.
<br />Notwithstanding [he foregoing, no surrender and relinquishment of this lease shall be effective unless and
<br />,until all reports, documents and information of any kind required to be submitted to Permitter under this lease, or
<br />to such state agencies as provided in this lease have been submitted to Permitter or such state agency':
<br />29. RIGHT OF REMOVAL - In the event this lease is terminated by surrender, or the expiration of its term, and all
<br />obligations of Permittee under this lease are satisfied, all Permittee's improvements, equipment, man-made objects
<br />of any type, including stockpiles and dumps except as these stock piles and dumps may be disposed of pursuant to
<br />the reclamation ,plan, shall be removed from .the leased premises within six months frnm the' date of such
<br />termination at Permittee's expense. Such zemoval is to.be accomplished withou[ unnecessary waste or damage to
<br />the premises.and Permittee shall restore the surface of the leased premises to the same condition as immediately
<br />prior to..the execution of this lease as it pertains to such removal. All improvements and equipment remaining on
<br />the leased premises six months after the termination hereof shall be forfeited' automatically to Permitter without
<br />compensation and without necessity of execution of additional documehts.
<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 Permitter,
<br />except for any specific award(s) paid to Permittee for seveied minerals reserves, in which event a percent of such
<br />specific award(s) equal to royalty shall be paid to Permitter in lieu of royalty lost by virtue of the condemnation.
<br />Improvements shall be removed by Permittee per terms in the RIGHT OF REMOVAL paragraph herein. If only
<br />a portion of the leased land is taken by condemnation, Permitter may, at its option, terminate this lease or
<br />terminate only that portion of the lease so taken.
<br />31. COMPLIANCE WITH LAW --Permittee 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 ttte continuance hereof,
<br />which in any manner affect or control mining or other operations of Permittee, and Permittee further agrees that
<br />good mining methods shall.be used at all times of active mining so long as said methods are consistent within the
<br />law.
<br />Permittee shall comply with all applicable federal, state and local environmental, wetlands protection, health
<br />and hazardous waste •laws, ordinances and regulations. In addition to'the foregoing, and not in limitation thereof,
<br />Permittee shall not cause or permit any Hazardous Material'to be brought upon, kept or used'in or about the
<br />Leased Premises by Pennittee or Permittee's agents, employees, contractors or invitees, without the prior written
<br />consem of Permitter.: If Permittee breaches the obligations stated in the preceding sentence, or if the presence of
<br />Hazardous Material on the Leased Premises caused or permitted by Permittee results in contamination of the
<br />Leased Premises, or if contamination of the Leased Premises by Hazardous Material otherwise occurs for which
<br />Permittee is legally liable, then Permittee shad indemnify, defend and hold Permitter harmless from any and all
<br />cleans, judgments, damages, penalties, fines, costs, liabilities or losses (including, without limitation, diminution
<br />in value of the Leased Premises, damages for the loss or restriction on use of the Leased Premises, damages
<br />arising from any adverse impact on future leasing of the Leased Premises, and sums paid in settlement of claims,
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