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This verification to be at least annually, and as often as deemed necessary by C&U to protect its interests. 3. USE OF SURFACE It is further understood and agreed that this lease is granted subject to the condition that American Fuels now possesses, and will continue to possess throughout the term hereof, all necessary permits and licenses required to conduct surface mining operations from regulatory agencies of the Federal, State and local governments; further, that this lease is subject to all rights-of-way heretofore granted and now in existence, and CbU reserves the right to grant rights-of-way over said demised premises for roads, railroads, power, telegraph and telephone lines, ditches, or canals, or any other improvements, but said grants shall be so made that the use and enjoyment thereof will not unreasonably interfere with American Fuels' actual mining practice. 4. LIABILITY American Fuels agrees to assume the risk of all injur- ies, including death resulting therefrom, to all per- sons, including Lessee, its employees oc any member of the public, and damage to and destruction of property by whomsoever owned, including loss of use thereof and any other indirect or consequential damages, resulting directly or indirectly, wholly or in part, from the prosecution or omission of any work or obligation undertaken or required by this lease, unless caused by the negligent acts or omissions of C&U, its employees, servants, agents or representatives, and to indemnify and save harmless C&U, its subsidiary or associated companies and their agents, servants and employees, from and against any and all liability cost or expense arising therefrom, including all expenses, legal or otherwise, incurred by them in the investigation, defense and settlement of any claim or suit. American -5-