# OCTOBER 2005 CROW TRIBAL LEGISLATURE

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## Record

- **Collection:** Tribal code
- **Document type:** Tribal code

## Text

OCTOBER 2005 CROW TRIBAL LEGISLATURE

JOINT ACTION RESOLUTION NO. _JARO5-10

INTRODUCED BY CARL E. VENNE, CHAIRMAN
CROW TRIBAL EXECUTIVE BRANCH

JOINT ACTION RESOLUTION OF THE CROW TRIBAL LEGISLATURE AND
THE CROW TRIBAL EXECUTIVE BRANCH ENTITLED:

“FINAL APPROVAL OF THE OIL AND GAS LEASE BETWEEN THE CROW TRIBE
OF INDIANS AND GOLDEN ARROW EXPLORATION, LLC.”
“ASHCREEK”

WHEREAS, the Chairman of the Executive Branch has authority and responsibility
pursuant to the “enumerated powers” in Article IV, Section 3(f) of the Constitution and Bylaws
of the Crow Tribe of Indians to “negotiate and approve or prevent any sale, disposition, lease or
encumbrance of Tribal lands, interests in lands or other Tribal assets, including buffalo,
minerals, gas and oil with final approval granted by the Legislative Branch,” and in Article IV
Section 3(k) to “negotiate and approve limited waivers of sovereign immunity when such a
waiver is necessary for business purposes in accordance with Article V, Section 2(f) of [the]
Constitution;” and

WHEREAS, the Chairman of the Executive Branch, with the delegated assistance of
the Oil and Gas Committee headed by the Secretary of the Executive Branch, has negotiated an
Oil and Gas Lease Between the Crow Tribe of Indians and Golden Arrow Exploration, LLC,
(the “Lease”), for the exploration and production of oil and gas on approximately 440 acres
within the Crow Reservation, a copy of which is attached hereto and incorporated by reference;
and

WHEREAS, the Legislative Branch has authority and responsibility pursuant to its
“powers and duties” in Article V, Section 2(d) of the Constitution “to grant final approval or
disapproval of items negotiated by the Executive Branch of Government pertinent to the sale,
disposition, lease or encumbrance of Tribal lands, interests in lands or mineral assets,” and in
Article V, Section 2(f) to “grant final approval or disapproval of limited waivers of sovereign
immunity by the Executive Branch when waivers are necessary for business purposes;” and

WHEREAS, at the time this Joint Action Resolution was submitted to the Legislature
in order to comply with Article V, Section 7 of the Constitution, the parties had reached
agreement on the substantive terms of the Lease, and were in the process of finalizing the legal
terms of the Lease, and the final Lease attached hereto has been submitted to and reviewed by
the Legislature; and

WHEREAS, exploration for and development of Tribal oil and gas resources is in the
best interests of the Tribe and Tribal members, and the Lease provides for such exploration and

October 2005
JAR Golden Arrow Lease
Page 1 of 3

development on a fair, environmentally responsible, and commercially sound basis, and the
limited waiver of the Tribe’s sovereign immunity in the Lease is necessary for business
purposes; and

WHEREAS, after approval by the Legislature and Executive Branch of the Crow
Tribe, the Lease is subject to approval by the Secretary of the Interior or her designee, pursuant
to the Indian Mineral Development Act of 1982 (25 U.S.C. § 2101, et seq.) and other
applicable Federal law;

NOW THEREFORE, BE IT RESOLVED BY THE LEGISLATURE AND THE
EXECUTIVE BRANCH OF THE CROW TRIBE: :

Section 1.. That the “Oil and Gas Lease Between the Crow Tribe of Indians and
Golden Arrow Exploration, LLC — Ashcreek” including the limited waiver of sovereign
immunity contained therein, attached hereto and incorporated by this reference, is
hereby granted final approval pursuant to Article V, Sections 2(d) and 2(f) of the
Constitution and Bylaws of the Crow Tribe.

Section 2. That the Chairman of the Executive Branch is authorized to sign and
execute the above-referenced. Lease on behalf of the Crow Tribe, and to take such further
actions as are necessary to implement and administer the Agreement.

Section 3. That the final approval granted herein is effective on the date of
approval of this Resolution, and is subject only to such farther approvals as are required
by Federal law.

CERTIFICATION
I hereby certify that this Joint Action Resolution “FINAL APPROVAL OF THE OIL AND
GAS LEASE BETWEEN THE CROW TRIBE OF INDIANS AND GOLDEN ARROW

EXPLORATION, LLC — ASHCREEK” was duly approved by the Crow Tribal Legislature
with a vote of 13 in favor, _1 opposed, and _0_ abstained and that a quorum was present on

this 12" day of October, 2005.
\w See gO

Speaker of the House }
Crow Tribal Legislat

ATTEST:

cretary, Crow Tribal Legislature

October 2005
JAR Golden Arrow Lease
Page 2 of 3

EXECUTIVE ACTION

Thereby

_£—“ approve,

___veto

this Joint Action Resolution “FINAL APPROVAL OF THE OIL AND GAS LEASE
BETWEEN THE CROW TRIBE OF INDIANS AND GOLDEN ARROW
EXPLORATION, LLC — ASHCREEK” pursuant to the authority vested in the Chairman of
the Crow Tribe by Article V, Section 8 and Article IV, Sections 3(f) and 3(k) of the
Constitution and Bylaws of the Crow Tribe of Indians on this gr day of

DL , 2005.
Lk he

CZ Executive Branch
Crow Tribe of Indians

October 2005
JAR Golden Arrow Lease
Page 3 of 3

Final Approval of the ciland Gas Lease between the.
Cyous Tri be of Tndians and Golden Avors Eyplarachén,
LL. ¢-Asheveek..

Bill or Resolution Number JAR 65-1) Introduced rye sive Date of Vote Orley la, 2005

Representative

No Abstain

re
g

B. Cloud .

C. Goes Ahead
O. Costa

V. Crooked Arm
R. Iron

J. Stewart

E. Fighter

CAKINA AK

L. Costa

\

L. Hogan
D. Old Elk
K. Real Bird

E. Pease

NON INAS

S. Medicine Horse
L. Not Afraid
P. Real Bird

D. Wilson

J. Stone
Secretary of the House

W. Plain Feather VA

Speaker of the House

Totals: ] 3 } _O. -

Results of Vote: ;
Not oF Tabled Veto Override

105

Signature of Off

Contract No.

