2003-08-08_REVISION - M1977020 (3)

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• MINING LEASE THIS MINING LEASE made this j~ day of January, 2002, by and between GLEN L. BLACK and LINDA L. BLACK, Lessor, and OLDCASTLE SW GROUP, INC. d/b/a UNITED COMPANIES OF MESA COUNTY, a Colorado corporation, Lessee, 2273 River Road, Grand Junction, Colorado, WITNESSETH: That the said Lessor, for and in consideration of the rents, covenants and agreements hereinafter expressed to be paid, kept and performed by the said Lessee, have leased to said Lessee, the following-described property, to-wit: PLAT OF PROPERTY SHOWING BOUNDARY LIMITS OF MINING AREA, LOCATION OF SPOIL PILES OF OVERBURN, ACCESS ROADWAY AND ADJACENT PROPERTIES SHOWING THE AREA COVERED BY THIS LEASE IS ATTACHED HERETO AS APPENDIX "A" AND INCORPORATED HEREIN BY THIS REFERENCE. To have and to hold, for the sole purpose of mining and removing sand and gravel and aggregates thereof, for the term of two years; thereafter, this Lease shall be deemed to be automatically renewed for successive two-year temvs, unless written notice is given by certified mail by either party to terminate the Lease at least thirty (30) days prior to the expiration of the initial term or any renewal ~erm of this Lease. The Lessee hereby covenants and agrees to pay to the Lessor a royalty for material mined from the subject property calculated at the rate of 'per ton. This royalty shall be payable in monthly installments due on or before the tenth day or each month following the month in which the aggregate material is mined. Measurement of gravel material shall be done by the Lessee. These measurements shall be the basis for making royalty payments to the Lessor. Measurement of the quantity of aggregate material crushed at the site shall be based on loads of material handled at the crushing plant and the crushing plant's product belt scales. Unprocessed materials shall be weighed at Delta Sand and Gravel Company's certified truck scales at the time of the material's sale. The Lessee will supply a monthly statement of gravel tonnage that has been processed (crushed gravel products) and sold (unprocesed products). This statement will include production details of the gravel crushing activity for the previous month. This statement will include sales activity for unprocessed gravel material. Weight tickets for unprocessed gravel material will be attached to the monthly statement of gravel processing and sales activity. These measurements shall be reconciled by United Companies with United Companies' Perpetual Inventory (using a physical inventory one time each yeaz), as a check on measurement accuracy. The premises shall be the primary source of gravel material for United Companies' (doing business as Delta Sand and Gravel Company) Delta, Colorado operations. Lessee shall extract gravel t~rom the premises as quickly as market conditions allow. The Lessee intends to mine continuously until the sand and gravel have been removed down to bedrock. Lessee will contact the Lessor in the event Lessee is not able to mine down to bedrock or at a minimum of fifteen (15) feet below the water