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I3. PISPECTION -11 u aged Hai during all proper hwrs end ar ell Ibises during Ne contlnuence of this lux, Lesor or In duly euihonzW <br />agerv, shall h W u hertby auJxricW sa check odes as to Neu a«uncy, to go Through any of Ne slopes, conies, shafts. openings. or workings <br />on said premise, end so ezarmrc, imprct, survey and eke measuremems of Ne same and To exarmne and make exlncts from or copes of <br />ell books aW weight sheen end records which show H any way Ne coal oulpur, coil values. paynxnu aW royilucs from eW of Ne IcasW <br />prcrtusu, and Thar ell mnvenientts rccusary for said wpccllon, survey, or eaemireJun shall h fumuhW ro lessor. Lusor may inquire Lessu <br />w pmnde ill mswmenu anJ documenu of any Iind end rerun whauva which atlas Lessu's imcrcsts. <br />~6. gfINBaG METHODg - N Ne undergrouW end open pit workings, all ahefu, incline, niJ nrinels shall h well timhrW (when good mining <br />regwre timbering) and ell pans of workngs where coal is rot exluustW shall h kept (rte from water end wash mammals. The uidergmund and <br />open pis workings shill h pwtecud egeuur fve, Roods. amps and squeues. 1(such evenu do «cuc Ncy art to h chchrd m a runner which <br />u H kttping waN good meNads o(muung. Such meNods of muting shall be usW es will insure Ne euraztian of Nc grwsat possible amoum oI <br />coal cureiitenr within Ne law and wish prevailing gaW orating pnesitt, and Luxe agrus ro protect du coil Mds above anJ below Ne coal bed <br />being minW. <br />17. NOTICES - IT is egreW Nat any notice requlrW To h given ro tusw under Ne provisions of Nis leax shall h sent by ceninW mall to The <br />addrtu xs toll es Jx hglmting mf Nis lux or Ta such other address es lessee may indiau in writing so Lessor, and such xmtt by mad <br />shall h deemW su(Rwenl end in full compliance wish Ne Temw of this Iota Notice so Lessor shall h given in like mamxr, addrcssW ro Ne <br />gnu Board of Land Commissioner' Denver, Colorado eddres. <br />18. PROBPECI4iG -A perrnis so prospxt u rcquuW and lessee egrw char while using all operating any drill on aid premise, Lessee eheB keep <br />an acanx log on ell work sodorc end performed, showing geologiW formations peneuved, JxdepN and Nicknus ofuch, the rnuaeril chanter <br />ofuch, upeeully coal W wale-boring wan, Ne location erd elevation of sane erd tie m e comer uublishW by Uniud Susu wrvey, end <br />each and every rhilsg siettssary ro make a compleu log of she hole duoughvut iu endrc depN, a we wpy of said log shall be funtiNW so lessor. <br />R u urdersrood and agreed Nar Ne meNads used N carrying our any program of <xplormion, W dx tau of progrtss of such program shell <br />h decrminW by lrssce. If lessoe emu on any program o(explansian, oNer dun drilling, Lessee shell wbmit so lessor wrinen capons showing <br />Ne character and <eunr of tail prospecting being carried our on Ne lased premises end giving my devils of coil ouuroppings or sums which <br />may have hen encounxrW; erd lessor agrees Wr during Ne arm of Nrs lose all wch infomwtlon m supplied by Lssee shall remain conRdemiil <br />eW unpublished'wofar Y it is comisxnr wiNH Ne law. <br />19. PRO'18CTION AGADJSF SURFACE DAMAGE - Lesrc has the right so m0've as much of the sur(att of Ne Ia Ws es rs necenry for msing <br />openiiorv, and shall h Ihbleantl agree m pay for all dartuge solve surfatt, Gvest«k, growing Imps, weer wells, reservoirs, or usher impmvemems <br />causetl by Isssee's opensioru on wad lands. Funhe; it is understood shat Nu lrax is aubjecr m surfau patents, deeds, a W ttmfcwe of purchase. <br />and Lessee shall assume repomibJiry for all daunt arising from damage ro Ne surfatt causal by lasso's operations. <br />20. BYDEhiNO7CAT1ON OFL~SSOR - lesstt further agree to hold Lusor henNes for any eW ill manner of claum arcing or so arse from <br />she said IeasW prclnisu whether from soil or surface subsidence or from any other cause uusW by Lessees operations. <br />2I. BOND- Is is agreed W undessood der no operations ere b be commenced on she lands herclrebove dexnbed uNUS and until 4ssee or his <br />agent has fdW • good and wtrciem bond wiN Lessor in an amount teal by Irssor, ro secure Ne paymem for tlwsuges uusW by Leuw's or his <br />agem's opentiorst on said lards. tasor reserve Ne right w gnnl rtlie(from Ne fortgoing bond requircmenu. Lessor may require Ne bond To <br />h held N full fora and effect for one yur after cessation of opentians (or which Ne boll was sounded. <br />22. COAL MAEGAS -Methane Gu or other volaWe gate praduud, saved and/or sold by Ne cal mining l<sstt from nunuble coal mwsures <br />and from roofs aW Goon of mincable coil meawru shall bathe property ofJUt Luse pmvidW des Ne gas rs rtmavW as a msnmg safety pr«W ere <br />prior w miriirag and des a royalty h paid ro Irssor per Ne arms set toll N lessor's Then cvmem oil and gas Iwsu. Gas NaT is unuonomical <br />to pmdutt rtuy h vensW or RarW providW des she venting or Raring complie wiN all FWenl, Suu and Local