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<br />COMPLIANCE AGREEMENT REGARDING HARRISON <br />WESTERN CORPORATION RESPONSIBILITIES AT <br />THE WEST PIT OF THE GEC MINERALS SITE, <br />FREMONT COUNTY, COLORADO <br />This agreement is entered into on this 3 Z day of April, <br />1992 between the Harrison Western Corporation (Harrison) <br />and the Mined Land Reclamation Division (Division) for <br />the purposes of defining Harrison's responsibilities at <br />the West Pit area of the GEC Minerals site in Fremont <br />County, Colorado, clarifying Harrison's obligations <br />under its performance bond, and establishing a <br />compliance schedule for the completion of reclamation <br />work to be undertaken by Harrison. This agreement may <br />be altered only by written consent of the parties, and <br />with the approval of the Mined Land Reclamation Board <br />(Board). <br />It is acknowledged by the parties that Harrison is <br />acting as a guarantor performing reclamation for the <br />purpose of preserving the performance bond. <br />RECITALS <br />1. GEC Minerals, Inc. (GEC) conducted surface coal <br />mining operations in Fremont County by virtue of permit <br />C-81-037. <br />2. In October 1982, GEC granted Harrison a two-year <br />option to investigate using a previously-disturbed <br />portion of the West Pit of the permitted area to access <br />an adjoining mine. In return, Harrison agreed to post a <br />reclamation bond "to satisfy bonding requirements of the <br />CMLRB pursuant to the delay in commencing reclamation of <br />the West Pit." Under this agreement, Harrison was to <br />incur reclamation obligations only if it expanded or <br />modified the West Pit and GEC was to become solely <br />responsible for the bonding requirements if the option <br />was not exercised. <br />3. Pursuant to this agreement, Harrison provided the <br />Division with a $143,000 performance bond. Harrison's <br />performance bond was strictly limited to the portion of <br />the west Pit depicted in Exhibit A to the bond and did <br />not apply to any other areas within the permit area. <br />4. Neither the Division nor the Board signed the <br />agreement referenced in paragraph 2 above. <br />