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EXHIBIT "B" <br />Attached to and made a part of that certain Surface Use and Subsidence Agreement <br />dated effective the 1st day of August, 1995 between Kenneth R. Ashley & Co., <br />Surface Owner, and Cyprus Western Coal Company. <br />MEMORANDUM OF SURFACE USE <br />AND SUBSIDENCE AGREEMENT <br />THIS MEMORANDUM OF SURFACE USE AND SUBSIDENCE AGREEMENT (the <br />"Memorandum "), dated effective the 1st day of August, 1995, is by and between <br />KENNETH R. ASHLEY & CO., a Colorado partnership, with an address of 5227 South <br />County Road #7, Fort Collins, Colorado 80525 (hereinafter referred to as "Surface <br />Owner "), and CYPRUS WESTERN COAL COMPANY, a Delaware corporation, with an <br />address at 29587 Routt County Road #27, Oak Creek, Colorado 80467 (hereinafter <br />referred to as "Cyprus "). <br />Surface Owner, in consideration of the covenants and agreements contained in that <br />certain unrecorded Surface Use and Subsidence Agreement (the "Agreement ") dated <br />concurrently herewith, granted unto Cyprus certain rights to enter upon and use <br />certain lands (the "Lands ") belonging to Surface Owner as further described in Exhibit <br />"A" attached hereto and made a part hereof, for the purpose of (1) grazinglpastunng <br />of animals and hayfng with the specific restriction that Cypnrs shall not plant or grow <br />wheat on said lands; (2) subsiding the surface of the lands and any and a# structures <br />located in, on or under the surface of the lands; (3) making repairs to the surface of <br />said Lands and any and all structures, including water wells and septic systems, <br />located in, on or under the surface of the Lands, as may be needed or required and <br />which islare a direct result of subsidence due to the underground mining operations <br />of Cyprus; (4) prohibiting the construction or placement of dwellings and occupancy <br />thereof, wells and septic system within the boundary of the Lands from the effective <br />date of this Agreement and for a period of one (1) year after the cessation of longwall <br />equipment operation underneath the Lands; (5) surveying; (6) conducting <br />environmental studies as Cyprus may desire, including, but not limited to, vegetation <br />and soil sampling and mapping, hydrologic investigations, cuhural resources survey and <br />mitigation (if necessary), engineering studies and geologic studiesrnvestigations, <br />including, but not limited to exploration drilling and construction of subsidence <br />monuments; (7) installation of an electric powed1ne; (8) removal and replacement of <br />drainage culverts, if necessary; and (9) general reclamation of disturbed areas. <br />Surface Owner specifically authorizes Cyprus to undermine any and all improvements, <br />including occupied structures, which are located within one hundred feet (1001 of <br />Cyprus' underground mining operations. <br />The Lands are subject to all of the terms and conditions of the Agreement, including, <br />but not limited to the right of first refusal of Cyprus to purchase the Lands, reference <br />to which may be made for a complete statement of rights and obligations of Surface <br />Owner and Cyprus. The terms and conditions of the Agreement are covenants running <br />casubsia.006 tg -14- <br />