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This surrender clause and option herein reserved to Lessee shall cease and become absolutely inoperative
<br />immediately and concurrently with the institution of any suit in any court of law by Lessee, Lessor or any assignee
<br />of either to enforce this lease, or any of its terms, express or implied, but in no case shall surrender be effective until
<br />Lessee shall have made full provision for conservation of the minerals and protection of the surface rights of the
<br />leased premises as may be determined by Lessor.
<br />Notwithstanding the foregoing, no surrender and relinquishment of this lease shall be effective unless and
<br />until all reports, documents and information of any kind required to be submitted to Lessor under this lease, or to
<br />such state agencies as provided in this lease have been submitted to Lessor or such state agency.
<br />29. RIGHT OF REMOVAL -- In the event this lease is terminated by surrender, or the expiration of its term, and all
<br />obligations of Lessee under this lease are satisfied, all Lessee's improvements, equipment, man-made objects of any
<br />type, including stockpiles and dumps except as these stock piles and dumps may be disposed of pursuant to the
<br />reclamation plan, shall be removed from the leased premises within six months from the date of such termination at
<br />Lessee's expense. Such removal is to be accomplished without unnecessary waste or damage to the premises and
<br />Lessee shall restore the surface of the leased premises to the same condition as immediately prior to the execution of
<br />this lease as it pertains to such removal. All improvements and equipment remaining on the leased premises six
<br />months after the termination hereof shall be forfeited automatically to Lessor without compensation and without
<br />necessity of execution of additional documents.
<br />30. CONDEMNATION -- If the Leased Premises shall be taken in any condemnation proceeding, this lease shall
<br />automatically terminate as of the date of taking. The award for such condemnation shall be paid to Lessor, except
<br />for any specific award(s) paid to Lessee for severed minerals reserves, in which event a percent of such specific
<br />award(s) equal to royalty shall be paid to Lessor in lieu of royalty lost by virtue of the condemnation. Improvements
<br />shall be removed by Lessee per terms in the RIGHT OF REMOVAL paragraph herein. If only a portion of the
<br />leased land is taken by condemnation, Lessor may, at its option, terminate this lease or terminate only that portion of
<br />the lease so taken.
<br />31. COMPLIANCE WITH LAW --Lessee shall comply fully with all the provisions, terms, conditions of all laws,
<br />whether state or federal, and orders issued thereunder, which may be in effect during the continuance hereof, which
<br />in any manner affect or control mining or other operations of Lessee, and Lessee further agrees that good mining
<br />methods shall be used at all times of active mining so long as said methods are consistent within the law.
<br />Lessee shall comply with all applicable federal, state and local environmental, wetlands protection, health and
<br />hazardous waste laws, ordinances and regulations. h1 addition to the foregoing, and not in limitation thereof. Lessee
<br />shall not cause or permit any Hazardous Material to be brought upon, kept or used in or about the Leased Premises
<br />by Lessee or Lessee's agents, employees, contractors or invitees, without the prior written consent of Lessor. If
<br />Lessee breaches the obligations stated in the preceding sentence, or if the presence of Hazardous Material on the
<br />Leased Premises caused or permitted by Lessee results in contamination of the Leased Premises, or if contamination
<br />of the Leased Premises by Hazardous Material otherwise occurs for which Lessee is legally liable, then Lessee shall
<br />indemnify, defend and hold Lessor harmless from any and all claims, judgments, damages, penalties, fines, costs,
<br />liabilities or losses (including, without limitation, diminution in value of the Leased Premises, damages for the loss
<br />or restriction on use of the Leased Premises, damages arising from any adverse impact on future leasing of the
<br />Leased Premises, and sums paid in settlement of claims, attorney fees, consultant fees and expert fees) which arise
<br />during or after the lease tern as a result of such contamination. This indemnification of Lessor by Lessee includes,
<br />without limitation, costs incurred in connection with any investigation of site conditions or any cleanup, remedial,
<br />removal, or restoration work required by any federal, state, or local governmental agency or political subdivision
<br />because of Hazardous Material present in the soil or ground water on or under the Leased Premises. Without
<br />limiting the foregoing, if the presence of any Hazardous Material on the Leased Premises caused or penmitted by
<br />Lessee results in any contamination of the Leased Premises, Lessee shall promptly take all actions at Lessee's sole
<br />expense as are necessary to return the Leased Premises to the condition existing prior to the introduction of any such
<br />Hazardous Material to the Leased Premises; provided that Lessor's approval of such actions shall first be obtained.
<br />As used herein, the term "Hazardous Material" means any hazardous or toxic substance, material or waste which is
<br />or becomes regulated by any local governmental authority, the State of Colorado or the United States Government.
<br />The term "Hazardous Material" includes, without limitation, any material or substance that is (i) defined or
<br />designated as a "hazardous substance", "hazardous waste" or a "regulated substance" under appropriate state or
<br />federal law.
<br />32. ARCHAEOLOGY -- It is contrary to State law to excavate, appropriate or disturb any historical, prehistoric or
<br />archaeological site or resource on any lands administered by Lessor. Discovery of a suspected site or resource shall
<br />be immediately brought to the attention of Lessor and the State Archaeologist or Lessee shall provide evidence that
<br />no significant archaeological sites exist on the leased premises which could be destroyed by Lessee's operations.
<br />33. DEFAULT AND FORFEITURE -- If for any reason Lessee fails to keep each and every one of the covenants and
<br />conditions herein, and if such default continues for a period of thirty (30) days after service of written notice thereof
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