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-4- <br />IV. RECITALS <br />1. On Ot l ier S 19$I Permit Number _/'9/ 97818 was granted to <br />_J/e.fra Canonitj, Je7e. (existing operator) ("Permittee"), pursuant to which <br />Pernittee has been conducting a mining operation in the County of Gunn son , State of Colorado. <br />(11ajesJA Svc ?i Mro??. Zne, t<bC Orld' / <br />Permittee wishes to assign the permit to COhpcni el oT / ItSc. Coy-Iy (new <br />operator), as Successor Operator ("Successor") and Successor wishes to become Successor Permittee under the <br />permit. <br />3. Successor understands that the reclamation plan (the "Plan") required by the permit and by applicable <br />State laws and regulations has not been completed and is Willing tb M§uiiie full responsibility for the completion of <br />the Plan. <br />V. AGREEMENTS <br />Permittee and Successor hereby agree, for their own benefit and for the benefit of the State, such agreements to be <br />effective jM facto upon the approval by the State of the transfer of the Permit from Permittee to Successor, as <br />follows: <br />1. Successor has inspected the mining and reclamation operations to its entire satisfaction and is fully aware <br />of the conditions thereof. Successor understands and accepts all of the conditions of the Permit. <br />2. Successor will complete the reclamation plan, and hereby assumes liability for completing such plan as to <br />all areas heretofore disturbed, as well as to all areas hereafter disturbed. Successor will perform all of the <br />obligations of the Permittee under the Permit which have not heretofore been performed by Permittee. <br />3. Successor hereby tenders to the State its attached Performance and Financial Warranties*, which are to be <br />substituted for the Performance and 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, information and belief, it is not in <br />violation of any ofthe provisions of the Colorado Mined Land reclamation Act A.40h respect to any other operation <br />conducted by it in the State of Colorado. <br />PerrmIfte and Successor herehy request the State to cormma to the assignment of the Permit, to recognize Successor <br />as Successor Operator under the Permit. and to accept, the tendered substitute Performance and Financial <br />Warranties in place of the Warranties presently on file with the State.