Laserfiche WebLink
not specifically mentioned herein will be subject to the approval of Lessor and require a yearly rental payment of <br /> no less than $100.00 per acre. Haul roads and/or access roads which do not directly benefit the Leased Premises <br /> will be subject to a separate permit and approval of Lessor. <br /> 6. REPORTS AND RECORDS -- After operations begin, it is agreed that on or before the last day of each month <br /> during the term of this lease Lessee shall submit a sworn, verified, written report to Lessor, in which report shall <br /> be entered and set down the exact amount in weight of all products and the assay thereof mined and removed from <br /> said leased premises during the preceding calendar month. Lessee agrees to keep and to have in possession <br /> complete and accurate books and records showing the production and disposition of any and all substances <br /> produced on the leased land and to permit Lessor at all reasonable hours, to examine the same or to furnish copies <br /> of same to Lessor within 60 days following written request along with purchaser's support documentation. All <br /> said books and records shall be retained by Lessee and made available in Colorado to Lessor for a period of not <br /> less than 10 years. If any such examination shall reveal,or if either party shall discover any error or inaccuracy in <br /> its own or the other parry's statement, payment, calculation, or determination, then proper adjustment or <br /> correction thereof shall be made as promptly as practicable thereafter, accept that no adjustment or correction <br /> shall be made if more than 10 years have elapsed between the time the error or inaccuracy occurred and the <br /> discovery by either party of said error or inaccuracy. <br /> 7. OVERRIDING ROYALTY LIMITATIONS -- It is agreed that this lease or any subsequent assignment hereof <br /> shall not be burdened with overriding royalties the aggregate of which exceeds two percent (2%) of the gross <br /> value of the minerals or ore at the first point of sale. Lessor must be notified of all overriding royalties accruing <br /> to this lease. <br /> 8. DEVELOPMENT - This paragraph is deleted. <br /> 9. PENALTIES -- A'penalty shall be imposed for, but not limited to, late payments, improper payments, operational <br /> deficiencies of any kind whatsoever, violations of any covenants of this lease, or any false statements made to <br /> Lessor. Penalties shall be determined by Lessor unless otherwise provided for by law and may be in the form of, <br /> but not limited to, interest, fees, fines, and/or lease cancellation. A penalty schedule shall be prepared by Lessor <br /> and shall become effective immediately after public notice. Said schedule may be changed from time to time after <br /> such notice. <br /> 10. ASSIGNMENT -- Lessee, only with written consent of Lessor, may assign this lease as to the leasehold interest <br /> of such Lessee in all or part of the lands covered hereby; not less, however, than tracts of approximately forty <br /> (40)acres or governmental lots corresponding to a quarter-quarter section for any partial assignment. <br /> No assignment of undivided 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 reservations will be strictly and only as <br /> between the parties thereto and outside the terms of this lease. No dispute between parties to any assignment or <br /> reservation shall operate to relieve Lessee from performance of any terms or conditions hereof or to postpone the <br /> time therefor. Lessor will at all times be entitled to look solely to Lessee or his assignee shown on Lessor's books <br /> as being sole owner hereof, and for the sending of all notices required by this lease, for the performance of all <br /> terms and conditions hereof. <br /> If an assignment of a part of this lease is approved, a new lease designated as an assignment will be issued to the <br /> assignee covering the lands assigned for the balance of the term of the base lease on the mining lease form in use <br /> at the time of assignment and limited as to term as said lease is limited. The assignor will be released and <br /> discharged from all further obligations for such lands assigned,as if the same had never been a part of this lease. <br /> 11. ASSIGNMENT CONSIDERATION -- The consideration for approval of assignment by Lessor shall be 10% of <br /> the value of any consideration tendered to Assignor by Assignee for the assignment. Divulgence of the value of <br /> these considerations shall be mandatory, in affidavit form, which form shall be presented to Lessor along with the <br /> other assignment instruments in order to obtain Lessor's approval for the assignment. An assignment does not <br /> constitute a new lease but is a continuation of the base lease. Any attempt to withhold this information shall be <br /> construed as an attempt to defraud the State of Colorado and shall render this lease null, void and nonexistent,and <br /> all moneys paid to Lessor shall be forfeited to Lessor. In addition, the current statutory fees will be paid at the <br /> time the assignment record form is submitted. <br /> 12. WEIGHTS -- It is agreed that all ores, minerals and other materials mined and taken from the leased premises <br /> shall be weighed and assayed and the weight and assay thereof shall be entered in due form in weight and assay <br /> records kept for such purposes by Lessee. <br /> Ton means 2000 pounds. Ton shall be determined by official Colorado State certified scales or other <br /> methods approved by Lessor. <br /> Page 3 of 7 <br />