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Ni YU"9J IIUIV I ~~JJ WLV JIHIC LHi'rU WnnU 1'Hh hU. Jl1J UUU J15L` 1". U9
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<br />In the eveN that said Lrner don not ea uacr from wid pr<muh sod minimum amounts ao0re ap<CILICd during
<br />each lease year of the term of this Inm, st a nevedh<Icv undcntood drat tb< obuve sums of money nt royiltas
<br />for the yaws aloud, and arc due and payable to the Les:or whether mineolc tie imn<o or not dating each year.
<br />but that such minimum advancr royahy will b< credited upon the fim rgylucs due a he«,nafmr provided for
<br />mineralsaciuzlly produced from sad premises and sold car imlkd during the yor for wh¢h su[h minimum royally
<br />Was patd. _.
<br />2. P~uuion Rovilty - Lessor hereby rc«rves and Lessee agrees to pay to Lessor as ruyalry the following:
<br />•e(e~•f fGan(ar•YIJ. ~b~4MUtmral W Ylr Wf
<br />fpl)nN•wfRbnlAUMfMEM••rlMffw}(111!•!••16 of tot gross value a{she mill or buying sturon
<br />lea reuonable vansppoo.ration coati. lsuac wdl furnish evidence Ihu prscei tttesred Lar matenal wid
<br />an8 mansportati^n <llargu deducted are rnsonablc and fair. Unleu olhuwrse agreed to m writing by
<br />the Board, deductabh transparuuon charger wdl be from rh< mine w rh< n4r<st mill as buying Nation
<br />Isssee may use the wmghmd average sale pace recewed for ell lots of ores told during tact Calendar
<br />month period.
<br />fbj A sum o(SJ1..50~ for each aid crery ton (7000W0f of the above speeified ddnerals mined from the
<br />remises. WNiirs scary days prior to Ne InmWhon o(<aeh add every hveyear period for so long ai this
<br />Pease «m.bu in c[fca, rise Start Boas6 0l lan6 Commissioners may rappnsm the properly harcin
<br />IeueJ and Cu and deurrrme the rate of production loyalty to be paid during each year o the succeeding
<br />fivayear period Fadur< to comply with any nevi royalty nI<sel by the Board nay mbjecl (his leue to
<br />4neeWhon by Thirtyday Wnuen novice by the Hoard.
<br />If «quested 6y lessor, Lesue d to famish pproof of Dnce recnved for eH minerals sold. Such ruyaity ss due and
<br />msneG~eremoveC~~nd mid henlLessee dunnhihey «ttdin ccalandu montk urtng the term of the Icasc fur rtdncrals
<br />Y E P E
<br />Royally payments shall apply to payment «<eived by the L<uee on any msneral so sold. The mmcrils mined
<br />from the leai<d premises may lie milled in a custom or commercial plant nr mill owned and operated by Lesa<.
<br />TLcy may not be mucd or commingled with ores from other proptrhes un[sl IF.ey hart 6ten <mshcd and vmpled
<br />by the mill lot the pmpou o[ detymininz the hereinabove daiglated minenla and ollur ntinrrals contained m
<br />the nude ore that nay be salwged by codling of time The rccu ting samples arc to be aaaycd ar the laboorpry
<br />used by the null whne ore it coiled and Lessor nay demand an assay urhf calc showing the Gpntenls of each
<br />delivery to mill. If requened br the L<swq the mdl is to racrvc a pulp of each composte vmple for testing,
<br />provided, howevcs, vsd mall will not be obliged 10 keep Du10 for a penod of more stun ninety (90) days. In the
<br />crane of a dltDUre as to analyvs, the pulp prepared from each composite sample i> to b< referred to an umpire
<br />attepptablr to Lessor and lessee and the deermmuion of the ummrc will ht binding u n ham parties. The net
<br />weight of the crvde u« on a dry~wnglal buffs will be d<rcrmined at the soles a1 the mdl. Leuor will hive Hen right
<br />to check the wdgtus as Often u d deems advisable. Lesstt wdl furnish Lessor wRh dupliu[e scale wndn
<br />cendira¢s. Lessee agrees fu, and wiB be held accoumable ro tie that the furce~ing pfovisiom are earned out y
<br />such nnll or milli m reserve mmeuls produced from the prmnnes he«in demised.
