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<br />28. SURRENDER AND RELINQUISHMENT -- Lessee may, at any time, by paying to Lessor, all amounts then due
<br />as provided herein, surrender and cancel this lease insofar as [he same covers all or any portion of the lands
<br />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 governntentallot corresponding to aquarter-quarter section, the rental being
<br />reduced proportionately.
<br />This surrender clause and option herein reserved to Lessee shall cease and become absolutely inoperative
<br />immediately and concurrently with the institution of any suit in any court of law by Lessee, Lessor or any
<br />assignee of either to enforce this lease, or any of its terms, express or implied, but in no case shall surrender be
<br />effective until Lessee shall have made full provision for conservation of the minerals and protection of the surface
<br />rights of the leased premises as may he determined by Lessor.
<br />Notwithstanding the foregoing, no surrender and relinquishment of this lease shall be effective unless and
<br />until all reports, documents and information of any kind required to be submitted to Lessor under this lease, or to
<br />such state agencies as provided in this lease have been submitted to Lessor or such state agency.
<br />29. RIGHT OF REMOVAL -- In the event this lease is terminated by surrender, or the expiralionof its term, and all
<br />obligations of Lessee under this lease are satisfied, all Lessee's improvements, equipment, man -made objects of
<br />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 Lessee's expense. Such removal is to be accomplished without unnecessary waste or damage to the
<br />premises and Lessee shall restore the surface of the leased premises to the condition as specified in the approved
<br />reclamation plan as it pertains to such removal. All improvements and equipment remaining on the leased
<br />premises six months after the termination hereof shall be forfeited automatically to Lessor without compensation
<br />and without necessity of execution ofadditional documents.
<br />30. CONDEMNATION -- If the Leased Premises shall be taken in any condemnation proceeding, except that initiated
<br />by Lessor, this lease shall automatically terminate as of the date of taking. The award for such condemnation
<br />shall he paid to Lessor, except for any specific award(s) paid to Lessee (or severed minerals reserves, in which
<br />event a percent of such specific award(s) equal to royally shall be paid to Lessor in lieu of royalty lost by virtue of
<br />the condemnation. Improvements shall be removed by Lessee per terms in the RIGHT OF REMOVAL
<br />paragraph herein. If only a portion of the leased land is taken by condemnation, Lessor may, at its option,
<br />terminate this lease or terminate only that portion of the lease so taken.
<br />31. COMPLIANCE WITH LAW --Lessee shall comply fully with all the provisions, terms, 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 Lessee, and Lessee further agrees that good
<br />mining methods shall be used at ail times of active mining so long as said methods are consistent within the law.
<br />Lessee shall comply with all applicable federal, state and local environmental, wetlands protection, Itealtlt and
<br />hazardous waste laws, ordinances and regulations. In addition to the foregoing, and not in limitation thereof,
<br />Lessee shall nut cause or permit any Hazardous Material to be brought upon, kept or used in or about the Leased
<br />Premises by Lessee or Lessee's agents, employees, contractors or invitees, without the prior written consent of
<br />Lessor. If Lessee breaches the obligations stated in the preceding sentence, or if the presence of Hazardous
<br />Material on the Leased Premises caused or permitted by Lessee results in contamination of the Leased Premises,
<br />or if contamination of the Leased Premises by Hazardous Material otherwise occurs for which Lessee is legally
<br />liable, then Lessee shall indemnify, defend and hold Lessor harmless from any and all claims, judgments,
<br />damages, penalties, fines, costs, liabilities or losses (including, without limitation, diminution in value of the
<br />Leased Premises, damages for the loss or restriction on use of the Leased Premises, damages arising from any
<br />adverse impact on future leasing of the Leased Premises, and sums paid in settlement of claims, attorney fees,
<br />consultant fees and expert fees) which arise during or after the lease term as a result of such contamination. This
<br />indemnification of Lessor by Lessee includes, without limitation, costs incurred in connection with any
<br />investigation of site conditions or any cleanup, remedial, removal, or restoration work required by any federal,
<br />state, or local governmental agency or political subdivision because of Hazardous Material present in the soil or
<br />gmurtd water on or uudct the L=aced Prcinises. Without limiting the foregoing, if the prescuce of any Hazardous
<br />Material on the Leased Premises caused or permitted by Lessee results in any contamination of the Leased
<br />Premises, Lessee shall promptly take all actions at Lessee's sole expense as are necessary to return the Leased
<br />Premises to the condition existing prior to the introduction of any such Hazardous Material [o the Leased
<br />Premises; provided that Lessor's approval of such actions shall first be obtained. As used herein, the term
<br />"Hazardous Material" means any hazardous or toxic substance, material or waste which is or becomes regulated
<br />by any local governmental authority, the Stale of Colorado or the United States Government. The term
<br />"Hazardous Material" includes, without limitation, any material or substance that is (i) defined or designated as a
<br />"hazardous substance", "hazardous waste" or a "regulated substance" under appropriate state or federal law.
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