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URFACE USE AGREEMENT
<br />THIS SURFACE USE AGREEMENT ("Agreement') is entered into this 24th day of June,
<br />2004, by and between Camilletti and Sons, Inc., with an address of P.O. Box 69, Milner,
<br />Colorado 80487, hereinafter referred to as "Owner," and Twentymile Coal Company, an
<br />Delaware corporation, with a local business address of 29515 Rout County Road #27, Oak
<br />Creek, Colorado 80467, hereinafter referred to as `TCC".
<br />WHEREAS,
<br />Owner owns or controls the surface on and over the real property ("Property') and TCC
<br />owns or controls the coal mineral rights underlying the Property, containing six (6) acres, more or
<br />less, and described and identified as follows:
<br />E1/2E1/2NE1/4, Section 10, T5N, R86W, 6th P.M.
<br />TCC desires to construct a coal mine air vent shaft and related surface facilities on the
<br />Property for the purpose of intake of air to the Twentymile underground coal mine owned and
<br />operated by TCC ("Facilities"). The parties hereto have agreed to execute this Agreement, with
<br />the following specified rights, provisions, and obligations.
<br />WITNESSETH:
<br />I. RIGHTS GRANTED
<br />Owner does hereby grant unto TCC anon-exclusive right, irrevocable except as
<br />specifically provided for in this Agreement, and subject to the terms and conditions of this
<br />Agreement, the right of egress and ingress, for personnel and equipment, to and from Property,
<br />including over other property owned by Owner if necessary, for the following purposes:
<br />1. To survey, collect environmental information, and conduct such soil tests and sampling,
<br />including but not limited to core drilling, as may be necessary or desirable for planning,
<br />designing or locating the Facilities, or for obtaining any necessary State or Federal
<br />permits, licenses or governmental authorizations for the construction and operation of the
<br />Facilities (collectively referred to as "Permits"); and,
<br />2. To conduct earthwork operations, excavate, drill or bore, construct, reconstruct, maintain,
<br />operate, use, replace, relocate, and repair, as necessary, Facilities. Facilities shall
<br />include, without limitation, surface drainage structures, soil stockpiles, roads, equipment
<br />and facilities pads, shafts, surface buildings and structures, and ancillary electrical and
<br />equipment installations; and
<br />3. To undermine and subside the surface of the Property.
<br />4. To perform any activities required under any Permit or by applicable State or Federal law,
<br />including without limitation, reclamation of disturbed areas and any activities necessary to
<br />prove that the productivity of affected Property has been restored; and
<br />TCC may conduct any and all of the activities authorized in this Section with its own
<br />employees or through one or more independent contractors.
<br />Owner acknowledges that TCC may be required to obtain Permits or Routt County
<br />Planning Commission approval for the purposes allowed in this Agreement. Owner agrees to
<br />provide any consents required by TCC from Owner for any such Permit or approval, provided that
<br />TCC shall prepare any and all documentation necessary at its sole expense.
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