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<br />Permittee shall, upon execution of this lease at its cost, prepare a Notice, pursuant to C.R.S. 1973,
<br />§ 38-22-105 and cause the same to be posted for the purpose of protecting Permitter against any liens or
<br />encumbrances upon the leased premises by'reason of work, labor, services or materials contracted for or supplied
<br />to Permittee.
<br />26. BOND -- It is agreed that no operations are to be commenced on the lands herein described unless and until
<br />1?ermittee or Permittee's agent has filed a good and sufficient bond with Permitter in an amount fixed by
<br />Permitter, to secure the payment for damages caused by Pennittee's or Permittee's agent's operations on said
<br />lands. Permitter reserves the right to grant relief from the foregoing bond requirements. Permitter may require
<br />such bond to be held in full force and effect for one year afrer cessation of operations for which the bond was
<br />intended. This requirement may be waived in favor of the requirements of the Division of Minerals and Geology.
<br />27. WATER -- If Permittee initiates or establishes any water rights for Which the pointof surface diversion or ground
<br />water withdrawal is on the leased premises, Title to such water rights shall, upon termination of the lease, become
<br />the property of the surface owner without cost, and title to the water rights shall be conveyed to the surface owner
<br />immediately upon termination, except that if Permitter is the, surface owner the water right shall be taken in the
<br />name of Permitter in the first instance and shall be the property of Permitter without cost.
<br />28. SURRENDER AND RELIN UISHMENT -- permittee may, at any time, by paying to Permitter, all amounts
<br />then due as provided herein, surrender and cancel this lease insofar as the same covers all or any portion of the
<br />lands herein leased and be relieved from further obligations or liability hereunder with respect to the lands so
<br />surrendered; provided that no partial, surrender or cancellation. of this lease-shall be for less than tracts of
<br />approximately forty (40) acres or governmental lot corresponding to aquarter-quarter section, the rental being
<br />reduced proportionately.
<br />This surrender clause and option herein reserved to Permittee shall cease and become absolutely
<br />inoperative immediately and concurrently with the institution of any suit in any court of law by Permittee,
<br />Permitter or any assignee of either to enforce this lease, or any of its terms, express or implied, but in no case
<br />shall surrender be effective until Permittee shall have made full provision. for conservation of the minerals and
<br />protection of the surface rights of the leased premises as maybe determined by Permitter.
<br />Notwithstanding the foregoing, no surrender and relinquishment of this lease shall be effective unless and
<br />until all reports, documents and informaeion of any kind required fo be submitted to Permitter under this lease, or
<br />to such state agencies as provided im this lease have been submitted to Permitter or such state agency:
<br />29. RIGHT OF REMOVAL -- In the event this lease is terminated by surrender, or the expiration of its term, and all
<br />obligations of Permittee under this lease are satisfied, all Permittee's improvements, equipment, man-made objects
<br />of any type, including stockpiles and dumps except as these stock piles and dumps may be disposed of pursuant to
<br />the reclamation plan, shall be removed from the leased premises within six months from the date of such
<br />termination at Permittee's expense. Such removal is to be accomplished without unnecessary waste or damage to
<br />the premises and Permittee shall restore the surface of the leased premises to the same condition as immediately
<br />prior to the execution of this ]ease as it pertains to such removal. All improvements and equipment remaining on
<br />the leased premises six months afrer the termination hereof shall be forfeited automatically to Permitter without
<br />compensation and without necessity of execution of additional documents.
<br />30. CONDE_ lvI~ON __ If the Leased Premises shall be taken in any condemnation proceeding, this ]ease shall
<br />automatically terminate as of the date of taking. The award for such condemnation shall be paid to Permitter,
<br />except for any specific award(s) paid to Permittee for severed minerals reserves, in which event a percent of such
<br />specific award(s) equal to zoyalty shall be paid to Permitter in lieu of royalty lost by virtue of the condemnation.
<br />Improvements shall be removed by Permittee per terms in the RIGHT OF REMOVAL paragraph herein. If only
<br />a portion of the leased land is taken by condemnation, Permitter may, at its option, terminate this lease or
<br />terminate only that portion of the ]ease so taken.
<br />31. COMPLIANCE WITH LAW --PBrntittee shall comply'fully with alI the provisions, [erms, conditions of all laws,
<br />whether state or federal, and orders issued thereunder, which may be in effect during the continuance hereof,
<br />which in any manner affect or control mining or other operations of Permittee, and Permittee further agrees that
<br />good mining methods shall be used at all times of active mining so long as said methods are consistent within the
<br />iae5'.
<br />Permittee shall comply with all applicable federal, state and local environmental, wetlands protection, health
<br />and hazardous waste laws, ordinances and regulations. In addition to the foregoing, and not in ]imitation thereof,
<br />Pennittee shall not cause or permit any Hazardous Material ko be brought upon, kept or used in or about the
<br />Leased Premises by Permittee or Permittee's agents, employees, contractors or invitees, without the prior written
<br />consent of Permitter. If Pennittee breaches the obligations stated in the preceding sentence, or if the presence of
<br />Hazardous Material on the Leased Premises caused or permitted by Permittee results in contamination of the
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