Authorization ID: 40081                                       FS-2700-5b (8/99)
Contact ID:  4008                                             OMB No 0596 - 0082
Expiration Date: 06/30/2042
Use Code:  161


                         U.S. DEPARTMENT OF AGRICULTURE
                                 Forest Service
                        SKI AREA TERM SPECIAL USE PERMIT
                                   AUTHORITY:
                      SKI AREA PERMIT ACT October 22, 1986


LOON MOUNTAIN RECREATION CORPORATION, KANCAMAGUS HIGHWAY, ROUTE 112, LINCOLN,
NH, 03251 (hereafter called the holder) is hereby authorized to use National
Forest System lands, on the White Mountain National Forest, for the purposes of
constructing, operating, and maintaining winter sports resort including food
service, retail sales, and other ancillary facilities, described herein, known
as the Loon Mountain Ski Area and subject to the provisions of this term permit.
This permit, described here as a portion of Tract 50A in the Town of Lincoln,
Grafton County, New Hampshire, covers 1366 acres plus an adjacent 12 kilometers,
more or less, of nordic and mountain bike trails, and is more particularly
described and shown on the attached map dated 06/30/2002.

The following improvements, whether on or off the site, are authorized:

Construction, operation and maintenance of a year-round outdoor recreational
development to provide services necessary and desirable for the reasonable
comfort and convenience of the public. Structures, facilities and appurtenant
improvements to be authorized by this permit are as shown on the approved
development plan required by this permit.


Attached Clauses. This term permit is accepted subject to the conditions set
forth herein on pages 2 through 16 and to exhibits 1 to 3 (maps of the permitted
area and the Loon Mountain Master Development Plan) attached or referenced
hereto and made a part of this permit.




       THIS PERMIT IS ACCEPTED SUBJECT TO ALL OF ITS TERMS AND CONDITIONS:


ACCEPTED:

/s/  LMRC  Rick Kelley                                           06/24/2002
--------------------------------------------------------------------------------
HOLDER NAME AND SIGNATURE                                        DATE




APPROVED:

/s/  Thomas G. Wagner             Forest Supervisor              06/24/2002
--------------------------------------------------------------------------------
AUTHORIZED OFFICER SIGNATURE      NAME AND TITLE                 DATE


                                       1
<PAGE>


                              TERMS AND CONDITIONS

I.  AUTHORITY AND USE AND TERM AUTHORIZED

A.  Authority.  This term  permit is issued  under the  authority  of the Act of
October 22, 1986,  (Title 16, United States Code,  Section 497b),  and Title 36,
Code of Federal Regulations, Sections 251.50-251.64.

B. Authorized  Officer.  The authorized  officer is the Forest  Supervisor.  The
authorized officer may designate a representative for administration of specific
portions of this authorization.

C. Rules, Laws and Ordinances.  The holder, in exercising the privileges granted
by this term permit, shall comply with all present and future regulations of the
Secretary of Agriculture  and federal laws;  and all present and future,  state,
county, and municipal laws,  ordinances,  or regulations which are applicable to
the area or  operations  covered by this  permit to the  extent  they are not in
conflict with federal law,  policy or regulation.  The Forest Service assumes no
responsibility  for enforcing laws,  regulations,  ordinances and the like which
are under the jurisdiction of other government bodies.

D. Term.  Unless sooner  terminated  or revoked by the  authorized  officer,  in
accordance with the provisions of the authorization, this permit shall terminate
on 06/30/2042,  but a new special-use  authorization  to occupy and use the same
National  Forest land may be granted  provided  the holder shall comply with the
then-existing  laws and regulations  governing the occupancy and use of National
Forest lands. The holder shall notify the authorized officer in writing not less
than six (6) months prior to said date that such new authorization is desired.

E. Nonexclusive  Use. This permit is not exclusive.  The Forest Service reserves
the right to use or permit others to use any part of the permitted  area for any
purpose,  provided such use does not  materially  interfere  with the rights and
privileges hereby authorized.

F. Area Access.  Except for any  restrictions  as the holder and the  authorized
officer may agree to be necessary to protect the  installation  and operation of
authorized  structures  and  developments,  the lands and waters covered by this
permit shall remain open to the public for all lawful  purposes.  To  facilitate
public use of this area,  all existing  roads or roads as may be  constructed by
the holder,  shall remain open to the public,  except for roads as may be closed
by joint agreement of the holder and the authorized officer.

