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<br />INDEMNIFICATION AGREEMENT
<br />THIS AGREEMENT is made and entered into this~~~ay of 2002
<br />by and between Rudolph Fontanari, dba WESTERN SLOPE FLAGSTON , a le proprietorship,
<br />hereinafter referred to as "Fontanari" and Public Service Company of Colorado, hereinafter
<br />referred to as "Public Service".
<br />WHEREAS, Public Service currently owns and operates gas and electric transmission
<br />lines, including above and below ground supporting structures lying in Section 35, Township 10
<br />South, Range 98 West, and in Section 2, Township 11 South, Range 98 West, of the 6th Principal
<br />Meridian, Mesa County, Colorado. `
<br />WHEREAS, Fontanari is in the process of obtaining a mining permit from the Colorado
<br />Division of Minerals and Geology for the purpose of mining, processing and removing sand and
<br />gravel (construction and landscape materials) within 200 feet of the said improvements owned
<br />by Public Service. Such minirig activity is known and referred to as WESTERN SLOPE
<br />FLAGSTONE QUARRY NO. 2.
<br />WHEREAS, the Colorado Division of Minerals and Geology has conditioned such mining
<br />permit on Fontanari, indemnifying and holding Public Service harmless for any damages that may
<br />occur to its improvements within said 200 feet, as a result of Fontanari conducting such mining
<br />activities authorized by said mining permit.
<br />NOW THEREFORE, except to the extent caused by the negligence of Public Service, its
<br />agents, employees or assigns, Fontanari shall defend, indemnify and hold harmless Public
<br />Service, its agents, employees or assigns for any loss, cost or damage to said improvements,
<br />including, without limitation, reasonable attorneys' fees and court costs, arising from or related to
<br />the exercise of the rights granted under such mining permit. Fontanari shall conduct its activities
<br />in a safe and prudent manner and shall comply with applicable rules and regulations promulgated
<br />by federal, state and county agencies, including, but not limited to reclamation obligations relating
<br />its mining operations.
<br />All of the covenants and agreements set forth in this Indemnification Agreement are
<br />intended to be and shall be construed as covenants (and not conditions) running with the land,
<br />binding upon, inuring to the benefit of and enforceable by Public Service, and Public Service's
<br />successors and assigns.
<br />IN WITNESS WHEREOF, Fontanari has caused this Agreement to be executed and it shall
<br />become effective as of the day and year first above written.
<br />Western Slope Flagstone,
<br />a sole proprietorship
<br />sy:~ ..1~~,~,
<br />Rudolp ontanari
<br />INDIVIDUAL ACKNOWLEDGMENT
<br />STATE OF COLORADO )
<br />)ss.
<br />COUNTY OF MESA )
<br />The foregoing instrument was acknowledged before me this ~q~~~~ii~y~~of
<br />~~ ~ _, 2002 by Rudolph Fontanari, sole proprietor of Westem Sfope Flag"stone ~ i ;,". ,,
<br />Witness my hand and official seal. y'!. `,, _. ~ ~•
<br />Notary Public c,> ~ ; ~.',
<br />Nkholes 8. Foes, Manager,
<br />S~Yhg and Lend Rights,
<br />Xcel Energy Services, Inc., My commission expires: I Z' l~ -~-
<br />Agent kr Publlc Service Company of Colorado
<br />Reviewed and Accepted by:
<br />Public Service Company of Colorado Date
<br />
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