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2equested Bye sit, 0312812008 <br />instrueent Book Pase <br />200800696948 OR 1075 1946 <br />21. EXPLORATION An exploration Notice of Intent submitted to and approved by DRMS <br />is required and must be obtained before any field work of any type or kind is undertaken. <br />A restoration bond with DRMS is required in conjunction with this Notice of Intent. The <br />bond required by DRMS for exploration activities shall be the sole bond required, unless <br />a change in applicable laws, rules or regulations requires an increase in or additional <br />bonding; in which case the appropriate bonding will be implemented. The proposed type <br />and method of exploration shall be outlined on the application for an exploration permit. <br />Lessee is required to keep an accurate log or record of all subsurface exploration. This <br />exploration work shall be described by legal descriptions that include a survey corner <br />established by an official USGS survey. All such logs and/or records may be requested <br />by Lessor at any time, but Lessor agrees that during the term of this Lease all such <br />information so supplied by Lessee shall remain confidential and unpublished insofar as it <br />is consistent within the law. <br />22. PROTECTION AGAINST SURFACE DAMAGE. Lessee shall assume responsibility <br />for all claims arising from damages to the surface caused by Lessee's operations. Except <br />as otherwise limited in paragraph E on page 3 of this Lease, Lessee shall be liable and <br />agrees to pay for all damages to the surface, livestock, growing crops, water wells, <br />reservoirs or other improvements caused by Lessee's operations. Lessee shall be <br />responsible for the eradication and control of noxious weeds on the Leased Premises as a <br />result of Lessee's operations or subsidence. <br />23. LESSOR'S APPROVAL Whenever approval by Lessor is required or contemplated by <br />Lessee, approval must be in writing and shall be within the sole and absolute discretion of <br />Lessor, except as otherwise specifically provided. <br />24. HOLD HARMLESS Lessee shall indemnify Lessor against all liability and loss, and <br />against all claims and actions, including the defense of such claims or actions, based upon <br />or arising out of damage or injury, including death, to persons or property caused by or <br />sustained in connection with this Lease or by conditions created thereby, or based upon <br />any violation of any statute, ordinance, or regulation. <br />25. COAL MINE GAS It is recognized that this Lease does not grant to Lessee the right to <br />produce, save and/or sell methane gas or other volatile gas located within mineable coal <br />measures or roofs and floors of mineable coal measures; however, Lessee has the right to <br />remove such gas as a mining safety procedure prior to mining. Gas that is uneconomical <br />to produce may be vented or flared provided that the venting or flaring complies with all <br />federal, state and local requirements. Methane gas or other volatile gases produced by <br />the oil and gas lessees from the mineable coal measures and from Roofs and Floors of <br />mineable coal measures prior to mining shall be the property of the oil and gas lessee <br />under the terms of the oil and gas lease, so long as the terms in this paragraph are <br />consistent within the law. " Roof ' means the rock immediately above and in contact with <br />the mineable coal measure. " Floor " means the rock immediately below and in contact <br />with the mineable coal measure. <br />Page 12 of 17. <br />