2016-12-11_PERMIT FILE - M1985043

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United States Department of the Interior BUREAU OF LAND MANAGEMENT Royal Gorge Field Office 3028 East Main Street Canon City, Colorado 81212 In Reply Refer To: 3600 (COC -72083, SSC) DEC 0 9 2015 CERTIFIED MAIL: 7015 0640 0005 1993 7500 RETURN RECEIPT REQUESTED Rob Mangone Rocky Mountain Materials and Asphalt, Inc. 1910 Rand Ave Colorado Springs, CO 80905 Dear Mr. Mangone: RECEIVED DEC 1 1 Z015 DMSION OF RECLAMATION NNW AND SAFETY BLM recently approved the Red Canyon, LLC and Sierra -Delta, LLC [Red Canyon, LLC] mineral materials contract COC -72083 assignment to Rocky Mountain Materials and Asphalt, Inc. The financial guarantee in the amount of $334,000.00 that, in part, applies to federal minerals was filed with the Colorado Division of Reclamation, Mining and Safety on August 11, 2014 (Please note that Red Canyon, LLC didn't request BLM to assign their contracts to Rocky Mountain Materials and Asphalt, Inc. until April 1, 2015.) Red Canyon, LLC is released from any further liability under contract COC -72083 for actions Rocky Mountain Materials and Asphalt, Inc. may take after the effective date of the assignment, which is April 1, 2015. However, Red Canyon. LLC will continue to be responsible for obligations that accrued before this date. As of April 1, 2015, our records indicate that 25,235.42 tons remain on the,139,000 ton contract. In April 2015, a valuation of the market royalty rates on mineral materials was prepared for the BLM Royal Gorge Field Office. Based on this valuation, the royalty rate has increased from $0.35/ton to $0.73/ton on this contract. As the total contract amount of $48,650, was paid in full by Red Canyon, LLC on February 27, 2015, the difference in royalty rates will be reflected in the tonnage allowance under contract COC -72083. Therefore. as of May 1, 2015, 12,099.18 tons remained on the contract. Based on production reported by Rocky Mountain Materials and Asphalt, Inc. through October 31, 2015, the remainder of tons left on this contract is 9,358.83 tons as of November 1, 2015.