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block access, stockpile materials on or conduct mining operations on (1) the areas where the
<br />residences and other.building are located on the Property, (2) the west Property boundary area
<br />where the trees, fence, cattle trail and irrigation lateral are located, and (3) the north Property
<br />boundary area where the Whitney Ditch i c t The Company will not remove the southern
<br />fence without written permission from the17he Company shall conduct all mining related
<br />operations within the State, County and Federal permit limits for the Property.
<br />B. The Company shall have the right to construct, maintain, and use roads,
<br />pipe lines, power lines, telephone lines, and stockpile areas and any right-of-way it deems
<br />necessary or desirable for its operations on the Property related to the Company's operations
<br />under this Lease. The Company shall have the right during the Term of this Lease and without
<br />payment to Lessor (except for Production Royalties payable pursuant to Paragraph 3 and
<br />Advance Minimum Royalties payable pursuant to Paragraph 4) to strip and remove overburden
<br />and otherwise to use and occupy the Property as is reasonably required in connection with
<br />mining, quarrying, extracting, processing, storage, transportation, sale and removal of Materials
<br />from the Property on which the Company is conducting operations.
<br />C. The Company shall consult with Lessor with respect to all permit
<br />applications, plans and designs of the Company; provided, however, that all final decisions on
<br />mine plans, operations, reclamation, permits and other plans of operations shall be in the
<br />Company's sole discretion and control.
<br />D. Lessor authorizes the Company on Lessor's behalf and agrees to cooperate
<br />with the Company at no additional costs to the Lessor to apply for and obtain zoning or other
<br />governmental land use classifications, permits, approvals, licenses, and rights (hereinafter
<br />"authority") that are reasonably required in connection with the operations that are contemplated
<br />under this Lease; provided, however, the Company shall provide bonds or other financial
<br />assurance for its operations, including for the restoration, reclamation or rehabilitation of the
<br />Property, as may be required or advisable to obtain such permits and approvals.
<br />8. Conveyer Easement. In addition to the other rights granted under this Lease,
<br />Lessor hereby grants to the Company an easement for the term of the Lease to erect, operate,
<br />maintain, repair and relocate a conveyor system on, over and across the Property for the purpose
<br />of conveying Materials across the Property to the Company's processing plant on the Etters
<br />Property from any pit on the Property. Such easement shall include the right of vehicular access
<br />for construction, installation, repair, operation, relocation and removal of the conveyor system.
<br />9. Waiver of Lateral Support. With the exception of (a) the west Property boundary
<br />area where the trees, fence, cattle trail and irrigation lateral are located, (b) the north Property
<br />boundary where the Whitney Ditch is located, and (3) the areas of the Property where residences
<br />are located, Lessor hereby waives the lateral support for mining purposes for the lands located
<br />between the Property's boundary lines and the boundary lines for those adjacent properties that
<br />are owned or leased by the Company, including but not limited to the Etters Property.
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