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<br />ID. Assienment - "Ihe Lessee, with the written consent of the Lessor, will have the right to assign this lease as to the
<br />entire leasehold in leresl o(such Lessee in all or girt o(the lands covered hereby, not less, however, than Tracts of
<br />approximately forty (40) acres or Govenunen(al lot corresponding to aquarter-quarter section for any partial
<br />nss;gnnront, and for app;nvai of such assignment the Isssor wdl make a charge of 'fen Dollars (510.00) for any
<br />one assigumeni. No assignment of undivided interests or retention or reservation of overriding royalties will be
<br />recoguizeJ M approved by Lessor; ;rod the effect, if any, of any such assignments or reServationS Will He strictly
<br />airs only as between the parties tllereRt, :u;J outside the terms o this lease, and no Jlsputc between parties to any
<br />such assignnreN or reservation shall opcr:~te to relieve the Lessee from perfortnanec of any tttms or conditirnrs
<br />hereof or to postpone the lime therefor. Lessor will at all limes he entitled to Zook solely to the Lessee or his
<br />assignee shown on us books as bcinF. ^te sole. owner ImreaC, and for the sending of all notices require) by this
<br />lease, and far the pcrfvrmance of ail tenor and conditions hereof. If nn assignment of This Icase, in whole or in
<br />pert, is approved, a new lease will he issued to the assignee for the balance of the life of the lease, covering the
<br />lands assigned. Said lease will be on the mining Icase form in use at lbe time of assignment, rout limited as to Icon
<br />as sail Icase is limited, and the assignor shall be released from all further obligations, and shall be held to have
<br />release) all rights and benefits lherenftcr accrui»S WIOr respect to the assigned land, as i(Ihe same had never been
<br />n parr of the subject matter o(this lease.
<br />I I. Pros ectin - Isssee agrees Thal while using m1J operating airy Jiamond,cbunl, or other drift nn or within orte~
<br />qquarter m1 a of said Premises, it will keelIr an accurate lug on all work so dune and lerfonned, showing geological
<br />funnations penetrated, Ihe depth or tllickness o(eaclr, the mineral character of eacL, es +ecially mineral veins and
<br />water bearing strata, the locahon of same, Ihe elevation, and tie to a corner eshlblishe~by U. S. surveys of some
<br />legal subdivisivv, and each and every tldng accessary to make a complete log of the hole lhroughonl ds entire
<br />Acptlt, a true coPY o(which sail log wiN be hurtished to the Lessor.
<br />It is wtderstovd and agree) that the methods used in carrying out any program of exploration, and the rate of
<br />progress of such program may be delcnnineJ by the Lessee. It the Lessee cranes nn mry program of exploration,
<br />other than drilling, Lessee will submit la Lessor written reports showing the char.¢(cr anJ exicnt o(prcu{+ec(iug
<br />being carried out on the leased premises anJ giving any details o[ mineral outcruF+Pings, scams, and veins which
<br />may have been encountered; and Lessor agmes That during the term of this lease all such infonnatiou sir pplieJ to
<br />Lessor by Lessee will remain con fidentiai and unpublisheJ so tar as consistent with law.
<br />f 2. Surreu_ der airs Rclin uishmenl -The Lessee may al any lime, by paying the Stale of Color:Wo, acting Through its
<br />Stale oar o v1 onunigsioners, all amounts then due as provided i;erein, surrender and cancel this lease
<br />insofar as the same covers all or any portion oC Ihe lands herein leased and he relieve) Gont further obligations yr
<br />liability hervmlJer witlt respect to the bouts so surrendered; provided, that no partial surrender or cancellation of
<br />this lease nmy be foe Icss [Iran tracts of :q+rroximalcly forty (40) acres or Govenunentat lot corresponding to a
<br />quarter-quarter section, the rental belay, rcwceJ proportionntcly' provided furthm, llnt this surrender clause earl
<br />opfimn herein reserved lu Ihe Lessee wJl cease and become absofulely inopemlive inuuerlialcly and cancurrent7y
<br />with the institution of any suit in airy mm't of law by the Lessee, Lessor, or any assignee of either, to enforce this
<br />lease or any o[ its terms, ex mess or impplied, but in no case will surrender he effccl;ve until Lcssce has made full
<br />provision for conservation o~U;e miucrals and protection o(the surface rights of Ihe leased premises.
<br />All information is Pura ra hs 5 mnd~l above must have been filed with Ihe 6wrJ ncforc this lease utay be
<br />terminate .
<br />13. If lessee initiates or establishes :my w:ucr ri ~ht~pms. the paint of surface diversion or ground
<br />water withdrawal of which is on Ihe Icaze~ premises, such right will, of We surface. rights of said premises are
<br />owned by lessor, became property of lessor, without cos[, at the termination of rite Icase.