G. Master  Development  Plan. In consideration  of the privileges  authorized by
this  permit,  the  holder  agrees to prepare  and submit  changes in the Master
Development  Plan   encompassing  the  entire  winter  sports  resort  presently
envisioned  for  development  in  connection  with  the  National  Forest  lands
authorized  by this  permit,  and in a form  acceptable  to the Forest  Service.
Additional construction beyond maintenance of existing improvements shall not be
authorized  until this plan has been amended.  Planning should encompass all the
area  authorized for use by this permit.  The accepted Master  Development  Plan
shall become a part of this permit.  For planning  purposes,  a capacity for the
ski area in  people-at-one  time shall be established in the Master  Development
Plan and appropriate  National  Environmental  Policy Act (NEPA)  document.  The
overall development shall not exceed that capacity without further environmental
analysis documentation through the appropriate NEPA process.

H. Periodic Revision.

     1. The terms and  conditions  of this  authorization  shall be  subject  to
     revision  to  reflect  changing  times  and  conditions  so that  land  use
     allocation  decisions  made as a result  of  revision  to  Forest  Land and
     Resource Management Plan may be incorporated.

     2. At the sole discretion of the authorized officer this term permit may be
     amended to remove authorization to use any National Forest System lands not
     specifically  covered in the Master  Development Plan and/or needed for use
     and occupancy under this authorization.

                                       2
<PAGE>


II.  IMPROVEMENTS

A. Permission.  Nothing in this permit shall be construed to imply permission to
build  or  maintain  any  improvement  not  specifically  named  in  the  Master
Development  Plan  and  approved  in  the  annual  operating  plan,  or  further
authorized in writing by the authorized officer.

B. Site  Development  Schedule.  As part of this  permit,  a  schedule  for the
progressive  development  of the permitted area and  installation  of facilities
shall be prepared jointly by the holder and the Forest Service.  Such a schedule
shall be  prepared  by May 15th each  year,  and  shall  set  forth an  itemized
priority  list of planned  improvements  and the due date for  completion.  This
schedule  shall be made a part of this  permit.  The holder may  accelerate  the
scheduled date for  installation  of any  improvement  authorized,  provided the
other  scheduled  priorities  are met; and provided  further,  that all priority
installations authorized are completed to the satisfaction of the Forest Service
and ready for public use prior to the scheduled due date.

     1.  All  required  plans  and  specifications  for site  improvements,  and
     structures included in the development schedule shall be properly certified
     and submitted to the Forest  Service at least  forty-five  (45) days before
     the construction date stipulated in the development schedule.

     2. In the event there is  agreement  with the Forest  Service to expand the
     facilities and services  provided on the areas covered by this permit,  the
     holder shall jointly prepare with the Forest Service a development schedule
     for the added facilities prior to any construction and meet requirements of
     paragraph II.D of this section.  Such schedule shall be made a part of this
     permit.

C. Plans. All plans for development,  layout,  construction,  reconstruction  or
alteration of improvements on the site, as well as revisions of such plans, must
be prepared by a licensed engineer,  architect,  and/or landscape  architect (in
those states in which such licensing is required) or other qualified  individual
acceptable  to the  authorized  officer.  Such  plans  must be  accepted  by the
authorized officer before the commencement of any work. A holder may be required
to furnish as-built plans, maps, or surveys upon the completion of construction.

D.  Amendment.  This  authorization  may be amended to cover  new,  changed,  or
additional  use(s) or area not  previously  considered  in the  approved  Master
Development  plan.  In  approving  or  denying  changes  or  modifications,  the
authorized   officer  shall  consider  among  other  things,   the  findings  or
recommendations   of  other  involved  agencies  and  whether  their  terms  and
conditions of the existing  authorization may be continued or revised,  or a new
authorization issued.

E. Ski Lift Plans and Specifications. All plans for uphill equipment and systems
shall be properly  certified as being in accordance  with the American  National
Standard Safety  Requirements for Aerial Passenger  Tramways (B77.1). A complete
set of drawings,  specifications,  and records for each lift shall be maintained
by the holder and made  available  to the Forest  Service  upon  request.  These
documents  shall be retained by the holder for a period of three (3) years after
the removal of the system from National Forest land.

