|
<br />iii i uii iii iiiiiii i~ ,
<br />999
<br />THIS MEMORANDUM SAND AND GRAVEL LEASE, dated this $ah day of ~Plp ,
<br />2000 (hereinafter referred to as this "Memorandum"), by and between C. R. EVANS (herein called
<br />"Lessor"), with an address for notice at 231 Nyberg Road, Pueblo, CO 81006, and MINERAL
<br />RESERVES, INC., a Colorado corporation (herein called the "Company"), with its address at 3390
<br />Drennan Industrial Loop S, Colorado Springs, Colorado 80910 (personal or courier delivery), P.O.
<br />Box 15677, Colorado Springs, Colorado 80934 (mail).
<br />1. Grant. By a certain Sand and Gravel Lease of even date ("the Lease"), and
<br />on and subject to the terms and conditions provided in the Lease, the Lessor has ]eased, let and
<br />demised and hereby leases, lets and demises to the Company all stone, clay, sand, and gravel in, on
<br />and under the real property situate in Pueblo County and described in Exhibit A attached hereto and
<br />made a part of the Lease (hereinafter referred to as the "Property"), and the exclusive right to sample,
<br />drill, and test for, develop, mine, quarry, extract, process, sell and remove them during the Term of
<br />the Lease, together with any topsoil and overburden and any valuable solid minerals (not including
<br />oil and gas) removed incident to such extraction, all of which aze sometimes hereinafter referred to
<br />as "Materials". The Lease is an amendment of and addition of property to a Lease Agreement with
<br />,,.., ; Option to Buy Material dated the 15's day of May, 1997 by and between Lessor and Henry Southway
<br />%%~`.; and John Sliman dba JBCO which was assigned to the Company by a Lease Assignment and
<br />- _ Assumption made and entered into the 30 day of January, 1998 ("Lease Assignment and
<br />Assumption") and aNon-Disturbance and Attornment Agreement made in January, 1998 by and
<br />between Fatm Credit Bank of Wichita ("Farm Credit") as a Mortgagee and the Company as Assigne
<br />(".Attomment Agreement").
<br />2. Term. The Tenn of the Lease is a period often (10) years from the date
<br />hereof, with an option in the Company to extend for an additional ten (10) yeazs, unless sooner
<br />terminated by Lessee.
<br />3. Payments and Production Royalties. The Company is obligated to pay certain
<br />production royalties under the Lease in connection with its mining and removal of Materials. The
<br />Company is also obligated to make certain annual advance minimum royalty payments. Amounts
<br />paid as advance minimum royalty are to be credited against and applied to reduce amounts otherwise
<br />payable as production royalty.
<br />4. Water. During the term of the Lease, and until reclamation of the Property
<br />is completed, the Company shall provide at its sole cost and expense any and all water required to
<br />satisfy the requirements of state law. If any portion of the mined Property has been reclaimed,
<br />approval of the reclamation has been obtained and that portion of the Property has been fumed back
<br />to the Lessor the Company shall keep its temporary substitute supply plan or augmentation plan in
<br />effect and Lessor shall pay to the Company the proportionate cost of the temporary substitute supply
<br />plan or augmentation plan necessary to compensate the Company for augmentation of evaporative
<br />losses on the reclaimed, returned portion of the Property. Lessor shall have no right to use or occupy
<br />any reclaimed, returned portion of the Property unless and until Lessor and Lessee agree on the
<br />proportionate compensation Lessor is to pay to the Company as reimbursement for the Company's
<br />costs under its temporary substitute supply plan or augmentation plan and, if requested by the
<br />Company, Lessor has granted a deed of trust encumbering the Property or other security satisfactory
<br />
|