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<br />growing out of the work of any coti~tmction, repair, restoration, replacement or improvement, or any <br />other claims or demand howsoever the same may arise, but Lessee shall pay or cause to be paid all of <br />said liens, claims, or demands before any action is brought to enforce the same against the leased <br />premises or improvements. Lessee agrees to defend, indemnify and hold Lessor and the leased premises <br />free and harmless from all liability for any and all such liens, claims, demands, and actions together <br />with reasonable attorney fees and all costs and expenses in connection therewith. <br />Lessee shall, upon execution of this lease at its cost, prepare a Notice, pursuant to C.R.S. § <br />38-22-105, and cause the same to be posted for the purpose of protecting Lessor against any liens or <br />encumbrances upon the leased premises by reason of work, labor, services or materials contracted for <br />or supplied to Lessee. <br />24. SURRENDER AND RELiNOUISHMENT-- Lessee may, at any time, by paying to Lessor, all amounts <br />then due as provided herein, surrender and cancel this lease insofar as the same covers all or any <br />portion of the lands herein leased and be relieved from further obligations or liability hereunder with <br />respect to the lands so surrendered; provided that no partial surrender or cancellation of this lease shall <br />be for less than tracts of approximately forty (40) acres or governmental lot corresponding to a <br />quarter-quarter section, the rental being reduced proportionately. <br />This surrender clause and option herein reserved to Lessee shall cease and become absolutely <br />inoperative immediately and concurrently with the institution of any suit in any court of law by Lessee, <br />Lessor or any assignee of either to enforce this leaze, or any of its terms, express or implied, but in no <br />case shall surrender be effective until Lessee shall have made full provision for conservation of the <br />minerals and protection of the surface rights of the leased premises az may be determined by Lessor. <br />Notwithstanding the foregoing, no surrender and relinquishment of this lease shall be effective <br />unless and until all reports, documents and information of any kind required to be submitted to Lessor <br />under this lease, or to such state agencies az provided in this lease have been submitted to Lessor or <br />such state agency. <br />25. RIGHT OF REMOVAL -- In the event this lease is terminated by forfeiture, surrender, or the <br />expiration of its term, and all obligations of Lessee under this lease are satisfied, all Lessee's <br />improvemenu, equipment, man-made objects of any type, stockpiles and dumps shall be removed from <br />the leased premises within six months from the date of such termination at Lessee's expense. Such <br />removal is to be accomplished without unnecessary waste or damage to the premises and Lessee shall <br />restore the surface of the leased premises to the same condition as immediately prior to the execution <br />of this lease. All improvements and equipment remaining on the leased premises six months after the <br />termination hereof shall be forfeited automatically to Lessor without compensation and without necessity <br />of execution of additional documents. <br />26. CONDEMNATION -- If the leased land shall be taken in any condemnation proceeding, this lease shall <br />automatically terminate az of the date of taking. The award for such condemnation shall be paid to <br />Lessor, except for any specific award(s) paid to Lessee for severed minerals reserves, in which event <br />a percent of such specific award(s) equal to royalty shall be paid to Lessor in lieu of royalty last by <br />virtue of the condemnation. Improvements shall be removed by Lessee per terms in the RIGHT OF <br />REMOVAL paragraph herein. If only a portion of the leased land is taken by condemnation, Lessee <br />may, at its option, terminate this lease or terminate only that portion of the lease so taken. <br />Page 8 of 10 <br />