<br />14. Protection a ainsl Surface DamageT Bond Re~LUire~me~nts - Lessee has the riglu to ulili>c as much of the sm(ace
<br />7 i.e an s as is necessary o7 nuun;g operations, and is liable and agrees to pay for all dnnmges to livestock,
<br />grouting crops, wale( wells, reServDirS, or ilnprovenlcnls, corrscd by Lessee's opera niuns on said lands. Purtheq it is
<br />understood that this lease is granted subject to surface patents, deeds, and cerlificales of purchase, anJ lessee
<br />assumes responsibility for all claimx arising tram damages to the surface enured by Lessee's operations on such
<br />lands. II is agreed and undcrstoaJ Thal no o tcmlivns may be conunenceJ on the lands hereinabvvc Jcscribed
<br />nnlfS.t ID1d IIatII II1C LCaSCe O! It IS :I5S1l;IICC IIaS ~letl a gOOJ anJ 5»f(ICICnt bOltrl WIIII IhC LCSSUf 111 an amount to be
<br />fixed by Lessor, to secure the paynrenl for such damage to livestock, growing crops, wamq nr improvements as
<br />may be caused by Lessee ar Ills assignee's o >emlions on said lands. The Lessor miry grant relief from the foregoing
<br />Hand requitement upon application for such relief from the Lessee.
<br />15. Indenmification of Lessor -The G;zsec further agrees to hold the Lessor barndess for any and all manner of
<br />c aims arrsing or to ause rom the said leased premises by Lessee whether {rum soil or surface subsidence or frmn
<br />any other cause or mty other ualure whatsoever, this paragraph is binding upon Lesare and u(+on (he heirs, assigns,
<br />successors, and legal representatives of Lcsscq m1d is a continuing obligation during and affter the expiration of
<br />this lease, sir Jong as any possibility of soil or surface subsidence remains.
<br />16. Rigl~ of Removal - In Che event This Icase is teuninated by forfeiture, surrender, or Ihe expiration of term, and
<br />all v hgah~'dn~ Lessee under this lease are satished, Lessee may remove all his improvements and equipment
<br />(rom the said premises Within siz months (rom the date of such termination, and such removal mast be accont-
<br />plislted without unnecessary waste or injury m the premrses. All improvements ;tad equipment remaining rat Ihe
<br />leased premises six months after the ronni nnf ion hereof will be forfeted auto»nalicaily m the State of Colorado,
<br />rvilhoul compensation. '
<br />17. CumpplianCe with law -Lessee funkier covenants and agrees that during Ihe continuance o(this Icase it will fully
<br />comply wwitl~l f 11 a provisions, fcrnu, and condilivn5 Of all lows, whclltCr Slnlc or PeJcr.J, nnJ orders issued
<br />(hereunder which may be in effect during Ihe continuance hereof relating to mining ur other operations of Lessee
<br />hereunder.
<br />18. Forfeiture - Il is agreed that i([or any mnsou the Lessee Coils to keep each and evcp• one of the covenants imrein,
<br />ankh default continues far a genus of (hirty S30) days after service o(wrilteo; notice Il:ereo(by certified
<br />mail upon the Lessee by the Lessor, Ihe Lessor has I to ngllt to declare this least forfeited, and to enter onto the
<br />lensed premises, or any part thereof, either with or without process of law, and lv expel, remove, and put out the
<br />Lessee or e1y person occupying the P'e rises, using such Corte as may be necessary to do so. In Ihe event of Ihe
<br />termination n this lease by reason ul breach of [Ire covenants herein contained, the Lcssce will surreuJer anJ
<br />peaceably delivec up to the Lessor the above-describe)' premises which premises are tv be in good miningg
<br />condition. I(, upon lerminalion of This Tense for any reason, whether by mrrendeq (odeiave, or expiration of
<br />reran, or otherwise, Lcssce has not cnnq+licd fully with the [eras of the least, Lessor will hold and retain possession
<br />of Ihe property, improvements, and npn auto[ of Lessee, as security unto Lessor for (be payment v rents and
<br />royalties due il, or [o protect it against ~icns, or to indenmiCy it against any Inss or Damage sustained by it by
<br />reason of the default of the Lessee, for which p~rpuse Lesser is hereby given hen upm all such property,
<br />improvements, and cgnipment, which lien will attach as the same are placed upon Ihe premises. In [he event
<br />Lessor forecloses the (lien m this article given to it by Lessee, Lessor may itself be a purchaser al any sale thereof
<br />under such foreclosure. Upon Ihe Ica minmlion of lids lease for arty Cause, if Che Lesree remains in possession of
<br />said premises, he will be guilty of an uulaw(ul Detainer under the statutes in such nse made and provided, and he
<br />Will ye subject lv all the conddmns and provisions (hereof and [o eviction anJ removal, forcibly or otherwise,
<br />with or wil6uut process of law, as above provided.
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