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~ro~OOSe.d ~~~. ~?;+~ section; provided further that this surrender clause and the option herein erved to Lessee shall cease and become absolutely inoperative immediately and concurrently with the institution of any suit in any court of law by Lessee:, Lessor or any assignee of either to enforce this lease, or any of its terms, express or implied, but in no case shall surrender be effective until Lessee shall have made full provision for protection of the surface rights of the leases premises. 10. BONDS ,4ND SURFACE DAMAGE -- Lessee shall be liable and agrees to pay for all damages to the surface of the land, livestock, growing crops or improvements caused by Lessee's operations on said lands. It is agreed and understood that no operations shall be commenced on the lands hereinabove described unless and until Lessee or his assignee shall have filed a good and sufficient bond with Lessor in an amount to be fixed by Lessor, to secure tht; payment for such damage to the surface of the land, livestock, growing crops or improvements as may be caused by Lessee or his assignee's operations on said lands. With Lessor's approval the bond may be waived in favor of that which may be required by the Colorado Mined Land Reclamation Division. There shall be no removal of timber without prior notice to Lessor. Any merchantable timber cut in conjunction with the approved mining plan is to remain the property of the State. All other timber, slash, stumps, and boughs aze to be disposed of by Lessee. 11. HOLD HARMLESS -- Lessee shall indemnify Lessor against all liability and loss, and against all claims and actions, including the defense of such claims or actions, based upon or azising out of damage or injury, including death, to persons or property caused by or sustained in connection with this lease or by conditions created thereby, or based upon any violation of any statute, ordinance, or regulation. l2. PER T'ION PLAN -All plans for mining may be requested by Lessor for review and approval before these operations begin. ' 13. ENVIR NMENTAL ANALYSIS -- Submittal of an environmental analysis may be required for approval by Lessor bt:fore any exploration or mining begins on leased premises. l4. IN METHODS -- Only mining methods that will insure the extraction of the greatest possible amount of minerals consistent within the laws and with prevailing good mining practice shall be used. 15. PL RATION - An exploration permit is required and must be obtained before any field work of any type or kind is undertaken. A restoration bond is required in conjunction with this exploration permit. The bond required by the Colorado Mined Land Reclamation Division for exploration activities may be substituted for this bond. The proposed type and method of exploration shall be outlined on the application for an exploration permit. 16. RECLAMATION -Rules and regulations as set forth by the Colorado Mined Land Reclamation Division for recovery and restoration of mined land will apply where applicable to the lands leased herewith. All reclamation plans shall require approval by Lessor. 17. WATER RI HT -- If Lessee initiates or establishes any water right where the point of diversion or groundwater withdrawal is on the leased premises and where the surface is owned by the State, such water right mist be obtained m the name of and with the consent of the State acting by and through its Boazd of Land Commissioners. Water rights and any improvement required to bring this water to the surface shall become the property of the State, without cost, upon termination of this lease for any cause whatsoever. Under no circumstance may ground water be withdrawn without first having secured the permission of Lessor and may not be withdrawn at a rate higher than necessary for the mining and/or processing of State minerals only. Additional payment may be required for the use of any waters as may be defined as tributary or non-tributazy. 2S