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9. Lessor trrrrves as royalty, and Lessee ogrees to pay to Lessor on ur bcforo lho YOth day of each montu
<br />/ •ihcreattcr the fullowitl4:
<br />r['~~ (a) ^~.2.9t7 ~r.n t:CUt [:Uf.`~t.}ln Cri ~y;:.L:itt11Y[Of•: t('[!GC.'ryt: lellV4Ydi1!Uy: lti,1 tiilll?ltit 1aNhiL ~, s•Gttl, r •
<br />.~-- n
<br />// (V) _$.R..~.Q_._.per ton of 2,000 pounds of ail 1l::to_lln.c~;_.",11;).115.~..mitled nntl t:itilrpetl,
<br />i4:--1',m^tt tc-r. armrn!r-hall-n ~1 y-tn • nnym~nr-n•ceivrt hhr-! h!--! e!••.•rr•n-«nr-rn ineml-~.rrn Ir i-T~}+t~nt{ nc i~
<br />• als mined from the leased prrmirvi m;w bu milled in a custom or cl,nunerc ial plant or rnlll otvnrrL~nd upnr-
<br />Sled by Les:rv, 'h1:e7• mny not be mixed or cmnr.:in„led tt•rth ores iron other prnnrrur:: until-[h~:v have barn
<br />crushed and sampled by the mill fur thn purpose of dct.•rmtnin:; the hcrcinabnt•~dc::i:;not^.d mutcr:d and
<br />• other minerals contained in the crude ur,: that may be sa lvac:vd by millin;t-++f's:nut. 'I'h~• i•.:sultinr s:lmplcs
<br />shall be assayed at the 1:,bol,aWry used by thr. mII[ u•hr:rc ore iS~InillC~d .and Lessor shall receive on as:;ay
<br />• certificate shutvin^. the cratent ~ of ca[•h day's dclit•cry to tniJt:~fit addition. rile mill +hall reserve a pulp of
<br />each day's composttu sampi~ for trsun~, provided, ho'a•etvr, said mill shall rant be oblicrd to keep pulp fur a
<br />• period of more titan ornery (!sU) days. In thc.cvmu of a aisputc as to analys+s, lho pulp prepared from cavil
<br />' composite s:mlple shall be referred to-an uutp.re aeccptablu to Lessor and Lesscu and the dc[crmin:+tion of ~~
<br />- the umpitc shall 6u uindin:: upnrr'both p.v~ttt•s, 'i'hc ne[ tvcight of the crude ore on a dry weiaht basis slmll
<br />~• be dctcnnincd at thc.SCUlas at the mill. Lcssnr shall itat•c fire right to check the weights a~ ottcn as it deems .
<br />~,• ndvisable. Les.:ec''sitall furnish Lessor with duplicate scale weil:ht certi(tcates. Lessee agrees to, and shall be
<br />' hcld~ccotnstablc to see that rite forcgoin~ prova+ons arc earned out by such mill or mills as shall receive
<br />tnitierels-prouueerl--irolm•-ti~.ymmt7eri[etrtrt-•r2rmaed. - -
<br />Il. On or before the 20th day o! each and every month during,thc farm of this lease, Lessee shall make
<br />a sworn report to lire Leseorin tvitich shall be entered and sec ciott•n the exact amount in tvci~ht of nil min-
<br />• ~ ~, orals of value mined on said premises during the pt•eceding calendar mon:lt. Such statements shall cl,:arly
<br />set forth the tonnage as shown by file mirrrs production reports, anti snail also shuts tlse use or disposal lty
<br />' the J.cssee of such minerals of value. Tile report shall be made tvhecher ot• not any minerals are mined dug-
<br />' ~ ., ing the month for which rite report is made. in the event that :to mining is done Burin;; the month for which '
<br />file report is made, such report shall contain a complete statement of cite work done by the Lessee during fire .
<br />month.
<br />]2. The Lessee shall have the right to mine, raise, carry and transport ores from the lands hereby leased
<br />' , ~ through other lands note or hereafter owned or leased by the Lessee, and the right io raise, carry and trans-
<br />• .; port ores mined by the Lessee from other lands owned or !cased by the Lessee ot•er or throu;h the land, cov-
<br />' - cred by this lease; prot•iacd, that thu ores mind from other lands arc in no event mixed with ore mined
<br />from these leased premises, except as provided in Paragraph 10 herein.