Allotment No. :

OIL AND GAS LEASE

BETWEEN

THE CROW TRIBE OF INDIANS OF THE CROW INDIAN RESERVATION

AND

GOLDEN ARROW EXPLORATION, LLC

Ashcreek

TABLE OF CONTENTS

DEFINITIONS .......cscessscseecsesscerssssessssssseessessenscnssesatacneerenenees 2
1.1. . "Actual Drilling" ...... 2
1.2 "Authorized Officer" wee
1.3. “Effective Date" 0... ccsessssssesssessenesssseetenenetanencesersesssersscnsssansene 2
LA © "Gas" coc esssesesrenesersessesessnesecseceeessentsesecnscnssensenseeteanenasosenscassosensones 2
1.5 "Hazardous Materials" 2
1.6 = "Planned Depth” 2.0... ssssssssessssessessesesneeseesenrsnteneenenees 3
B.7 MOT" ee eccccsesescceectesensecsresessenssnsesesasossesssssesneacaeenenene a3
1.8 "Paying Quantities” ..... 3
1.9 — "Radioactive Materials” .. 3
1.10 "Reclamation Activities" 3
LAL "Reservation .....c.ecceessseessssssessesssssesssesssescesoesenesenenaneassenenenessareeens 3
1.12 “Secretary” ......cececsesseserseeeeees 3
1.13 "Tribal Minerals Department?” ............scssessecssereeteseneneene wie
B14 "Tribe" eee ccesesesessessceecesccesseatsecsesesssucscssssansseessseseeseansessansennenens 4
LEASED PREMISES. .......s::scssssssseccesessessessssscesesesessecassssesseseenensnaneensatoness 4
2.1 Lease of Premises 4
2.2 Limitation on Use of Leased Premises: Additional Purposes ....... 5
2.3 RES@TVatiONS .......eessesessseccsssesesseeseestesssaeseeterseneseneenssarsesessoaseseneese
2.3.1 Mineral Estate 0... eseesesseeeneeeee im
2.3.2 Surface Estate... cesesssssssssssssssenseessesssesenseesoeseesneneesseenes

CONDITION OF LEASED PREMISES .......sscsssscessssssssessesenesseeseneeneseteeees 6
3.1 Examination of Leased Premises: No Warranties .. 6
3.2 Access to Leased Premises ..........sccssssssssseseecesssesserenssessneneasensves 6
TERM ceccssccssssssesssssssscsssensesvecsecncersusssssnevesuseseusussseseencaseassnceneneensensesesenesass 7
41 Term o....-cesscssesseesesscesteneesreseeseenes we 7
4.2 Drilling At Expiration of the Term 0.0.0.0... esectecseseeeneneensseenses 7
4.3 Temporary Cessation of Production .........:sssssssssseereereeneeseeseeseese 7
PAYMENTS TO LESSOR uu... ecessessssssesssssasssssccesseassoseassasesaserseeesensesees 8
3.1 Bonuses .........00000+ . 8
5.2 Royalty ...... . 8
5.3 PayMeNts oo... sesesscsecessceseceesscenseseesenseneneneencscereessssvensssseaverorssesnersestes 9
5.4 Inspections and Audits ........scessessessssssessecseessesseeseeneencenscusensensenvenness 10
WELLS. iccecccscsscssssesssssersnsecccecsesecerseenssesssecssssensssscenessacseenssesesecneaeseeaconseenens 10
6.1 Obligation to File APD and Drill Wells ...... . 10
6.2 Diligent Development ............ cscs il
6.3 Development of Horizons ............. . 12
6.4 Drilling and Producing Restrictions .............ssssssesesseeseeseeseeeeenenee 12
6.5 LOGS w.sseoccssscssssesescsesesseccessesseessscseeseasseseneseseescesseenssasssesvensassnsveoesotes 13

10.

11.

12.

13,

14.

15.

16.

6.6 Prevention of Waste ........cccccssscesssenscerseessstenssstscassscessesseeeeenserneeee

6.7 Drainage 00... sssssssesssssssessesscerereesnenesenee

6.8 Unit Operation ..........sseesesecseesneeeenees

6.9 Water Well Conditioning .
6.10 Shut-In Gas Wells 0.0... cssssesssssersereesseeseescsenecnsennssneansorserseennses
WATER USE AND FACILITIES ....cscsssssssessssessessesnesersesseressnssescerseesees 16
7.1. Water Injection .

7.2 Water Metering

PROPERTY BELONGING TO LESSEE ......cscsssseceeessesessssevensenseaseneenes 17
ASSIGNMENT,SUBLEASE, OR TRANSFER .......:ssssssseesetsetseevesenceseenenee 18
INDEMNIFICATION AGREEMENT ........csssssssesreeseseressnensnssensetsossavesseee 19

10.1 Indemmification 0... ce cesssscseeeseesseeseees wee 19
10.1.1 Losses 1... . 19
10.1.2 Remedial Work .............. . 20

10.2 Defense or Prosecution of Claims .... 21
10.3 Payment of Losses .....c.ssssssossegeerersersecneenessesaononssnnssessnssseessenrseees 22
10.4 Identification of Hazardous Materials seseee 22
10.5 Hold Harmless ............cccseseesseseees 23
10.6 Pre-Existing Conditions ......... wee 23
10.7 Survival of Section. ..........c:csesesssscessessnssssseseesesesensenseaseneeeseesenenseee 23
NON-RESPONSIBILITY NOTICES. ou... ssscsssesssscresscesecserenseneenesesssenes 24
BONDS. oooceccccscccscccessscesssccssecssesscstscsserencssaccescescesnessescegscnsnsesesesatsesesseneesenes 24
12.1 Performance Bonds ............003+ wee 24
12.2 Cash in Lieu of Performance Bond ............+ - 24
INSURANCE

13.1 Public Liability Insurance ........cccccscsecsssesseessessererseseseseensnsneseenes 25
13.2 Fire and Damage Insurance 25

13.3. Workers' Compensation and Occupational Disease Insurance:

Applicable Law .....sssccsscsssessssssssesssseessessreseensessersanssssnsncassrseenee
13.4 Form and Copies of Policies ..
13.5 Self-Insurance ..........:.cssssssesceeseetessncesessscensanscseseeesseseerensseateensenseese
13.6 Periodic Review of Bonds and Insurance ............cccssessceressereeeees 26
COMPANIES BONDING AND INSURING ou... sseeessssesesceeeencneeeeseeneeee 27
FORCE MAJEURE weseeccesscsssssssessscsesecessssesesssevensssensessessssseossscansceusensanseees 27
LIENS. TAXES, ASSESSMENTS AND UTILITY CHARGES ...........0 27

