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19. PROSPECTING - A permit to prospect is required and Lessee agrees that while using and operating
<br />any drill on said premises, Lessee shall keep an accurate log on all work so done and performed,
<br />showing geological formations penetrated, the depth and thickness of each, the mineral chazacter of each
<br />including but not limited to coal and water=bearing strata, •the location and elevation of each tied to a
<br />comer established by United States survey, and each and every thing necessary to make a complete log
<br />of the hole throughout its entire depth, a true wpy of said log shall be furnished to Lessor.
<br />It is understood and agreed that the methods used in carrying out any program of exploration,
<br />and the rate of progress of such program shall be determined by Lessee: If Lessee caries on any
<br />program of exploration, other than drilling, Lessee shall submit to Lessor written reports showing the
<br />chazacter and extent of prospecting being carried out on the leased premises and giving any details of
<br />mineral occurrences which may have been encountered; and Lessor agrees that during the term of this
<br />lease all such information so supplied by Lessee shall remain confidential and unpublished for the
<br />duration of this lease insofaz as such confidentiality is consistent within the law.
<br />20. NOTIFICATION OF MINING OPERATIONS-It is understood that Lessor may not own or control
<br />the surface estate of leased premises, or Lessor may have issued a surface use lease to another lessee.
<br />Mineral Lessee shall be responsible for identifying such ownership or determining the surface lessee
<br />or lessees, and shall notify all such parties in advance of any on-site activity. Notification will be given
<br />thirty (30) days for unfilled or grazing acreage and sixty (60) days for tilled farm ground prior to any
<br />on site activity. Mineral Lessee shall closely coordinate any on-site activity with the surface owner or
<br />lessee, and make a reasonable effort to protect the integrity of surface owner's or surface lessee's
<br />fences, gates, cattleguazds, and other property.
<br />21. PROTECTION AGAINST SURFACE DAMAGE •- Lessee has the right to utilize as much of the
<br />surface of the lands as is reasonably necessary foi mining operations; however, Lessee shall be liable
<br />and agrees to pay for all damages to the'surface, livestock, growing crops, water wells, reservoirs, or
<br />other improvements caused by Lessce's'opeiatioris on said lands. `
<br />22. 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 upon or azising out of damage or
<br />injury, including death, to persons or property caused by or sustained in connection with this lease or
<br />by conditions created thereby, or based upon any violation of any statute, ordinance, or regulation.
<br />23:-~ =~ LIENS AND CLAIMS -Lessee shall not suffer or permit to be enforced against the leased premises,
<br />or any part thereof, or any improvements thereon, any liens azising from, or any claim for damage
<br />growing out of the work of any construction, repair, restoration, replacement or improvement, or any
<br />other claims or demand howsoever the same may azise, 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, prepaze a Notice, pursuant to C.R.S. 1973,
<br />§ 38-22=105 and cause the same to be posted for the purpose of protecting Lessor against any liens or
<br />encumbrances upon theleased premises by reason of work,' labor, services or materials .contracted for
<br />or supplied to Lessee.
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