2011-09-16_GENERAL DOCUMENTS - P2011003

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Auth ID: OUR501 Contact ID: THE_MINING_COMPANY Expiration Date: 12/31/2013 Use Code: 753 U.S. DEPARTMENT OF AGRICULTURE FOREST SERVICE FOREST ROAD SPECIAL USE PERMIT AUTHORITY: FEDERAL LAND POLICY AND MANAGEMENT ACT OF OCTOBER 21,1976 FS- 2700 -4b (10/09) OMB No. 0596 -0082 The Mining Company of 21599 U.S. 550, , RIDGWAY, CO 81432 (hereafter called the holder) is hereby authorized to use the following described National Forest Development Road within the Grand Mesa, Uncompahgre, and Gunnison National Forests National Forest for the following purposes: Use of NFSR 853.1b (Beginning at Camp Bird Mine) and 853.1c (Governor Basin Rd.) to access Upper Mountain Top Mine and haul ore. Approximately 800 tons of ore may be hauled over life of permit via pick up turcks. Season of use is approximately June 15 to September 15, 2011-2013. ROW on NFSR 853.1b = 20ft. x 4000ft. ROW on NFSR 853.1c = 10ft. x 6400ft. The road covered by this permit is located in the County of Ouray, State of Colorado, and is shown on the attached map and identified as follows: Sec. 16, 17, 20, 21, 22, & 23 of T. 43 N., R. 8 W., NEW MEXICO PRINCIPAL MERIDIAN , This permit authorizes use of approximately 1.96 miles of road as shown on Exhibit A. This permit is made subject to the following terms, provisions, and conditions: 1. This permit is subject to all existing easements and valid rights existing on this date. 2. Holder shall comply with applicable Federal or State law and shall comply with State standards for public health and safety, environmental protection, and sitting construction, operation, and maintenance if those standards are more stringent than applicable Federal standards. 3. The holder shall cut no timber except as authorized by construction stipulations or maintenance agreements. 4. Holder shall pay the United States for all injury, loss, or damage, including fire suppression costs, in accordance with Federal and State laws and regulations. 5. Holder shall indemnify the United States for any and all injury, loss, or damage, including fire suppression costs the United States may suffer as a result of claims, demands, losses, or judgments caused by the holder's use or occupancy under this permit. 6. Holder shall pay annually in advance a sum determined by the Forest Service to be the fair market value of the use authorized by this permit. The initial payment is set at $ 158.81 for the remainder of the calendar year. Payments for each subsequent calendar year shall be the adjusted amount using the Implicit Price Deflator - Gross National Product index (IPD -GNP), or other factor selected by the Forest Service, to reflect more nearly the current fair market value of the use. At intervals to be determined by certain changes in the indexes used to establish the linear rights -of -way fee schedule, the fee shall be reviewed and adjusted as necessary to assure that it is commensurate with the value of the rights and privileges authorized. In addition to the annual payment, the holder shall pay its proportionate share of road costs prior to using the road for commercial use. Failure of the holder to pay the annual payment, late charges, or other fees or charges shall cause the permit to terminate.