<br />• ]3. The I.es<_ee further agrees to hold the Lessor harmless for any and all manner of claims arising or
<br />to arise from fire said leased premises by Lessee whether from soil er surface subsidence, or from any other
<br />~; .cause or any other nature soeccr; this para>:rapit shall be binding upon Lessee and upon the heirs, assigns,
<br />•'• ~ successors and Icgal representatives of Lessee, and shalt be a con[inuin; obligation during artd after the
<br />' expiration of this lease, so long as any possibtiity of soil or surface subsidence remains.
<br />~'~~•'• ~ ~ 14. The Lessee may at any time, by paying to the Sate cf Colorado, acting by its State Board of Land
<br />Commissioners, all amounts then due as provided herein, and trte further sum of Ttvo Dollars 02.00), surren-
<br />der and cancel this lease insofar as the Santa covers ail or any portion of the lands herein leased and be
<br />' ~ relieved from further obii~ations or liability hereunder «•ith respect to t?:e lands so surrendered; provided
<br />~' that no partial surrender or cancellation of this lease shall be iot•Icss than contiguous tracts o[ aporoximatuly
<br />~' forty (90) acres or Governmental lot curt•espordiny to aquarter-quarter section; provided turtlter that this
<br />' surrender clause and the ootton herein reserved to the Lessee snail cease and become absolutely inoperative
<br />immediately and concurreticiv with the institution of any suit in any court of latt• by Ilse Lessee, Les::or or
<br />.. any assien~:= ::: ^i:.`.cr ~ c:.fa: c.^ t::ls :aria, cr any of .ts terns express or tmpitea, out sn nn casr, shall sttr•
<br />' ~ rendrr Cc c.,,c.l:e ;:... c:s:e e : ;olio ,..1 pravisiott ;or tutuervatiutt of rite minerals acid pt•o-
<br />.4'.•. tection of the surface rights of the leased premises, •
<br />' ]5. The Lessee, n~t21 the tt•ritten consent of the Lessor, shall have the right to assign this lease as to the
<br />•~entire leasehold interest of such Lessee in all or part of the lands covered hereby, not less, however, than
<br />• contiguous tracts of approximately forty (;0) acres or Got•ernmental lot corresponding to a quarter•gtlarter
<br />Section for any partial assignment and for approval of such assignment the Lessor may make a charge o[
<br />ten cents (50.10) per acre. tt•ith a minimum charge for any one assignment of Ten and lvo/100 Dollars
<br />• ($10.00). 7io assignment of undivided interests or retention or resertation o[ overriding royalties tt•ill be t•ec-
<br />•,. ~: ognized or approved by Lessor; and the effect, if any, of any such assit;nmer.ts or rescrtations will be strictly
<br />~,' and only as bettt•een the parties thereto, and outside the terms of this leave, and no dispute bettvicen parties
<br />' .~ ~to any such assignment or reservation shall overate to relieve the Lesser. from performance of ans' terms or
<br />. conciitians }tereof or to postcone the tsme therefor. Lessor tviil and shall at ail times 6e entitled to lout;
<br />. solely to the Lessee or his a_signcc shown on it; books as being the sole owner hercoi, and for the sending
<br />of alt notices required by ti:is lease and for the performance of all tongs and conditions hereof. If an assie:n-
<br />. ':~~. . ingot in whole or part of this lease is approved, a rely lease shall be issued to the assi5nee covering; the lands
<br />.assigned, for the tsalancc of the life of the ]case, on the lease form in use at [he time of the assignment for
<br />.• fire mining oi_I.it•.te_Iieck.., and limited as to term as sold lease is limited, and the 'assignor shall be
<br />•rclcased and dischart',ed from aU otsti~ations. end shall be held to have released all rights and brnetits there-
<br />otter accruing with respect to the assigned land, as if the same had never been a pazt of the subject matterot
<br />Utis lease.
<br />• 16. In the underground and open pit tt•orkings, all•shatts, inclines and tunnels shall be It'ell tinlbeced
<br />' (when good minim; requires timbcrin;) and all parts of tt•ori:ings, where minerals are not exhausted. will be
<br />' kept free from water and t:•asto materials, as in ordinary operations. The underground and open psi tt•ork•
<br />' Ings shall be protected aaatnsi fire and iioods and the creeps and squeezes. If such events do occur rites
<br />.,• shall be checked in a manner which is in ::coping tt•ith rood methods of mining. Suctt ntethocls of mining
<br />shall be used as shall insure the extraction of the greatest possible amounts of minerals consistent with wood
<br />.. ' mining met}rods.
