PERMFILE63400

• Permit No: M1997087
• IBM Index Class Name: Permit File
• Doc Date: 10/9/1997
• Doc Name: LEASE AGREEMENT
• Media Type: D
• Archive: No

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within the la;as and with prevailing good mining practice shall be
used.
15. EXPLORATIOI•I -- An exploration permit is required and must be
obtained before any field ~.,~ork of ar.y type or kind is undertaY.en.
A restoration bond is required in conjunction with this exploration
permit. The bond required by the Colorado 1•tined Land Reclamation
Division for exploration activities may be substituted for this
bond. The proposed type and method of exploration shall be outlined
on the application for an exploration permit.
16. RECLAMATION -- Rules and regulations as set forth by the Colorado
Mined Land Reclamation Division for recovery and restoration of
mi:,ed ia'lci 'v:ili apply ~: ~,er2 ui: ~:i li„_::iiC i:G t::e i~:ii::; i_.~~cd a"l%r~with.
All reclamation plans shall require approval by Lessor.
17. WATER RIGHTS -- If Lessee initiates or establishes any water right
where the point of diversion or groundwater withdrawal is on the
leased premises and where the surface is owned by the State, such
caater right mist be obtained in the name of and with the consent of
the State acting by and through its Board of Land Commissioners.
Water rights and any improvement required to bring this water to the
surface shall become the property of the State, without cost, upon
termination of this lease for any cause whatsoever.
Under no circumstance may ground water be withdrawn without first
having secured the permission of Lessor and may not be withdrawn at
a rate higher than necessary for the mining and/or processing of
State minerals only. Additional payment may be required for the use
of any waters as may be defined as tributary or non-tributary.
18. INSPECTION -- It is agreed that during all proper hours and at all
times during the continuance of this lease Lessor, or its duly
authorized agent, shall be, and hereby is authorized to go through
any of the openings or workings on said premises, and to examine,
? aspect and survey *_he same and to examine and make extracts or
copies of all books and sheets which show in any way the output of
the leases premises, and that all conveniences necessary for said
inspection, survey or examination shall be furnished to Lessor, or
its agent, by Lessee.
19. EXPLORATION DATA -- It is agreed that Lessee, while using any drill
on said premises during the term of this lease, shall keep an
accurate log of all work so done and performed, showing the
formations penetrated, the depth of thickness of each, the character
of each, their elevations, the location of same by tying to corner
of some legal subdivision or, in unsurveyed territory, to some bench
mark or other officially established point, established by the
United States surveys, and each and every thing necessary to make
and supply a perfect and complete log of the hole throughout its
entire depth, a true copy of said log shall be furnished Lessor whet,
and at the time such holes are drilled or at any time thereafter
upon demand of Lessor.