III. OPERATIONS AND MAINTENANCE

A.  Conditions of  Operations.  The holder shall maintain the  improvements  and
premises to standards of repair, orderliness,  neatness,  sanitation, and safety
acceptable to the authorized  officer.  Standards are subject to periodic change
by the  authorized  officer.  This use shall  normally be exercised at least 365
days each year or season. Failure of the holder to exercise this minimum use may
result in termination pursuant to VIII.B.

B. Ski Lift,  Holder  Inspection.  The holder shall have all passenger  tramways
inspected by a qualified  engineer or tramway  specialist.  Inspections shall be
made in accordance with the American National  Standard Safety  Requirements for
Aerial Passenger  Tramways  (B77.1).  A certificate of inspection,  signed by an
officer of the  holder's  company,  attesting  to the adequacy and safety of the
installations  and  equipment  for  public use shall be  received  by the Forest
Service prior to public operation stating as a minimum:

"Pursuant to our special use permit,  we have had an inspection to determine our
compliance  with the American  National  Standard  B77.1.  We have  received the
results of that inspection and have made corrections of all deficiencies  noted.
The facilities are ready for public use."

                                       3
<PAGE>

C.  Operating  Plan. The holder or designated  representative  shall prepare and
annually  revise by  October 15  (winter  plan) and May 15  (summer/construction
plan) an Operating  Plan.  The Plan shall be prepared in  consultation  with the
authorized  officer or  designated  representative  and cover  winter and summer
operations as  appropriate.  The provisions of the Operating Plan and the annual
revisions  shall  become a part of this  permit  and shall be  submitted  by the
holder  and   approved   by  the   authorized   officer   or  their   designated
representatives. This plan shall consist of at least the following sections:

     1.  Ski patrol and first aid.
     2.  Communications.
     3.  Signs.
     4.  General safety and sanitation.
     5.  Erosion control.
     6.  Accident reporting.
     7.  Search and rescue.
     8.  Special events.
     9.  Boundary management.
     10. Vegetation management.
     11. Designation of representatives.
     12. Trail routes for nordic skiing and mountain biking.

     The authorized officer may require a joint annual business meeting agenda
     to:

         a. Update Gross Fixed Assets and  lift-line  proration  when the fee is
         calculated by the Graduated Rate Fee System.

         b. Determine need for performance bond for construction  projects,  and
         amount of bond.

         c.  Provide annual use reports.

D. Cutting of Trees.  Trees or shrubbery on the permitted area may be removed or
destroyed  only  after the  authorized  officer  has  approved  and  marked,  or
otherwise  designated,  that which may be removed  or  destroyed.  Timber cut or
destroyed shall be paid for by the holder at appraised value,  provided that the
Forest  Service  reserves  the right to  dispose of the  merchantable  timber to
others than the holder at no stumpage cost to the holder.

E. Signs.  Signs or advertising  devices erected on National Forest lands, shall
have prior approval by the Forest Service as to location,  design,  size, color,
and message.  Erected  signs shall be maintained or renewed as necessary to neat
and presentable standards, as determined by the Forest Service.

F. Temporary  Suspension.  Immediate temporary  suspension of the operation,  in
whole or in part,  may be required when the  authorized  officer,  or designated
representative,  determines  it to be necessary to protect the public  health or
safety, or the environment. The order for suspension may be given verbally or in
writing. In any such case, the superior of the authorized officer, or designated
representative,  shall,  within  ten (10)  days of the  request  of the  holder,
arrange for an on-the-ground  review of the adverse  conditions with the holder.
Following this review the superior shall take prompt action to affirm, modify or
cancel the temporary suspension.

IV. NONDISCRIMINATION. During the performance of this permit, the holder agrees:

A. In  connection  with the  performance  of work under this  permit,  including
construction,  maintenance,  and operation of the facility, the holder shall not
discriminate  against any employee or applicant for employment  because of race,
color, religion, sex, national origin, age, or handicap.  (Ref. Title VII of the
Civil Rights Act of 1964 as amended).

B. The holder and employees  shall not  discriminate by segregation or otherwise
against any person on the basis of race, color, religion,  sex, national origin,
age  or  handicap,   by  curtailing  or  refusing  to  furnish   accommodations,
facilities,  services, or use privileges offered to the public generally.  (Ref.
Title  VI of the  Civil  Rights  Act of  1964  as  amended,  Section  504 of the
Rehabilitation  Act of 1973, Title IX of the Education  Amendments,  and the Age
Discrimination Act of 1975).