<br />• " ; - i7: Lessee shall be liable and a¢tres to pay~for all damages to•the surfacr of the land, livestock: Crowing
<br />' erops or smnrovemcnts caused by Lessee's opvrattons on said lands. Ic:i::s=:ced~:and::undets[eod::[hat:rw-
<br />•
<br />• oyNyi:tslU:t:sail:L'a:centceocerd::on:~:tic::tan:L•;hr.:coatsox:::de.tfiit:cct:unLse:cr.;:,urt:i:th,~Lr:tiscutae:nlxn:s[tncn
<br />' ~ XIt:41 }:flnYJ: r':t'Cd::t:Lon:c::z+t:~~t:;::: resat:nna:t:.c:tit::roc:.u~oi-):1::in::rsltaac:ta:c::n::cu: ~~:Lr::=a.:: re:LeLn: ~'Lnri
<br />' AlUayt+:•Snr^a'C.I>na[•r:y:~::+.•,ti+r.vu},uy.a,r.:U,r.b.nJr•i,v.~+;•r: ~:::;rutcsnc;c:c~:vt::mtpcac«::a.:a:r:::c:::evsr:a)c
<br />• bauwa:bc:1.:>,:_r.c::G,:::us:~ti;:z=d6'::oncraaur,;::uc:saiti::::a,_::.nn:ZS Sr=RC _:o::r.oL;tncccx:•att:a tiatn:rtnvisun:,
<br />'" CnnUitl:r:3::tr.t•. 11 :.'a:.::,1:SJ::4w::;anOl:S:•DLit[tc4::L:Sill:~IIG::edCL;z:1tl1IS5r:Gt„L1lt~:.tit3:C::t1Y:S:OlUC:wU~}an4tYylbY.:a11U
<br />~~ YCUt[tauuas:~.tncrtax:appcxta:nsn;:: ~ .. . , ... - .
<br />18. It is Screed that during: all proper lsours•~nd at all 'times•iltlring the continuance of tlsis Icase rite
<br />• Lessor, by its 5unarintcndcnt ni the d:ineral I)rpartment or by its duly aatho:ird assent ur at;cnlt, shall by
<br />.. end hereby is authorized to chcclt scales as to thr:r aceurac•y, to ; o thtnui;h anS of the siapt•s, entries, shads,
<br />, openings or workin s on said Premises, and to examine, insprct and survey the same and to exarninc and
<br />make exh:uts ur cuPics of •,II Douiw told wnu:ht nc~ots x•b;ch show in an.y a•ay the minrr:d output o[ Ulc
<br />leased prcmrses, and that all cunvrni~•nccs tt,:ressary for caul insprcliun, snrvcy or rxumiualinn shall be fur-
<br />Mshed to thr; Lessor, its Supcetytcndt:nt of rho :.Literal lhgsdrtmunt ur its ug;vnt ur u;;unts by rho Lesson
<br />• ' I9. It is mq•ecd that the_Lcssee, while usintf nny diamond, rlutrn ur opx•r drill en raid premises rlurim;
<br />the trrm of 16ts h•nsr, r.h:Jl kreP , n urcurntr lust of ail worlt su thutt• tool pcriurnu•d, shua•un; lha S;culnrviral
<br />formations ptvudratcd, the dopth ur {itichncsa of each, the mineral ch:n•avt+:r u! each, espreiully mineral vruls
<br />' And Strata, llcelr ulevaliuns, luu lucalion of name bV tyiutt to a rornrr ut cones Irl:al soh:hviziun ar, in uri..ur.
<br />Vcycd fcrritory, !u tome bench ntnrh nr alhrl• ol{it•mllY r•rtalrlishct{ point. t^aabh:dud by the Unip•d tiUr1+~9
<br />s<urVeys, ntid ea<•h :Ind Pv,•iy Ihuu{ nvve;r:n•\' tit mnl<v and r+U+Ply a p.•iu~el .unl cumulrlu lu!; of the h„I,•
<br />'{~ rl`u;; llU lit Its Yltl ll'U d,'I+lh, n h'lltr YnpV U( 1t'h Il'h 1.11111 tut: Shull Ih1 SIt 1111:;1 u'd Ihu l.el.aul• Whllt 1111d fit lbt•
<br />lima sucA L+dvs ulu dtth••d ut' ut uny ones thu,•e:IfWr upon drulued ut lbu l,u:.nur. •
<br />1
<br />7 ,+ i
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