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9705323953 <br />NCWCD <br />PAGE 06112 <br />- NOV p g 2pD6 <br />Di <br />11. MINING METHODS -Only mining methods that will ensure~Rf/~xti~~he greatest possible <br />amount of materials consistent within the laws and with prevailin~a~~fs4ining practice shall be <br />used. b` during the nnining activities, rock of high sales value such as high quality moss rock is <br />encountered, this rock shall not be diluted with less valuable rock and then sold for less than its <br />market value. <br />12. ENVIRONMENTAL ANALYSIS -Lessor may require that Lessee submit an environmental <br />analysis for approval by Lessor before any exploration or mining begins. <br />13. RECLAMATION -Lessee shall submit all plans for restoration and reclamation of the Leased <br />Premises to Lessor for Lessor's approval before submitting the appropriate permit application <br />pursuant to the Colorado Mined Land Reclamation Act, C.R.S. §§ 34-32-101 et se ., as amended, <br />and before submitting any special use petmit application to the Larimer County Commissioners. <br />Rules and regulations as set forth by [he Division of Minerals and Geology for recovery and <br />restoration of mined land will apply where applicable to the Leased Premises. Vaziations from the <br />reclamation plan as originally submitted to Lessor for approval maybe granted only with the written <br />approval of Lessor. <br />14. LESSOR'S APPROVAL- Whenever approval by Lessor is required or contemplated by Lessee, <br />approval must be in writing and shall be optional and shall be within the sole and absolute discretion <br />of Lessor. <br />15. LESSOR'S RIGHT OF ACCESS ANDTERMINATION -The parties recognize that Lessor is in <br />the process of studying the construction of a reservoir which will result in inundation of the Leased <br />Premises. Lessor and its consultants, contractors, agents and employees shall have the right to enter <br />upon, have access to, pass.through and perform field studies on the Leased Premises for the purposes <br />of conducting environmental studies, azcheological studies, geotechnical investigations, soil <br />investigations, exploratory drilling, seismic refraction surveys, surveying, placing panel points and <br />other necessary field work and data gathering in connection. with the Lessor's proposed reservoir, <br />but not for the purpose of actually constructing the reservoir. In addition, Lessor shall have the right <br />to cancel and terminate this lease upon one (1) years advance written notice to Lessee, except as <br />provided in article 33 below. <br />16. STATE AGENCIES -Lessor may determine that instruments and documents required by State <br />agencies satisfy certain requirements of this lease. In the even[ that Lessee is required [o file <br />instruments and documents with State agencies, including the Division of Minerals and Geology, <br />Lessee shall notify Lessor of said filing and Lessor reserves the right to request and obtain copies <br />of such instruments and documents from the agency or from Lessee. <br />17. INSPECTION -During all proper hours and at all times during the continuance of this lease, Lessor <br />or Lessor's duly authorized agent, is authorized to check assays and scales as to their accuracy, to <br />go through or on any pan or all of the Leased Premises to examine, inspect, survey and take <br />measurements of the same and to take samples of any kind and to examine and make extracts from <br />or copies of all books and weight sheets and records which show in any way the material output, <br />material values, payments and royalties from and of the Leased Premises. All conveniences <br />necessary for such inspection, survey, or examination shall be furnished to Lessor. Lessor may <br />H:U4ANGMENTAGREEMN7~2004109-10.04 Quany Lean-S~one Wholesale Corporation-FINAL.wpd PageSof 10 <br />