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18. NOTICES -- Any. notice required to be given to Lessee under the provisions of this Lease shall be`sent by <br />certified mail to the address set forth at the beginning of this Lease or to.such other address as Lessee may <br />indicate in writing to Lessor, and such service by mail shall be deemed sufficient and in full.compliance <br />with the terms of this Lease as of the date it is postmarked. Notice to Lessor shall be given in like manner, <br />addressed to, *the* State- Board,of Land Comrriissioners' Denver;' Colorado address:.- <br />.49. EXPLORATION - An exploration Notice of Intent:submitted to. and approved by the Division of Minerals <br />and Geology is required and must be obtained before any field work of any type or kind is undertaken. <br />' .A restoration bond with the Division of Minerals and Geology is required in conjunction with this Notice <br />:. of Intent: The bond required by:the:..Division• of Minerals: and'Geplogy. for exploration'.activities'shall be <br />-the sole bond required, unless a change in applicable- laws:%rules?'or`regulations.requires an<inerease in or <br />additional bonding; in which case the appropriate bonding will be implemented.. The proposed type and <br />method of exploration shall be outlined on the application for an exploration permit. <br />Lessee is required to keep an accurate log or record of all surface and subsurface exploration: This <br />exploration work shall be tied to a comer established by an official USGS survey. All such logs and/or <br />records may be requested by Lessor at any time,. but Lessor agrees that during the term of this Lease all <br />such information so. supplied by Lessee shall remain.confidential and unpublished insofar.as it is. consistent <br />within the`law. <br />20. PROTECTION AGAINST SURFACE DAMAGE. -- To the. extent Lessor has the right to grant such, <br />Lessee shall have the right to utilize as much of the. surface of the•lands above the Leased Premises as is <br />necessary for mining operations, including the right; to `subside the surface in connection with its mining <br />-operation. Except as, otherwise limited :in- paragfaph' E, page 2, Lessee shall be liable and agrees to pay <br />:for' all 'damages to the- surface; livestock, growing crops,' water wells,' ieservoirs;' or other improvements <br />caused by Lessee's'operations -on. said lands; furthermore, 'Lessee shall be responsible for the'eradication <br />' and control of noxious weeds- on' the'Leased Premises as' a iesult bf Lessee's: operations' or:subsidence. <br />.Further,: it:is iinder••stood that this Le'' * ?46subjecta&-- Ii face patents;' deeds,'aiid certificates of purchase, <br />asc andZessee 'shall-assume.responsibility for all'clairhs° ai'isi ' g "from damages t6 the surface' above the Leased <br />Premises caused by Lessee's operations. <br />21. 'HOL'D HARMLESS - Lessee shall indemnify Lessor'againstall liability and loss; and against ill, claims <br />and actions, including-the defense of such claims or actions; based iipon°or arising out of damage or injury, <br />including death, to persons or property caused by or sustained in connection with this lease or by conditions <br />created' thereby, or based upon any violation of any statute; ordinance, or regulation. <br />22. BOND - It is agreed that no 'operations are to be commenced on the, Leased 'Piemises unless and until <br />Lessee or Lessee's.- agent has filed a good and sufficient bond with Lessor in an amount faked byLessor, <br />to secure the payment for damages caused by Lessee's or Lessee's agent's operations on said lands. Lessor <br />reserves the right to grant relief from the -foregoing bondrequirements. Lessor may require'the bond to <br />be held in full force and effect for one year after cessation of operations for which the bond was intended. <br />This requirement may be waived in favor of the requirements of the Division of Minerals and Geology. <br />23. COAL. MINE GAS - Methane gas or other volatile gases produced, saved- and/or sold by the coal mining <br />Lessee from mineable coal measures and from roofs and floors of mineable coal measures shall be the <br />:property of thAt'Lessee provided?that the. gas is removed.as-a mining safety procedure prior -to mining and <br />that a`royalty•be paid'to tessoi per :the terms' set forth in-Lessor•'s:.then current oil and gas-leases: ' Gas•that <br />i&iuneconomical:to produccinaybe:vented or flared provided: that. the venting or'-flaring'complies With-all <br />federal; state.:and local requirements:, ' Methane' gas- or' other volatile gases-produced -by the oil: and. gas <br />lessees from the mineable coal measures and from roofs and floors of mineable coal measures prior to <br />:mining shall'be the property of the oil and.. gas •`lesseetiiider;the--terms ofthe:"oikand=gas'lease, so long as, <br />the terms' in this paragraph are consistenf within the' law: "Roor:ii: ears the rock it i iafely above, and <br />Page 7 of 10