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<br />d. All rights and privileges of every kind and nature not herein
<br />expressly granted.
<br />4. TO HAVE AND TO HOLD The above-described premises, with the appurtenances,
<br />unto the Lessee and the heirs, assigns, successors or legal representatives of
<br />Lessee, from 12:00 Noon on the 29th day of April 19 85 for the full
<br />term of five (5) years and until 12:00 Noon on the 9th day of April ,
<br />19 9Q , as long thereafter as leased materials are being produced in paying
<br />quantities from said premises, and the royalty and rents provided for herein are
<br />being paid, subject to the terms, conditions and agreements herein set forth.
<br />5. Compliance with regulations--Lessee covenants and agrees that during the
<br />continuance of this lease he will fully comply with all of the provisions, terms
<br />and conditions of all laws, whether Slate or Federal, and orders issued
<br />thereunder, which may be in effect during the continuance hereof relating to the
<br />operations of Lessee under [his lease, and the marketing of any product thereof,
<br />or lahor relations in connection with such operations or marketing.
<br />
<br />6. Malty--Lessor reserves as royalty, and Lessee agrees to pay to Lessor
<br />on or before the 20th day of each month hereafter, $ 0.3U per ton of 200011,
<br />or $ 0.405 per cubic yard, or 5 Y, of the gross sale price at the first
<br />point of sale, whichever is greater.
<br />It is further provided that if for any reason [his lease is extended
<br />beyond the primary term of five years mentioned above, the State Board of Land
<br />Commissioners may at the termination of each and every five-year period during
<br />the life of [his lease, fix and determine the rate of royalty to be paid by the
<br />Lessee during the succeeding five-year period of the lease.
<br />7. Reports--On or before [he 20th day of each and every month during the
<br />term of this lease, Lessee shall make a sworn report to the Lessor in which shall
<br />be entered and set down [he exact amount in tons of all materials removed from
<br />said premises during the preceding calendar month. Such statements shall clearly
<br />set forth the tonnage as shown by production reports, and shall also show the use
<br />or disposal by the Lessee of such materials.
<br />8. Surrender--The Lessee may at any time surrender and cancel this lease
<br />insofar as the same covers all or any portion of [he lands herein leased and be
<br />relieved from further obligations or liability hereunder with respect to the
<br />lands so surrendered; provided that no partial surrender or cancellation of this
<br />lease shall be for less than contiguous tracts of approximately forty (40) acres
<br />or Governmental lot corresponding to a quarter-quarter section; provided further
<br />that this surrender clause and the option herein reserved to the Lessee shall
<br />cease and become absolutely inoperative immediately and concurrently with the
<br />institution of any suit in any court of law by the Lessee, Lessor or any assignee
<br />of either to enforce this lease, or any of its terms, express or implied, but in •
<br />no case shall surrender be effective until Lessee shall have made full provision
<br />for protection of the surface rights of the leased premises.
<br />9. Assignment--The Lessee, with the written consent of the Lessor, shall
<br />have the right Co assign [his lease as [o the entire leasehold interest of such
<br />Lessee in all or part of the lands covered hereby, not less, however, than
<br />contiguous tracts of approximately forty (40) acres or Governmental lot
<br />corresponding to a quarter-quarter section for any partial assignment, and for
<br />approval of such assignment the Lessor may charge an assignment fee in an amount
<br />currently in effect at the time of the assignment. No assignment of undivided
<br />interests or retention or reservation of overriding royalties will be recognized
<br />or approved by Lessor; and the effect, if any, of any such assignments or
<br />reservations will be strictly and only as between the parties thereto, and
<br />outside the terms of Chia lease, and no dispute between parties to any such
<br />assignment or reservation shall operate to relieve the Lessee from performance of
<br />any terms or conditions hereof or to postpone the time therefor. Lessor will and
<br />shall at all times be entitled to look solely to the Lessee or his assignee shown
<br />on its books as being the sole owner hereof, and for the sending of all notices
<br />required by this lease and for the performance of all terms and conditions
<br />hereof. If an assignment of a par[ of this lease is approved, a new lease may be
<br />issued to the assignee covering the lands assigned, for the balance of the life
<br />of the lease, on the lease form in use by the Board at the time of the
<br />assignment, and limited as to term as said lease is limited, and the assignor
<br />shall be released and discharged from all obligations, and shall be held to have
<br />released all rights and benefits thereafter accruing with respect to the assigned •
<br />land, as if the same had never been a part of the subject matter of [his lease.
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