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n <br />The mine is 16 miles north of the town of Gunnison and is approximately <br />2.6 miles east of Baldwin. More specifically, the current permit area <br />is in Gunnison County in the State of Colorado in the S1/2 of lots 1 and <br />2, which said lots are co-extensive with the SE1/4 of the NE1/4 and the <br />SW1/4 of the NE1/4 of Section 16, Township 15 South, Range 86 West, <br />6th P.M. This area is 80 acres in size. The permit area can be found <br />on the USGS Mount Axtell 7.5 minute Quadrangle. <br />B. The term of this permit will expire on January 18, 1997. <br />C. This permit is issued subject to the following conditions and <br />agreements: <br />1. Operator agrees to be bound by all lawful requirements of the <br />Colorado Surface Coal Mining Reclamation Act (C.R.S. 34-33-101 et sec.) ("the <br />Act"), ail lawful rules and regulations thereunder, as amended from time to <br />time, and all provisions of this permit. <br />2. If analyses of the mining and reclamation operation and the <br />data collected through monitoring and experimentation by the operator or <br />monitoring by the Division indicate in the judgment of the Division that the <br />operation will not be able to comply with the requirements of the Act and <br />lawful rules and regulations thereunder, operator hereby agrees to exercise <br />its best efforts, after consulting with the Division, to modify the plans <br />prospectively to correct such deficiencies. Such modifications may require <br />technical revisions or amendments to the permit. <br />3. This permit may be revoked or suspended for non-compliance <br />with the Act or lawful rules or regulations promulgated by the Board. <br />4. a. Operator hereby bargains, sells and conveys unto the <br />State of Colorado the right to enter upon the lands above describeu and tc <br />accomplish thereon the reclamation of such lands as required by this permit <br />and by applicable law. <br />b. Such right to enter shall be exercisable only if the <br />Board or the Division shall have lawfully determined: <br />i. that reclamation required by law to have been <br />performed upon such lands has not been performed, and that <br />ii. the bond or surety forfeiture proceedings described <br />in the Act or similar provisions of subsequent laws, if any, have been <br />initiated. <br />c. Such right to enter shall be exercisable only within the <br />period of time expiring twenty-one (21) years after the death cf all the <br />individuals whose names appear on this permit on the date of its issuance. <br />Such right shall automatically expire when reclamation has been completed and <br />sureties released. <br />_a_ <br />