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�equested By: sib 031281200 <br />lnstrueent Book Page <br />2oo800696948 OR 1075 1947, <br />26. WATER AND WATER RIGHTS. If Lessee initiates or establishes any water right <br />where the point of diversion or groundwater withdrawal is on the Leased Premises and <br />where the surface is owned by the State, such water right must be obtained in the name of <br />and with the consent of the State acting by and through the Division of Wildlife. <br />Water rights and any improvement required to bring this water to the surface shall <br />become the property of the State, without cost, upon expiration or upon termination of <br />this Lease for any cause whatsoever. <br />Under no circumstance may ground water be withdrawn without first having secured the <br />permission of Lessor and may not be withdrawn at a rate higher than necessary for the <br />mining and/or processing of State minerals only. Additional payment shall be required <br />for the use of any waters. <br />Lessee agrees that, unless the consent of the Lessor is first obtained in writing, it shall not <br />discharge onto the surface overlying the Leased Premises any water that is drained or <br />used or in connection with Lessee's mining operations. <br />27. LIENS AND CLAIMS Lessee shall not suffer or permit to be enforced against the <br />Leased Premises, or any part thereof, or any improvements thereon, any liens arising <br />from, or any claim for damage growing out of the work of any construction, repair, <br />restoration, replacement or improvement, or any other claims or demand howsoever the <br />same may arise, but Lessee shall pay or cause to be paid all of said liens, claims, or <br />demands before any action is brought to enforce the same against the Leased Premises or <br />improvements. Lessee agrees to defend, indemnify and hold Lessor and the Leased <br />Premises free and harmless from all liability for any and all such liens, claims, demands, <br />and actions together with reasonable attorney fees and all costs and expenses in <br />connection therewith. <br />Lessee shall, upon execution of this Lease at its cost, prepare a Notice, pursuant to C.R.S. <br />§ 38 -22 -105 and cause the same to be posted for the purpose of protecting Lessor against <br />any liens or encumbrances upon the Leased Premises by reason of work, labor, services <br />or materials contracted for or supplied to Lessee. <br />28, SURRENDER AND RELINQUISHMENT Lessee may, at any time, surrender and <br />cancel this Lease insofar as the same covers all or any portion of the lands herein leased <br />and be relieved from further obligations or liability hereunder with respect to the lands so <br />surrendered. Provided, however, that no partial surrender or cancellation of the Lease <br />shall be for less than tracts of approximately 40 acres or governmental lot corresponding <br />to a quarter - quarter section. However, partial surrender or cancellation of a portion of <br />this Lease shall not reduce the amount of Annual Rent or Annual Advance Minimum <br />Royalty due Lessor pursuant to Sections 1 and 2 above. <br />This surrender clause and option herein reserved to Lessee shall cease and become <br />absolutely inoperative immediately and concurrently with the institution of any suit in <br />any court of law by Lessee, Lessor or any assignee of either to enforce this Lease, or any <br />of its terms, express or implied, but in no case shall surrender be effective until Lessee <br />Page 13 of 17. <br />