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<br />MINING LEASE sANn, GRAVEL, Arm Roca NO V 2 j 1985
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<br />Lease made this day of 1986, between I~(lt~y,~. •y.,n,~ ill. tf
<br />of 1140 Howard Street, City of Delta, County of Delta, State of Colorado, 'fa' hay;,~,~.,
<br />herein referred to as Lessor, and ACTION EXCAVATING, INC., a corporation,
<br />organized under the laws of the State of Colorado, doing business at
<br />1680 2550 Road, Cedaredge, Colorado 81413, herein referred to as Lessee.
<br />Lessor, in consideration of the agreements set forth herein to
<br />be kept and performed by Lessee, and of the payment of royalties by
<br />Lessee as provided herein, and subject to the terms, conditions, and
<br />provisions contained herein, leases to Lessee that certain tract of land
<br />situated in Delta County, State of Colorado, which is particularly
<br />described in Exhibit "A" attached hereto and made a part hereof, for the
<br />purpose of quarrying, mining, removing, and marketing therefrom all
<br />sand, gravel and rock, all of which are herein referred to as materials.
<br />SECTION ONE
<br />TERM OF LEASE
<br />This lease shall be for a period of one year from the
<br />day of 1986, to the day of 1991.
<br />Lessee shall have the right and option to renew this lease for five
<br />successive one year periods cam icing the day of ,
<br />1990, and the day of of each succeeding year for a total
<br />of five years. If Lessee desires to exercise its option to renew this lease
<br />for successive periods as provided above, it shall at the beginning of each
<br />lease year pay to Lessor the sum of Three Thousand Five Hundred and 00/100
<br />Dollars ($3,500.00), representing advance payment for such year of the
<br />guaranteed royalties provided for herein.
<br />SECTION T[~D
<br />ROYALTIES
<br />Lessee shall pay to Lessor, as royalty, thirty-five cents ($.35)
<br />for each cubic yard of materials removed from the premises. The quantity
<br />shall be determined after the materials are loaded in trucks. Lessee guarantees
<br />that royalties payable to Lessor for each year that this lease is in effect shall
<br />be not less than 'I7zree Thousand Five Hundred and 00/100 Dollars ($3,500.00),
<br />and Lessee agrees to pay such amount in advance at the beginning of each
<br />year that this lease is in effect. For such advance royalty Lessee shall
<br />be entitled to remove 10,000 cubic yards of material from the leased premises
<br />during the year for which advance royalty has been paid.
<br />Lessee shall fonaard to Lessor monthly reports showing the quantity
<br />of materials removed during the preceeding month, according to load tickets,
<br />with dates of loading. Such reports shall be forwarded to Lessor by the 10th
<br />day of the month following any month in which materials are removed. It is
<br />understood that under certain months of the year it may be impracticable to
<br />remove materials because of weather conditions; no report shall be required
<br />for any month during which no materials have been removed.
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