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<br />AGREEMENT
<br />THIS AGREEMENT is made and entered into this 5th day of
<br />1989, by and between PEABODY COAL COMPANY, a
<br />De aware Corporation, whose address is 1300 South Yale, Flagstaff, Arizona
<br />86001 ("PEA80DY"); HUBERT B. EPPS and DAISEY J. EPPS, whose address is
<br />P.O. Box 762, Hayden, Colorado 81639 ("EPPS"); and MARVIN D. and FRANKIE
<br />T. HUDSON, whose address is P.O. Box 3421, Bonita Springs, Florida 33923
<br />("HUDSONS").
<br />RECITALS
<br />A. EPPS AND HUDSONS are the owners of the Temple Well No. 1, which
<br />has been decreed for 0.02 cubic feet of water per second with a priority
<br />date of June 1, 1954, for domestic and other purposes, located in the
<br />NW1/4 of the NW1/4 of Section 22, Township 5 North, Range 88 West of the
<br />Sixth Principal Meridian, Routt County, Colorado.
<br />B. PEABODY is planning to open and operate the Seneca II-W Mine, a
<br />surface coal mine in the vicinity of the Temple Well No. 1, in Township 5
<br />North, Range 88 West, 6th P.M., Routt County, Colorado, which may impact
<br />the Temple Well No. 1.
<br />
<br />C. PEABODY, EPPS and HUDSONS desire to provide for such impact, by
<br />providing an alternative source of water to EPPS and HUDSONS.
<br />D. By an instrument entitled "Coal Mining Lease," dated July 2,
<br />1974, EPPS and HUDSONS granted PEABODY coal mining rights on certain lands
<br />owned by EPPS and HUDSONS in Routt County, Colorado.
<br />E. By an Agreement and Stipulation dated October 19, 1982, PEABODY,
<br />EPPS and HUDSONS provided for the construction of a certain pond by
<br />PEABODY and conveyance of such pond and its associated water rights to
<br />EPPS and HUDSONS upon completion of all mining and rec_lam_a_tion activities
<br />at the Seneca II-W Mine by PEABODV.
<br />F. PEABODY has acquired a decreed water right for a structure named
<br />Peabody Seneca Mine Pond 006, to be located in the NW1/4 NW1/4, Section
<br />22, Township 5 North, Range 88 West of the 6th P.M., 1050 feet from the
<br />north section line and 150 feet from the west section line of said Section
<br />22, for 29.32 acre feet from an unnamed tributary of Hubberson fulch,
<br />tributary to Dry Creek and the Yampa River, with an appropriation date of
<br />October 1, 1983, in Case No. 88 CW 89, District Court, Water Division No.
<br />6, State of Colorado.
<br />NOW, THEREFORE, for and in consideration of the Recitals and the
<br />following mutual promises, PEABODY, EPPS and HUDSONS agree as follows:
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<br />16-1-30
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