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- ... -2- II. RECITALS 1. On October 4 1977 Permit Number 76-7 was gr~inted t0 DFC Ceramics. Snc. (e%lsting operator) ("Permittee"), pursuant to which Permittee has been conducting a m ring operation in the County of Jefferson State of Colorado. 2. Permittee wishes to assign the permit to Denver Brick Company (new operator), as Successor Operator ("Successor") and Successor wishes; to become Successor Permittee under the permit. 3. Successor understands that the reclamation plan (the "Plan") required by the permit and by applicable State laws and regulations has not been completed and is willing to assume full responsibility for the completion of the Plan. III. AGREEMENTS Permittee and Successor hereby agree, for their own benefit and for the benefit of the State, such agreements to be effective ipso facto upon the approval by the State of the trasnfer of the Permit from Permittee to Successor, as follows: 1. Successor has inspected the mining and reclamation operations to its entire satisfaction and is fully aware of the conditions thereof. Successor understands and accepts ail of the conditions of the Permit. 2. Successor will complete the reclamation plan, and hereby assures liability for completing such plan as to all areas heretofore disturbed, as well as to all areas hereafter disturbed. Successor will perform all of the obligations of the Permittee under the Permit which have not heretofore been performed by Permittee. 3. Successor hereby tenders to the State its attached Performance and Financial Warranties', which are to be substituted for the Performance and Financial Warranties heretofore filed by the Permittee, effective upon the release of the latter Warranties. 4. Successor represents to the State that, to the best of its kn~~wledge, Information and belief, it is not in violation of any of the provisions of the Colorado Mined Land reclamation Act with respect to any other opera :ion conducted by it in the State of Colorado. Permittee and Successor hereby request the State to consent to the assignment of the Permit, to recognize Successor as Successor Operator under the f~ermit, and to accept the tendered substitute Performance and Financial Warranties in place of the Warranties presently on file with the State. " Attach executed Financial and Performance Warranties, Exhibit A - Legal Description, an Exhibit B - Location Map, and Proof of Legal Fright-to-Enter.