OF Delinquency ........essesescsesessessesesetsesseenecncncensnsssessencencaneseaseanes 28
16.3 Lessor May Pay Liens or Charges Payable to Lessee . 29
16.4 Lessee's Right to Challenge or Defend ............-:sssesesseessersereseers 29

17. SURRENDER. uosecsccsssessssesscecesrenrsesesscenessseseesseessessesssencneseensusssavassansenseseesenes 29
18. DISPUTES ou.ceccssssssscsscssssossecessssectcnesessessssessscenensseavensseseenenenegnsasseseasoosoonss 30
18.1 Arbitration ooo... ccesessssseseecsseedeceessessesseesenesceseaseesenssetsestearecssesoanees 30
18.1.1 Disputes Subject to Arbitration 0.1.2... 30
18.1.2 Initiation of Arbitration; Selection of Arbitrators .. 130
18.1.3 Arbitration Procedures ....... wd
18.2. Cancellation and Noncompliance 31
18.3 Recourse to Other Remedies ...............- . 32
18.4 Bankruptcy, Dissolution, or Receivership -...........cssssesssssseneseseees 32
18.5 Expenses of Dispute Resolution ............esssssssssssesseestersssenrenneens 32
19. ANTIQUITIES o.n...ssseessesssesssessscsssessesenesensensseasccesecnecensesnsrsnssssssaransansnssees 33
20. TRIBAL JURISDICTION «0.0... ccccecsscssessesssssssscsesseseseensseessessenessenenescencseenees 33
21. © GOVERNING LAW; CHOICE OF LAW wv.seecssscstessseseessseersnsereneeteene 33
22, LIMITED WAIVER OF SOVEREIGN IMMUNITY .......sesecsseesesseeeeenes 34
23. CONTESTS AFFECTING SOVEREIGNTY ue .sssessssseessesseesrsrsntoereaeenees 35
24. PREFERENCE FOR INDIANS. .......cccscccescssscesssssenreentecteaceneeeneensensessaoeeenes 35
D5. NOTICES ciicececscsccsssesssecssesessesceeeneersessssssscsescsnssssseseacaesecarsesessessansesesanonenses 35
26. TERMINATION OF FEDERAL TRUST ou... csccscssessssesreressensnsenensaceneate 36
27. LESSEE'S OBLIGATION TO THE UNITED STATES OF AMERICA . 36
28. DELIVERY OF PREMISES. ........cccsccccscssssssssssesesscensssssesessassenesessesseneaenneeees 37
29. RESTRICTION OF LEASE INTERESTS. ou... cssssssssessseseesessenenenseeaseeesnes 37
30. LEASE BINDING. .........ceccccccesecorsessessenssscersntsssecasesseessscsecsessasneeasneserecasenees 37
31. CONFIDENTIALITY o...... ee cesssesscsscssessssscorseseesnceasersessesseseeescenseneeteesauenuaves 37
32. DELAY OR OMISSION .......cccsscececsssesessesssesssssssssssssseessssensensassesssenseenees 38

16.1 TAX€S coecescsesscesssecssssctecssscscesscssscaessensenceenensssssesneatengnensoresersseseeeoran 28
16.2 Lessee to Discharge Liens and Taxes Prior to Enforcement

iii

33.

34.

35.

36.

37.

ENTIRE AGREEMENT
35.1 Entire Agreement

35.2 No Amendment Except as Provided Herein 39
SEVERABILITY .......e:ssecsssssetecsssorsseserssscssenessensssssseeeeacseaeeaeassssansnsesneneanes 40
SECRETARY'S APPROVAL ou.esssesssssesssssessesessesessaneescesssssnseseseeseensesenenees 40

THE CROW TRIBE OF INDIANS
OF THE CROW INDIAN RESERVATION

Lease No.

| Contract No.

OIL AND GAS LEASE
BETWEEN
THE CROW TRIBE OF INDIANS
AND
GOLDEN ARROW EXPLORATION, LLC

THIS LEASE is made and entered into in quintuplicate this day of
, 2005, by and between the Crow Tribe of Indians of the Crow Indian

Reservation, a sovereign government and federally-recognized Indian tribe, whose address is
P.O. 159, Crow Agency, MT 59022 (hereinafter referred to collectively as “Lessor”), and Golden
Arrow Exploration, LLC, whose address is 319 S Gillette Ave, Suite 269, Gillette, WY. 82716

(hereinafter referred to as “Lessee”). This lease is entered into pursuant to the Indian Mineral

Development Act of 1982 (25 U.S.C. § 2101 et seq.), the Federal Oil and Gas Royalty
Management Act. of 1982 (30 U.S.C. § 1701 et seq,), other applicable federal laws and
regulations, including but not limited to 43 C.F.R. Part 3160, Onshore Oil and Gas Operations:
General, and 30 C.F.R. Part 200, Royalty Management, and the laws of the Crow Indian
Reservation, iricluding all amendments to all of the above.

1 DEFINITIONS.

1.1 “Actual Drilling” means spudding in a well on the Leased Premises and
continuing diligent drilling practices to the Planned Depth.

1.2 “Authorized Officer? means any entity. or individual authorized by the
Secretary to perform duties with respect to this lease or the regulations applicable hereto.

1.3 “Effective Date” means the first day of the month following the date of
approval of this lease-by the Secretary.

1.4 “Gas” means.any fluid, either combustible or noncombustible, hydrocarbon or
nonhydrocarbon, which is extracted from a reservoir and which has neither independent shape or
volume, but tends to expand indefinitely. It is a substance that exists in a gaseous or rarified

state under standard temperature and pressure conditions.

1.5 “Hazardous Materials” means any substance, material, or waste, excluding oil
and gas, now or hereafter determined by any federal, state, or tribal governmental authority to
pose an actual risk of injury to health, safety, or property and including, but not limited to, any
substance, material, or waste: (i) containing asbestos or Radioactive Materials, but excluding any
preexisting naturally occurring Radioactive Materials; (ii) now or hereafter defined as a
“hazardous waste,” “hazardous material,” “hazardous substance,” “extremely hazardous waste,”

or “restricted hazardous waste” under any provision of applicable federal, state, or tribal law; (iii)

now or hereafter defined as “hazardous waste” pursuant to § 1004 of the Resource Conservation

and Recovery Act (“RCRA”), 42 U.S.C. § 6903; or (iv) now or hereafter defined as a “hazardous
substance” pursuant to § 101 of the Comprehensive Environmental Response, Compensation and
Liability Act (“CERCLA”), 42 U.S.C. § 9601 et seq. Hazardous Materials shall not include

materials used routinely in the development and production of Oil and Gas.

