2011-12-21_PERMIT FILE - M2011033 (2)

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• 8. REPORTS — Oe or before the last day of each and every calendar month duringdse tura of this lease, lAuee shall make a sworn. verified. written report so Lessor in which shall be entered and set down the exact amount in too of all material removed from said premises during the preceding calendar month. Such sworn, verified, written statements shall clearly set fords the twinge as shown by production report, and shall also show the use or disposal by Lessee of such material. 9. 5.1iRRENDER — Lessee may at any time surrender and cancel this lease insofar as the same covers all or any portion of the lands herein leases and be relieved from further obligations or liability hereunder with respect to the lands so surrendered; provided that no partial surrender or cancellation of this lease shall be for less than contiguous trams of approximately forty (40) acres or CrOverarneetal lot corresponding to a quarter-quarter section; provided further that this surrender clause and sheepskin herein reserved to Lessee shall cease and become absolutely inoperative immediately and concurreody with the institution of any suit many court of taw by Lessee, Lessor or any assignee of either to enforce this lease, or any of its terms. express or implied, but in no ease shall surrender be effective until Lessee shall have made full provision for protection of the surface rights of the leases premises. 10. DONDS AND SIIII(FA_CE LSAMAGE — Lessee shall be liable and agrees to pay for all damages to the surface of the land, livestock, growing crops or improvements caused by Lessees operations no said lands. It is agreed and understood that no operations shall be commenced on the lands hertinabove described unless and until Law or his assignee shall have filed a good and sufficient bond with Lessor in an amount to be fined by Lessor, to secure the payment for such damage to the Surface of the land, livestock, growing crops or improvements as may be caused by Lessee or his assignee's operations on said lands. With Lessor's approval die bond may be waived in favor of that which may be required by the Colorado Mined Land Reclamation Division. There shall be no removal of timber without prior notice to Lessor. Any merchantable timber cut in conjunction with the proved mining plan Is to remain the property of the State. All other timber, slash, stamps, and boughs me to be disposed of by Lessee. I NOTIFICATION Of MININp ORATIONS -- If Lessor does not own or control, or has leased to a third party the surface of the Leaned Premises, Lessee shall be responsible for identifying and ligtifYing such surface owner or lessee(s) in advance of any no-site activity. Notificetion will be given 30 days in advance for untilkx1 or grazing acreage and 60 days in advance for tilled farm ground prior to any en-site activity, Lessee dun closely coordinate any on-site activity with the surface owner or *see, and make a reasonable effort to protect the integrity of surface owner's or lessees roads, feimes, gates, ealgeftearda, irrigation ditches, and other propmty. This will include fencing the mine pit to prevent cattle entry if such entry would be a hazard. 12. USLI&IMMLOS — Lessee shall indemnify Lessor against ell liability and loss, and against all claims and actions, including the defense of such claims or actions, based upon or arising out of damage or injury, including death, to persons or property caused by or sustained in connectioe with this lease or by conditions created thereby, or based upon any violation of any statute, ordinance, or regulation. 13. nRATION PLAN — All plans for mining may be requested by Lessor for review and approval before these operations begin. 14. £NVIRONMENT4L ANALYSIS — Submittal of an environmental analysis may be rewired for approval by Lessor before any exploration or mining begins on lased premises. Page 4 of 8