requiremenu. Mehane gas or <br />usher volatile gaxs prrducW by the oil and gas lessee from Ne minwble anal measures aW from roofs old Roots of wnuble cod mwsures poor <br />in mining shill h Ne property of die oil and gas lessee under He terms of she oil and gas lease, w long as the terms in Nis paragraph arc consistent <br />Wldnn Ne law. <br />"Roof' mans she rak imnicdieuly above and N ronua wiN Ne rsdrxable coal mwsure. <br />"Floor" marts Ne cock inimeiuuly below and in consap wiN Ne minwble cod measure. <br />27. WATER - It Lusee imtiarw or esublrshw any water nghu for which Ne paint of surfau diversion or ground water waJidrawal u on Ne IwsW <br />peruse, ode w such water nghu shall, upon rermiretion of Ne lux, become Ne property of Ne surface owner washout toss, and lisle To Ne water <br />nghu dull h mnveyW to Ne surhtt owner uwrcdimely upon umdretion, erupt Nat d Lessor is she surfact owner Ne xvur nghT shall h liken <br />in Ne Name of i...mr in Ne first insunce end shall h Ne property of I earnr wiJioul cost. <br />2<. SURRENDER AND RELDiQU15FRsfENT-lessu may, at any time, by paying so she SUSC OfCOloradoactingbyitsSUteBoardoflanJCom- <br />missiorcrs, ell amaunu then due as provided herein, wneMer and cancel Nis Ieax imofar as Ne same covers all or any portion of Ne lands herein <br />lased ard h rehevW from fuller obligations or liability hereunder wiN respect io Ne lards so wmendercd; prondW dot no panel surtcWcr <br />or usxelhnon of Nis lose shall h for less Nan trace of approximately forty (a0) acres or Govemmenul Imt conesponding m a gwnergwner <br />section, Ne rtntil being rWuced proponaoretely; pmvidW fuller slut This surtcntlcr cleux all option herein rexrvW to lessee shall cwx and <br />become absolualy inoperative ImmWiamly and concunendy wide Ne imhmuon of any suit in any coon of law by Lessee. 4ssor or any assignee <br />of either so enforce she lux, or any of in corms, express or implied, bin m no use shall sumwder h effective umil Lessee shall have made full <br />provnion for mtsservation of die minerals and protection of Ne surfett nghu of Ne IeasW prtmixs. All infomutton to Pangnphs on Reports <br />and Prospecting above must have been fJW wiN Lessor before Nis lose may h urmuutW. <br />23. RIGFEI' OF REMOVAL - In Ne event Thu Iwe is urmirurrd by forfeiwrc, surrender, or the epinsion of xrm, and all obligations of Lusee <br />order Nis lose ve vsisRW, lessee may rtmove ill his imprwemenu and equipmem from Ne IwsW premyu wiNin six months Rom Ne date <br />of wch umunauon, and such rtmovil u to h accomplish W wiNout unnecesary waste or injury to Ne premise. All improvemwu and egmpmem <br />renuiliuig on the leased prewsu six months after the lemtiretion hereof shell h forteitW auiomasicilly to she Sute of Colorado, washout compensa- <br />don. Within this tune. as Ne option of lessor, lessor may order Lusee to rtnrove any and all improvements, equipment, men-made ob)e<ss of <br />any type, st«kpilcs or dumps at cost of Lessw. <br />26. COgiPL1ANCE WRIT LAW - lesstt fuller covenants and agrees tlwT during Ne continuarce of this lose Less« shall comply fully with all <br />Ne proviswns. arms. and conditions of all laws, whMer gore of FWeral, and orders actual Hereunder. which may h m effect dunag Ne comi- <br />nua«e hereof, which in any manner a((ed or comrol mining or other operations a( L<sxe, old Lasses further agree Nar good mining mahods <br />shall h used at all limes of active msing so long as said meNOds are comistent wiNin the law. <br />27. RIGIITSOF-WAY- Is is agreed Nm lessor reserves Ne right a any rime ro ggns a righsuf.way upon, over or across oil or any pan of said <br />premise far any ditch, reservmv, railroad, communiealion system, eleane power brae, or pipeline, schoolhouse or ocher lawful purpose; bw that <br />such goon shall h subject to Ne nghu of Lust. <br />28. ARCILIEOLOGY-It is camnrywSUm aW FWeml law sv excavate, approprime ar disturb any hinadcal, prehinanral or archaeological sin <br />or resource on any public lands or hods edminismrW by Ne gnu Board o(Lsnd Cammrssionen. Discovery mf a cusp«sW sin or resource shall <br />h imircdiartly brought to Ne aunsian of Ixssor and He Suu Archacolo6lst or 4ssm shall provide evidence Nv no ngm Rcam archamloF~ral <br />sins Wit an Ne IusW premises whsch could h dessmyW by Lessee's openuons. <br />~9. FURFEFfURE-11 is egreW Jut if for any ruson 4s•"^ shell (ail m keep uch and every one of Ne euverenu and cordiuons hereon, anJ <br />brwche any condition hereof. and such dehuh continues for a pedal of Nirty l70) days after rtrvice of wooer notice Nereaf by ttmOrd <br />mail upon 4ssu, lessor shall love Ne right ro declare Nw lux for(<iud, and rm coot onto Ne IusW premises car any pan Nerwf. ciihcr <br />wiN or washout prsxess of law, aW so eapcl, remove end pus ouT Irsstt or any person occupying Ne prtmsus, using such fora u may h <br />necewry To do w. In Ne event of Ne rcmuretian of Ne lean by ruson of breach of Ne covuunu herein conuinW, Lesee shill sunerder <br />