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05/04/06 14:21 FAX 5094539349 COLUMBIA BASIN RR 11006
<br />( ) frock, and any provision in the insurance policy to the contrary must be specifically deleted. Each policy shall
<br />provide that It shall not be canceled or materially changed unless at least thirty (30) days' prior written notice of
<br />cancellation or change shall have been trailed by the insurance company to Lessor at the address designated herein,
<br />(d) The furnishing of insurance required by this section shall in no way limit or diminish the liability or
<br />responsibility of Lessee as provided under any section of this dues,
<br />17. LESSOR MAY AT ITS OPTION PRIOR TO CANCELLATION OF 'i'ws LEASE, REQUIRE
<br />LESSEE TO CONDUCT AN ENVIRONMENTAL AUDIT OF SAID PROPERTY, AT LESSEE'S COST AND
<br />Rat 'ENSE, TO DETERMINE IF ANY ENVIRONMENTAL DAMAGE TO SAID PROPERTY AM OCCURRED
<br />DURING LESSEE'S OCCUPANCY THEREOF, TINE AUDIT SHALL BE CONDUCTED TO LESSOR'S
<br />SATISFACTION AND A COPY OF THE AUDIT REPORT SHALL PROMPTLY BE PROVIDED TO LESSOR
<br />FOR ITS REVIEW. LESSEE SHALL PAY ALL EXPENSES FOR ANY REMEDIAL ACTION THAT MAY BE
<br />REQUIRED AS A RESULT OF SAID AUDIT TO CORRECT ANY ENVIRONMENTAL DAMAGE, AND ALL
<br />NECESSARY WORK SHALL BE PERFORMED BY LESSEE PRIOR TO CANCELLATION OF THIS LEASE.
<br />18. This Lease does not grant, convey or, transfer any right to the use of water under any water right own¢d.
<br />or claimed by the Lessor which may be appurtenant to the property. All ri�t, title, and interest in and to such *jfer
<br />Is expressly reserved unto Lessor, and the right to use same or an part thereof may be obtained only by the prior
<br />written consent of the Lessor. Lessee shall not install or permit to be installed any wells on the Property without the
<br />written consent of Lessor.
<br />19. Upon written notice from Lessor, Lessec agrees to assume the defense of any lawsuit, or other
<br />proceeding brought against Lessor by any public body, individual, partnership, corporation, or other legal entity,
<br />relating to any matter covered.by this Lease for which lessee has an obligation to assume liability for andloc save and
<br />hold harmless Lessor. Lessee shall pay all the costs incident to such defense Including, but not limited to, attorneys'
<br />fees, investigators' fees, litigation expenses, acttlement payments, and amounts paid in satisfaction of judgments,
<br />20. If default sball be made in any of the covenants or agreements of Lessee contained JD this document, or
<br />ll in case of any assignment or transfer of this Lease by operation o law, w, Lessor may, at its option, terminate this Lease
<br />J by serving five (S) days' notice In writingg upon Lessee; but any waiver by Lessor of any default or defaults shall not
<br />constitute a waiver of the right to terminate this Lease for any subsequent default or defaults, nor shall any such
<br />waiver in away affect Lessor's ability to enforce any Section of this Lease. The remedy set forth in this section
<br />add
<br />shall be In ition to, and not in limitation of, any other remedies that Lessor may have at law or in equity,
<br />21. Upon the termination of this Lease in any manner herein provided, Lessee shall relinquish possession
<br />of the Property and shall remove any improvements, and restore the Property to substantially the state and
<br />environmental condition In which it was prior to Lessee's use. In case Lessee shall fail within chitty (30) days' after
<br />the date of such termination to make such removal and restoration, then Lessor may, at Its election, (a) either remove
<br />the lmprovemems or otherwise restore We Property, aid in such event Lessee shall, within thirty (30) days' after
<br />recerpt of bill therefor, reimburse Lessor for cost incurred, or (b} upon written notice to Lessee may take and hold
<br />any improvements and pengorrat property as its sole propolty; or (c) pursue any remedy at law or In equity. In the
<br />event that the restoradon oP the Property is not completed by the date which Lessee terminates this Lease and
<br />relinquishes possession of the Property, lessee's obligation to pay an muount equal to the rental payments ender this
<br />Lease shall ecntinus until such restoration is completed. Further, ht the event Lessor has cowented to improvements
<br />re g on the Property following termirtadon, L
<br />Cos provide a Bill of Sale covering such improyementS to
<br />22. IfLessee fails to surrender to Lessor the Property, upon any terrulnWon of this Lease, all liabilities and
<br />obligations of Lessee hereunder shall continue in effect until the Property is stnrondered; and no termination shall
<br />release Lessee from any liability or obligation, whether of Indemnity or otherwise,' resulting from any events
<br />happening prior to the date of termination or the date, if later, when any Lessee -owned improvements and personal
<br />property are removed and the Property restored or Lessor elects to talar and hold any Lessee -owned improvements
<br />and personal property as its sole property as referenced in Section 21.
<br />23. In the event that Lessee consists of two or more parties, all the covenants and agreements of Lessee
<br />herein contained shall be the joint and several covenants and agreements of such parries.
<br />24. It is understood and agreed that this Lease shall not be placed of public record.
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