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6.05 Audits. Trenkle shall have the right to audit FCM's records with respect to the <br />removal of gravel products from the Gravel Pit, and future expansion area. Any such audit shall <br />be at Trenkle's sole expense and shall be conducted by a certified accountant selected by <br />Trenkle. If such an audit is conducted and a report prepared by the auditor which establishes that <br />an understatement of royalty has occurred and additional royalty is due to Trenkle in excess of <br />5% of the royalty paid, the reasonable costs incurred by Trenkle associated with the audit shall <br />be paid by FCM. FCM shall pay any additional royalty payment due to Trenkle within 45 days <br />after receipt of the auditor's report. <br />Section 7. GRAVEL FOR TRENKLE'S USE <br />7.01 Gravel for Trenkle. Trenkle claims the right to retain up to 13,500 tons of <br />unprocessed aggregate material (pit run) from the Gravel Pit for his personal use. <br />7.02 Trenkle access to scales. During the term of this Lease Agreement, Trenkle shall <br />have access to and the right to use the scales being utilized at the Gravel Pit. <br />Section 8. WATER USE AND RIGHTS <br />8.01 Water Wells. To the extent permitted by law, Trenkle shall allow FCM to use <br />water obtained from all water wells located on the Trenkle Property for its operations without <br />charge during the term of this Lease Agreement. Further, Trenkle shall allow and hereby <br />authorizes FCM to drill a new water well(s) on the Trenkle Property, as permitted by the State of <br />Colorado, for use in its operations and without charge during the term of this Lease Agreement. <br />FCM shall be responsible for all costs associated with the drilling of any, if any, new water wells <br />and the use of such water. Any well designated for Trenkle's domestic use is excluded from this <br />agreement. <br />8.02 Other Water. To the extent permitted by law, Trenkle shall allow FCM to use <br />water obtained from all other sources of water on the Trenkle Property for its operations without <br />charge during the term of this Lease Agreement. Further, Trenkle shall allow and hereby <br />authorizes FCM to obtain and develop any new rights to and for the use of water from any source <br />for use by FCM in its operations in the Gravel Pit azea, and any expansion azea, as permitted by <br />law and without charge during the term of this Lease Agreement. Water held in "Matthew <br />Pond" is reserved for the use of the Trenkles and is excluded from this agreement. <br />8.03 Retained Ownership. After termination of this Lease Agreement, Trenkle shall <br />own and shall retain all rights to water developed jointly or by FCM from the Trenkle Property. <br />Section 9. RECLAMATION WORK <br />High Flume Pit Lease <br />12/23/02 <br />Page 4 of 7 <br />