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the tcnninatinn her<nf shall br forfzittd automatically to Lessor without compensation and miltout nrcessih~ of <br />z_<ecmimt of addttioonl tluetmtentc. - <br />C'i_/ItrDEMNATPIN - Ll the Leased Prrntiscs shall he tal:rrr in am; eondtnmation pnmeedmg, z-:ezp[ ilr.,l iullieted <br />by Lzasor, this lease sha)I atttonw[ically temutrate ac of the date of raking. The mv:vd for such conderrma6oo shall <br />br paid to Lessor, e;:erpt for any specific aw;~trd(s) paid to Lessee fm~ severed nunerals reserves, in which event a <br />pc[cent oC nude sprcilic award(s) equal [n royalty shall be paid to Lessor in tiro of royal g' h>st b}' virtue of the <br />condrmnalitnr. Improvements shall be wntot2d by Lessee i?er term:: in the RIGH"f QF 1tEA90VAL parak~aplt <br />herein_ Jf 6nly a portimr of the teased laud is taken'ny ,:undemnation, Lessor may, at it3 option, tertt7inale this lease <br />or temiina2 only that portion of dte lease so token_ This paragraph shall also apply in tiro event that a water reservoir <br />is crz~tted that. encmnpasscs thz L.tastd lkeutises in such s way as to prevent eeomm~ic ^rining <br />C(IATpLIr1NCP R'ITLI LAW --Lzss<e shall comph fully w-it6 all dw provisions, [cans, conditions of all taws, <br />whether' State rn' ftileral, and orders issued dtereundtr, which may he u, rfftci during the continuance hereof- shich <br />in any instinct affect or cannel mining or odter operatiutls of Lessee, and Lessee Curther agrees that good Honing <br />methods shall he used at all flints of~attitm nunvtg so long as said me[hitd5 are ecrosisten[ wit}rin tht law. <br />Lessee shall comply uRdr all apylieeb]e federal, state and local emirrmmtnml, w'etlantLs protection, health and <br />hazardous waste 12tvu, m'dhtanees and revelations. In addition to the foregoing, and not in Gmiu+tion thereof, Lessee <br />shall not eauce pr penrut any Hazardous b[atetial to he brought upon, Lept or used in or alx~ut the Leased lkemises <br />by Lessee or Lesstzs agents, employees, eoatrectors nr invitees, without the prier written consent o1 LeSSOr. Y <br />Ltsstt L+rcaches dte ohl iFeliuns stated Irl the preceding se2nenee, or if the presence of Hazardous Material on the <br />Leased Premises caused er permitted by Lessee restil[s in eomaminatian of the Leased Frcmises, or if contamination <br />of tlae Leased Premises by Hazardous Materiel otbtn+ise occurs for which Lessen is legally liable, then Lesstt shall <br />indemnity, tlefclyd and hold Lessor haznilrss' from any and sll claims, judgrrrcnts, damages, penalries, fines, costs, <br />liabilities or lasses (ineittding; w~[hout limitation, diminution in value of the Leased Premises, damage: fix the loss <br />or resn'iction on we of the Leased Premises, damage sassing from any adverse impact nn Cumre leasing of the <br />Leased Premises, and sums paid N settlement of claims, sttnmey fees, consultant fees and expert fees) which arise <br />during or afrer tyre lease. term as a restilt of such contamination. This indenrnifieation of Lessor by Lesste includes, <br />without limitation, Costs ittetrrrtd in connecrion ad$t any htvestigation of sift conditions or say clcamtp, remedial. <br />removal, pr restotadon work required by any federal, state, or local govet[unental agency or political subdivision <br />Lecause of Hazardow 1vSaterial present in the soil or paormd water on or under the Leased Premises. R'itbnut <br />limiting the foregoing, if the presence of. any Hazardous Matensl on the Lensed Premises caused or permitted by <br />Lessee result in arty contamntanun of the Leased Premised Lessee shall promptly take all actions at Lessee's sole <br />expense as aze necessary to return the Leased Premises to the condition existing prior to the introduction of mty Such <br />Hazardous Material to`t17e Leased Premises; provdded than Lessor's approval of such actions shall first 6e obtained. <br />As n9ed herein, the term "Harardous Material" means arty hazardous or toxic substance, material m waste: which is <br />or becomes regulated by any local governmrntal authtsriry, the Scam of f:olomdo or the Unitul States Governmem. <br />The feint "Hazadous Maerial" includes, withom lirnimnon, say matetia] or substance that is (i) defined or <br />designated as a "harardor>_5 substance", "haffirdaus waste' err a "regulated substance" tinder appropriate state or <br />fedora] late. , <br />AkCHAEOLOGY - It is contrary ro State law to excavate, appropriate or disnnb any ftistorical, prehistoric ar <br />arektatological site or resomce on any lands adutirustered by Lessor. v;scovety of a susputed site or resource shall <br />be immediately' brought to the attenrinn of Lersor and the State Arhaeologist rn' Lessee shall prmide et'ideace that <br />no significant arehaeologtcal sites exist on [be leased premises wfiich could be. destroyed by Lessee's operations. <br />DEFALiLT AND FORFEI'S'[J1;E - T.f fox any mason Lessee fails to keep each mtd every one of the envenants and <br />eouditons herein, and if such default contissues for a period of tlrirry (30) days afrn'seevice of written notice thereof <br />by certified mail upon i essee, Lacsor shall have the right 2n declare this lease forftited, and to enter onto the leased <br />premises either with or without process of law, and to expel remove and put out Lesse~-rn' any persim occupying <br />the premises, using such force as maybe necessary to do so. <br />In the event o2. the uxmination of the lease by ressan of breach of the cevenanis herein Ctmtained, Lessee <br />shag surrender and peaceably deliver to Lessor [he above-described premises, and suchlprernises Shall he in good <br />mining condition. ]f upon termination o£ this least far t+ay reason, whether by surrender, for}eiNre or expiration of <br />term or otherwise. Lessee shall not have sully. complied with iht rums of the lease, L~ssor shall hold and retain <br />possession of the propern•, itrtproveinenls, and tquipmen[ of Lessee as security unto Lessor far dte payment o£ rents <br />and royalties due Lessor, or u protect Lessor ngnarsY liens; or to indenrnSy Lessor against any loss ar dmnage <br />sttstaintd by Lessor by reason of the default of Lessee, for which pttrpose Lessor is hereby peen e Nett upcrct all such <br />property, improvements, and equipment (exclusive of rolling stock), which lien shall attach as the same aze placed <br />upon the premises. Itt the event Lessor shall foreclose the lien in this article even to Lessor by Lessee, Lessor may <br />itself he a purchaser at any sale thereof tinder such foreclosure. Uptm the temrinanon of this least far any aatue, if <br />Les<_ee shall remain in possession of said premises, Lessee sba11 6c guilty of as uttlawltil detaiatx under 4u statutes <br />Page 6 of 7 <br />32 <br />