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<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 <br />