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.- 10/16/O1 22:52 FA% ~ 07 19. PROSPECTING - A permit to prospect is required and Lessee agree that while using sad opertiong any drill on said premises, Lessee shall keep as a~^+*~~ lag on all work so done sad performed, showing geological formations peaeaated, the depth and thiclmess of each. the ooiaeial character of eae6 including but not 1®ited m coal and water~earittg strata, the lo[xdiar and elevation of each tied to a corner established by United States survey, and each sad every thing aecessary.to make a cotnpiete log of the hole throughout its satin depth, a true copy of said log shall be furnished m Lessor. Tt is understood and agreed that the methods need is carrying out any program of exploration, and the rata of progress of such program shall 6e determined by Lessce. If Lessee carries on any program of expltuation, other than drilling. Lessee shall submit m Lessor written reports showing the cba[acter and extent of prospecting being carried out on the leased premises and giving arty details of taineral oceoanaees which may have been eaeoumeted; and I~sor agrees thaz during the term of this lease all sorb information so supplied by Lessee shall temaia coafideotial and unpublished for the duration of this lease insofar as such wafidemialiry is eonsisteat within the hlw. ~. 20. NOTIFICATION OF MINING OPERAI'IONS-It is undersmod that Lessvor may sot owe or coaaol the snrFarn estate of leased premises, or Lessor may have issued a surface use lease m another lgsee. 1Vlinerdl Lessee shall be responsible for identifying such ownership or de[ettninuog the surface lessee or lessees, and shall notify all sueh.parties in advance of arty oa-site activity. Notification will be given thirty (30) days for IIOt11lEd or grazitrg acreage end sixty (60) days for tilled farm ground prior m ~y oa site activity. Mineral Lessee shall closely coordinate arty on-site activity with the surface owner or lessee, and mabc a reasonable effort m protect the integrity of surface owner's or surface lessee's fences, goes, cattlegaatds, and other Property . 21. ffiOTECTION AGAIIVST SURFACE DAMAGE -Lesser has the right to utilize as much of the surface of the lands as is reasonably necessary for mining operations; however, Lessee shall be Uable and agrees td pay for all damages m the surface, livestock, growing crops. wa[er wells. reservoirs. or other improvements caused by L,essee's operations on said lands. Z2. HOLD HARMLESS - Ltssce shall indemnify lessor agains[ all liability and loss, sect against all claims and actions, including the defeoae of such claims or aarorts, based upon or arising out of damage or injury, including death,'to persons or property caused by or sustained is m~eaioa with [his lease or by conditions created thereby, or based upon any violation of arty statute, ordinance, or regulation. 23. LIENS AND t'I.AIMS - Lessx shall not suffer or permit m be eaforsed against the leased premises, or say part thereof, or a~ improveatcafs thereon, say liens arlaing from, or any claim for damage growing out of the work of any consoruccioa, repair, restoration, replacrmem or improvement. or say other claims or demand howsoever the same may arise, but lessee shall pay or ranee m be paid all of said liens, claims, or demands before say action is brought m enforce the same against the leased premises or improvements. Lessee agrees m defend, indemnify and hold Ilssor sad the leased premises free sad harmless from all liabrlitp for a~ and all such liens. chums, demands, and actions together with reasomble attamey fees and all costs sad expenses in connection therewith. Lessee shall, upon exeattion of [his lease at ice cost, prepare a Notice, pursuant m C.R5.1973, 4 38-22-305 and cause the same m be posted for the purpose of prorecsing Lessor against any liens or marmbrances upon the leased premises by reason~of work, labor, services or matrrials contracted for or supplied m Lessce. _ Page 6 of 9