2.03.6 RIGHT OF ENTRY AND OPERATION INFORMATION
<br />(1) On behalf of Honeywood Coal Company, Spottswood Coal Company
<br />accepted assignment of the right, title and interest in the following
<br />described coal leases from Lillylands Inc., by a certain assignment
<br />agreement dated October 14, 1991. A copy of the Assignment is
<br />enclosed in Exhibit 1.
<br />Lillylands Inc., as lessee, is a party to a certain COAL MINE LEASE,
<br />Lease, dated February 22, 1988, with Roy and Betsy Davis as lessor.
<br />Said Lease grants the Lillylands the right to enter upon the leased
<br />premises for purposes of surveying, exploring, drilling, mining by any
<br />method, treating, extracting, milling, storing, shipping, removing and
<br />marketing therefrom any or all of the Coal and any other activities reason-
<br />ably incident thereto. A MEMORANDUM OF LEASE is recorded in Book
<br />788 at page 986 in the real property records in the County of Montrose,
<br />Colorado. A copy of the lease is enclosed in Exhibit 1.
<br />The lands for which the Davis Coal Mining Lease pertain, include but are
<br />not limited to:
<br />Township 45 North, Range 15 West, N.M.P.M.
<br />Section 4: Lots 3, 4, 5, 6, 9, 10, 11, 12, 13, 14, 15, & 16
<br />Section 5: E/2W /2, NE/4, N /2SE /4
<br />Township 46 North, Range 15 West, N.M.P.M.
<br />Section 32: E/2E /2, SW /4SE /4 - Surface Only
<br />Section 33: W/2
<br />Section 28: N /2SW /4, SE /4
<br />Lillylands, Inc., as lessee, is a party to a certain COAL MINE LEASE dated
<br />March 3, 1989, with William E. Bray as lessor. Said Lease grants the
<br />Lillylands the right to enter upon the leased premises for purposes of
<br />surveying, exploring, drilling, mining by any method, treating, extracting,
<br />milling, storing, shipping, removing and marketing therefrom any or all of
<br />the Coal and any other activities reasonably incident thereto. A
<br />MEMORANDUM OF LEASE is recorded in the Montrose county records in
<br />Book 794 at Page 407. A copy of the lease is enclosed in Exhibit 1.
<br />The rights outlined above are not the subject of pending litigation.
<br />2.03 -8 July 1992
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