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27. WATER -- If Permittee initiates or establishes any water rights for which the point of surface diversion or ground <br />water withdrawal is on the leased premises, title to such water rights shall, upon termination of the lease, become the <br />property of the surface owner without cost, and title to the water rights shall be conveyed to the surface owner <br />immediately upon termination, except that if Permitter is the surface owner the water right shall be taken in the name <br />of Permitter in the first instance and shall be the property of Permitter without cost. <br />28. SURRENDER AND RELINQUISHMENT -- Permittee may, at any time, by paying to Permitter, all amounts then <br />due as provided herein, surrender and cancel this lease insofar as the same covers all or any portion of the lands <br />herein leased and be relieved from further obligations or liability hereunder with respect to the lands so surrendered; <br />provided that no partial surrender or cancellation of this lease shall be for less than tracts of approximately forty (40) <br />acres or governmental lot corresponding to a quarter- quarter section, the rental being reduced proportionately. <br />This surrender clause and option herein reserved to Permittee shall cease and become absolutely inoperative <br />immediately and concurrently with the institution of any suit in any court of law by Permittee, Permitter or any <br />assignee of either to enforce this lease, or any of its terms, express or implied, but in no case shall surrender be <br />effective until Permittee shall have made full provision for conservation of the minerals and protection of the surface <br />rights of the leased premises as may be determined by Permitter. <br />Notwithstanding the foregoing, no surrender anq relinquishment of this lease shall be effective unless and <br />until all reports, documents and information of any kind required to be submitted to Permitter under this lease, or to <br />such state agencies as provided in this lease have been submitted to Permitter or such state agency. <br />29. RIGHT OF REMOVAL -- In the event this lease is terminated by surrender, or the expiration of its term, and all <br />obligations of Permittee under this lease are satisfied, all Permittee's improvements, equipment, man -made objects of <br />any type, including stockpiles and dumps except as these stock piles and dumps may be disposed of pursuant to the <br />reclamation plan, shall be removed from the leased premises within six months from the date of such termination at <br />Permittee's expense. Such removal is to be accomplished without unnecessary waste or damage to the premises and <br />Permittee shall restore the surface of the leased premises to the same condition as immediately prior to the execution <br />of this lease as it pertains to such removal. All improvements and equipment remaining on the leased premises six <br />months after the termination hereof shall be forfeited automatically to Permitter without compensation and without <br />necessity of execution of additional documents. <br />30. CONDEMNATION -- If the Leased Premises shall be taken in any condemnation proceeding, this lease shall <br />automatically terminate as of the date of taking. The award for such condemnation shall be paid to Permitter, except <br />for any specific award(s) paid to Permittee for severed minerals reserves, in which event a percent of such specific <br />award(s) equal to royalty shall be paid to Permitter in lieu of royalty lost by virtue of the condemnation. <br />Improvements shall be removed by Permittee per terms in the RIGHT OF REMOVAL paragraph herein. If only a <br />portion of the leased land is taken by condemnation, Permitter pray, at its option, terminate this lease or terminate <br />only that portion of the lease so taken. <br />31. COMPLIANCE WITH LAW -- Permittee shall comply fully with all the provisions, terms, conditions of all laws, <br />whether state or federal, and orders issued thereunder, which may be in effect during the continuance hereof, which <br />in any manner affect or control mining or other operations of Permittee, and Permittee further agrees that good <br />mining methods shall be used at all times of active mining so long as said methods are consistent within the law. <br />Permittee shall comply with all applicable federal, state and local environmental, wetlands protection, health <br />and hazardous waste laws, ordinances and regulations. In addition to the foregoing, and not in limitation thereof, <br />Permittee shall not cause or permit any Hazardous Material to be brought upon, kept or used in or about the Leased <br />Premises by Permittee or Permittee's agents, employees, contractors or invitees, without the prior written consent of <br />Permitter. If Permittee breaches the obligations stated in the preceding sentence, or if the presence of Hazardous <br />Material on the Leased Premises caused or permitted by Permittee results in contamination of the Leased Premises, <br />or if contamination of the Leased Premises by Hazardous Material otherwise occurs for which Permittee is legally <br />liable, then Permittee shall indemnify, defend and hold Permitter harmless front any and all claims, judgments, <br />damages, penalties, fines, costs, liabilities or losses (including, Without limitation, diminution in value of the Leased <br />Premises, damages for the loss or restriction on use of the Leased Premises, damages arising front any adverse <br />impact on future leasing of the Leased Premises, and sums paid in settlement of claims, attorney fees, consultant fees <br />and expert fees) which arise during or after the lease term as a result of such contamination. This indemnification of <br />Permitter by Permittee includes, without limitation, costs incurred in connection with any investigation of site <br />conditions or any cleanup, remedial, removal, or restoration work required by any federal, state, or local <br />governmental agency or political subdivision because of Hazardous Material present in the soil or ground water on <br />or under the Leased Premises. Without limiting the foregoing, if the presence of any Hazardous Material on the <br />Leased Premises caused or permitted by Permittee results in any contamination of the Leased Premises, Permittee <br />shall promptly take all actions at Permittee's sole expense as are necessary to return the Leased Premises to the <br />condition existing prior to the introduction of any such Hazardous Material to the Leased Premises; provided that <br />Permitters approval of such actions shall first be obtained. As used herein, the term "Hazardous Material" means <br />Page 5 of 6 <br />