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RECEIVED NOV 0 1 2000 EXHIBIT' N -SOURCE OF LEGAL RIG$T TO ENTER Division of Minerals and Geology The amended area is situated on mining claims located and filed in accordance with the Mining Law of 1872 and subsequent regulations imposed by the U. S. Government and the State of Colorado. The amended area is located on a combination of patented mining claims owned by Centex Eagle Gypsum Company, L.L.C. (Centex), a Delaware limited liability company, and un-patented mining claims owned by Centex. The un-patented claims are situated on Federal land administered by the Bureau of Land Management. Exhibit B-2 illustrates the location of the claims within the boundaries of the amended area. Centex has acquired the legal right to develop the mineral resource from acquisition of mining claims from previous owners. The mining claims were located under the Mining Law of 1872 (May 10, 1872) as amended (30 U.S. Code 22-54). The policy of the Department of the Interior wncerning mineral development rights to extract minerals is described under 43CFR 3809.6 as follows: Corrsisterrt with Section 2 of the Mirrirrg a»d Mineral Policy Act of 1970 and Sectio» 102 (a)(7), (8), and (12) of the Federal Lmrd Policy and Management Act, it is the policy of the Department of the Interior to encourage the developmerr! of Federal mineral resources and reclanratio» of dis[rrrbed areas. Under the miming laws, a person has statutory right, consistent with Departmental regulations, to go upon the open (unappropriated and unreserved) Federal lands for the purpose of mineral prospecting, exploration, extraction and other uses reasonable incident thereto. This statutory right carries with it the responsibility to assure that operations include adequate and respo»sible measures to prevent rrnrrecessary or undue degradation of the Federal lands and to provide for reasonable reclamation. A copy of the Special Warranty Deed bestowing ownership of the mining claims to Centex in 1997 is attached to this submittal. Additional mining claims have been located by Centex since the 1977 transaction. A copy of the Intent to Hold Mining Claims (submitted to the BLM 8-30-00) is attached as well as a receipt from the BLM for the filing. The Intent to Hold Mining Claims documentation includes claims within the proposed amended boundary as well as claims outside that boundary. ~~.•'--. cgKtla?p~ IJ f, .. RECE111ED l~ ~~,3'-~. ~. T /n~ ~ , .:.~ .~. y~`. 1~A`~0, O q:ll~c ~¢(~~y ~0S`QASIe Low-T'j