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United States Department of the Interior UA.WAR"AWa.DO <br /> ° BUREAU OF LAND MANAGEMENT <br /> White River Field Office <br /> a 220 East Market Street <br /> Meeker,CO 81641 <br /> In Reply Refer To: <br /> 3600 (LLCON05000) MAY 7 2018 <br /> COC77446 (East Douglas Pit Contract) <br /> Jon Mueller P%ECEIVCD <br /> Kilgore Companies, LLC dba Elam Construction <br /> 556 Struthers Ave JUN <br /> Grand Junction,Colorado 81501 2 2 Z�l� <br /> [)ivisaon of neclamadOn <br /> Dear Mr. Mueller 14iniag&S.1jty <br /> It is our understanding Parkerson Construction Inc. is requesting the Bureau of Land <br /> Management(BLM)to approve the assignment of their mineral material contract COC77446 to <br /> the Kilgore Companies, LLC dba Elam Construction. The contract is for the Douglas Pit located <br /> in the N%ZSE of Section 35,Township 2 South, Range 101 West, 6`h PM,Rio Blanco County, <br /> Colorado. It is a five year contract that was issued December 1,2015 for 15,000 cubic yards of <br /> mineral material and expires November 30,2020.As of May 1,2018,there remains 4,546 cubic <br /> yards of material available on contract COC77446. <br /> The pit is permitted as M-1987-103 by the Colorado Division of Reclamation, Mining and Safety <br /> (CDRMS), which also holds the reclamation bond. Verification that the Kilgore Companies, <br /> LLC dba Elam Construction have submitted a replacement bond with the CDRMS must be <br /> submitted to this office upon the transfer approval. The bond instrument must contain language <br /> the bond would not be released without prior approval from the BLM. <br /> The BLM has no concerns with the proposed assignment and approves the assignment of mineral <br /> contract COC77446 to the Kilgore Companies, LLC dba Elam Construction.All terms and <br /> conditions of the original contract remain in effect. <br /> Attached is a signed copy of contract COC77446 with conditions of approval. You are liable for <br /> the total purchase price, even if the quantity of materials you ultimately extract is less than the <br /> amount stated in the contract. Please pay special attention to Section 3 for monthly payments and <br /> reporting. Production reporting includes months with no production. Also you must annually <br /> remove materials equal in value to the first installment or, in lieu, make an equivalent payment <br /> which may be credited to future production. <br /> If there any questions,please contact Paul Daggett, Mining Engineer at(970) 878-3819. <br /> Sincerely, <br /> 7zIn'Aam-t�l <br /> Kent E. Walter <br /> Field Manager <br /> Enc <br /> COC77446 <br />