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• ERHIBTT O -SOURCE OF LEGAL RIGHT TO ENTER Southdown's application includes property which is divided into four pazcels for purposes of this Exhibit. The pazcels are called: 1. The Cotenancy Property 2. The Harroun Property 3. The Peiker-Dickens Property 4. The Frontier Materials Property 1. The Cotenancy Property The Cotenancy Property occupies most of Dowe Flats in Sections 9, 10, 15, 16 and 21. It is so named because it was formerly owned by Southdown, Inc. and a Colorado partnership called Marigold 41. As a result of recent litigation, and subject to a Term Deed dated Mazch 16, 1993 as recorded Mazch 25, 1993 on film 1808, Reception No. 01276718, Boulder County Clerk and Recorder, this property is owned in fee simple by Southdown, Inc. (see Title Report). ~~ 2. The Harroun Property The Harroun Property is in the south-central portion of the permit azea in Sections 15, 16, 21 • and 22. It is so named because it is owned by Michael R., Steven D., and Linda B. Harroun. Southdown, Inc. has the legal right to enter and conduct mining operations on this property subject to its right per a Memorandum of Option dated April 11, 1989, Easement Agreement, and Covenant as recorded on April 13, 1989, Boulder County Clerk and Recorder, film no. 1574, Reception numbers: 00977245, 00977246, and 00977247 respectively (see Title Report). 3. The Peiker-Dickens Property This property is in the southeast comer of the permit area in Section 22 and is owned in fee simple by Southdown, Inc. (see Title Report). ~_ 4. The Frontier Materials, Inc. Property This property is south of Dowe Flats and north of the cement plant property in Section 21. The mine haul road crosses this property which is owned by Frontier Materials, Inc. subject to an interest by Weste obile~n . n's right to use this property for a haul road is demonstrated by t attached document.