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related operations on the Landfill Property, subject to the terms, conditions and qualifications hereinafter stated, to wit: AGREEMENT 1.) Incorporation by Reference. The above Recitals are incorporated by reference. 2.) Scone and Conduct of Landfill Operations. The operation of a MSW landfill may be conducted on the Landfill Property in conformance with existing statutory and regulatory authority and requirements of the City, Sherburne County (the "County") and the Minnesota Pollution Control Agency (the "MPCA"), and in accordance with the authorization, conditions and limitations contained in this Permit and in: (O1) the current City Solid Waste Facility ("SWF") License issued to Permittee, as approved on September 19, 2011, and as subsequently amended or modified (the "City License"); and (02) the current MPCA Solid Waste Permit No. 74 (the "State License") issued to Permittee; and (03) the current County Solid Waste Landfill License (the "County License") issued to Permittee. 3.) Additional Expansion of Landfill Prohibited. This Permit authorizes the expansion of landfill activities onto 31.8 acres to allow an additiona127.2 acres of MSW fill area. By accepting and executing this Permit, Permittee agrees to comply with the design of the expansion approved herein, and Permittee agrees to forever waive its right to pursue any further landfill expansion within the City beyond the area describe in Exhibit A hereto. 4.) Conditions Agreed To. This Permit imposes those conditions which the City has determined are reasonably necessary to fully mitigate the adverse effects on the City of the Landfill and its expansion. By accepting and executing this Permit, Permittee agrees that the conditions imposed herein are necessary to fully mitigate the adverse impacts of the Landfill and its expansion, and Pennittee agrees to comply with each of the conditions set forth herein. 5.) Expansion Fee. Permittee shall pay to the City an expansion fee (Expansion Fee) of $3.33 per ton of MSW disposed of at the Landfill from January 1, 2011 through June 30, 2015 and $5.00 per ton of MSW disposed of at the Landfill from July 1, 2015 through December 31, 2030. sThe Expansion Fee shall not be paid on MS W that is residue received from any energy and resource recovery facility with at least 85 percent efficiency or alternative daily cover approved pursuant to the Permittee's Industrial Solid Waste Management Plan. MSW within this exemption is "Exempt MSW." All other MSW is "Non-Exempt MSW." The Expansion Fee applies to all Non-Exempt MSW disposed of at the Landfill. The parties' 2003 Host Community Agreement is rescinded. The Expansion Fee shall be paid directly to the City on a monthly basis and shall be accompanied by an accurate report on the amount and type ofNon-Exempt MSW disposed of in the Landfill each day during the month. The Expansion Fee due for each month shall be received by the City ' \ no later than the thirtieth (30th) calendar day of the succeeding month. CU_1t-12 RH Paget