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-°' MR -127 Volume 9, Land Use Appendix <br />SURFACE USE AND ACCESS AGREEMENT <br />This agreement dated this day of 011 is made by and between Derby Mountain LLP, general <br />partners Gene and Marie Grange (Derby herein), whose address is 10543 3300 Rd, Hotchkiss, CO 81419 <br />and Bowie Resources Ltd. (BRL herein), whose address is PO Box 1488, Paonia, CO 81428. <br />WHEREAS: <br />Derby owns certain private property in Delta County Co. in the vicinity of Steven's Gulch which is more <br />fully described in Attachment A (Property Map). <br />BRL owns and operates an underground coal mine in Delta County Co. near Derby's Property <br />Derby is willing to permit BRL to perform coal exploration drilling and operations on Derby Property <br />under the terns and conditions described herein. <br />NOW, THEREFORE, in consideration of the premises, the receipt and sufficiency whereof are <br />acknowledged by each of the parties hereto, it is agreed as follows: <br />1. The extent of the coal exploration drilling and operations will be limited to three drill holes on the <br />Derby Property. The approximate drill hole location is detailed in Attachment A. <br />2. Payments: As compensation for surface disturbances, damages, and road access BRL will <br />• compensate Derby for the amount shown in the table below. All three of the proposed <br />exploration holes may not be drilled. Payment will be made only for the exploration holes and <br />access road actually constructed. For payment purposes it is assumed the pads are one acre in <br />area and the roads are 20 feet wide, the actual constructed dimensions are smaller and can be seen <br />in the sections below labeled `Access Roads' and `Drill Pads'. The compensation as shown in the <br />table below and as described above along with all other outstanding monies owed Derby shall be <br />paid before any work commences. <br />Exploration <br />Hole <br />Proposed <br />Road <br />Length <br />Acreage of <br />Disturbance <br />Price /Acre <br />Subtotal <br />Pad <br />Road <br />BRL- 2010 -1 <br />220' <br />1.0 <br />0.1 <br />$3,500 <br />$3,850 <br />BRL- 2010 -2 <br />610' <br />1.0 <br />0.3 <br />$3,500 <br />$4,550 <br />BRL- 2010 -3 <br />1780' <br />1.0 <br />0.8 <br />$3,500 <br />$6,300 <br />Total I $14,700 <br />Access Roads: The exploration site will be accessed from new and existing road. The sections of <br />existing roads used will be maintained in their existing condition. See the table above for the <br />lengths of the proposed new roads. New roads are constructed as narrow as possible to safely <br />allow access for the drilling equipment and personnel. Typical constructed road widths are 16 <br />feet wide. Only the existing roads required to access the exploration site will be used. Use of any <br />road not directly required for site access is prohibited. All roads shall be used in a reasonable and <br />prudent manner so as to prevent any unnecessary damage. Any damage that occurs will be <br />repaired by BRL in a timely manner. <br />Surface Use and Access Agreement <br />A A --)-,7 <br />/�iPPRoVED <br />1 of 3 <br />