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Jul 13 04 10:23a Randolph W. Starr
<br />970 6ti9 3841
<br />GRAVEL LEASE
<br />,,,,rr ~~ ~~ and between the
<br />TFItS GRAVEL LEASE (this "Lease's is made and is effective as of January 1, ~u_jr bS'
<br />parties hereinafter named, for the term and upon and under the terms and conditions hereinafter sat fwih.
<br />1, parties. The parties to this Lease, and their addresses for al] purposes hereof, are: (a) LESSOR:
<br />ROBERT C pl'1TINGTON, whose address ~ IlO81INOB~ ON do limited lif bil~ity coAmp y. whose addresses
<br />p. 13
<br />2, Grant of Lesse.
<br />(a) Lessor represents and warrants that it is the owner in fee of certain lands situated in Lazimer ounty,
<br />Colorado, more particularly described on Exhibit A attached hereto (the "Loads"). In addition, there are water
<br />rights appurtenant to the Lands. The Lands, excluding the appurtenant water rights, but together with the sand and
<br />gravel reserves (excluding other minerals, overburden, topsoil, loose rock or any combination thereof) on or
<br />contained within the Lends or formed in association therewith ("Leased Saad aoa~d GaraveolX ~taoathef~ feetht he,ow
<br />of the foregoing occur and are found between the surface and tap of the upperm [ PP
<br />the existing surface of the Land} underlying shale formation (the "Leased Sfrafa'~, aze the subject of this Lease and
<br />are hereinafter referred to together as the "Property." as defined in Paragraph 6), the
<br />(b) For and in consideration of the payment of the Minimum Royalty
<br />Production Royalty (as defined in Paragraph 5) and the covwants herein agreed to be Paid and perfX lush' elY
<br />Lessee, and subject to the terms and conditions hereof, Lessor hereby grants, teases and lets the Property Y
<br />unto Lessee, its permitted successors and permitted assterntitted su cessors, and permitted assigns t Lessee~w ll not
<br />does not warrant the title to the same, unto Lessee, its p such as overriding royalty interests).
<br />during the term of this Lease create any non-operating interests in the Property(
<br />(c) Lessor reserves unto itself, its successors and assigns, Les Sr'~r°e~er~simna~~steana all depos is oth
<br />together with the royalties reserved herein, the estates in all other oil, g
<br />than the Leased Sand and Gravel, the appurtenant water rights, and atl other estates and interests in the Property that
<br />are not the subject of this Lease.
<br />(d) In connection with and as a part of the leasehold interests hereby granted, Lessee shall have an may
<br />exercise; the following rights with respect to the Property: (i) the right to conduct operations for exploring,
<br />developing and mining the Leased Sand and Gravel, perf~~t~s ~chh~ x~I ~rntg n'~h~° ~„~ Yh ~ ~t ro~ yB~ile
<br />manner prescribed by law and by this lease, whether by
<br />and store on or within the Lands or permaneoot~'sions~herem an oommtnglmg,lto stockp~e sa d and graL v~o~°° the
<br />and Gravel, (iii) the right, subject to any p
<br />Lands from other sites without incurring royalties on subsequent removal or use of same framo*h~~~ent for the
<br />rights of access for personnel, equipment, supplies, utilities and water as may be necessary
<br />conduct of Lessce's operations on the Land~~` or over which i for may have dominionY orltcontrol [prov'ded
<br />contiguous land owned or controlled by arete a Bement in writing]. The Lessee shall not have the following
<br />Lessor may provide consent for access by sep Br halt (ants and concrete plants. (ii) the
<br />rights on the Lands: (i) the right to construct and operate on the Lands asp P tents, washing and
<br />right to.use:the Lands for processing Plants, scale houses, sales offices, crushing and screeninSoP~s, mix, wnvert to
<br />settling facilities, and storage of related equipment; and (iii) the right to mine, extract, sort, p
<br />marketable concrete or other products.
<br />3.. Term. The Term ofthis Lease shall comma~ce on the date first written above and, unless sooner
<br />terminated either by Lessor or by Lessee in accordance with Paragraph 12, shall be Pr~s+'r.L (f~~ Years.
<br />Except with respect to production Royalty and Minimum Royalty calculations, in which calendar years are used,
<br />references hereinafter to a "year" of the Lease shall be deemed to be references to a "Lnod sball commtence on the
<br />defined [o be a calendar year of 365 days (366 days in leap years). The first Lease pe
<br />date Cirst written above and shall end on December 31,1G'f'/. The first Lease fear shall begin on January 1,
<br />2~' and shah end on December 31, 2 0~ The dates of beginning and ending of each subsequent Lease fear
<br />shall be reckoned in the same manner.
<br />4. Representations. Lessee makes the following representations to Lessor. (a) Lessee is a corporation duly
<br />formed, validly existing and in good standing under the laws of the State of Colorado and is authorized to conduct
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