1.6 “Planned Depth” means the depth where the formation that is the target

formation of the well is found, or the planned footage depth of a well, whichever is deeper.

1.7 “Oil” means a mixture of hydrocarbons that existed in a liquid phase. in
natural underground reservoirs and remains liquid at atmospheric pressure after passing through
surface separating facilities and is marked or used as such. Condensate recovered in lease

separators or field facilities is considered to be oil.

1.8 “Paying Quantities” means a well producing, or capable of producing as
provided in Section 6.10, sufficient production to produce income in an amount necessary to (a)
operate and maintain the well, (b) maintain the lease, (c) market the product, and (d) result in a

reasonable profit.

1.9 “Radioactive Materials” means any material which exhibits the phenomenon
of spontaneously emitting radiation resulting from changes in the nuclei of atoms of the element.

1:10 “Reclamation Activities” shall mean those actions required under applicable
law to close each well or unit, including, but not limited to, plugging or abandoning of wells, or
those actions required to close Lessee’s activities in and on the entire leasehold in compliance

with applicable laws and regulations, as the context requires.

1.11 “Reservation” means those lands encompassed within the exterior boundaries of

the Crow Indian Reservation.

1.12 ° “Secretary” means the Secretary of the Interior of the United Stats of America

or his-duly authorized representative.

1.13 “Tribal Minerals Department” means the Minerals Department of the Tribe.

1.14 . “Tribe” means the Crow Tribe of Indians of the Crow Indian Reservation.

2 LEASED PREMISES.
2.1 Lease of Premises.

For and in consideration of the payments to Lessor herein provided and the
covenants of Lessee herein contained, Lessor hereby grants, leases, and lets exclusively unto
Lessee for the purposes of investigating, exploring, prospecting, drilling and mining for and
producing Oil and Gas, including all associated hydrocarbons produced in liquid or gaseous
form, laying pipe lines, building roads, tanks, power stations, telephone lines, and other
structures thereon to produce, save, take care of, treat, transport, and own such products, and
performing any required Reclamation Activities, Lessor’s mineral interests within the followingdescribed tracts of land situated in the Crow Indian Reservation, Big Horn County, Montana, and
more particularly described as follows:

Township 9 South. e 37 East, M.P.M.

Section 26: N%; N“%SE“; NE“SW'

containing 440 acres more or less (hereinafter referred to as “Leased

Premises”).
2.2 Limitation On Use Of Leased Premises: Additional Purposes.

The Leased Premises shall not be used by Lessee for any purpose or purposes
other than those specified above, or specifically granted elsewhere in this lease, and Lessee

agrees to use the Leased Premises only for these purposes. However, Lessee may use the Leased

Premises for any additional lawful purpose, including but not limited to seismic work, injecting

gas, water, and other fluids and air into subsurface areas, when specifically authorized hereafter
by written consent of Lessor and the Secretary, which consent may be withheld, granted, or

granted upon conditions, in the reasonable discretion of Lessor and the Secretary.
2.3. Reservations.
2.3.1 Mineral Estate.

The Tribe expressly excepts from this agreement and reserves to the Tribe,
all minerals of every kind and character in, on, and under the Leased Premises, other than the Oil
and Gas as herein defined. However, the movement or use of minerals, soils, sand, and rock by
the Lessee for the purpose of constructing and improving the Leased Premises as required by this
lease shall be permitted and shall not be construed as mining.

2.3.2 Surface Estate.

The Lessor reserves the right, subject to the superior right of the Lessee to
the use of so much of the surface of the Leased Premises as is necessary for the Lessee to
exercise the rights granted under this Lease, to lease, sell, or otherwise dispose of the surface of
the Leased Premises under existing law or laws hereafter enacted and to use said land and the
surface thereof to investigate, explore, prospect, drill, and mine for and produce all such other
minerals, including but not limited the right to construct, operate, and maintain works, buildings,
plants, waterways, roads, communication lines, pipelines, reservoirs, tanks, pumping stations,
wells, offices, utilities, and other structures necessary or convenient for enjoyment of the rights

excepted and reserved hereunder.

3 CONDITION OF LEASED PREMISES.
3.1 Examination of Leased Premises; No Warranties.

Lessee has examined and knows the Leased Premises. No warranties or
representations, express or implied, as to the title, condition or status of the Leased Premises
have been made by Lessor or any agent of Lessor prior to or at the time of execution of this
lease. Lessee warrants that it has not relied on any warranty or representation made by or for

Lessor, but has relied solely upon Lessee’s independent investigation.

3.2 Access to Leased Premises.

Lessor hereby grants to Lessee the non-exclusive right for continuous ingress and
egress by motor vehicles (including trucks) and on foot over the lands of Lessor from any
established highway or secondary road to the perimeter of the Leased Premises as may be
reasonably necessary to carry on the work authorized herein; provided, that Lessor shall not be
required to make any expenditure of money to construct or maintain any such route. Such
ingress and egress shall be by the least damaging route to the Leased Premises and construction
of permanent roadways shall be subject to the prior approval of the Tribe. Lessee shall be
responsible for repairing any material damage done or caused to be done to Lessor’s land in

exercising this right and Lessee shall bear the cost and expense of such repair.

4 TERM.

4.1 Term.

The term of this lease shall be Five (5) years (“Terms”), beginning on the
Effective Date of this lease, and shall continue so long thereafter as oil or gas is produced in
Paying Quantities from the Leased Premises. There must be production in Paying Quantities of

any Oil and Gas at the expiration of the Term in order for this lease to continue beyond the Term.

4.2 Drilling At Expiration Of The Term.

If-at the expiration of the Term Lessee is engaged in the Actual Drilling of a well
on the leased premises and there are no other wells on the Leased Premises, or on lands pooled,
unitized, or communitized therewith, which are producing in Paying Quantities, this lease shall
not terminate so long as Lessee shall pursue the Actual Drilling of such well with reasonable
diligence to completion or abandonment. If such well shall produce in Paying Quantities, the
well shall be treated as a well producing in Paying Quantities for purposes of this lease
continuing beyond the Term. If such well shall not produce in Paying Quantities, this lease shall

terminate on abandonment according to the lease terms.

43 Temporary Cessation Of Production.

If at the end of the Term a well on the Leased Premises, or on lands pooled,
unitized, or communitized therewith, capable of producing in Paying Quantities, temporarily has
ceased to produce due to mechanical problems or because of deepening, plugging back, or other
operations and there are no other wells on the Leased Premises, or on lands pooled, unitized, or
communitized therewith, which are producing in Paying Quantities, nevertheless: such well shall
be deemed to be a well on the Leased Premises producing in Paying Quantities and this lease
will continue in force during all of the time or times this lease may be held by production;
provided, that this lease shall terminate if Lessee does not commence operations upon such well
or commence drilling operations on a new well within ninety (90) days from cessation of
production and, after commencing operations within said period, if production in Paying

Quantities has not resumed within one hundred eighty (180) days from commencing operations.

