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for the preceding month, whether or not Material has been removed during the preceding month. <br />Lessee's Covenants. <br />6.1 Lessee will cause all operations under this Lease to be carried on in accordance with <br />all applicable federal, state and local regulations, permits, and the terms and conditions of any bond issued <br />relative to such operations. Material shall be removed from the Property to the point commercially feasible <br />through the use of equipment selected by Lessee. <br />6.1.1 Lessee will be responsible for obtaining all applicable permits, fees, and other <br />expenditures related to the development and compliance of the operation of the site. <br />6.2 Lessee shall keep the Property free and clear of liens for labor done or work performed <br />under this Lease, and shall keep the Property free from all other forms of encumbrance, and will hold Lessor <br />harmless fro-n all claims, demands, suits, liabilities, damages, losses, costs, and expenses (including reasonable <br />attorney's fees) which may arise by reason of injury to any person employed by Lessee on the Property, or <br />which may arise by reason of injury to any persons or damage to any property as a result of any operations of <br />Lessee. <br />6.3 In digging pits on the Property, Lessee agrees to make separate stockpiles of topsoil <br />and of waste substances. Lessee agrees that on completion of the removal of Material from pits that have been <br />dug on the Property, the Lessee will back-slope such pits with unused waste substances, place topsoil on top to <br />grades to be determined upon approval of a reclamation plan. Lessee also agrees that upon completion of the <br />pit the minimum storage depth for the reservoir shall be ten (10) feet with a surface area of seventeen (l7) <br />acres. <br />6.4 Lessee shall remove all of Lessee's equipment and Materials stockpiled on the <br />Property within one year of any termination of this Lease pursuant to Section 8 below. If Lessee is hampered <br />by inclement weather, other climatic conditions, or conditions or events not in the control of Lessee, from <br />completing the removal of equipment or Materials within such one year period, Lessor agrees to extend the <br />time required to remove said equipment and Material by a reasonable period if requested to do so by Lessee. <br />6.5 In the events of a valid termination of this lease, Lessee will surrender to Lessor <br />peaceable possession of the Property, subject to Lessee's right to leave equipment and Materials on the <br />Property and have access to remove such equipment and Materials under Section 6.4 above. Co-incident with <br />such surrender, Lessee shall deliver to Lessor a release of all its interest in this Lease. <br />6.6 Lessee shall pay when due all taxes levied or assessed against all personal property <br />placed upon the Property by Lessee during the Lease term. <br />6.7 Any use, storage, treatment, disposal or release of hazardous materials on the Property <br />by Lessee shall be in compliance with all applicable federal and state laws and regulations. Upon termination <br />of this Lease, Lessee shall remove all hazardous materials used, stored, treated, disposed of or released by it on <br />the Property during the lease term. Lessee shall indemnify and hold Lessor harmless for any loss, liability, cost, <br />expense or claim arising from (1) Lessee's use, generation, storage, release or disposal of any hazardous <br />materials on the Property and (2) Lessee's violation of any law relating to environmental conditions in <br />connection with the Property. The Lessee's obligations under this paragraph shall survive the termination or <br />earlier cancellation of this Lease. <br />MBG (8/132007) <br />2 <br />