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21. NOTICES -- Any notice required to be given to Lessee under the provisions of this lease shall be sent by certified
<br />mail to the address set forth at the beginning of this lease or to such other address as Lessee may indicate in writing
<br />to Lessor, and such service by mail shall be deemed sufficient and in full compliance with the terms of this lease as
<br />of the date it is postmarked. Notice to Lessor shall be given in like manner, addressed to the State Board of Land
<br />Commissioners' Denver, Colorado address.
<br />22. NOTIFICATION OF MINING OPERATIONS--It is understood that Lessor may not own or control the surface
<br />estate of leased premises, or Lessor may have issued a surface use lease to another lessee. Mineral Lessee shall be
<br />responsible for identifying such ownership or determining the surface lessee or lessees, and shall notify all such
<br />parties in advance of any on-site activity. Notification will be given thirty (30) days for untilled or grazing acreage
<br />and sixty (60) days for tilled farm ground prior to any on site activity. Mineral Lessee shall closely coordinate any
<br />on-site activity with the surface owner or lessee, and make a reasonable effort to protect the integrity of surface
<br />owner's or surface lessee's fences, gates, cattleguards, and other property.
<br />23. PROTECTION AGAINST SURFACE DAMAGE -- Lessee has the right to utilize as much of the surface of the
<br />lands as is reasonably necessary for mining operations; however, Lessee shall be liable and agrees to pay for all
<br />damages to the surface, livestock, growing crops, water wells, reservoirs, or other improvements caused by Lessee's
<br />operations on said lands. There shall be no removal of timber without prior notice to Lessor. Any merchantable
<br />timber cut in conjunction with the approved mining plan is to remain the property of the State. All other timber,
<br />slash, stumps, and boughs are to be disposed of by Lessee.
<br />24. HOLD HARMLESS -- Lessee shall indemnify Lessor against all liability and loss, and against all claims and
<br />actions, including the defense of such claims or actions, based upon or arising out of damage or injury, including
<br />death, to persons or property caused by or sustained in connection with this lease or by conditions created thereby,
<br />or based upon any violation of any statute, ordinance, or regulation.
<br />25. LIENS AND CLAIMS -- Lessee shall not suffer or permit to be enforced against the leased premises, or any part
<br />thereof, or any improvements thereon, any liens arising from, or any claim for damage growing out of the work of
<br />any construction, repair, restoration, replacement or improvement, or any other claims or demand howsoever the
<br />same may arise, but Lessee shall pay or cause to be paid all of said liens, claims, or demands before any action is
<br />brought to enforce the same against the leased premises or improvements. Lessee agrees to defend, indemnify and
<br />hold Lessor and the leased premises free and harmless from all liability for any and all such liens, claims, demands,
<br />and actions together with reasonable attorney fees and all costs and expenses in connection therewith.
<br />Lessee shall, upon execution of this lease at its cost, prepare a Notice, pursuant to C.R.S. 1973, § 38-22-105
<br />and cause the same to be posted for the purpose of protecting Lessor against any liens or encumbrances upon the
<br />leased premises by reason of work, labor, services or materials contracted for or supplied to Lessee.
<br />26. BOND -- It is agreed that no operations are to be commenced on the lands herein described unless and until Lessee
<br />or Lessee's agent has filed a good and sufficient bond with Lessor in an amount fixed by Lessor, to secure the
<br />payment for damages caused by Lessee's or Lessee's agent's operations on said lands. Lessor reserves the right to
<br />grant relief from the foregoing bond requirements. Lessor may require such bond to be held in full force and effect
<br />for one year after cessation of operations for which the bond was intended. This requirement may be waived in
<br />favor of the requirements of the Division of Minerals and Geology.
<br />27. WATER -- If Lessee initiates or establishes any water rights for which the point of surface diversion or ground water
<br />withdrawal is on the leased premises, title to such water rights shall, upon termination of the lease, become the
<br />property of the surface owner without cost, and title to the water rights shall be conveyed to the surface owner
<br />immediately upon termination, except that if Lessor is the surface owner the water right shall be taken in the name of
<br />Lessor in the first instance and shall be the property of Lessor without cost.
<br />28. SURRENDER AND RELINQUISHMENT -- Lessee may, at any time, by paying to Lessor, all amounts then due as
<br />provided herein, surrender and cancel this lease insofar as the same covers all or any portion of the lands herein
<br />leased and be relieved from further obligations or liability hereunder with respect to the lands so surrendered;
<br />provided that no partial'surrender or cancellation of this lease shall be for less than tracts of approximately forty (40)
<br />acres or governmental lot corresponding to a quarter-quarter section, the rental being reduced proportionately.
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