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<br />A copy of the lease is included as Attachment 1. 1/ <br />On November 27, 1985, MCR entered into a "Quarry <br />Operating Agreement" with Pitkin. Pursuant to the Agreement, <br />Pitkin became the operator of the Mid-Continent Quarry, situated <br />on some or all of the 15 claims, for a period of 5 years, ending <br />December 31, 1990, and from year to year thereafter until <br />canceled. Pitkin agreed to pay the annual rental and royalties <br />due CF&I from MCR, pay MCR a royalty of $0.50 per ton on <br />limestone rock quarried and sold from the Quarry, and to provide <br />MCR's limestone requirements, without payment of royalty to MCR, <br />at Pitkin's cost plus 10$. In paragraph 4 of the Agreement, <br />Pitkin agreed "to perform the assessment work on the claims <br />pursuant to requirements of the CF&I Steel lease." A copy of the <br />Quarry Operating Agreement is included as Attachment 2. <br />According to the appellants, Pitkin operated the Quarry <br />until 1992. The limestone quarried from the claims was processed <br />and sold to a power plant at Craig, Colorado, coal mines in <br />western Colorado, cattle feed producers, and similar uses. <br />Processing the limestone prior to sale to these users produced <br />waste material used for road surfacing, parking lots, and similar <br />uses. SOR at 1-2. <br />1/ CF&I, as the locator and owner of the Tiger, Lynx, and <br />Lion mining claims, remains responsible to the United States for <br />the reclamation of the land disturbed by the quarrying operations <br />on those abandoned claims. Whether CF&I has or will exercise the <br />forfeiture provisions of Section IX of the lease in connection <br />with this obligation is unknown. <br />5 <br />