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• the Leased Lands resulting from Lorencito's surface mining activities under this Agreement. <br />Paymenu under this paragraph are not intended as compensation for any adverse effects of <br />Lorencito's operations on Hill Ranch's livestock, existing wells and water facilities, and existing <br />buildings (which shall be compensated for actual damages on a case by case basis subj ect to <br />paragraph 15 below, but not exceeding the cost of repair or replacement), and payments under <br />this pazagraph aze not intended to be compensation for failure to reclaim the Leased Lands in <br />accordance with applicable law. <br />3. Limitations on Surface Use <br />a. Hill Ranch currently conducts, and intends to conduct during the teen of [his <br />Agreement, commercial activities on the Leased Lands, including without <br />limitation ranching operations and development of Other Minerals (as defined in <br />Subsection S.d of the Coal Lease). Lorencito shall consult with Hill Ranch <br />regarding the locations and area covered by the buildings, structures, roads, water <br />related facilities, and other improvements which Lorencito is authorized to <br />construct on and in the Leased Lands so that, to the extent commercially <br />practicable, Lorencito's operations do not interfere with or adversely affect Hill <br />Ranch's present or future uses of the Leased Lands. <br />b. Hill Ranch will have the right to use the existing roads for Hill Ranch's surface <br />activities on the Leased Lands during the term of this Agreemrnt and for access to <br />other properties owned by Hi11 Ranch, and Lorencito acknowledges that certain <br />other parties, including oil and gas lessees, have rights to use the existing roads. <br />• Hill Ranch and third patties w211 also continue to use the one lane steel bridge <br />which provides access over the Ptugatoire River to the Leased Lands and other <br />lands during the term of this Agreement. Lorencito acknowledges that such bridge <br />currently is not suitable for heavy equipment traffic, and agees, at its sole option <br />and cost, to improve and maintain such bridge or construct and maintain a new <br />bridge sufficient to handle Lorencito's equipment and traffic, if necessary. Any <br />new or reconstructed bridge shall, at the option of Hill Ranch, become the <br />property of Hill Ranch at the end of the term of the Coal Lease. During the term <br />of the Coal Lease, Hill Ranch, oil and gas lessees designated by Hill Ranch and <br />others approved by Hill Ranch shall have the right to use the bridge. Lorencito's <br />use of the bridge shall be limited to Lorencito and those contractors and <br />subcontractors of Lorencito which are engaged in the operations of the Coal <br />Lease. <br />c. If Lorencito constructs a road, parking lot, railroad spur, stockpile, silo or coal <br />loading facility on any Tract included in the Leased Lands, described in Exhrbit A <br />hereto, Lorencito shall pay Hill Ranch ~ per acre for each acre or fraction <br />thereof of such Tracts used by Lorencito for such purposes to compensate Hill <br />Ranch for the diminution in market value of such Tracts. Lorencito shall <br />m;n;m;~e or avoid adverse impacts to Hill Ranch's imgated meadows except for <br />specific areas designated for coal load out facility. <br />. SURI'ACE AGRT FMAL 6-25-0~.do[ <br />