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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />MINING AND RECLAMATION PERMIT <br />CONSTRUCTION MATERIAL MINING OPERATIONS <br />Permit Number: <br />Type of Permit: <br />Permit Date: <br />M-2011-004 <br />112c <br />May 23, 2011 <br />(Anniversary date for <br />annual report and fees <br />purposes) <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />- St- <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />THIS PERMIT is issued by the Mined Land Reclamation Board, Department of Natural Resources, State of <br />Colorado. <br />RECITALS <br />A. The Permittee, KrauthCo Inc desires to conduct a mining operation known as W Stone Pit #1, for the <br />purpose of extracting Sandstone (silica, stone, quartzite). Unless this permit is modified or a separate permit is issued to <br />cover the mining and/or recovery of other minerals or extractive products, the Permittee will not mine or recover any <br />other commodities at this site. <br />B. On April 20, 2011 the Mined Land Reclamation Board (the "Board") approved the Permittee's <br />application for this permit, fixed the amount of the financial warranty and directed that this permit be issued upon the <br />filing with the Division of Reclamation, Mining and Safety (the "Division") of performance warranty and financial <br />warranty (or warranties) in the amount so fixed in form and substance approved by the Division. Said warranties have <br />been filed with the Division. <br />C. If the Permittee desires to extract materials other than those listed in (A), a separate permit or a permit <br />modification may be required. <br />D. On April 20, 2011 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 et 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 Permittee or 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 <br />Mined Land Reclamation Denver • Grand )unction • Durango Active and Inactive Mines