5 PAYMENTS TO LESSOR.

Lessee covenants and agrees to pay to Lessor the following payments (“Lease

Payments”) for use of the Leased Premises:

5.1 Bonus.

Lessee shall pay to Lessor a cash bonus on or before the Effective Date in the
amount of $10.00 per net mineral acre owned by the Tribe. The Bonus, whole or in part, shall
not be credited against royalty, or prorated or refunded for any reason whatsoever. Lessee shall
pay an additional bonus of $10.00 per Tribal net mineral acre upon the spudding of a well on the
Leased Premises, said payment being due within thirty (30) days of spudding said well.

5.2. Royalty.

In addition to the Bonus and Annual Rental, Lessee shall pay to Lessor a Royalty
of twenty percent (20%) of the gross value of all Oil and Gas produced, sold, or saved from the
Leased Premises, save and except Oil and Gas used by Lessee for development and operational
purposes on the Leased Premises which Oil and Gas shall be royalty free. Lessor shall have the
right to elect on thirty (30) days written notice to take Lessor’s royalty in kind. When paid in
value, Royalties shall be due and payable monthly on the last day of the calendar month
following the calendar month in which produced, sold, or saved.

“Value” may, in the discretion of the Secretary, be calculated on the basis of
the highest price paid or offered (whether calculated on the basis of short or actual volume) at the
time of production for the major portion of the oil of the same gravity, and gas, and/or natural
gasoline, and/or all other hydrocarbon substances produced, sold, and saved from the field where
the Leased Premises are situated, and the actual volume of the marketable product less the
content of foreign substances as determined by the Authorized Officer. It is understood that, in
determining the value for royalty purposes of products, such as natural gasoline; that are derived
from treatment of gas, a reasonable allowance for the cost of manufacture shal! be made, such
allowances for the costs of manufacturing and transportation of such products shall be no greater

than two-thirds of the value of the marketable product.

When Royalty on Oil produced is paid in kind, such royalty oil shall be
delivered, at such time as may be required by Lessor, in Lessee’s tanks on the premises where

produced as reasonably may be required by Lessor without cost to Lessor, unless otherwise

agreed to by the parties; provided, that Lessee shall not be required to hold such royalty oil in

storage longer than thirty (30) days after the end of the calendar month in which such oil is
produced; and provided further, that Lessee in no manner shall be responsible for, or held liable
for loss or destruction of such oil in storage, unless the loss or destruction is caused by the
Lessee’s negligence, gross negligence, and/or willful misconduct. When Royalty on Gas
produced is paid in kind, such royalty gas shall be delivered by Lessee to a mutually acceptable

place in the gathering line or pipeline to which the well is connected at no cost to Lessor.

5.3 Payments.

All payments due hereunder shall be paid in advance without prior written notice
or demand on or before their due date in accordance with applicable laws and regulations.
Interest shall be paid on all late payments from the due date to the date of payment, computed on
an annual rate three percentage points above the prime rate as set by the Citibank N. A. of New
York on the first day of the month in which demand is made by Lessor, provided, that the prime
rate for purposes: of this subsection shall not be less than six percent (6%) per annum. Lessee
shall furnish to the Lessor and the Secretary monthly statements in such forms as may be
prescribed by the Secretary, and furnish Lessor with any hard copy printout if an automated data
processing system is used. Monthly statements shall be filed with Lessor within sixty (60) days
of the last. day of the month covered by the report.

5.4 Inspections and Audits.

Lessee agrees to allow the Lessor and its agents or any authorized representative
of the Secretary to enter, from time to time, upon and into all parts of the Leased Premises for the
purposes of inspection, and shall further agree to keep a full and correct account of all operations
and make reports thereof, as required by the regulations of the Secretary governing operations on
public and restricted Indian lands; and Lessee’s books and records, showing manner of
operations and persons interested, shall be open at all times for audits relating to the scope,
nature, and extent of compliance with the lease or with applicable laws, regulations, or orders by
Lessor or such officers of the Secretary as shall be instructed in writing by the Secretary or
authorized by regulations to make such audit. Lessor and the Secretary shall provide reasonable

notice to-Lessee of its intent to audit Lessee’s books and records. Lessee shall maintain its books
and records and they shall be available for audit for the maximum period required by applicable
law or regulations. Duly authorized representatives of the Tribal Minerals Department shall have
the right to issue written notices of probable violations of applicable federal and tribal laws and

regulations.

6 WELLS.

6.1 Diligent Development.

Lessee shall exercise reasonable diligence in drilling and operating wells for Oil
and Gas on the Leased Premises while such products can be secured in Paying Quantities. At the
election of Lessee, Lessee may drill and produce wells; provided, that the right to drill and
produce such wells shall be subject to any system of well spacing or production allotments
authorized and approved under applicable law or regulations, approved by the Secretary, and
affecting the field or area in which the Leased Premises are situated.

6.2 . Development Of Horizons.

Lessee shall have ten (10) years from the Effective Date to develop all horizons
on the Leased Premises. All horizons above the bottom hole depth of any well producing in
Paying Quantities shall be deemed developed. At the expiration of such five (5) year period,
Lessee shall have no right to and shall release those horizons below the then deepest horizon

producing in Paying Quantities.

If at the end of the five (5) years a well on the Leased Premises capable of
producing in Paying Quantities, temporarily has ceased to produce due to mechanical problems
or because of deepening, plugging back, or other operations and there are no other wells on the

Leased Premises, or on lands pooled, unitized, or communitized therewith, which are producing

10

in Paying Quantities, nevertheless such well shall be deemed to be a well on the Leased Premises
producing in Paying Quantities and this lease will continue in force during all of the time or
times this lease may be held by production; provided, that this lease shall terminate if Lessee
does not commence operations upon such well or commence drilling operations on a new well
within ninety (90) days from cessation of production and, after commencing operations within
said period, if production in Paying Quantities has not resumed within one hundred eighty (180)

days from commencing operations.

6.3 Drilling And Producing Restrictions.

Lessor and Lessee agree that the Secretary may impose restrictions as to time or
times for drilling wells and as to the production from any well or wells drilled when, in his
judgment, such action may be necessary or proper for the protection of the natural resources of
the Leased Premises and the interests of Lessor. In the exercise of his judgment, the Secretary
may take into consideration, among other things, federal and tribal laws and regulations, and
lawful agreements among operators regulating either drilling or production.

