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s A/K <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) 8324106 <br />I. RECITALS <br />II. AGREEMENTS <br />(V7- M z 010-06 <br />STATE OF COLORADO <br />NOV 14 Z U <br />D14 4an of RsIar(12tiO1, <br />RAIRing and Segety <br />TRANSFER OF APPROVED IVIJNERAL APPLICATION AND <br />SUCCESSION OF PERMIT APPLICANT <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />A. On May 16 2011 <br />s , the Mined Land Reclamation Board of the Colorado Department <br />of Natural Resources (the "State ") approved an application for a mining operation under C.R.S. 34 -32 -101 et q. or 34- <br />32.5 -101 et sm. from Carder, Inc. (the "Applicant "), P.O. Box 732, Lamar, CO 81052 <br />(address), and assigned Permit Application Number M- 2010 -062 <br />B. The Applicant wishes to assign the approved Application to White Sand & Gravel LLC <br />(the "Successor"), P.O. Box 806, Elkhart, KS 67950 (address), as Successor Applicant and the <br />Successor wishes to become Successor Permittee after all requirements of C.R.S. 34-32 -101 et seg. or 34- 32.5 -101 eta. <br />are met and the permit may be issued. <br />Applicant and Successor hereby agree, for their own benefit and for the benefit of the State, such agreements to be <br />effective immediately upon the approval by the State of the transfer of the Application from Applicant to Successor, as <br />follows: <br />1. Successor has inspected the proposed site of the mining and reclamation operations and is fully aware of the <br />condition thereof. Successor has examined the Application for the permit and is fully aware of its contents and status in the <br />permitting process. Successor thus understands and accepts the Application as it currently exists. <br />2. Successor understands the permit for this Application cannot be issued until all applicable requirements of <br />C.R.S. 34 -32 -101 et seg. or 34- 32.5 -101 et seq. are met, including submission of adequate performance and financial <br />warranties. <br />3. Successor understands that all commitments and obligations of the Applicant to the Mined Land <br />Reclamation Board related to this permit application and the approval become those of the Successor. <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 of the provisions of the Colorado Mined Land Reclamation Act with respect to any other operation <br />conducted by it in the State of Colorado. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />