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<br />-4- <br />IV. RECITALS <br />1. On JANUARY 6th 1997 permit Number M-aR-1oa was granted <br />tp WESTERN AGGREGATES INC.- WHOLLY OWNED S[JBSIDARY OF INCO(B%isting operator) <br />("Permittee"), pursuant to which Permittee has been conducting a mining <br />operation in the County Of JEFFERSON <br />State of Colorado. <br />2. Permittee wishes to assign tale permit toTxl OPERATIONS LP DSA WESTERN AGGREGATES <br />(new operator), as Successor Operator ("Successor") and Successor wishes to <br />becomE+ Successor Permittee under the permit. <br />3. Successor understands that the reclamation plan <the "Plan") required by <br />the permit and by applicable State laws and regulations has not been completed <br />and is willing to assume fuil responsibility for the completion of the Plan. <br />V. AGREEMENTS <br />Permittee and Successor hereby agree, For their own benefit and for the <br />benefit: of the State, such agreements to be effective ipSO facto upon the <br />approval by the State of the transfer of the Permit from Permittee to <br />Successor, as follows: <br />1. Successor has inspected the mining and reclamation operations to its <br />entire satisfaction and is fully aware of the conditions thereof. Successor <br />understands and accepts all of the conditions of the Permit. <br />2. Successor will complete the reclamation plan, and hereby assumes <br />liability for completing such plan as to all areas heretofore disturbed, as <br />well as to ail areas hereafter disturbed. Successor will perform all of the <br />obligations of the Permittee under the Permit which have not heretofore been <br />performed by Permittee. <br />3. Successor hereby tenders to the State its attached Performance and <br />Financial Warranties', which are to be substituted for the Performance and <br />Financial Warranties heretofore filed by the Permittee, effective upon the <br />release of the latter Warranties. <br />4. 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 <br />Colorado Mined Land reclamation Act with respect to any other operation <br />conducted by it in the State of Colorado. <br />