2013-10-21_REVISION - M1985112 - Laserfiche WebLink

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10/17/2013 08:24 FAX 9703784823 Loloff Const Inc Z0003/0008 10/17/2013 69:12 970 -353 -9701 CHAVIES CHILDERS PAGE 02 S. 4,olotTwill provide any water needed to comply with the Permit. Mill Iron will be responsible to dewater the pit to al low excavation. Loloff will be required to supply an adequate amount of water to Mill Iron to allow for dust suppression related to the operation of the processing equipment. Mill Iron will be responsible for the implementation and compliance of, a. the Environmental ,Protection Agency Spill Prevention, Control and Countermeasure Plan for the entire Loloff Mine; b. an air pollution discharge permit for the l,,oloff Mine and a separate permit for the production Equipment; c. any water discharge permits; d_ any storm water discharge permits; e. any water discharge monitoring obligations for the Loloff Mine or related activities. And f. any other permits or requirements imposed by the Colorado Department of Public Wealth and Environment, 6. Mill Iron will pay to Lol off $1.50 per ton for all material Mill Iron sells otit the Loloff Mine. Loloff will be paid prior to the end of the month following the month of production, Production will be based on tickets produced from the Loloff Mine scale house. During the first twelve months after this Agreement has become effective, Mill Iron will pay Loloff no less than $20,000 per month, regardless of actual production. In the event Mill Iron does not sel l twenty thousand tons of gravel and aggregate products in any single month, it will be entitled to a credit against payments payable to Loloff in any month its sales exceed twenty thousand tons. This minimurn payment and related production amount shall drop to $10,000 per month starting month thirteen. 7. Loloff shall establish an escrow account to accumulate funds intended purchase water to be used for a permanent water supply plan approved by the 1)R-MS or any financial warranties required by DBMS. Mill iron shall establish a separate escrow account to be used to dewater the Loloff Mine or other operational expenses associated with keeping the Loloff Mine in compliance with DRMS requirements in the event Loloff and Mill iron agree to stop mining operations. Mill Iron and Loloff will each deposit money into their respective accounts on a monthly be.9is, 60 days after Mill Iron starts crushing operations it will begin making monthly payments equal to $.50 per ton sold out of the Loloff Mine based on the prior month production. Loloff will make monthly payments based on $.50 per ton. Payments shall be made before the last day of the month following the sales. Loloff-,s contribution shall be used only for the purchase of water to implement a permanent water supply plan approved by DRMS. Mill Iron's contribution shall be urted to dewater the LolofiMine or other operational expenses associated with keeping the Loloff Mine in compliance with DRMS requirements in the event Loloff and Mill Iron agree to stop mining operations. Loloff -s obligation to continue to fund the escrow account shall continue until sufficient water to implement a permanent water supply plan has been purchased, the account reaches $600,000.00, or a slurry wall is built around the Loloff