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.. ti <br /> <br />7. COMPLIANCE WITH REGULATIONS -- Lessee covenants and agrees that during the continuance of <br />this lease he will fully comply with all of the provisions, terms and conditions of all laws, whether <br />Federal, State, or Local, and orders issued thereunder, which may be in effect during the continuance <br />hereof. relating to the operations of Lessee under this lease; and the mazketing of any. product thereof; or <br />labor relations in connection with such operations or marketing:. - - . <br />8. REP RT = On or before the last day ~of each and every calendaz month during the term of this lease, <br />'Lessee shall make a sworn, verified, written report to Lessor in which shall be entered and.set down the <br />enact amount in tons.of.all material removed from said premises during the preceding calendaz month. <br />Such sworn, verified, written statements shall clearly set forth the tonnage as shown by production report, <br />and shall also show the use or disposal by Lessee of such material. <br />9. SURRENDER -- Lessee may at any time surrender and cancel this lease insofaz as the same covers all <br />or any portion of the lands herein leases and be relieved from further obligations or liability hereunder <br />with respect to the lands so surrendered; provided that no' partial. surrender or cancellation of this lease <br />shall 'be-for less than contiguous=tracts . of .approximately foity-' (40j =acres or-• Governmentah lot <br />wrresponding to aquarter-quarter section; provided further that this surrender clause and the option herein <br />reserved to Lessee shall cease and become absolutely inoperative immediately and concurrently with the <br />institution of any suit in any court of law by Lessee, Lessor or any assignee of either to enforce this lease, <br />or any of its terms, express or implied, but in no case shall surrender be effective until Lessee shall have <br />made full provision for protection of the.surface rights of the leases premises. <br />10. • BONDS AND SURFACE DAMAGE --.Lessee shall be liable and.agrees,to pay for. all damages to the <br />surface of the land, livestock, growing crops.or improvements caused by Lessee's operation's on said <br />lands:' It is agreed and understood. that no operations shall be:commenced:on.the lands-hereinabove <br />described unless and until Lessee or his assignee shall have filed a good and sufficient bond with Lessor <br />in an amount to be fixed by Lessor, to secure the payment for such damage to the surface of the Land, <br />livestock, growing crops or improvements as may be caused by Lessee or his assignee's operations on said <br />lands.. With Lessor's approval the bond may be waived.in favor of that which may be. required by the <br />Colorado Mined Land Reclamation Division. <br />There shall be no removal of timber without prior notice to Lessor. Any merchantable timber cut in <br />conjunction with the approved mining plan is to remain the property of the State. All other timber, slash, <br />stumps, and boughs aze to be disposed of by Lessee. <br />11. HOLD HARMLESS -Lessee shall indemnify Lessor against all liability and loss, and against all claims <br />and actions,--including the defense of such claims or actions; based uoon.nr arising out of d:.mage or <br />injury, including death, to persons or property caused by or sustained in connection with this lease or by <br />conditions created thereby, or based upon any violation of any statute, ordinance, or regulation. <br />12. OPERATION PLAN -All plans for mining may be requested by Lessor for review and approval before <br />these operations begin. <br />13. ENVIRONMENTAL ANALYSIS --Submittal of an environmental analysis may be required for approval <br />by Lessor before any exploration or mining begins on leased premises. <br />Page 4 of 8 <br />