2007-11-27_GENERAL DOCUMENTS - C1982056

Home Browse Search

SUBSIDENCE AGREEMENT THIS SUBSIDENCE AGREEMENT (the "Agreement"), dated effective the 1St day of February, 2002, is by and between CAMILLETTI AND SONS, INC., a Colorado corporation, with an address of P. O. Box 69, Milner, Colorado 80487 (hereinafter referred to as "Surface Owner"), and TWENTYMILE COAL COMPANY, a Delaware corporation, with an address at 29515 Routt County Road #27, Oak Creek, Colorado 80467 (hereinafter referred to as "Twentymile"). WITNESSETH: THAT, WHEREAS, Surface Owner is part owner of the surtace of those certain lands (the "Lands") located in the County of Routt, State of Colorado, as further described in Exhibit "A" attached hereto and made a part hereof; and WHEREAS, Twentymile controls the coal under State of Colorado Coal Mining Lease No. CO-3229 (the "State Lease"), covering the mining rights to all coal seams lying beneath the surface of the Lands, including the right to prospect for, mine and remove said coal seams in accordance with the State Lease; and WHEREAS, in order to protect both Surface Owner's surface rights and Twentymile's rights under the State Lease, the parties hereby mutually agree to the following terms and conditions: 7. Demise. Surface Owner, for and in consideration of the covenants, conditions and obligations hereinafter contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, does hereby grant unto Twentymile the rights and privileges set forth herein, together with the right and privilege to enter upon and through the Lands for the term and purposes and upon the conditions and provisions herein set forth. 2. Term. The primary term of this Agreement shall be for a period of ten (10) years and shall commence on the effective date hereof and end at 12:00 midnight on the 31st day of January, 2012; however, Twentymile shall have the right to request renewal this Agreement for one (1) additional ten (10) year term, upon the terms and conditions to be mutually agreed to in writing between the parties on or before the expiration of the primary term, by providing Surface Owner with written notice of its intention to extend this Agreement within ninety (90) days prior to the expiration of the primary term. 3. Compensation. a. Twentymile agrees that it will pay Surface Owner, at its address shown below, the sum of One Hundred Dollars ($100.00) per acre as consideration for the rights and privileges granted herein to Twentymile, including, but not limited to, the right to subside and repair the mine area lands containing 695.48 acres, more or less, including a two hundred foot (200') buffer around said mine area cosubsid.doc/Itg - 2 -