2010-09-02_PERMIT FILE - C1981012

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Requested By: sib 0312812008 fnstrusent book Page 200800696948 OR 1075 1944 Copies of all instruments of every kind and nature whatsoever, including but not limited to sublease agreements, affecting this Lease shall be provided to Lessor. 14. REPORTS AND RECORDS After Lessee has received the necessary permit from DBMS, it is agreed that on or before the last day of each month during the term of this Lease, Lessee shall submit a sworn, verified, written report to Lessor, in which report shall be entered and set down the exact amount in weight of all products and the assay thereof mined and removed from the Leased Premises during the preceding calendar month. Lessee agrees to keep and to have in possession complete and accurate books and records showing the production and disposition of any and all substances produced from the Leased Premises along with purchaser's support documentation and to permit Lessor, at all reasonable hours, to examine the same or to furnish copies of same to Lessor within 60 days following written request. All said books and records shall be retained by Lessee and made available to Lessor for a period of not less than 6 years at a location within Colorado. If any such examination shall reveal, or if either party shall discover any error or inaccuracy in its own or the other parry's statement, payment, determination, then proper adjustment or correction thereof shall be made as promptly as practicable thereafter, except that no adjustment or correction shall be made if more than 10 years have elapsed between the time the error or inaccuracy occurred and the discovery by either party of said error or inaccuracy. Further, Lessee shall famish annually a complete operations report to Lessor disclosing the number of tons and the assay thereof of all ores, minerals and other materials mined from the Leased Premises during the preceding year. Lessee shall also furnish in said report geologic interpretations and recoverable reserve calculations, and maps and cross sections showing location of any mineral bearing outcrops, drill holes, trenches, ore bodies and other prospecting and exploration activities, along with assays showing the amount of mineral contained in the ore. The records required to be maintained by Lessee and provided to Lessor upon request include logs of all strata penetrated and all geologic and hydrologic conditions encountered, and copies of in -hole surveys — this information to be collected and prepared under the supervision of a qualified geologist, geological engineer or mining engineer. Other qualified persons may collect and prepare this data, if agreed to in writing between Lessee and Lessor. Lessee shall submit, if required by Lessor, additional reports, records or documents regarding Lessee's operations. Except as otherwise limited in paragraph E on page 3 of this Lease, Lessee shall be liable and agrees to pay for all damages to the surface, livestock, growing crops, water wells, reservoirs, or other improvements caused by Lessee's operations on said lands; furthermore, Lessee shall be responsible for the eradication and control of noxious weeds on the Leased Premises as a result of Lessee's operations or subsidence. Further, it is understood that Lessee shall assume responsibility for all claims arising from damages to the surface above the Leased Premises caused by Lessee's operations. Lessee shall submit, if required by Lessor, such additional reports, records or documents regarding Lessee's operations on the Leased Premises as necessary for the purpose of determining compliance with lease provisions. 15. OPERATION PLAN With respect to each plan of operations or mine plan affecting the captioned land that Lessee plans to submit to DRMS and/or the Mine Safety and Health Page 10 of 17.