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1 'or co :.~~e,. ® ; COLORADO DIVISION OF MINERALS AND GEOLOGY 1313 Sherman Sveei, Room 215, Denvcr, Colorado 80203, (303) 866-3567 SETTLEMENT AGREEMENT NOV/CO NO.: CV-2000-009 MINE: Golden Eagle Mine PERMITNO.: C-1981-013 OPERATOR/PERMITTEE: Basin Resources, Inc. ATTENTION: Ron Thompson ADDRESS: C/o Peak Project Management 3800 County Road 63.9 Trinidad, CO 81091 DATE ISSUED: November 1, 2000 TYPE OF MINE: Underground/Federal COUNTY: Las Animas The Division of Minerals and Geology ("the Division") issued a certain Notice of Proposed Amount of Civil Penalty, and the operator requested a conference thereon, as authorized by C.R.S. 1973 34-33-123(8). The requested conference having been held as required by law, on January 9, 2001, the Division and the operator hereby agree as follows: 1. The amount of the penalty shall be $2,000.00; 2. The penalty shall be paid to the Division by the operator not later than 30 days from the date this Agreement is signed by all parties; 3. Payment of such penalty by the operator shall constitute a waiver of all further rights to review of such penalty or of the violation on which it is based. This agreement shall not be effective unless signed by the operator within ten days after the closing date of such conference, which dale is set forth below opposite the signature of the Conference Officer. If not signed within ten days, the Division will fix the penalty at whatever amount it deems appropriate. The fixed penalty amount will likely be the original penalty assessment, based on the factors referred to in C.R.S. 1973, 34-33-123(8)(a). OPERATOR: DATE: By DNISION OF MINER,ApL~S AN/D GE/O/LOGY: By ~~uf ~ 7 p~l~izi _ DATE: i i zoo C nference Officer o~ By Penalty Adjustment Reviewed Division Dtre for (Rule 5.04.3(4)(c)] CRS 34-33-123(8)(c) and (d) C-nvA~