<br />Tne l.esset hat the rigly w mine, wise, uauy and vmspon own from she lands hereby Icssed Ostough other lands
<br />now or herea(rxr owned or Ica¢d by she Lessee, aid the right t0 raise, cury, and transport mss mumd 6y the
<br />Cescee from other lands owned or Inud by N< Lessee over or through the lands covered by ihu leuo; prond<d,
<br />That the ores mined Crom other ands are N no event mixed with ore mined Crom sheen laud premises, except u
<br />psonded above. '
<br />3. Ilrerndma Royalty lien rnions - It is agreed that this lea>c car any subsequent amgnm<nl hereof may nOt be
<br />burdened with overriding royalties the aggregate of which exrrads ~~"' ~"' "' Lessor miss[ be notified
<br />oT a4i ovnnding toyalun acvuing to dos lean. Vrtilation o! the aboveabove ma~c4t(sialease IawtalLtiop by
<br />t<smr.
<br />4. We~Nts - Is is agted that all minerals mined and taken Gons said premises are to be weighed and the weight
<br />erro n to b< enured m due form in weight wmsds kept Coc such pwpmn by Lessee.
<br />5. Reppoorts - After opentions u<begun, it is agreed that on or before the 2511+ day of ueh and every nlolltll during
<br />tam of thts Icue the Lessee will make a sworn report on lama fumdhed by L<smr, sn Which she exact
<br />amount in weight of all minenla mined and removed from said premuea and mid during Ih< preceding ulendu
<br />stmnsh ue to t entered and accompanied Dy full payment for all royalty due Cor the mooch. Further, 4vee
<br />must furnish annually a map car blueprint of survey of all working. with location of sane lied to a comer
<br />established by United Stases surveys of some lend suhdivisian. c<rtifi<d to by a liunsed engin~ar or surveyor.
<br />6. Im c "en - It is agteW that baring all proper hoots and at all times during the cantinwnu of this Ieau the
<br />Censor or its duly authorz<d agent or agents, sa authorized to dterJs scales u [o Ihcir aaunry, to go mrousds any
<br />of tl¢ slopes, entries, shafts, opening, or workings on said premises, and to examine, respect survey ana take
<br />meamremenb of the fame and to eumme and make extracts of capita of dl hooka and weighs s)Seetr and records
<br />' which show in any way the msn<ral ou[yvt M the leued pfemisa, and that >U conveniences necessary for vid
<br />imp«tion,survey, or esamination u<to Dd fumuhnd to the Lessor.
<br />7. Mmin Methods - Failure to SQmDly with env of the orovistam of this ouavraph inav tubiea this 1<ae to
<br />anc t n.
<br />In the underground and open pit workings, W ahafls, inclines, and tunnels must be well timbered (when zppd
<br />mining regmru timbering and >U gotta Of WOlkldgs. Where minenla tie rot exhatrud, wg1 ba kept free Isom
<br />water and route materials. ~e underground and oppCCn ppit workings arc to b<pfotected ayrns[ fire, Ooodr. creeps,
<br />and putttts. If each evcnta do occur, they mutt be whack d in s manner which ii in keeping with ggood methods
<br />of tinning. Such methods oC minin6 moat be IoW u will insure the eauaction of the grureu pusuble amounts of
<br />minerals consistent wsU Dreniting good mining practice. ...'
<br />4scee agrees to tloPPe We tides a(aLL mdaa pits or <xuntions to a suio of not marl than one foot (1') vemwl
<br />for each two feet (2~ of horizontal distance. Such eloping u to become a normal part of rh<operatsun. Whenever
<br />practicable, ill pits or exuvatiom are to be shaped to drain, and in no use may the pits or eacavrtiom h
<br />allowed to become a hanrd to pmmm or Lmtork. All rtvtuul reined and not remdred from the premiKS will
<br />be sled w Cdl the plu m this at the ex~-uatsan, sunendet, or temanation of this (rase the lanb will, u nesrly u
<br />pneti4bk, approaddue Its original configuntlon, waN a minimum of permanent damage to the sarlacc.
<br />U tint from the Baa v:e furthe tat to subrmt ssN grid s of ro minin in
<br />a nnu ni t art a rtN avian U I ~t max o nt Oni.
<br />8. Rlyhualwny - It h agreed that the lessor rraerva the right to grant nghtsgf~way over said premises for public
<br />rwds. railrpadt, power, telegraph, ulephona, ditoh, and mauil Imes, but inch Eranb tit l0 lit subject to Ilse riglm
<br />of the Leslie.
<br />9. Notices - It is agreed Itut an ndtlce regm«d or permitted to be yen to the Lettee under [he provisiom of Ihs
<br />Iwc du to bt xN 6y uNfirA rssW m Nt address set foM at nit beginning of this Ieise or to such othn addren
<br />u LesteC may indrr~te .n writing to lt(m( and such urvia by msil wJI be deemed fufficien[ and N (till com~
<br />plianu wth [h< terms of this (ease. Notiu to Lessor is to M gven m idea manner, addreaud to Slate Bpazd of
<br />p nd Corrunissioners, prnver. Colorado.
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