PERMFILE70021

• Permit No: M1978102
• IBM Index Class Name: Permit File
• Doc Date: 2/17/1977
• Doc Name: LEASE AGREEMENT WITH OPTION TO BUY MATERIAL
• Media Type: D
• Archive: No

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Project No. •
Maintenance Section
Location: 17unn
III III III III IIII III
999
LEASE AGREEMENT WITH OPTION TO BUY MATERIAL
THIS AGREEMENT, Made and entered into this 17th day of Februarg
19 77, by and between the Owner(s) Lynn E, and 1Jorma D. Shipps
hereinafter referred to as Owner, who
may be contacted at Rt. 1 Box 11 t:unn, Colorado 8061x8 the
Mortgagee --- --- --- --- --- --- hereinafter referred
to as MORTGAGEE, and the STATE DEPARTMENT OF HIGHWAYS - DIVISION OF HIGHWAYS -
STATE OF COLORADO, hereinafter referred to as the DEPARTMENT. (The term "DEPART-
MENT" shall be construed to include Department employees, agents, and contractors.)
WITNESSETH THAT:
The "Owner" for and in consideration of One Hundred --------------- Dollars
($ 100,00) and further agreements hereby leases to the Department for the purpose
of investigating, exploring, prospecting, drilling, and the option of purchasing,
processing, and producing such material, located on land described as follows:
:1 portion of N.k~.y Sec. ,96, T.9Pd., P.. 65:•7, as the. Department might
deem to be of satisfactory quality and quantity for use in the construction,
-'~ improvement, and maintenance of its highways.
In the event the Department desires to purchase any of the material located
on the above-described land, the Owner will be paid a royalty fee at the follow-
ing rate:
(a) Sand and Gravel at Fifteen Cents (15 ~) per (ton)(cy:~yd.)
(b) --- --- --- --- at ---- Cents ( --¢) per (ton)(cu. yd.)
The Department shall have the right of ingress and egress to and from the
subject premise and to erect any temporary structures, such as: screening
and crushing plants and asphalt plants, and to employ any reasonable methods
for removal of material.
This agreement and any required State, County, or Municipal permits obtained
by the Department is for the removal of material for use on Department projects
and maintenance only.
It is understood and agreed that, upon the letting of a contract by the
Department to a contractor for the construction, improvement, and maintenance
of highways, the Department shall assign to the contractor all its right,
title, and interest under this instrument, insofar as the same shall be
applicable to the projects let to the contractor, and the contractor may
re-assign such option to subcontractors working on said projects. If the
option is exercised by the contractor or any subcontractor, they shall have
a right to extract all material needed for the projects covered by the contract
let by the Department, subject to all the terms of this agreement, providing
said contract was let prior to the expiration date of this agreement or any
subsequent riders.
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Please see reverse side for
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