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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 />Permit Number: <br />Type of Permit: <br />Permit Date: <br />M -2011 -017 <br />110c <br />MINING AND RECLAMATION PERMIT <br />CONSTRUCTION MATERIAL MINING OPERATIONS <br />February 21, 2012 <br />(Anniversary date for annual report and fees purposes) <br />THIS PERMIT is issued by the Mined Land Reclamation Board, Department of Natural Resources, State of <br />Colorado. <br />RECITALS <br />STATE OF COLORADO <br />COLORADO <br />D I V I S I O N O F <br />RECLAMAT <br />MINING <br />— &— <br />SAFETY <br />John W Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E Pineda <br />Director <br />A. The Permittee, Breeze Basin Resources desires to conduct a mining operation known as Frentress Gravel <br />Pit, for the purpose of extracting Sand and gravel. Unless this permit is modified or a separate permit is issued to cover <br />the mining and /or recovery of other minerals or extractive products, the Permittee will not mine or recover any other <br />commodities at this site. <br />B. On April 8, 2011 the Mined Land Reclamation Board (the "Board ") approved the Permittee's application <br />for this permit, fixed the amount of the financial warranty and directed that this permit be issued upon the filing with the <br />Division of Reclamation, Mining and Safety (the "Division ") of performance warranty and financial warranty (or <br />warranties) in the amount so fixed in form and substance approved by the Division. Said warranties have been filed with <br />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 8, 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 <br />Mined Land Reclamation <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />