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<br />MEMORANDUM OF SURFACE USE AGREEMENT <br />THIS MEMORANDUM OF SURFACE USE AGREEMENT (the "Memorandum"), dated <br />effective the day of August, 1995, is by and between James <br />Jeffrey Mitchell and Kathleen C. Mitchell, husband and wife, with <br />an address at 109 E. Victory Way, Craig, Colorado 81625; and Bobby <br />Jo Mitchell naming Jeff Mitchell as attorney in fact in Power of <br />Attorney as recorded March 7, 1986 in Book 566 at Page 942 as found <br />in the Clerk and Recorder's office of Moffat County, Colorado whose <br />address is 109 E. Victory Way, Craig, Colorado 81625 (hereinafter <br />referred to as "Surface Owners," whether one or more), and CYPRUS <br />EMPIRE CORPORATION, a Delaware corporation, with an address at 1303 <br />County Road 107, P. 0. Box 68, Craig, Colorado 81626 (hereinafter <br />referred to as "Cyprus") <br />Surface Owners, in consideration of the covenants and agreements <br />contained in that certain unrecorded Subsidence and Surface Use <br />Agreement (the "Agreement") dated concurrently herewith, granted <br />unto Cyprus certain rights to enter upon and use certain lands (the <br />"Lands") belonging to Surface Owners as further described in <br />Exhibit "A" attached hereto and made a part hereof, for the right <br />to (1) survey; (2) conduct baseline environmental studies as Cyprus <br />may desire, including, but not limited to, vegetation and soil <br />sampling and mapping, surface hydrology investigation, cultural <br />resources survey and mitigation (if necessary) and geologic <br />reconnaissance and exploration activities; (3) construct a pad or <br />pond for an exploration and/or ventilation borehole and drill an <br />exploration borehole; (4) utilize an existing road into the <br />drilling site and construct an exploration road from the existing <br />road into the drill site and (5) conduct general reclamation <br />of drill/bore hole sites and other disturbed areas. <br />The Lands are subject to all of the terms and conditions of the <br />Agreement, reference to which may be made for a complete statement <br />of rights and obligations of Surface Owners and Cyprus. Should <br />there be any discrepancy between this Memorandum of Subsidence and <br />Surface Use Agreement and the Agreement, the Agreement shall <br />control. <br />The term of the Agreement shall be for a primary term of three (3) <br />months and shall commence on the effective date hereof. <br />Copies of the Agreement may be found at the above indicated <br />addresses of the parties. <br />io <br />