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<br />9. Lessor reserves as royalty, and Lessee agrees to pay to Lessor on or before the 20th day of each month
<br />hereafter the following:
<br />(a) ............Pea con4 eL the-aolee-a~w»ll•of ~o}}-eree de~i~eTCd-to~tf+e-mit2~aF ~:trktr~vtd.
<br />(b) ...$0.30......per ton of 2,000 pounds o[ all ...........C18y........._. ...._. .....mined.
<br />30. Royalty eayments shall apply to payment received by the Lessee on any mineral so sold. The miner-
<br />als mined from the leased premises may be milled in a custom or commercial plant or mill owned and oper-
<br />ated by L~sscc. They may not be mixed ur coinming kd with ores from other properties until they have been
<br />crushed and sampled ln' the mill for the mirpose n[ drtec mining the hereinabove designated Mineral and
<br />other mineralc containc[I in the crude ore that may be salvaged by milling u[ same. The result ng samoles
<br />shall be assayed at the laboratory used 67 thc• mill n•hc•re ore is milled and Lessor short recci~•e an assay
<br />ce rtifica to sho+cing the contents oC each da}''s delivery to mill. In addition, the mill shall resen•e a pulp of
<br />each day's c•nmpmite sample fur testing, provided, ho:ecver, said mill shall not be obliged to keep pulp for a
<br />period o[ more than ninety (OU) days. In the event of a dispute as to analysis, the pulp preparec from each
<br />composite sample =hall be referred to ;m umpire acceptable to Lessor and Lessee and the determination of
<br />the umpire shall bo binding upon both partite. The net weigh( of the crude ore on a dry weight basis shall
<br />be determined at the lintel at the mill. Lessor shall have the right to check the weights as often as it deems
<br />advisable. Lessee shall furnish Lessor with duplicate scale wcaght cent Cicates. Lessee agrees to, end shall be
<br />held accountable to see that the foregoing provisions arc carried out by such mill or mills as s call receive
<br />minerals produced from the premises herein demised.
<br />11. On or before the 20th day of each and every month during the lean of this lease, Lessee shall make
<br />a sworn report to the Lessor in n•hich shall he entered and set down the exact amount in weight of all min-
<br />erals of value mined on said premises during the preceding [•alendar month. Such statements shall clearl}•
<br />set forth the tonnage as shown by the min; rs production reports, and shall also show the use or disposal b;:
<br />the Lessee of such minerals of value. The report shrill be made a•hcther or oat any minerals are mined dur-
<br />ing the month fm' which the report is made In the event that no minim!; is dune dw'ing the mnntl for a'liich
<br />the report is made, such report shall contain a complete statement of the wort: done by the Lessee during the
<br />month.
<br />12. The Lcssce shall have the right to mine, raise, carry and transport ores from the lands hereby leased
<br />through other lands now or hereafter owned or leased by the Lessee. and the right to raise, cant' and trans-
<br />port ores mined b}• the Lessee from other lands owned or leased by the Lcssce over or through the ]ands cov-
<br />ered by this Icase; provided, that the ores mined from other ]ands arc in no event mixed with ore mined
<br />from these leased premises, except as provided in Paragraph ]0 herein.
<br />13. The Lessee further agrees to hold the Lessor harmless for any and al] manner of claim; arising or
<br />In arise from the said lease[] premises by Lessee whether from soil or smiace subsidence, or iron any other
<br />eau.=.c nr any other nature socver; this paragraph shall be binding upon Lcssce and upon the heirs, assigns,
<br />succossms and Icgal representatives of Lessee, and shall be a continuing obligation during ant after the
<br />expiration o[ this Icase, so long as any possibility of soil or sc dace subsidence remains.
<br />]4. The Lessee may at any time, he paying to the State of Colorado, acting by its State Bo: rd of Land
<br />Cnmmissioncrs, all amounts then due as provided herein, and the further sum of T+vo Dollars ($2.00), surren-
<br />der and caner! this lease insofar as the same covers all or any portion of the lands herein lea:red and be
<br />relieved from further obligations or liability hercu nder with respect to the lands so surrendere l; provided
<br />that no partial su mender qr cancellation of this lease shall be for Icss than contiguous tracts uC ap proximately
<br />forty (40) acres or Governmental lot corresponding to aquarter-quarter section; provided further that this
<br />surrender clause and the option herein reserved to the Lessee shall cease and become absolutely inoperative
<br />immediately and concurrently with the institution of any suit in any court of law by the Lessee, Lessor ar
<br />any assignee oC either to enforce this- leasq or any n[ its terms express or implied, but in no case shall sur-
<br />render be effective until Lessee shall have made full provision for conservation of the minerals and pro-
<br />tection of the surface rights of the leased premises.
