GENERAL45030

• Permit No: C1981039
• IBM Index Class Name: General Documents
• Doc Date: 3/17/1978
• Doc Name: LEASE
• Permit Index Doc Type: General Correspondence
• Media Type: D
• Archive: No

(e) The specified cover and release from further supervision
and certification of completion of reclamation from all Federal,
State or local supervisory agencies or personnel shall be had or
received before termination of this lease; provided, however, in the
event a Certification of Completion has not been obtained at the
time of cessation of mining operations hereunder the annual "delay
rental" of One Thousand and no/100 Dollars ($1,000.00) shall be
paid to Lessor until such time as a Certificate of Completion is
obtained and furnished to Lessor. Said payment shall be due on the
first day of the fiscal year following cessation of mining operations.
(f) The mining operation shall be a continuous sequence of
mining followed by reclamation.
(g) Roads shall be left intact if requested by Lessor with
approval of regulatory bodies.
11. In addition, Lessee within the first year following the start of
mining operations under the term hereof agrees to do and perform the following in
order to minimize damage to Lessor's livestock operation, this in the event
Lessee does commence actual mining operations as distinguished from sporatic
prospecting and evaluation activities. The term, "pond", appearing below, shall
be deemed to mean a legal "livestock water tank" as defined by Colorado Law,
and the legal description appearing below is the approximate location for such
pond. A general description of the things to be done and performed by Lessee
hereunder is shown in Exhibit "B", attached hereto and by reference incorporated
herein and made a part hereof.
12. BREACH OF AGREEMENT: Failure of Lessee to perform or comply with
any of the terms, conditions or provisions of this agreement, express or implied,
shall not automatically cause termination hereof or any other remedy which would
otherwise be available to the Lessor to immediately vest; but in case of such
default, Lessor must notify Lessee of each specific breach and the Lessee shall
have a period of sixty days (60) after receipt of such notice within which to
either cure such default or to deny the same, and provided further that the
period of time for remedying such matters of default shall be extended when
the Lessee is prevented by so acting by causes of force majeure. In the event of
denial of default by the Lessee, such matters shall be resolved by judicial
determination, and after such final determination, Lessee shall be given a
reasonable time thereafter to comply with any such covenant and determination.
Provided however, that in the event of such litigation, the court having
jurisdiction over the matter shall have the right to award reasonable attorneys'
fees to the prevailing party. This provision in regard to attorney fees shall
apply to all controversies and demands arising under the terms of this lease
with or without a judicial determination thereof.
13. TAXES AND LIENS: Lessee shall have the fight (but not the duty)
to redeem the leased premises or any part thereof for Lessor, by payment of any
mortgage, tax lien, government charge or encumbrance of whatever kind or nature,
and upon making any of said payments, Lessee shall be subrogated to the rights of
the holder of the lien so paid. All such payments made by Lessee may be considered
as advance royalty and may be credited upon or deducted from the earned royalty
or any other payments becoming due and payable to Lessor under this lease.
14. WATER AND ANCILLARY USES: Lessee shall be entitled to develop and
adjudicate water rights for its use upon the subject property. In addition Lessee
shall be entitled to the use of the following described land for purposes of
ingress, egress and regress to and from the property described in Exhibit "A".
Township 5 North, Range 87 West of the 6th P.M., Routt County Colorado.
Section 16: E~SWZ, NW'-tSEti
Section 21: NW`Z
15. FENCING, GRAZING AND DAMAGES: Lessee understands and agrees
that Lessor uses these properties for livestock grazing. Lessee shall be liable
for damages to Lessor's livestock by reason of Lessees use of the demised premises.
In the event Lessee does not choose to maintain sheep-tight fencing around areas
being reclaimed or mined, Lessor will use its best efforts not to pasture
livestock upon such lands being so reclaimed or mined, but Lessor shall not be
liable in damages for livestock grazing upon such unfenced land being so reclaimed.
Lessee shall have the right to fence such areas being reclaimed or mined in the event
it deems such fencing necessary or desirable in its mining operations or reclamation
of disturbed land; provided the areas shall not be so fenced [o preclude reasonable
access for livestock to water.
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