6.5 Logs.

Lessee shall maintain and provide to Lessor or the Secretary upon request a
complete set of all seismic data (geological and/or geophysical), any and all data pertaining to
core descriptions, lithology logs, electronic logging surveys, LIS digital tapes, all final stack
seismic data, and all information pertaining to test date of useful water which are developed by
the Lessee or at its direction in connection with Lessee’s activities on the Leased Premises.
When requested by Lessor, Lessee shall show and explain final interpretations to Lessor, but
shall not be required to provide copies of such interpretations to Lessor. All logs shall be made
available to a designated representative of Lessor for inspection, if Lessor so requests, not later
than forty-eight (48) hours after having been run. Any copies of logs provided to Lessor or the
Secretary shall be held confidential and shall not be released or made available to any other party
until six months after completing of each well, unless Lessee gives written permission to release

logs sooner.

il

6.6 Prevention Of Waste.

; Lessee shall exercise diligence in drilling and operating wells for oil and gas on
the Leased Premises while ‘such products can be secured in Paying Quantities; carry on all
operations in a good and workmanlike manner in accordance with approved methods and
practice, having due regard for the prevention of waste of Oil or Gas developed on the Leased
Premises, or of the entrance of water through wells drilled by Lessee into the productive sands or
oil or gas-bearing strata to the destruction or injury of the Oil or Gas deposits, the preservation
and conservation of the Leased Premises for future productive operations, and to the health and
safety of workmen and employees. Lessee agrees to plug securely all wells before abandoning
the same; to shut off effectually all water form the oil or gas-bearing strata; not drill any well
within 200 feet of any house or barn on or near the Leased Premises without Lessor’s written
consent; carry out'at Lessee’s expense all reasonable orders and requirements of the Authorized
Officer relative to prevention of waste, preservation of the Leased Premises, and the health and
safety of workmen; bury all pipelines crossing tillable lands below plow depth; as determined by
the ‘Authorized Officer, unless other arrangements therefore are made with the Authorized
Officer; pay all damages to corps, buildings, and other improvements on the premises occasioned
by Lessee’s operations; provided, that Lessee shall not be held responsible for delays or

casualties occasioned or caused by force majeure.

Lessee must thoroughly clean all vehicles and equipment used so that no
halogeton or other noxious or poisonous plants may be introduced or spread on Reservation
lands. Should an infestation of halogeton or other noxious or poisonous plants be found either
on a temporary or permanent base of operations or along access roads or trails used and/or
constructed by Lessee, Lessee shall be required, if responsible for the infestation, to provide
control measures.as directed by the Authorized Officer or Lessor. The Secretary and Lessor

shall bear the burden of proof on the issue of Lessee’s responsibility for the infestation.

6.7 Drainage.

Lessee shall drill and produce all wells necessary to offset or protect the Leased
Premises from drainage, including from adjoining lands of Lessor which are under lease to the
Lessee at a royalty rate less than that called for by this lease or, in lieu thereof, to compensate
Lessor in full each month for the estimated loss of royalty through drainage; provided that during
the period of supervision by the Secretary the necessity for offset wells shall be determined by
the Authorized Officer after affording Lessor and Lessee a reasonable opportunity to be heard on
the issue and payment in lieu of drilling and production shall be with the consent of, and inan

amount determined by, the Secretary.

6.8 Unit Operation.

No agreement for the cooperative or unit development (“pooling”) for the field or
area affecting the Leased Premises, or any pool thereof, shall be valid or binding without the
advance ‘written consent of Lessor and the Secretary. Notwithstanding any other provisions
herein, upon the pooling of part of the leased premises, this lease shall be severed and shall be
considered as:separate and distinct leases on (a) the pooled acreage and (b) the rest of the leased
premises; such severance shall result each time, and from time to time, whenever pooling occurs;
and the term of each resulting lease caused by any such severance, and all the rights and
obligations of Lessee under each such lease, shall apply separately to the acreage attributable to
the particular lease under the foregoing severance, with every resulting lease being considered as

separate and independent form every other lease.

6.9 Water Well Conditioning.

If so required by the Secretary in writing and with the written consent of the
Tribes, Lessee shall condition, under the direction of the Authorized Officer, any wells drilled
which do not produce Oil and Gas in Paying Quantities, but which are capable of producing
water satisfactory for domestic, agricultural, or livestock use by Lessor, provided that the volume
of water produced is in excess of the needs for well operations on the Leased Premises. The

reasonable costs for conditioning of the well will be borne by Lessor and Lessor shall provide

assurances to Lessee that such costs will be paid. After a well is conditioned as provided for

herein, Lessee shall be relieved from all of its plugging and abandonment responsibilities and
such wells shall thereafter be the sole responsibility of Lessor.

6.10 Shut-In Gas Wells.

If a well capable of producing Gas or Gas and gas-condensate in. Paying
Quantities located on the Leased Premises, or on lands pooled, unitized or communitized
therewith, is at any time shut-in due to market conditions or lack of any available pipeline, no
Gas or gas-condensate therefrom is sold or used off the Leased Premises or for the manufacture
of gasoline or other produces, and the lease is not otherwise being maintained, nevertheless such
shut-in well. shall be deemed to be a well on the Leased Premises producing Gas in Paying
Quantities and this lease will continue in force during all of the time or times while such well is
so shut-in if the Lessee remits to the Lessor those shut-in payments called for herein. Lessee,
with due diligence as a prudent operator, shall make reasonable efforts to open markets for such
production but is under no obligation to market production except pursuant to prudent terms and
conditions. Lessee shall use due diligence to market Gas or Gas and gas-condensate capable of
being produced from a shut-in well but shall be under no obligation to market such products
under ‘terms, conditions, or circumstances which, in Lessee’s reasonable judgment, are
unsatisfactory. If a well is shut-in for a continuous period in excess of thirty (30) consecutive
days, or during a calendar year for a cumulative period in excess of ninety (90) days, Lessee
shall pay or tender to Lessor, in addition to all other Lease Payments, a shut-in royalty under the
conditions and in the amounts hereafter specified, which shut-in royalty shall be computed in the

same manner as Annual Rentals are computed:

A.) As to each year of the first three years from the date of first production during
which a well is shut-in on one or more occasions for a continuous period in excess
of the 30-day period above stated, or for a cumulative period in excess of the 90-
day period above stated, Lessee shall pay or tender to Lessor within forty-five

(45) days after the next ensuing anniversary date of first production a total amount
equal to Five Dollars ($5.00) per acre;

B.) As to each year after the first three years from the date of first production in
excess of the 30-day period above stated, or for a cumulative period in excess of
90-day. period stated, Lessee shall pay or tender to Lessor within forty-five (45)
days after the next ensuing anniversary date of the first production a total amount
equal to Ten Dollars ($10.00) per acre.

