<br />AMENDMENT TO SURFACE USE AGREEMENT
<br />THIS AMENDMENT TO SURFACE USE AGREEMENT (the "Amendment"), dated
<br />effective the /G~ day of June, 1999, is by and between CAMILLETTI AND SONS, a
<br />Colorado corporation, with an address at P. 0. Box 69, Milner, Colorado 80487
<br />(hereinafter referred to as "Surface Owner"), and TWENTYMILE COAL COMPANY, a
<br />Delaware corporation, with an address at 29515 Routt County Road #27, Oak Creek,
<br />Colorado 80467 (hereinafter referred to as "Twentymile").
<br />WITNESSETH:
<br />THAT, WHEREAS, Surface Owner and Twentymile entered into that certain Surface Use
<br />Agreement dated effective August 31, 1998, a Memorandum of which is recorded in Book
<br />750, page 996, Routt County, Colorado, record reference to which is made herein for all
<br />purposes; and
<br />WHEREAS, Twentymile desires to (1) extend the term of the Agreement for two (2)
<br />additional years (the "Extended Term"); (2) drill additional exploration holes; and (3)
<br />establish two (2) additional seismic lines upon, through, under, over and across certain
<br />additional lands not originally subject to the Agreement, the same being further described
<br />in Exhibit "A" attached hereto and made a part hereof (the "Additional Lands"), to include
<br />the drilling of 20' to 22' blast holes, detonation of 1 Ib. charges and the placement and
<br />retrieval of recording instruments, all in accordance with the applicable provisions of the
<br />Agreement (hereinafter collectively referred to as the "Additional Activities"); and
<br />WHEREAS, Surface Owner has agreed to the Extended Term and the Additional Activities
<br />to be conducted by Twentymile upon, through, under, over and across the Additional
<br />Lands.
<br />NOW, THEREFORE, Surface Owner, for and in consideration of the covenants and
<br />conditions hereinafter contained, and other good and valuable consideration, the receipt
<br />and sufficiency of which are hereby acknowledged, does hereby agree to the Extended
<br />Term and Additional Activities to be conducted by Twentymile upon the Additional Lands.
<br />1. Extended Term. Except as may otherwise be provided for in the Agreement, the
<br />Extended Term of the Agreement shall be for a period of two (2) years and shall
<br />commence on the 31st day of August, 2000 and end at 12:00 midnight on the 30th day
<br />of August, 2002.
<br />2. Additional Activities. Twentymile, its employees, agents, licensees, invitees,
<br />contractors, subcontractors, successors and assigns have the right and privilege to
<br />enter upon, through, under, over and across the Additional Lands, which, in
<br />Twentymile's sole discretion, may be necessary to support the Additional Activities, all
<br />in accordance with paragraphs 3 and 4 of the Agreement.
<br />3. Compensation. Twentymile shall provide Surface Owner with the following described
<br />work, including all labor and materials to complete said work, and shall pay to Surface
<br />coamend.wpd/Ilg - ~ - YAM-002-05181100
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