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<br />A. Lessor shall have the right to extract in-place Materials from the <br />Property for Lessor's own use in a manner that will not interfere with the Company's operations on <br />the Property. Such extraction shall be at no cost if the Materials aze used for incidental <br />improvements in connection with Lessor's existing farming operations. If such Materials are <br />extracted Crom the Property and used for construction or improvement of roads on Lessor's Property <br />or other land owned by Lessor for residential or other purposes beyond existing farming uses, Lessor <br />shall pay the Company a negotiated Cair mazket price for such materials as compensation for loss of <br />Materials the Company could otherwise extract and sell under this Lease. This per-ton compensation <br />rate shall be subject to adjustment by the Consumer Price Index at the end of each five-year period <br />of this Lease in the same manner as the adjustment set forth in Paragraph 2.B. above for the <br />production royalty rate. Lessor shall have no right to processed Materials from the Property. All <br />such operations shall be conducted in a workmanlike manner and in full compliance with the <br />Company's Division of Minerals and Geology permit and any other authority the Company has <br />obtained to conduct operations and, unless the Company otherwise agrees, shall be conducted during <br />the Company's normal hours of operation on the Property. In no event will Lessor extract any <br />Materials from any area of the Property where the Company has completed mining and reclamation. <br />Lessor shall not conduct any such operation, unless and until it has in place insurance of the type <br />and in the amount required of the Company for its operations pursuant to Paragraph 9. ,~ <br />B. As long as there is no additional cost to the Company, Lessor may <br />request that the Company deposit overburden which the Company is stripping in connection with <br />its ongoing operations a[ locations on Lessor's nearby property, such as in connection with Lessor's <br />irrigation pivots, where Lessor can make use of such overburden. The Company shall in no event <br />be required to move Materials it has already stripped and deposited or alter its mining plan, including <br />the plan for overburden removal, or prepare any site or contour or othenwise be responsible for any <br />such Materials iC deposited at Lessor's direction pursuant to this paragraph, and Lessor shall be <br />solely responsible for such Materials once deposited by the Company al Lessor's direction. The <br />Company shall, in any event, be entitled to retain sufficient overburden to allow it to comply with <br />its reclamation obligations under its mining permits and land use authorizations. <br />6- <br />