All such shut-in payments shall be deemed Royalties under this lease but shall not
be credited against future Royalties once production resumes. No such shut-in Royalty payment
shall limit or discharge Lessee from its obligation to develop reasonably the Leased Premises, or

serve to extend any Term of this lease, except as provided herein.

7 WATER USE AND FACILITIES,

7A Water Injection.

The Tribes shall provide and Lessee shall obtain a water permit for each well
drilled or reentered on the Leased Premises. The water permit fee shall be $500.00 per well.
Water: permits shall allow the Lessee to utilize water of the Tribes for all drilling related
operations, excluding such water as may be used in any enhanced hydrocarbon recovery system.
Any water obtained off the Leased Premises from the Tribes and used for enhanced hydrocarbon
recovery operations, except water that is produced in conjunction with Oil and Gas from a
hydrocarbon producing formation, shall be purchased by Lessee from Lessor at a rate to be
determined at the time such water is required. Nothing in this section shall relieve Lessee from

compliance with federal and tribal laws and regulations for water use.

7.2 Water Metering.

To facilitate the accounting of water use, Lessee shall maintain accurate and
complete records of the sources and amounts of water used on the Leased Premises, shall furnish

such records to Lessor on request, and shall install metering or measuring devices on all wells

capable of producing water, other than wells used solely for groundwater monitoring. Any such

metering or measuring devices shall be nonresettable and certified for accuracy on an annual

basis by an independent technician.

8 PROPERTY BELONGING TO LESSEE.

If Léssor shall so elect in writing within ninety (90) days from the termination or
expiration of this lease, it may purchase any or all of the buildings, structures, materials, tools,
machinery, appliances, and equipment, including casing in wells on the Leased Premises
(“Equipment”) placed in or upon the Leased Premises by Lessee and shall pay to Lessee such
sum as may be agreed to by the parties or, if the parties cannot reach agreement, a reasonable
price shall be fixed by a board of three appraisers, one of whom shall be chosen by Lessor, one
by Lessee, and one by the two so chosen. Pending such purchase, all Equipment, Lessee shall
remove it within a period of one hundred eighty (180) days following the earlier of the end of the
above-referenced ninety (90) day period or actual written notice of Lessor’s election not to
purchase. If Lessee does not remove the Equipment within the one hundred eighty (180) day
period, Lessor shall have the option to remove the Equipment at Lessee’s sole cost and risk, or to

transfer ownership of the Equipment to Lessor at no cost to Lessor.

9 ASSIGNMENT, SUBLEASE, OR TRANSFER.

Lessee shall not assign this lease or any interest therein, shall not sublet any portion of
the Leased Premises, and shall not transfer any interest therein, except with the approval of
Lessor and the Secretary, which approval shall not be unreasonably withheld. No sublease,
assignment, or transfer shall be valid or binding upon Lessor without Lessor’s written approval.
If this lease is divided by the assignment, sublease, or transfer of an entire interest in any part,
including a stratigraphic horizon, each part shall be considered a separate lease under all the

terms and conditions of this original lease, including any modifications or renewals approved in

conjunction with the approval of such assignment or transfer. Lessor’s approval of one sublease,

assignment, or transfer shall not validate a subsequent sublease, assignment, or transfer, and the
restrictions of this Section: shall apply to each sublease, assignment, or transfer hereunder and
shall be severally binding upon each and every sublessee, assignee, transferee, and each and

evety corporate successor or other successor in interest of Lessee.

This Section shall not apply to a mortgage, security interest, or other encumbrance of
the lease for purposes of financing development of the Leased Premises. This Section shall not
apply to: any assignment or transfer if the assignment or transfer is to any person, firm,
corporation, or other business entity which is owned or controlled by Lessee, in whole or in part,
nor by a subsidiary or affiliate of Lessee and which owns or control Lessee, in whole or in part,
and of which Lessee is a subsidiary or affiliate, except that Lessee by written notice shall notify
the Lessor and the Secretary of such assignment or transfer. The term “contro!” shall mean the
direct or indirect power to direct or cause the direction of the management and policies of Lessee
or its parent corporation, whether through the ownership of voting securities, by contract, or

otherwise.

Agreements creating overriding royalties or for payments out of production shall not be
considered as an interest, assignment, sublet or transfer of an interest in the lease as used and
prohibited in this section. Agreements creating overriding royalties or for payments out of
production or agreements designating operators to be. paid out of production are hereby
authorized, but such agreements shall be subject to the condition that nothing in such agreement
shall be construed as modifying the obligations of Lessee herein. Such agreements shall be filed

with the Lessor and the Superintendent.

10 INDEMNIFICATION AGREEMENT.

10.1 Indemnification.

10.1.1 Losses

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Lessee agrees to indemnify, protect, release, and hold harmless Lessor and
the Secretary from and against all losses, liabilities, damages, costs, investigations, obligations,
claims, penalties, causes of action, monitoring, costs, and expenses (including but not limited to
reasonable attorney fees, consultant fees and costs, expert fees and costs, laboratory testing,
remediation and settlement costs, and claims, including, without limitation, third-party claims,
whether for personal injury or real or personal property damage or otherwise, or administrative
and informal proceedings)(“Losses”), incurred by Lessor and resulting or arising from Lessee’s
acts or omissions in connection with: (i) any breach of any representation, covenant, or warranty
made by Lessee in the Lease or in any certificates or other instruments delivered by or on behalf
of the Lessee pursuant thereto; (ii) any violation of the Worker Adjustment and Retraining
Notification Act, 29 U.S.C. § 2101 et seq., and the regulations thereunder (the “WARN Act”);
(iii) the use, non-use, storage, release, disposal, or generation by Lessee, or its agents,
employees, contractors, or invitees, of any Hazardous Material in, on, under, or about the Leased
Premises; or (iv) any accident, injury to, or death of persons, or loss of or damage to property

occurring on or about the Leased Premises or any portion thereof.

