2009-08-28_PERMIT FILE - M2009035 (3)

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r 4. Thi primary term of this lease shall be five (5) years. Lessee sMll have the right and option to extend the lease for an • ------------ • additional five year period by giving; Lesser its notice of i:at`c:t. to extend prior to the expiration of th3 primary tern., provided, however, that no ssuch extension shall ba granted if, a?ter a Eriblic hazing, Whs "razz C'J=ty C.'9, 1'_'s W -; On..e=a !-q -M that Lessee h-MM, fai ? ad to comply with the terms of this lease or with the tarza of its C1: N. rr, p? TY'.? J J L.{...1 M r. C e1.?' ill 1:ca Special use Permit ¢rom ?r/Lu?ri mesa County Commiesionerm dct3r °_::e that ha _*Y alty b-sing; aid at the end of the primary term is sic,nificantly below the prevailing market rate for such royalties, the royalty for the renewal berm shall be renegotiated to an amount not excsading that E.a hat rate. S. Yn consideration of this L-eace ,Vra +:t, a.'1°.e: each amd every coveatant of Lessor herein cam t aired, Corn agrees to pay to Lessor as follows: A. An advance royalty of $4,000.00 shall be paid to Lessor upon the signing of this *_esse and , - additional 54,000.00 advance royalty sh-a-11 be maid = sack arw iv:rx`=_v of. its effective date. "-':lase pal tc -hill be advance royalties and not in addition to the production royalty described below. Thum, no monthly production royalty ahm-11 be paid in any lease year until a sufficient quan-tity of material has been removed to offset the $4,000.00 advance royalty paid in that- year and to- offset- any- advance- royalty - - - paid in previous lease years not already offset by the actual removal of material f:om the psemisev. if the. lease fails to become effective because the permits described in paragraph 3 are not issuad, the $4,000.00 advance royalty paid upon the signing of this Lease athall he refunded to Corn., s. A production royalty Shall be Maid to Lamson at :he rate of $0.32 per ton of smnd and gravel mined from the pr?.saz, subject tJ increase as }provided hereinafter. C. IfAe royalty to ba paid to Lessor shall be subject to increase such year 4-in acctr&-wa wl-a tho pasce-,%kt canqa- It the• Ceuasusaer Price Zmdzu CIS S7 - 1.00) - AIT I Urban Cons-ra fo: the. area ©L Denver, Colox4ttEa, as jsb°ir,l--?A by the United yta'tes Department of Labor. At the and of eaa,41 Lease Strom:, it-lass rzXt current: available laadex shall be consulted and the percent chsnga from one year prior thereto as revealed therein shall be initially --- - ---------applied -to--the r- $0-02--per--ton- and thereafter--to- the-new- price per ton eurrftAtly being paid. The new price per ton shall theca control for the next ensuing lease year. For cxa ale, if th-a 'percent change from one year ago' as is available in the most recent publication at the end of the first lease yet:. =a- ports an increase of 10.0 ps-=cent, the price be°.,-g Mid for the first lease year shall Omni increase, -for ths na:cr l1Va myths by 10 percent (.10 a .32 4 .32 = 35). S eon:-yy at the tad of the ana:eias, lazsa year, he royalty for ks ensuing lease year shall be detemBined by the pert the-gees s revealed in the nest recant publication available at the etd of the sscondl lease ya-- and spplie d to the figm a .35. tha owailty ahall he reC?-rpt-taa4 in the xr!- Mnzmer 01- the =4 cf *&--h ioaw rem--. 0. 00raa tahail E6o h s ?.,,.w ,x•r+ Frith a written s?stca?? ??_ ??=>; t `s; pis r :.d by it der s?;? 0 -2-