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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 60203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-6106 <br />Permit Number: <br />Type of Permit: <br />Permit Date: <br />M-2004-078 <br />112c <br />October 17, 2005 <br />(Anniversary date for <br />annual report and fees <br />purposes) <br />COLORADO <br />DIVISION OF <br />MIN &RALS <br />GEOLOGY <br />RECLA NATION•NINING <br />SAf ETY•SCIENCE <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />THIS PERMIT is issued by the Mined Land Reclamation Board, Department of Natural Resources, State of <br />Colorado. <br />A. The Permittee, SW TKO Joint Venture, LLC desires to conduct a mining operation known as Lupton <br />Lakes Resource, for the purpose of extracting sand and gravel. Unless this permit is modified or a separate permit is <br />issued to cover the mining and/or recovery of other minerals or extractive products, the Pemvttee will not mine or recover <br />any other commodities at this site. <br />B. On June 9, 2005 the Mined Land Reclamation Board (the "Board") approved the Permittee's application <br />for this permit, fixed the amount of the financial warranty and directed that this permit be issued upon the filing with the <br />Division of Minerals and Geology (the "Division") of performance warranty and financial warranty (or warranties) in the <br />amount so fixed in form and substance approved by the Division. Said warranties have been filed with the Division. <br />C. If the Permittee desires to extract materials other than those listed in (A), a sepazate permit or a permit <br />modification may be required. <br />D. On June 9, 2005 the Board made the following findings: <br />1. The application for this permit complies with the requirements of the Colorado Mined Land <br />Reclamation Act for the Extraction of Construction Materials, C.R.S. 34-32.5-101 eY seq., as amended, and with all <br />applicable local, state and federal laws; <br />2. The operation will not adversely affect the stability of any significant, valuable, and permanent <br />man-made structure located within two hundred feet of the Affected Land, except where there is an agreement between <br />the Operator and the persons having an interest in the structure that damage to the structure is to be compensated for by <br />the Pem3ittee if such an agreement cannot be reached, an engineering analysis establishes no damage will occur to the <br />structure to the satisfaction of the Division; and; <br />Office of Office of Colorado <br />Mined land Reclamation Active and Inactive Mines Geological Survey <br />