<br />15. The Lessee, :vith the written consent of the Lessor, shall have the right to assign this lease as to the
<br />entire leasehold interest o[ such lessee in all or part of the lands covered hereby, not less, hmvever, than
<br />contiguous tracts of approximately forty (40) acres or Governmental lot cnrrr:;ponding to a qua •ter-quarter
<br />section for any partial assignment and for ^pproval of such assignment the Lessor may make :~ charge of
<br />ten cents ($0.10) per acre, with a minimum charge for any one alignment of Ten and Nn/100 Dollars
<br />(510.001. No assignmc•nl of undivided interests or retention or reservation of overriding royalties will be rec-
<br />ognized or approved by Lessor: an[I the effect, if any, of any such assigmnents or reservations wih be strictly
<br />and only as between the parties thereto, and outside the terms of this Icase, and no dispute beta ten parties
<br />to any such assignment or reservation shall operate to relieve the Lessee from performance of any terms or
<br />conditions hereof or to postpone the time therefor. Lessor will and shall at all times be entitled to look
<br />solely to thc• Lcsccc or his assignee shown on its books as bcin,S the sole owner hereof, and for the sending
<br />of all notices required by this lease and for the performance oC all terms and conditions hereof. I' an assign-
<br />ment in whole m' part of this lease is approved, a new ]care shall be issued to the assignee covering the lands
<br />assigned, for the balance of the life of the lease, on the ]case form in use at the lime of the assignment for
<br />the mining of -.... ~t ..... ....., and limited as to term as said ]ease is limited, and the assignor shall be
<br />released and dischaT'~[~~irom all obligations, and shall be held to have released all rights and bee e[its therc-
<br />aCter accruing with respect to the assigned land, as if the same had never been a part of the subjr~l matter of
<br />this lease.
<br />16. In the underground` and open pit workings, all shafts, inclines and tunnels shall be well timbered
<br />(when good mining requires timbering) and all parts o: workings, where minerals are not exhausted, will be
<br />kept free from water and waste materials, as in ordinary operations. The underground and opcr. pit work-
<br />ings shall be protected against fire and floods and the creeps and squeezes. If such events do occur they
<br />shall be checked in a manner which is in keeping with Food mMhods of mining. Such methods of mining
<br />shrill be used as shall insure the extraction of the greatest possible amounts of minerals consistem: with good
<br />mining methods.
<br />17. Lessee shall be liable and agrees to pay far al] damages to the surface of the land, livestock; growing
<br />crops or impmaemcnts caused by Lessee's operations on said lands. It is agreed and underslo ~d that no
<br />operations shall be commenced on the lands hereinabove described unless and until the Lcssce nr '.cis assignee
<br />shall have fded a good and sufficient bond with the Lessor in an amount to be fixed by Lessor, tc secure the
<br />payment for such damage to the surface of the land, livestock. growing crops m' improvements as may be
<br />caused by Lessee or his assignee's operations of said ]ands and to secure compliance with all the provisions,
<br />conditions, covenants and obhgalions of this lease and the statutes of the Slate of Colorado, and rules and
<br />regulations thereto appertaining.
<br />18. It is agreed that during all proper hours and at all times during the continuance of th~s lease the
<br />Lessor, by its Superintendent of the Aiineral Department or by its dul}• authorized agent or agen s, shall he,
<br />and hereby is authorizer( to check scales as to their accuracy. to go through any n[ the slopes, entrees, shafts,
<br />openings or u'orkin,rs on said prcmists, an[l to examine, inspect and survey the same trod to gamine and
<br />make extracts or copies of all books and weight sheets :vhich show in any u•ay Vic mineral output of the
<br />leased premises, and that all conveniences necessary for said inspection, survey or examination shall be fur-
<br />nished to the Lessor, its Superintendent o[ the lvtineral Department or its agent or ascots by the Lessee.
<br />]9. It is agreed that the Lessee, while using any diamond, churn or otlur drill on said premises during
<br />the Icrm o[ this lcasq shall keep an accurate log of al] work so done and performed, showing the geological
<br />formations penetrated, the depth or thickness o[ each, the mineral character of each, especially m neral veins
<br />and strata, their elevations, the location o[ same by tyin4 to a corner of some legal subdivision nr, in unsur-
<br />vcyrd territnn•, to some ben[•h mark or other officially established point, established by the United Stat^s
<br />sunrys, and each and every thing necessary to make an[I supply a porfect and complete log •~[ the hole
<br />throughout its entire depth, a true copy of which swirl Ing shall be furnished the Lessor when and at thq
<br />time such holes arc drilled or at any time there, [ter upon demand o[ the Lessor.
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