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1 ' <br />STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resource <br /> <br />1313 Sharman St„ Room 213 <br />Denver, Colorado 80203 RECEIVED C O L O ILA D O <br />Phone: (303) 866.3567 <br />FAX: 003) 832-8106 RECLAMATION <br />MAY 12 2008 MINING <br />SAFLTY <br />Division of Keclamabon, <br />REQUEST FOR CRAiuSFER OF CnAT bLI ?M?pni?np and Safety elm OW U <br />K1dfIT A7VD S CES ION OF OPE TM <br /> <br />[ Rusdl Georp <br />U <br />i <br />. mml <br />va Diraacr <br /> Ro"M w. cataw <br />RECITALS Division Dirackm <br />Naarrai Re/ <br />otmm Tnma <br />A. On November z 2002 , the Mined Land Reclamation Board of the Colorado <br />Department of Natural Resources (the "State") granted to <br />Lorencito Coal Company, LLC <br /> . address <br />4422 Bryan Station Road, Lexington, KY 40516 ("Permitt <br />" <br /> ee <br />) permit <br />number C-1996-084 (the "Perm <br />tt°) pursuant to which Pertnittee has been <br />conducting a mining and <br />reclamation operation known as Lorencito Canyon Mine <br />in the County of <br />Las Animas State of Colorado. <br />B. Permittee wishes to assign the permit to <br />New Elk Coal Company, LLC <br />address <br />122 West First Street, Trinidad, Colorado 81082 <br />as SucCCBSar <br />Operator ("Successor's and Successor wishes to become Successor Permittee under the permit. <br />C. Successor understands that the reclamation plan (the "Plan") required by the permit and by applicable <br />State laws and regulations has not been completed and is willing to assume full responsibility for the <br />completion of the Plan. <br />ff. <br />AGREEMENTS <br />Permittee and Successor hereby agree, for their own benefit and for the benefit of the State, such <br />agreements to be effective ipso facto upon the approval by the State of the transfer of the Permit from <br />Permittee to Successor, as follows: <br />I . Successor has inspected the mining and reclamation operations to its entire satisfaction and is <br />fully aware of the condition thereof. Successor understands and accepts all of the conditions of the Permit <br />2. Successor will complete the reclamation phut, and hereby assumes liability for completing <br />such plan as to all areas heretofore disturbed, as well as to all areas hereafter disturbed Successor will perform <br />all of the obligations of the Permittee under the Permit which have not heretofore been performed by <br />Permittee. <br />Once of <br />Mined Land Redamadon office of <br />Adve and inwilve Mines