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MEMORANDUM OF SURFACE USE AGREEMENT <br />THIS AGREEMENT entered into this~day of 1996 ("Effective Dale") <br />by and between R10 RO MO'LAND CO. ("OWNER") with an addre of PO Box 715, Craig, Colorado <br />81625 and COTTONWOOD LAND COMPANY, a Delaware corporation ("CLC."), with an dffice at <br />1475 Pine Grove Road, Suite 207, Steamboat Springs, Colorado 80487, its successors and assigns, <br />whereby in consideration of the sum of Ten Dollars (570.00) and other good and valuable consideration, <br />the receipt of wfiith 0~1'NER hereby aclmowledges, and m further consideration of the mutual covenants <br />sa forth below, .OWNER hereby grams unto CLC d:e right to emer, conduct certain operations for the <br />purpose of exploring for coal and other minerals, and conduct environmental monitoring and other activities <br />associated with obtaining a coal mining permit, on, under and across the following described lands located <br />m the County of Routt, State of Colorado ("Property': <br />Township 5 North. Ranee 89 West 6th P M . Routt Coumv'Colorado <br />SECTION 17 : SWl4NW/4, SW/4 ' <br />SECTION 18 : Sl2SFJ4 <br />SECTION 19 : NEl4 <br />SECTION 20 : W/2, SFJ4 <br />SECTION 21 : S/2S/2SE/4NW/4, S/2S/2SW/4NE/4, 5/2 <br />SEC770N 22 : W/2SW/4, SE/4SW/4, SW/4NE/4SW/4 <br />SECTION 27 : N/ZNWl4, 5W/4NW/4 <br />SECTION 28: . N2, SW/4, N2SE4 ' <br />SECTION 29: NR, E2SE!4 <br />SECT'lON 30: NIE/4, NE/dNWl4 <br />SECTION 31: LOTS I a@. 2, NW/4NF14, S/2NE/4, E/ZWR, SFJ4 <br />SECTION 32: S/25£14 <br />Township 4 North. Ranee 89 West <br />SECTION 8: L07 ] <br />SECT]ON 9: LOTS 2, 3, and 4, THAT PART OF N/25/2 LYMG NORTH OF <br /> HWY 317. <br />Comainmg 3,507.55 arras more or less. <br />1, -This Surface Use Agreement shall be for a one (1) year term wmmencing from the effective date <br />hereof ("Primary Term'), with CLC having the option to extend the Primary Term of this Surface Use <br />Agreement on a year4o-year basis thereafter, by CLC paying to OWNER on or before the expiration ofihe <br />Primary Tenq and thereafter on each anniversary date of this Agreement, an annual rental for such <br />extension. <br />2. A11 afihe righu, duties, benefits, terms and covenanu contained in this Agreemem will run with the <br />Lind and shall accme to and be binding upon the successors and assigns of the Parties for the term of this <br />Agreement and any extension of such term. <br />463132 8-720 P-935 05!23196 01:38P PG 1 OF 3 REG DOC <br />Kay Weinland Routt County Clerk 8 Recorder 16.00 <br />