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Page 2 WHEREAS, the City's Zoning Ordinance requires that a Conditional • Use Permit be issued and that a Conditional Use Permit Agreement for mineral excavation be entered into. NOW, THEREFORE, in consideration of the premises and the mutual promises and conditions hereinafter contained, it is hereby agreed as follows: 1.) Entire Agreement- Except as otherwise provided herein, this Agreement shall constitute the Conditional Use Permit for the Property and, together with the License Agreement to be executed by City and Operator, shall govern the parties rights, responsibilities, and obligations with respect to the Operation, subject to the compliance by all parties with applicable city ordinances and state and federal laws. 2.) Warranty of Operator- Operator hereby warrants and represents to the City , as inducement to the City's entering into this agreement, that the Operator is the fee owner of the subject property. 3.) Conditions- The following general conditions shall apply to the Operation: (01) This Conditional Use Permit authorizes Mineral Excavation • (gravel) from the Property. (02) All mineral excavation and processing operations on the property shall comply with the City's mineral excavation, zoning and other applicable ordinances; with the terms of this Conditional Use Permit agreement and the license agreement to be executed by the City and operator; with the City of Elk River's Environmental Impact Statement on mineral excavation; and with the application materials and plans submitted by the Operator, which plans and materials are the basis for the City's approval of the Conditional Use Permit. (03) The Operator shall orally notify the City of any violations of this permit within 24 hours and follow this with notification in writing within 4 working days of the violation. The operator shall notify the City annually in writing of the total area and amount of material mined and projected estimates of area and amount of material to be mined in the following year. This is to be done at time of license renewal. (04) The license must be renewed annually and shall run from • January 1st through December 31st. The annual license fee is that which is specified by City Code at time of renewal. This s:\b&z\stever\gravcup.doc