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When Recorded Return To: <br />7/18112 <br />c/o Steve Weist <br />Oxbow Mining, LLC <br />PO Box 535 <br />Somerset, CO 81434 <br />a{ THE AREA ABOVE IS RESERVED FOR RECORDER'S USE <br />SURFACE USE AGREEMENT <br />THIS SURFACE USE AGREEMENT (this "Agreement "), dated effective as of July 18, <br />2012 (the "Effective Date "), is between Christopher S. Sanchez and Beverly A. Sanchez whose <br />address for the purposes of this Agreement is 14129 3100 Rd., Hotchkiss CO 81419, Attn: Chris <br />Sanchez; and OXBOW MINING OAK MESA., LLC, a Delaware limited liability company <br />("Oxbow "), whose address for the purposes of this Agreement is P.O. Box 535, Somerset, <br />Colorado 81434, Attn: Jim Cooper. Chris Sanchez and Oxbow shall be referred to herein, <br />individually, as a "Party," and, collectively, as the "Parties." <br />Recitals <br />A. Oxbow desires to conduct environmental and surface surveys on surface real <br />estate interests owned by Chris Sanchez in the Properties for the purpose of the preparation of an <br />environment assessment for the Bureau of Land Management, the survey of possible drill hale <br />locations, the identification and flagging of survey points for an aerial survey to be conducted by <br />Oxbow, and identification of potential.' of surface and ground water well monitoring <br />sites (all collectively, the "Survey Activities ")'. <br />B. In addition to conducting: the Survey Activities, Oxbow is interested in <br />completing exploration drilling of the" coal seams) under the surface estate owned by Chris <br />Sanchez in the Properties pursuant to a coal exploration permit or exploration permits Oxbow <br />intends to obtain from the United States of America, through the Bureau of Land Management <br />(BLM), and the Colorado Division of Reclamation Mining and Safety (CDRMS), at some date in <br />the future, insofar as those exploration permit or permits and notices of intent to explore pertain <br />to underground coal deposits in the Properties. <br />C. Oxbow acknowledges that the surface estate owned by Chris Sanchez is subject to <br />a Deed of Conservation Easement In Cross, as described in Exhibit "B ". As such Oxbow shall <br />work with Chris Sanchez to minimize surface disturbances, and to reclaim any surface <br />disturbance caused by Oxbow in order to meet State and Federal regulatory (reclamation) <br />standards. Oxbow shall work with a 3`d party consultant to evaluate and prepare an annual report <br />on the status of the reclaimed surfaces on the Landowners affected property, until bonding is <br />released by all state and Federal regulatory agencies. <br />D. This Agreement sets forth the Parties' rights and obligations regarding the use of <br />the Properties by Oxbow in connectiobwitli the exploration of the coal mineral estate contained <br />within the Properties. <br />#1188949 0 Olen <br />