2009-01-20_PERMIT FILE - X200923100

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in contact with the mineable coal measure. :'Floor" means the rock immediately below and in contact with the mineable coal measure. 24. WATER RIGHTS -- If Lessee initiates or establishes any water right where the point of diversion or groundw*ater-withdrawal is:on.the Leased Premises and where the surface is owned by the State, such water right must be obtained' in the name of and with-the consent of-the State' acting by and through- its Board-'of Land Commissioners. Water ,rights' and' any: improvement required to--..bring this. water to the 'surface shall'become the property of the Stated without cost,-upon termination of this. lease'for any cause whatsoever. Under no circumstance may ground- water be withdrawn without first having secured the permission of Lessor and may not be withdrawn at a rate higher than necessary' for the mining and/or processing of State minerals only. Additional payment may be required for the use of any waters as may be defined as tributary or non-tributary. 25. LIENS AND CLAIMS' -- .Lessee shall not suffer or' permit .to -be-enforced against :the Leased Premises, or any part thereof; `or any improvements thereon, any liens. arising from, `or any claim for'dainage growing out of the work of any construction, repair; restoration, replacement or improvement, or any other claims or demand howsoever the same may arise, but Lessee shall pay or cause to be paid all of said liens, claims, or demands.before any action is brought to enforce the same; against the Leased Premises or improvements. Lessee agrees to defend, indemnify and hold Lessor and the Leased Premises free and harmless from all liability for any and all such liens, claims; demands; and actions together, withreasonable- dfto':rn6y fees and all costs and expenses. in connection therewith. Less='shall, - ipon"execution of this lease at its cost; prepare a Notice,- pursuant to C.R:S. § 38=22-105 and cause.-.the;same:to:be;posted.for the:purpose of protecting Lesso`agai: •ariy liens or-.--: encumbrances upon the Leased Premises by reason of work, labor, services or materials contracted for or supplied to Lessee. , 26. SURRENDER AND RELINQUISHMENT - Lessee may; 'at any time"' by paying to Lessor, all amounts-. then due as. provided herein; surrender and cancel this Lease insofar: as' the same covers all or any portion of the lands herein leased and be relieved from further obligations or liability hereunder with respect to the lands so surrendered;.provided that- no partial, surrender or cancellationof:this Lease shall be for less than tracts of approximately.40'acres or govemm6ntal lot corresponding.to a quarter-quarter section, the rental being reduced proportionately. This surrender clause and option herein reserved to Lessee"shall' cease 'and,becorm absolutely inoperative immediately -and concurrently with the institution of:any suit in any court of law by Lessee, Lessor or any assignee of either to enforce this Lease, or any of its terms, express or implied, but in no case shall surrender be effective until Lessee shall have made full provision for conservation of the minerals and protection of -the surface rights of the Leased Premises as may be determined by Lessor. Notwithstanding the foregoing, nosurrender and.relinquishment, of this lease shall:be:effective unless and until. all reports;' documents: and information of any kind: required to -be submitted to Lessor under=this Lease;: onto 'Such.state-.agencies as. provided in this Lease have been submitted--to'Lessor or such state agency:., 27. RIGHT OF REMOVAL -- In the event this Lease is terminated by forfeiture, surrender, or the expiration of Its term, and 'ali obligations of Lessee under this Lease are satisfied; all Lessee's improvements, equipment, -man-made objects of any 'type, 'stockpiles and dumps shall • be removed from the -Leased -Page 8 of 10