2001-01-12_PERMIT FILE - M2001002

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SAND AND GRAVEL LEASE AGREEMENT THIS SAND AND GRAVEL LEASE AGREEMENT is made and entered into effective as of the /Ord day of Jawar 2001, by and between WEIMER RANCHES of Nucla, Colorado. (hercinaft� to as `Lessors,") and SUTHERLAND BROS., INC., a Colorado Corporation (hereinafter referred to as "Sutherland"). RECITALS A. lessors own certain property situated in Montrose County, Colorado, more particularly described as follows: Northwest '/a of the Northwest ''/,, Section IS, Township 46 North, Range 15 West, New Mexico P.M., containing 54.1 acres more or less located in Montrose County. Colorado. (hereinafter referred to as the "Subject Property") B. Lessors desire to grant to Sutherland. and Sutherland desires to acquire from Lessors, a lease ul the sand, gravel and burrow material (hereinafter referred to as "Material") on the Subject Property pursuant to which Sutherland shall have exclusive right to remove and sell the Material. C. Lessors reserve the right to use any part of the Subject Property for their ranching operation. However, such operation shall be subject to the terms and conditions of this lease and such operation shall Ix conducted at the risk of the lessors. AGREEMENT NOW. THEREFORE, in consideration of the mutual covenants contained and provided for herein, the parties hereto agree as follows: 1. Grant. Lessors hereby grant. lease, let and demise unto Sutherland, its successors and assigns, all of the Material on the Subject Property. Lessor further grant to Sutherland the right of access to the Subject Property on a road to be maintained by Sutherland. Sutherland will provide for adequate dust control as part of the maintenance of the access road. Term. The term ofthis Agreement shall be for a period of twenty (20) years Rom the date hereof: unless sooner terminated as provided herein. Option to Extend. The lessors grant to Sutherland the option to extend this Agreement fur an additional Twenty (20) years, however, the price paid for the removal of the 7,9atcrial shall be subject to negotiation between the parties hereto. Exercise of the option shall be in writing and shall be submittal to the Lessors at least six months prior to the c\plratlon ofthe term nfthis lease. 4. Manner of Woik. Sutherland agrees to conduct all of its operations hereunder in a careful and miner-like manner and in compliance with all applicable laws and regulations ofthc United Slates and the SIMI;of Colorado. 5. Production P-Nmmmcnt. Sutherland =hall pay to Lessors a fee of Ore Dollar (.S1,00) per cubic \:ird nfsand, gnmvel and burros. nialcrial removal and sold from the Subject Property.