2008-04-22_PERMIT FILE - X200822901 ‎(4)‎

• Permit No: X200822901
• IBM Index Class Name: PERMIT FILE
• Doc Date: 4/22/2008
• Doc Name: NOI Application
• From: Peabody
• To: DRMS
• Email Name: JDM
• Media Type: D
• Archive: No

EXPLORATION AND PROSPECT DRILLING AGREEMENT
~"
Made as of this ~ day of~~~2008 ("Effective Date")
This EXPLORATION AND PROSPECT DRILLING AGREEMENT ("Agreement"), is made
by and between GRASSY CREEK HOLDING COMPANY, LLC, with an address of 3150 Ingles
Lane, Steamboat Springs, CO 80487 ("LICENSOR") and COLORADO COAL RESOURCES, LLC
with an address of 701 Market Street, Ste. 832, St. Louis, MO 63101 ("LICENSEE"). In
consideration of the sum of $10.00, the receipt of which LICENSOR hereby acknowledges, and in
further consideration of the mutual covenants set forth below; LICENSOR and LICENSEE agree
as follows:
Exploration Rights. LICENSOR grants LICENSEE or its agents or subcontractors, for the
term of this Agreement, the nonexclusive right to enter the lands depicted or described on
Exhibit A attached hereto and incorporated herein by reference (the "Property"), from time
to time, to prospect for, drill, take core samples, survey, and otherwise evaluate coal and
other minerals and strata underlying the surface of the Property. LICENSEE shall also
have the nonexclusive right to perform all studies necessary or convenient to obtain
governmental approvals and permits necessary for coal exploration and related operations.
2. Indemnity and Insurance. LICENSEE shall fully indemnify, defend and save LICENSOR
free and harmless against any and all claims, damages, loss and expense, including
attorney's fees and other legal expenses, by reason of liability imposed or claimed to be
imposed by law upon the LICENSOR for damage because of bodily injuries (including
death at any time resulting therefrom) or on account of damage to property sustained by
any person or persons arising out of or in consequence of LICENSEE's use of the Property
described in this Agreement whether or not such bodily injuries, death or damage to
property arise or are claimed to have arisen in whole or in part out of the negligence or any
other grounds of legal liability, but excluding, however, any liability caused by the sole
negligence or willful misconduct of the employees or agents of LICENSOR. Without
limiting the foregoing, LICENSEE shall maintain in force the following insurance;
(a) If LICENSEE has any employees (whether full or part time), Workers'
Compensation Coverage, Traumatic Injury (including death) and Occupational
Disease Disability insurance in accordance .with the laws of the state in which the
Property is located for all employees located on the Property; and
(b) Comprehensive General Liability and Property Damage insurance (including
contractual coverage) with bodily injury limits of $2,000,000.00 per person and
$2,000,000.00 aggregate and property damage with a limit of $1,000,000.00
aggregate; and
(c) Accident insurance covering each participant in an amount of $1,000,000.00 per
person and aggregate.
All insurance policies must contain an unqualified provision that the insurance carrier will
give LICENSOR ten (10) days' prior written notice of any cancellation, change or lapse of
such policy. Prior to utilizing the property herein and upon LICESOR'S request, LICENSEE