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d. For any timber to be removed as result of mining, Lorencito shall give Hill Ranch <br />six months' prior written notice. If Hill Ranch so desires, Hil[ Ranch or iu <br />contractor may harvest at its sole risk and expense such timber prior to the <br />expiration of the six months' notice period. Any such timber not removed prior to <br />the expiration of such period may be harvested by Lorencito at its expense but <br />without payment to Hill Ranch. <br />e. Lorencito shall construct and maintain at its expense such fences, gates and cattle <br />guards as are required to miniruize hazards to persons or livestock from <br />Lorencito's vrntilation shafts, and other facilities as required by law. Lorencito <br />shall adopt reasonable security measures, at its cost, and in cooperation with Hill <br />Ranch, including the closing and locking of gates or the posting of security guards <br />at entrances onto the Leased Lands, as may be necessary in order to restrict public <br />access to the Leased Lands and public use of all roads thereon. <br />f. Lorencito, its employees and contractors, shall comply with the Surface Use <br />Rules set forth in Exhibit B hereto and with the requiremenu of Lorencito's <br />mining permiu. In the event of a conflict, the requirements of Lorencito's mining <br />permits shall control. <br />4. Reclamation <br />Lorencito will provide Hill Ranch with a copy of its reclamation plans and, to the extent <br />permitted by regulation and subject to regulatory approval (including regulations relating to <br />• returning the land to its approximate original contour), will contour slopes no steeper than 4 to 1. <br />Once an area which has bccn mined is no longer required for mining operations, reclamation <br />shall begin on such area within two years of the date it is no longer required for mining <br />operations. <br />5. Additional Obligahtions of Lorenci~ <br />Lorencito shall conduct all operations in a good and workmanlike manner and in accordance and <br />compliance with all applicable local, state and federal laws or regulations of a general nature, <br />and specifically, Lorencito shall wnduct all of its operations in compliance with all existing and <br />future laws of the United States, the State of Colorado and all county and local governmental <br />laws, rules and regulations which are applicable to mining and mineral processing operations and <br />which are intended for the protection of the environment. <br />6. efault <br />It is understood and agreed that in the event Hill Ranch believes that Lorencito is in default in the <br />performance of any teen or condition described herein, Hill Ranch shall give Lorencito written <br />notice specifying the events of default. If Lorencito shall remain in such default for a period of <br />thirty (30) days after being notified in writing by Hill Ranch of such default, then, in that event, <br />hill Ranch may elect to temtinate this Agreement by giving Lorencito written notice of <br />temtination signed by Hill Ranch, provided that Hill Ranch may not terminate this Agreement if <br />the event of default is athtt than a default in the payment of an amount of money due Hill Ranch <br />and if Lorencito is proceeding in good faith to remedy the event of default and fully remedies the <br />• SURFACE AGR'r FINAL 6.23-0I.EOc <br />