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than s1000.UU per acre. Haul roads and/Or acress roads, wlilch do not direct]S' batetSt the Leased Premises, wi]) be
<br />subject to u separau pzntut and approval of Lessor.
<br />6. I[EP9RTS AND RFCO1LLtC -Afro operations bcldn, it is afrreed that on or before the last day of each month
<br />during the term of Wis lease Lessee shall submit a sworn, veril7ed, written report. m Lessor, in which report shall bz
<br />enetrzd and set dawn the enact amount-in wzight ofal] products and dre assay thermfmined srtd removed fi'om said
<br />based pr'emises' during the preezding ea]endar mwdlr. Lessee agrees w keep and to have iu possession complete and -
<br />nccutmle bruilv and reoorcL. shouring Ste production :utd disposition of any and al] substances prpduced wt the ]eased
<br />laud and to perrrrit Lessor al all reasonable hours, to reatnine the~samt or to famish copies of same to.Lessor within
<br />fi0 days following wrinzn request along w'itlr pun;lmset's supptm documentatiuu. Ali said books mtd records stroll be
<br />retained by Lessee and wade available in Colorado to Lessor Tot a perioe7 of not less than 10 years. If any ouch
<br />ezamutatiou shall reveal, or if either party sktall discover any error or inaccuracy is its own or the outer party's
<br />ststemeni, pa}intent, calculation, or determination, tlteu proptr adjustment or correction thereof shall be made as
<br />pmtnptly as pwcdcahle thtreaher, accept that no adjustmrnt nr cotrectlen shaY1 be made iY' more rhatt 70 years have
<br />elapsed between the time the error Or irlacettmc}' oOenrlYd mtd the disewcry by citlrcr party of said erzor oc
<br />inaccuracy.
<br />Portlier, Lessee shall famish annually a complete operations tcYxtr[ to Lessor disclosing the number oC /ptts
<br />end Ute assay thereof of all ores, minerals and older nmterials mined from the premises during the przeeding year.
<br />Lessee slmli also hanislr iu said report geologic interpretations and reeovemble reserve calculations, end maps acrd
<br />cross snticros showing lueadw of any ntutera]-bearing outCiops, drill holes, trenches, ore bodies and other
<br />prospectutg and explorntion activities, along with assays showing the amount of minetnl cvntduted in the ore. The
<br />records required to be maintained by Lesser and provided m Lessorupon request include Iogs of all strata penctraud
<br />and all geologic and hydrologic conditions rncounterecl, and enpies of in-hole surveys-tkus information to be
<br />collected and prepared undtr the supervision of a qualified geologist, geological engineer' nr mining rngineer. Othw
<br />qualified prrsous nmy celled and prepare this dam, if agreed to itt writing leiwcerr Lessee and Lessor. Any request
<br />io keep certain information confidential should bo in writing to ]xssor at the time such information is subntincd W
<br />Lessor, and such data may be kept confidential as consistent wrath State law. Lessee shall submit, if requested by
<br />Lessor, Such additional reports, records' or docrmtotts regardu1e Lessee's operation on nc~ Levied Premises as
<br />necessary for t}~c eornpliance with lease proc~siwts.
<br />7,~ RR~J' ,ILVC' ROYAI,TS' ISivIlTATItINS - It is agreed that this. Iaase or any subsequent assignment hereof s2tall
<br />not be bitrdprcd utith overriding royalties rho auwgregete of which exceeds two perecnt (2°i~1 of the gzoss Value of the
<br />minarets or ore at the lust point of`sele. Lasar must be nnti5ed of all overriding rnyaldes accruing to this lease.
<br />8. DEVELOPNSENN'T-This paragraph is deleted. -
<br />9- PEN AT-'f1ES - A penaly shall be imposed for, but ant limited tq late paymrnis, itttptoper paymrnts, opcrarional
<br />deSeieneits of any ]dnd whauoever, violations of any covcnanrs of this lease, or any false statements made to
<br />Lessor..Penelties shall be determined by Lessor unless otherwise provided Sor by law end may Irz in 1bo form of but
<br />not limied to, interest, fees, fines, and/or lease cancellation. A penalty schedule sha116e prepared by Lessor and
<br />shalt become effective immediately aReT public notice. Said schedule roay he clanged from tints ie rime afttr such
<br />uotict.
<br />20. _4SSiGNMENT -Lessee, only with umitten consent of Lessor, may assign this lease as to the leasehold interest of
<br />such Lessee ur all or part Of the Iands covered hereby; mot less, however, than tracts mf approximately f"arty (40)
<br />acres or gnvemmcuutl lots corresponding to aquaver-grunter section for any partial assiezmtent.
<br />. No assignment of unditdded interea'IS or reWtniOn or reservation of ovznidmg royalties will be recognized or
<br />appiovcd by Lessor, end the effect, if any, of any such assigmnenis or rese[vations will be strictly and only as
<br />between the parties thereto and outside the terms of this (ease. NU dispuu between parties to any assignntcrtt or
<br />trsenation shell operate to relieve Lessee from perfomtance of any toms or conditions hereof Or W postpone dre
<br />timo therefor. LessOT will at all times be rnntled to look solely W Lessee nr his assignee shotm nn Lossor'a books as
<br />being sole owner hereof, and fix the srnding of all notices rtgirm-cl try this lease, for the performance of al! itrrns
<br />and mndidoas lrerenf.
<br />if an assignment of a part of Mils ]ease is approvzd, a trees lease designated as an assignment will be issued
<br />t0 dre assignee em~eting the lands assigned for the balance of the term of the base lcaee on the nlinirtg lease farm in
<br />use at the time of assignment and limited as to term as said lease is limited. The assignor vrill be released and
<br />disckmrgcd from alt fin'Iher obligations for such lands asaignetl as if the same had never been a part of this least.
<br />11. ASSIG'sIMENT CONSIDERATION -The consideration for approval of assignment by Lessor shall be to°.~ of the
<br />glue of env consideration tendered to Assignor by Assignee for the sssignrneat Divulgence of the slue Of these
<br />Cgnsidtratiorl5 shall be mandatary, in affidavit fomt, which form shall be presenud to Lessor along with the other
<br />assignment instruments in order t0 obtain L,essor•s apprati-a7 for t}~e assignment. An assiptmrnt does not constitute a
<br />new lease but is a continuation of the base lease. Any attempt W svithholdthis information Skrall be cortsirued as an
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