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APPLICANTS' AGREEMENT TO REQUEST TRANSFER <br /> OF MINERAL PERMIT AND SUCCESSION OF OPERATORS <br /> &—/1, 477 <br /> WHEREAS, on -Mwr 1'£ U Permit Number 1976-059 ("Permit-) <br /> was granted to 0&51NS lAIC, ("Permittee"), <br /> pursuant to which Permit, Permittee has engaged in a mining operation located in <br /> Montezuma County, Colorado. <br /> WHEREAS, The Permit includes and incorporates any and all subsequent Amendments, <br /> Technical Revisions and/or Conversions. <br /> WHEREAS, Permittee wishes to assign the entire Permit, along with all associated rights and <br /> responsibilities to Peps Transport of Colorado, LLC ("Prospective <br /> Successor"), and Prospective Successor wishes to become Successor Permittee under the Permit. <br /> WHEREAS, Prospective Successor has inspected the mining and reclamation operations and is <br /> fully aware of the conditions thereof. <br /> WHEREAS, Prospective Successor understands that the Reclamation Plan (the "Plan") is an <br /> integral part of the Permit and is required by law. Prospective Successor has had an opportunity <br /> to thoroughly review the Plan, understands that the Plan has not been completed and that, if <br /> Prospective Successor becomes Successor, he/she/it will assume full responsibility for the <br /> completion of the Plan. <br /> NOW THEREFORE, Permittee and Prospective Successor hereby agree, for their own benefit <br /> and for the benefit of the State, as follows: <br /> Prospective Successor agrees to accept all of the conditions of the Permit, including the <br /> condition that the operation remains in compliance with all applicable laws and regulations, and <br /> to perform all of the obligations of the Permittee under the Permit. <br /> Prospective Successor agrees to complete the Plan, and to assume all liability for the <br /> same, as to all areas presently disturbed, as well as to all areas hereafter disturbed. <br /> Prospective Successor agrees to submit to the Division of Reclamation, Mining and <br /> Safety ("Division"), Performance and Financial Warranties, as required by applicable law and <br /> regulations, which will be substituted for the Performance and Financial Warranties previously <br /> filed by the Permittee, if and when the Division approves a Transfer of Mineral Permit and <br /> Succession of Operators ("SO") and releases the latter Warranties. <br /> Prospective Successor represents to the State that, to the best of its knowledge, <br /> information and belief, it is not in violation of any of the provisions of the Mined Land <br /> Reclamation Act (C.R.S. § 34-32-101 et. seq.) ("Hard Rock Act") and associated Rules (2 <br /> C.C.R. 407-1) ("Hard Rock Rules") or the Land Reclamation Act for the Extraction of <br /> - 8 - <br />