The remediation referred to above shall specifically cover Losses
incurred in connection with the investigation or monitoring of site conditions, any cleanup,
containment, remedial, removal, or restoration work required by applicable law and performed
by-any federal, state, or tribal governmental agency or political subdivision, or performed by any
nongovernmental entity or person because of the presence or suspected presence or release or
threatened or suspected release of any Hazardous Materials in or into the air, soil, groundwater,
or surface water at, on, under, or above the Leased Premises, and losses arising from any claims

of third parties for loss or damage due to such presence or release of Hazardous Materials.

10.1.2. Remedial Work

If any investigation, testing, or monitoring. of site conditions or any

cleanup, containment, restoration, removal, or other remedial work (collectively the “Remedial

Work”) is required under any applicable federal, state, or tribal law or regulation, by any judicial

order, or by any governmental entity, or is required to comply with any agreements of Lessee
affecting the Leased Premises, then Lessee is obligated to indemnify Lessor, and Lessee shall
either perform or cause to be performed the Remedial Work in compliance with such law,
regulation, order, agreement, or recommendation, or shall promptly reimburse Lessor for the cost
of such Remedial Work, approved in advance in writing by Lessor. All costs and expenses of
such Remedial Work shall be paid either directly, or in the form of reimbursement to Lessor, by
Lessee: including, without limitation, the charges of the contractor(s) and/or the consulting
engineer, and Lessor’s reasonable attorney and paralegal fees and costs incurred in connection
with monitoring or reviewing such Remedial Work. If Lessee shall fail to timely commence, or
cause to be commenced, or fail to diligently prosecute to completion, such Remedial Work,
Lessor may cause such Remedial Work to be performed, and all costs and expenses thereof, or
incurred in connection therewith, shall be Losses within the meaning of 10.1.1 above. It is
agreed and understood that such indemnification shall not extend to losses incurred by Lessor in
connection with Section 10.1.1 (i) to (v) and resulting from Lessor’s sole negligence, gross

negligence and/or willful misconduct.

10.2 Defense Or Prosecution Of Claims.

If the facts giving rise to any indemnification provided for herein shall involve
any actual or threatened claim or demand by any person other than a party hereto, the Lessee
shall be entitled, upon its selection, by written notice given to the Lessor within fifteen (15) days
of receiving notice of such claim or demand [or, in the case of summary proceedings, five (5)
days after the date on which notice of the claim or demand is given to the Lessee (without
prejudice to the right to Lessor to participate at its expense through counsel of its own choosing)]
to assume the defense or prosecution of such claim and any litigation resulting therefrom at its
expense and through counsel of its own choosing; provided, however, that, if by reason of the
claim of such third party, a lien, attachment, garnishment, or execution is placed upon any of the
Lessor’s property or assets, the Lessee, if it desires to exercise its right to defend or prosecute

such claim or litigation, shall furnish a satisfactory indemnity bond to obtain the prompt release

of such lien, attachment, garnishment, or execution; and provided further, that Lessor shall

control the defense of itself in any litigation instituted against it without prejudice to its rights to
be indemnified hereunder or to participate in such action, if not named as a party.

If the Lessee assumes the defense or prosecution of any such claim or
litigation, it shall take all steps necessary in the defense, prosecution, or settlement of such claim
or litigation and shall hold Lessor harmless from and against all losses caused by or arising out
of any settlement thereof or any judgment in connection therewith (other than its expenses for
participating in such defense, prosecution, or settlement). The Lessee shall not, in the defense or
prosecution of such claim or litigation, except with the written consent of Lessor, consent to the
entry of any judgment or enter into any settlement that does not include as an unconditional term
thereof the giving to Lessor by the third party of a release from all liability regarding such claim
or litigation. If the Lessee fails to assume the defense or prosecution of any such claim or
litigation, the Lessor may defend against or prosecute such claim or litigation in such manner as
it may deem. appropriate and may settle such claim or litigation, after giving written notice
thereof to Lessee; on such terms as Lessor may deem appropriate; and Lessee will promptly
reimburse Lessor for the “losses” incurred as a result of such settlement, together with the
amount of all reasonable legal and other expenses incurred by Lessor in connection with the
defense, prosecution, or settlement of such claim or litigation. If no settlement of such claim or
litigation is made, Lessee shall promptly reimburse Lessor for the amount of any judgment
rendered with respect to such claim or such litigation and for all reasonable expenses, legal and

other, incurred by Lessor in connection with any such judgment.

10.3. Payment Of Losses.

Each Loss determined to be payable by Lessee under the terms hereof shall be
paid in cash to Lessor within thirty (30) days after the date on which Lessee is notified in writing
of such amount. Each such notice shall contain an itemization of the damages, expense, costs,
and liabilities comprising the Loss, certified to be ttue and correct by Lessor or its legal

representative.

10.4 Identification Of Hazardous Materials.

If at any time either party shall become aware of, or have reasonable cause to
believe, that any Hazardous Materials, except Hazardous Materials brought onto the Leased
Premises by Lessee or naturally occurring on the Leased Premises and routinely used in the
development and production of Oil and Gas, have come to be located in, on, under, or about the
Leased Premises, the party shall, immediately upon discovering such presence or suspected
presence of Hazardous Materials, give written notice of that condition to the other party. In
addition, each party shall immediately notify the other, in writing, of: (i) any enforcement,
cleanup, removal, or other governmental or regulatory action instituted, completed, or threatened
relating to any Hazardous Materials on or about the Leased Premises; (ii) any claim made or
threatened by any person against either party relating to damages, losses, or injury claimed to
result from the presence or threat of Hazardous Materials on or to the Leased Premises; and (iii)
any reports made to any tribal, state, or federal environmental agency arising out of or in
connection with any Hazardous Materials on or about the Leased Premises, including but not
limited to any complaints, notices, warnings, or asserted violations in connection therewith, of
which the party becomes aware. Each Party shall also supply the other as promptly as possible
with, and in any event within five (5) business days after receiving, such copies of all claims,
reports, complaints, notices, warnings, or asserted violations relating in any way to the Leased

Premises or use thereof.
10.5 Hold Harmless.

Neither Lessor or the United States, nor their officers, agents, or employees shall
be liable for any loss, damage, death, or injury of any kind whatsoever to the person or property
of Lessee, any sublessees, or any other person whomsoever which may be caused by Lessee’s
use of the Leased Premises or by any defect in any structure Lessee may erect thereon, arising
from any accident, fire, other casualty on the Leased Premises, or other cause whatsoever, and
Lessee hereby releases and agrees to hold harmless Lessor, the United States and their officers,
agents, and employees from such liability, except to the extent such loss, damage, death, or
injury results from the negligence of the Tribes, the United States, or their officers, agents, or

employees.

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/tribal%3Acrow_montana%3A533acaf4853c4301. Public record. Not legal advice.