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As we discussed at our meeting, Scout Investments is respectfully requesting that the State of Colorado <br /> Division of Reclamation Mining and Safety approve the transfer of the Gilcrest Mine Permit M-2000-58 <br /> to Scout Investments with the following stipulations: <br /> 1. The Operator shall not conduct any mining operation or affect any land within 200 feet of any <br /> structure until a structure agreement is in place or an Engineer can certify that the modified <br /> mining effort will not impact the structures. <br /> 2. Upon transfer of this permit,the Operator will work diligently to submit an amendment to the <br /> current mine plan which may include a revision to the disturbance area, elimination of the need <br /> for certain structure agreements, and revisions to permit boundaries and reclamation plans. <br /> It is our understanding that upon the Permit Transfer, DRMS will release the Gilcrest Reservoir LLC <br /> reclamation bond and fully replace it with a Scout Investments reclamation bond or surety. <br /> Again I appreciate your time last week and consideration of the above request. Please let me know if <br /> there are any misunderstandings above or if you need additional information. Thank you in advance. <br /> FOR SCOUT INVESTMENTS, LLC <br /> Sincerely, <br /> Jason Von Le ke <br /> Copies w/attachments <br /> Christopher Hayes, Esq. <br /> Christopher Lidstone, CGS <br /> Ron Von Lembke <br />