2008-01-10_PERMIT FILE - M2008002

Home Browse Search

r. ,+~ ~ r GRAVEL LEASE AGREEMENT n_ This Agreement is made this 0~+~ day of , 2007, by and between Sam F. Love, and Virginia L. Love, P.O. Box B, Meeker, C 81641, hereinafter referred to as "Lessor", and Western Gravel, LLC, a Colorado Limited Liability Company, P.O. Box 1231, Meeker, CO 81641, hereinafter referred to as "Lessee". Lessor, in consideration of the Agreements set forth herein to be kept and performed by Lessee, and the payment of royalties by Lessee as provided herein, and subject to the terms, conditions, and provisions contained herein, leases exclusively to Lessee that certain tract of land situate in the County of Rio Blanco, State of Colorado, more particularly described on Exhibit A, attached hereto and incorporated herein by reference, for the sole purpose of quarrying, mining, removing and marketing therefrom gravel, rock, dirt and/or pit run which are herein referred to as "materials". 1. TERM OF LEASE 1.1-This Lease shall be in effect for a term commencing on the 3`d day of January, 2008, and continuing until January 2, 2028 or until all economically recoverable materials are exhausted, whichever event occurs first. 1.2 -Upon execution of this Agreement, Lessee shall pay to Lessor the sum of $ anon refundable payment which shall not be considered royalty payment or offset by Lessee's royalty payments pursuant to paragraph 2.1. In the event any portion of this payment is determined to be owed by Lessor to Neal J. Dow and Anna Dow Trustees, Lessor shall make any required payment to the Dows and hold Lessee harmless from any obligation to pay a portion of the :; to the Dows. 2. ROYALTIES 2.1 -Lessee shall pay to Lessor, as royalty, the sum of $ for each ton of materials removed from the leased premises during the first three years of this Lease. Beginning the fourth year of this Agreement the royalty amount shall be increased to $ per ton. Thereafter, every three years the royalty amount shall be adjusted based upon the wholesale market price for pit run at the pit on the effective date of this Agreement, which is agreed to be $ per ton, compared to the wholesale market price for pit run at the pit on the adjustment date. The adjusted royalty shall be calculated as follows: the wholesale market price for pit run as of the adjustment date is divided by $ ed by $ The wholesale market price shall be determined by averaging the price of pit run at the pit for all dealers within a radius of thirty miles of Meeker, Colorado. The quantity of material shall be determined by scale weight at the pit, weighed before materials are hauled away from the leased premises. Lessee will provide Lessor with quarterly reports on or bef 10`h day of the month following the end of the quarter, which will include copies o weigh scale tickets verifying the total amount of material removed from the pit during the preceding quarter.