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b. Colorado State Board of Land Commissioners. Lease of State Trust <br />Land, dated September, 1994, between the State of Colorado. as <br />Lessor, and Energy Fuels Associates. Ltd., as Lessee, for the <br />right to enter for the purpose of complying with the "legal <br />right to enter" and subsidence requirements of the Division of <br />Minerals and Geology regulations. Lease covers the following <br />described lands situated in Fremont County, Colorado: <br />Township 20 South. Range 70 West. 6th P.M. <br />Section 36: NE'1,NE'4NE'ti (Surface Only) <br />c. Operating Agreement dated March 22, 1985, Between Energy Fuels <br />Associates, Ltd., as owner, and EFCI, as operator, authorizing <br />EFCI to conduct coal mining activities on all of the above <br />described lands. <br />None of the above described leases and rights is the subject of any known <br />pending litigation. <br />The mineral and surface estates are not severed on any lands within the <br />permit area; therefore, no consents or conveyances as described in Section <br />2.03.6(2) are necessary or required. <br />2.03.7 RELATIONSHIP TO AREA DESIGNATED UNSUITABLE FOR MINING <br />The permit area for the Southfield Mine and Loadout is not within any known <br />area designated unsuitable for surface mining activities as defined by Rule <br />7 of the Colorado Division of Minerals and Geology Regulations or 30 CFR 764 <br />and 765. nor is any portion of the proposed permit area known to be under <br />study for designation in an administrative proceeding under Rule 7 or 30 CFR <br />764 and 765. <br />A small portion of the Loadout area is located within 300 feet, measured <br />horizontally, of an occupied dwelling as shown by the Loadout Area Surface <br />Ownership Map, (Map 2). This property is owned by Dale and Norma Jean <br />2.03 - 38 Revised 5/13/04 <br />Permit Renewal RN-04 <br />