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~1 AGREEMENT .R~C~~~/~ THIS AGREEMENT made as of the 13th day of May, 1994, between LARRY a~~LA)Ni;`~ MAUTZ ("Mautz") and MOUNTAIN COAL COMPANY ("Mountain Coal"). I r y~Q 1. Jenkins Property D~V s.o~oi ~oerals~ Gep~BY Mountain Coal grants to Mautz a 20 year leasehold interest in the Jenkins property, described in Exhibit A and comprising 22.4 acres more or less. Mountain Coal also grants to Mautz a 20 year lease of the water rights associated with the Jenkins property, described in Exhibit A. Mautz agrees to exercise those water rights to the maximum extent practical, and shall each year irrigate at least eight acres of the Jenkins property. Mautz may, upon receiving percussion from Mountain Coal, clear and make irrigable additional acreage on the Jenkins property. Mountain Coal reserves the right to make use of those water rights as needed during the term of the lease. Mautz shall not be responsible for any environmental liability arising from a preexisting condition of the Jenkins Property. Mautz shall not use the Jenkins Property as a landfill or for the disposal of hazardous wastes, hazardous substances, oil or petroleum products, or other materials that could cause environmental harm. Mautz may, however, engage in typical agricultural uses of the Jenkins Property. Mountain Coal shall, by a separate instrument, convey to Mautz for one dollar the structures on the Jenkins property. Mautz shall demolish and/or remove the structures from the Jenkins Property before or at the end of the lease term. Mautz shall perform all maintenance of the Jenkins Property during the term of this lease. Mautz shall not, however, erect any structure or make other improvements of the Jenkins Property without the prior written approval of Mountain Coal. 2. Mautz Lands Mautz grants to Mountain Coal a 20 year surface easement in the real property described as Mautz Lands on the map attached as Exhibit B, comprising 140 acres, more or less. Mountain Coal shall use Mautz Lands for construction of a ventilation facility, including a ventilation fan, and for other uses incident to coal mining. Mountain Coal shall minimize the acreage of the ventilation facility "footprint" (presently estimated to be less than ten acres) and shall avoid, if possible ,the area designated on Exhibit B. 3. Mountain Coal Lands Mountain Coal grants to Mautz a license to use the real property described as Mountain Coal Lands on the map attached as Exhibit B. Mautz shall use the Mountain Coal Lands solely for agricultural uses, including as an irrigated hay meadow. Mautz shall not cut roadways, erect structures, or make improvements to the Mountain Coal Lands without the prior written approval of Mountain Coal. Mautz shall not place refuse or otherwise discard items on Mountain Coal Lands. The use of the Mountain Coal Lands by Mautz shall be subordinate to any use Mountain Coal may wish to make of the Mountain Coal Lands. Mautz shall have no claim or right to relief if the Mountain Coal Lands are affected by mining activities or other activities of Mountain Coal. C®N F 9 D ~~~~~ ~ AI- '~