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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 <br />