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AGREEMENT AND STIPULATION <br />An Agreement and Stipulation made this (L day of ~. 1982, <br />between Seneca Coals, Ltd. ("Seneca"), a joint venturt consisting o ea Coal <br />Company, a Delaware corporation, and Western Utility Corporation, a Colorado corpor- <br />ation, and Faye S. Temple, Marvin D. l-Judson, Frmkie T. Hudson, hlubert 8. Epps, end <br />Daisey J. Epps, individuals (collectively referred to as "Landowner"); <br />RECITALS <br />1. By an irutrument entitled "Coal Mining Lease", dated July 2, 1974 ("Surface <br />Lease") Landowner grmted Peabody Coal Company,, a venturer in the Seneca joint <br />venture, coal mining rights on certain fords owned by Landowner in Routt County, <br />Colorado ("Lords"). Seneca is presently developing and applying for the necessary <br />permits for a surface coal mine ("Mine") encompassing the Lands. <br />2. A small stock water pond ("existing pond") is locattd on the Lands within the <br />SENE, Section 22, TSN, R88W. The existing pond overlies coal and may be destroyed in <br />the course of Seneca's surface mining operations. The location of the existing pond is <br />more specifically described as point A an the map attached hereto and incorporated <br />herein as Exhibit A. <br />3. Seneca plans to construct near the location designated point B on Exhibit A, a <br />sedimentation pond ("new pond"), with an initial storage capacity of approximately 19.86 <br />acre-feet, for purposes of controlling sediment from lands disturbed by mining. The new <br />pond would be a necessary and integral part of the mining operations. <br />4. Seneca's need for the new pond would cease upon completion of mining and <br />reclamation activities, Iwt following such mining and reclamation, the new pond would <br />constitute a valuable improvement to the property, would be useful to Landowner as a <br />stock water pond, and would materially benefit Landowner's use of the property for <br />grazing and other agricultural purposes. <br />AGREEMENT <br />Now therefore, the parties stipulate and agree as follows: <br />1. Landowner specifically acknowledges and affirms Seneca's right under provisions <br />of the Surface Lease to mine through and destroy the existing pond, subject to obligo- <br />lions under statute to reclaim the Lands, and that payments Landowner receives pursuant <br />to this Surface Lease includes full compensation for the loss of the existing pond and any <br />water rights appurtenant thereto. <br />2. Seneca agrees to seek permission from appropriate regulatory agencies to <br />construct the new pond at the location described as point B an Exhibit A, as p.permonent <br />impoundment with a storage capacity of approximately 19.86 acre-feet. If approval is <br />obtained, Seneca agrees to construct the new pond, subject to the contingencies and <br />conditions set forth in paragraph 5 below,in accordance with applicable simdards and <br />requirements stt forth in the federal Surface Mining Control and Reclamation Act of <br />1977 and the Colorado Surface Coal Mining Reclamation Act and regulations promul- <br />gated pursuant thereto. . <br /> <br />16-t-22 <br />