APPCOR12650

• Permit No: X199421400
• IBM Index Class Name: Application Correspondence
• Doc Date: 9/27/1994
• Doc Name: MEMORANDUM OF SURFACE USE AGREEMENT
• From: Gary D & Marti A Ellegen, Larry B & Lynae Ellgen
• Media Type: D
• Archive: No

999
OF SURFACE USE
THIS MEMORANDUM OF SURFACE USE AGREEMENT (the "Memorandum"), dated
effective the 27th day of September, 1994, is by and between Gary
D. Ellgen and wife, Marti A. Ellgen and Larry B. Ellgen and wife,
Lynae Ellgen with an address at 530 5th Avenue West, Craig,
Colorado 81625 (hereinafter collectively referred to as "Surface
Owner", whether one or more), and CYPRUS EMPIRE CORPORATION, a
Delaware corporation, with an address at 1303 County Road 107, P.
O. Box 68, Craig, Colorado 80467 (hereinafter referred to as
"Cyprus").
Surface Owner, in consideration of the covenants and agreements
contained in that certain unrecorded Subsidence and Surface Use
Agreement (the "Agreement") dated concurrently herewith, granted
unto Cyprus certain rights to enter upon and use certain lands (the
"Lands") belonging to Surface Owner as further described in Exhibit
"A" attached hereto and made a part hereof, for the right to (1)
survey; (2) conduct baseline environmental studies as Cyprus msy
desire, including, but not limited to, vegetation and soil sampling
and mapping, surface hydrology investigation, cultural resources
survey and mitigation (if necessary) and geologic reconnaissance
and exploration activities; (3) construct a pad or pond for an
exploration and/or ventilation borehole and drill an exploration
borehole; (9) utilize and upgrade an existing road into the
drilling site and construct an exploration road from the existing
road into the drill site; (5) install an electric powerline; (6)
remove and replace existing drainage culverts, if any; (7) install
subsidence monuments; (8) conduct seismic surveys; (9) construct
and maintain water monitoring wells; and (10) conduct general
reclamation of drill/bore hole sites and other disturbed areas.
The Lands are subject to all of the terms and conditions of the
Agreement, reference to which may be made for a complete statement
of rights and obligations of Surface Owner and Cyprus. Should
there be any discrepancy between this Memorandum of Subsidence and
Surface Use Agreement and the Agreement, the Agreement shall
control.
The term of the Agreement shall be for a primary term of three (3)
years and shall commence on the effective date hereof. The term of
the Agreement may be extended by Cyprus for twenty-five (25)
additional one (1) year terms in accordance with the Agreement.
Copies of the Agreement may be found at the above indicated.
addresses of the parties.
This Memorandum may be executed in any number of counterparts and
shall be binding upon all owners of interests in the Lands
executing the same or a counterpart hereof, whether or not named
herein as one of the Surface Owners, and whether or not other
owners of interests in the Lands have executed other counterparts
or have not entered into the Agreement.
All the terms, conditions and covenants of the Agreement shall be
binding upon and shall inure to the benefit of the heirs,
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