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18. PERMITTER'S APPROVAL -- Whenever approval by Permitter is required or contemplated by Permittee, approval
<br />must be in writing and shall be optional and shall be within the sole and absolute discretion of Permitter.
<br />19. OTHER STATE AGENCIES -- Permitter may cletermine that instruments and documents required by other State
<br />agencies satisfy certain requirements of this lease. In the event that Permittee is required to file instruments and
<br />documents with other State agencies, including the Division of Minerals and Geology, Permittee shall notify
<br />Permitter of said filing and Permitter reserves the right to request and obtain copies of such instruments and
<br />documents from the agency or from Permittee.
<br />20. INSPECTION -- It is agreed that during all proper hours and at all times during the continuance of this lease,
<br />Permitter or Permitter's duly authorized agent, is authorized to check assays and scales as to their accuracy, to go
<br />through or on any part or all of the leased premises to examine, inspect, survey and take measurements of the same
<br />and to take samples of any kind and to examine and make extracts from or copies of all books and weight sheets and
<br />records which show in any way the ore output, ore values, payments and royalties from and of the leased premises.
<br />All conveniences necessary for such inspection, survey, or examination shall be furnished to Permitter. Permitter
<br />may require Permittee to provide all instruments and documents of any kind and nature whatever which affect
<br />Permitter's interests.
<br />21._ NOTICES -- Any notice required to be given to Permittee under the provisions of this lease shall be sent by certified
<br />mail to the address set forth at the beginning of this lease or to such other address as Permittee may indicate in
<br />writing to Permitter, and such service by mail shall be•deemed sufficient and in full compliance with the terms of
<br />this lease as of the date it is postmarked. Notice to Permitter shall be given in like manner, addressed to the State
<br />Board of Land Commissioners' Denver, Colorado address.
<br />22. NOTIFICATION OF MINING OPERATIONS - -it is understood that Permitter may not own or control the surface
<br />estate of leased premises, or Permitter may have issued a surface use lease to another Permittee. Mineral Permittee
<br />shall be responsible for identifying such ownership or determining the surface Permittee or Permittees, and shall
<br />notify all such parties in advance of any on-site activity. Notification will be given thirty (30) clays for unfilled or
<br />grazing acreage and sixty (60) days for tilled farm ground prior to any on site activity. Mineral Permittee shall
<br />closely coordinate any on -site activity with the surface owner or Permittee, and make a reasonable effort to protect
<br />the integrity of surface owner's or surface Permittee's fences, gates, cattleguards, and other property.
<br />23. PROTECTION AGAINST SURFACE DAMAGE Permittee has the right to utilize as much of the surface of the
<br />lands as is reasonably necessary for mining operations; however, Permittee shall be liable and agrees to pay for all
<br />damages to the surface, livestock, growing crops, water wells, reservoirs, or other improvements caused by
<br />Permittee's operations on said lands. There shall be no removal of timber without prior notice to Permitter. Any
<br />merchantable timber cut in conjunction with the approved mining plan is to remain the property of the State. All
<br />other timber, slash, stumps, and boughs are to be disposed of by Permittee.
<br />24. HOLD HARMLESS -- Permittee shall indemnify Permitter against all liability and loss, and against all claims and
<br />actions, including the defense of such claims or actions, based upon or arising out of damage or injury, including
<br />death, to persons or property caused by or sustained in connection with this lease or by conditions created thereby,
<br />or based upon any violation of any statute, ordinance, or regulation.
<br />25. LIENS AND CLAIMS -- Permittee shall not stiffer or permit to be enforced against the leased premises, or any part
<br />thereof, or any improvements thereon, any liens arising from, or any claim for damage growing out of the work of
<br />any construction, repair, restoration, replacement or improvement, or any other claims or demand howsoever the
<br />same may arise, but Permittee shall pay or cause to be paid all of said liens, claims, or demands before any action is
<br />brought to enforce the same against the leased premises or improvements. Permittee agrees to defend, indemnify
<br />and hold Permitter and the leased premises free and harmless from all liability for any and all such liens, claims,
<br />demands, and actions together with reasonable attorney fees and all costs and expenses in connection therewith.
<br />Permittee shall, upon execution of this lease at its cost, prepare a Notice, pursuant to C.R.S. 1973,
<br />§ 38 -22 -105 and cause the same to be posted for the purpose of protecting Permitter against any liens or
<br />encumbrances upon the leased premises by reason of work, labor, services or materials contracted for or supplied to
<br />Permittee.
<br />26. BOND -- It is agreed that no operations are to be commenced on the lands herein described unless and until
<br />Permittee or Permittee's agent has filed a good and sufficient bond with Permitter in an amount fixed by Permitter, to
<br />secure the payment for damages caused by Permittee's or Permittee's agent's operations on said lands. Permitter
<br />reserves the right to grant relief from the foregoing bond requirements. Permitter may require such bond to be held
<br />in full force and effect for one year after cessation of operations for which the bond was intended. This requirement
<br />may be waived in favor of the requirements of the Division of Minerals and Geology.
<br />E.54 V-F 1 1.31"7
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