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~' + ~ • • III l~lll (~IIIIIIII~IIII MEMORANDUM OF SURFACE USE AGREEMENT THIS MEMORANDUM OF SURFACE USE AGREEMENT (the "Memorandum"), dated effective the 4th day of October, 1994, is by and .between Mic a E~b~l~e and James C. Eberle and wife, Linda K. Eberle, with an address at ~~~rts-T~e~ Craig, CO 81625 (hereinafter collectively referred to as "Surface Owner", whether one or more), and CYPRUS EMPIRE CORPORATION, a Delaware corporation, with an address at 1303 County Road 107, P. 0. Box 68, Craig, Colorado 81626 (hereinafter referred to as "Cyprus"). Surface Owner, in consideration of the covenants and agreements contained in that certain unrecorded Surface Use Agreement Ithe "Agreement") dated concurrently herewith, granted unto Cyprus certain rights to enter upon and use certain lands (the "Lands") belonging to Surface Owner as further described in Exhibit "A" attached hereto and made a part hereof, for the right to (1J survey; /21 conduct baseline environments/studies as Cyprus may desire, inc/ud/ng, but not /invited to, vegetaSon and sot! sampling and mapping, surface hydrology investigation, cultural resources survey and mitigation (if necessary) and geologic reconnaissance and exp/oration activities; (3/ construct a pad or pond fog an exp/Drat/on and/or ventilation boreho% and dri// an exp/oration boreho% (4J utilize and upgrade an existing road into the dri/ling site and construct an exp/oration road from the existing road into the dii// site; (51 insta// an a%ctric power/ine; (6/ remove and rep/ace existing drainage cu/veKS, ff any; (71 insta// subsidence monuments; (81 conduct seismic surveys; (91 construct and maintain water monitoring we!/s; and f101 conduct genera! reclamation of dri/!/bore ho% sites and other disturbed areas. The Lands are subject to all of the terms and conditions of the Agreement, reference to which may be made for a complete statement of rights and obligations of Surface Owner and Cyprus. Should there be any discrepancy between this Memorandum of Surface Use Agreement and the Agreement, the Agreement shall control. The term of the Agreement shall be for a primary term of three (3) years and shall commence on the effective date hereof. The term of the Agreement may be extended by Cyprus for, _~dditional one (1) year terms in accordance with the Agreement~t°~ S~z--j~'~ ~' Copies of the Agreement may be found at the above indicated addresses of the parties. This Memorandum may be executed in any number of counterparts and shall be binding upon all owners of interests in the Lands executing the same or a counterpart hereof, whether or not named herein as one of the Surface Owners, and whether or not other owners of interests in the Lands have executed other counterparts or have not entered into the Agreement. eomsmo.001Atp - 1 -