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<br />20. INSPECTION -- It is agrccd that during all proper hours and at all times during the continuance of this lease,
<br />Lessor or Lessor's duly authorized agent, is authorized to check assays and scales as to their accuracy, to go
<br />through or ou any part or all of the leased premises to examine, inspect, survey and take measurements of the
<br />same and to take samples of any kind and to examine and make extracts from or copies of all books and weight
<br />sheets and records which show in any way the ore output, ore values, payments and royalties from and of the
<br />leased premises. Alt conveniences necessary for such inspection, survey, or examination shall be furnished to
<br />Lessor. Lessor [nay require Lessee to provide all instruments and documents of any kind and nature whatever
<br />which affect Lessor's interests.
<br />21. NOTICES -- Any notice required to be given to Lessee under the provisions of this lease shall be sent by certified
<br />mail to the address set forth at the beginning of this lease or to such other address as Lessee may indicate in
<br />writing to Lessor, and such service by [nail shall be deemed sufficient and in full compliance with the terms of
<br />this lease as of the date it is postmarked. Notice to Lessor shall be given in like manner, addressed to the State
<br />Board of Land Cmnmissioners' Denver, Colorado address.
<br />22. NOTIFICATION OF MINING OPERATIONS--It is understood that Lessor may not own or control the surface
<br />estate of leased premises, or Lessor may have issued a surface use lease [o another lessee. Mineral Lessee shall be
<br />responsible for identifying such ownership or determining the surface lessee or lessees, and shall notify all such
<br />parties in advance of any on-site activity. Notification will be given thirty (30) days for unfilled or grazing acreage
<br />attd sixty (60) days for tilled fart[[ ground prior to any on site activity. Mineral Lessee shall closely coordinate any
<br />oft-site activity will[ the surface owner or lessee, and make a reasonable effort to protect the integrity of surface
<br />owner's or surface lessee's fences, gates, cattleguards, and other property.
<br />23. PROI~ECTION AGAINST SURFACE pAMAGE -- Lessee has the right to utilize as mutt[ of the surface of the
<br />lands as is reasonably necessary for milting operations; however, Lessee shall be liable and agrees to pay for all
<br />damages to the surface, livestock, growing crops, water wells, reservoirs, or other improvements caused by
<br />Lessee's operations on said lands. Lessor understands that this is a quarrying operation and that the final
<br />reclamation will not rewrn the surface to the pre-mining condition. There shall be no removal of timber without
<br />prior notice to Lessor. Any merchantable timber cut in conjunction with the approved mining plan is to remain
<br />[he property of the State. All other timber, slash, stumps, and boughs are to be disposed of by Lessee.
<br />24. HOLD HARMLESS -- Lessee shall indemnify Lessor against all liability and loss, and against all claims and
<br />actions, including the defense of such claims or actions, based upon or arising out of damage or injury, including
<br />death, to persons or property caused by or sustained in connection with this lease or by conditions created
<br />thereby, or based upon any violation of any statute, ordinance, or regulation.
<br />25. LIENS AND CLAIMS -- Lessee shall not suffer or permit to be enforced against the teased premises, or any part
<br />thereof, or any improvements thereon, any liens arising from, or any claim for damage growing out of the work
<br />of any construction, repair, restoration, replacement or improvement, or any other claims or demand howsoever
<br />the same may arise, but Lessee shall pay or cause to be paid all of said liens, claims, or demands before any
<br />action is brought to enforce the same against the leased premises or improvements. Lessee agrees to defend,
<br />indemnify and hold Lessor and the leased premises free and harmless from all liability for any and all such liens,
<br />claims, demands, and actions together with reasonable attorney fees and all costs and expenses in connection
<br />therewith.
<br />Lessee shall, upon execution of this lease at its cost, prepare a Notice, pursuant to C.R.S. 1973,
<br />§ 38-22-105 attd 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 or supplied
<br />to Lessee.
<br />26. BOND -- It is agreed that no operations are to be commenced on the lands herein described unless and until
<br />Lessee or Lessee's agent has filed a good and sufficient bond with Lessor in an amount fixed by Lessor, to secure
<br />the payment tot damages caused by Lessees ~t L..^ssee's agrut's operations on said lands. [.esscr reserves the
<br />right to grant relief from the foregoing bond requirements. Lessor may require such bond to be held in full force
<br />and effect for one year after cessation of operations for which the bond was intended. This requirement may be
<br />waived in favor of the requirements of the Division of Minerals and Geology.
<br />27. WATER -- If Lessee initiates or establishes any water rights for which the point of surface diversion or ground
<br />water withdrawal is on the leased pretnises, 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 Lessor is the surface owner the water right shall be taken in the name
<br />of Lessor in the first instance and shall be the property of Lessor without cost.
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