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3. The proposed mining and reclamation operations can be carried out in conformance with the <br /> requirements of the Act,and the Construction Material Rules and Regulations. <br /> E. The Permittee has made a showing satisfactory to the Board that: <br /> 1. It will employ, during and after its underground mining and/or surface operations, procedures <br /> designed to minimize environmental disturbance from such operation; <br /> 2. It will provide for reclamation of the Affected Lands appropriate to the subsequent beneficial <br /> use of such lands;and <br /> 3. In the event of the failure of its proposed reclamation plan, it will take whatever measures may <br /> be necessary to assure the success of reclamation of the lands affected by such operations in <br /> accordance with the Act. <br /> F. A copy of the Permittee's application, as amended and supplemented, has been approved by the <br /> Board and is,by this reference,incorporated herein. <br /> G. The issuance of this permit does not relieve the Permittee from having to comply with all applicable <br /> Federal,State and County statutes,including State water law. <br /> GRANTS,CONDITIONS AND AGREEMENTS <br /> The Board,in reliance upon the representations and promises made in the permit application,as amended <br /> and supplemented, and the performance warranty, hereby issues a life of the mine permit to the <br /> Permittee,to engage in the operations described in the application on certain lands lying in the County of <br /> Phillips, State of Colorado. These lands are described in the permit application, as amended and <br /> supplemented,and are referred to herein as the "Affected Lands". <br /> This permit is issued subject to the following conditions and agreements: <br /> 1) The Permittee will be bound by all applicable requirements of the Act, and all applicable rules and <br /> regulations of the Board,as amended from time to time,the terms of the permit application,and the <br /> terms of the performance warranty filed with the Division. <br /> 2) The Permittee will file with the Division its annual report and fees on each anniversary date of this <br /> permit. <br /> 3) If analyses of the mining and reclamation operation and the data collected through monitoring and <br /> experimentation by the Permittee or monitoring by the Division indicate that the operation will not <br /> be able to comply with the requirements of the Act and applicable rules and regulations of the <br /> Board,the Permittee hereby agrees to exercise its best efforts,after consulting with the Division,to <br /> modify the plans to correct such deficiencies in the future. Such modifications may require <br /> technical revisions or amendments to the permit. <br /> 4) The Board or its authorized representative may enter upon the lands of the permitted operation at all <br /> reasonable times for the purpose of inspection to determine whether the provisions of the Act, <br /> Rules and Regulations,and permit have been complied with pursuant to C.R.S.34-32.5-121. <br /> Page 2 of 3 <br />