C.  The  holder   shall   include   and  require   compliance   with  the  above
nondiscrimination  provisions  in  any  subcontract  made  with  respect  to the
operations under this permit.

                                       4
<PAGE>

D. Signs setting forth this policy of  nondiscrimination  to be furnished by the
Forest  Service will be  conspicuously  displayed at the public  entrance to the
premises,  and at other exterior or interior locations as directed by the Forest
Service.

E.  The  Forest   Service   shall  have  the  right  to  enforce  the  foregoing
nondiscrimination  provisions by suit for specific  performance  or by any other
available  remedy under the laws of the United  States of the State in which the
breach or violation occurs.

V. LIABILITIES

A. Third Party Rights.  This permit is subject to all valid existing  rights and
claims  outstanding  in third  parties.  The United  States is not liable to the
holder for the exercise of any such right or claim.

B.  Indemnification  of the United  States.  The holder shall hold  harmless the
United  States from any liability  from damage to life or property  arising from
the holder's occupancy or use of National Forest lands under this permit.

C. Damage to United  States  Property.  The holder shall  exercise  diligence in
protecting from damage the land and property of the United States covered by and
used in connection with this permit.  The holder shall pay the United States the
full cost of any damage resulting from negligence or activities  occurring under
the  terms of this  permit  or under  any law or  regulation  applicable  to the
national forests, whether caused by the holder, or by any agents or employees of
the holder.

D. Risks. The holder assumes all risk of loss to the improvements resulting from
natural or catastrophic events, including but not limited to, avalanches, rising
waters,  high winds,  falling limbs or trees, and other hazardous events. If the
improvements authorized by this permit are destroyed or substantially damaged by
natural or catastrophic events, the authorized officer shall conduct an analysis
to determine  whether the  improvements can be safely occupied in the future and
whether  rebuilding  should be allowed.  The  analysis  shall be provided to the
holder within six (6) months of the event.

E. Hazards.  The holder has the responsibility of inspecting the area authorized
for use under this  permit for  evidence  of  hazardous  conditions  which could
affect the improvements or pose a risk of injury to individuals.

F.  Insurance.  The  holder  shall  have in  force  public  liability  insurance
covering:  (1)  property  damage in the amount of One Hundred  Thousand  dollars
($100,000),  and (2)  damage to persons in the  minimum  amount of Five  Hundred
Thousand  dollars  ($500,000) in the event of death or injury to one individual,
and the minimum amount of One Million dollars ($1,000,000) in the event of death
or injury to more  than one  individual.  These  minimum  amounts  and terms are
subject  to change  at the sole  discretion  of the  authorized  officer  at the
five-year  anniversary date of this authorization.  The coverage shall extend to
property damage,  bodily injury, or death arising out of the holder's activities
under the permit including, but not limited to, occupancy or use of the land and
the construction,  maintenance, and operation of the structures,  facilities, or
equipment  authorized by this permit.  Such insurance shall also name the United
States as an additionally  insured.  The holder shall send an authenticated copy
of its insurance  policy to the Forest Service  immediately upon issuance of the
policy.  The policy  shall also  contain a  specific  provision  or rider to the
effect  that the policy  shall not be  cancelled  or its  provisions  changed or
deleted before thirty (30) days written notice to the Forest  Supervisor,  White
Mountain National Forest, 719 Main Street,  Laconia,  NH 03246, by the insurance
company.

     Rider Clause (for insurance companies)

     "It is understood  and agreed that the coverage  provided under this policy
     shall not be cancelled or its  provisions  changed or deleted before thirty
     (30) days of  receipt of written  notice to the  Forest  Supervisor,  White
     Mountain  National  Forest,  719 Main  Street,  Laconia,  NH 03246,  by the
     insurance company."

                                       5
<PAGE>

VI. FEES

Ski Area Permit Fees. The Forest Service shall adjust and calculate  permit fees
authorized by this permit to reflect any  revisions to permit fee  provisions in
16 U.S.C.  497c or to comply with any new permit fee system based on fair market
value that may be adopted by statute or otherwise after issuance of this permit.

A. Fee  Calculation.  The annual fee due the  United  States for the  activities
authorized by this permit shall be calculated using the following formula:


     SAPF      =        (.015 x AGR in bracket 1) + (.025 x AGR in bracket 2) +
                        (.0275 x AGR in bracket 3) + (.04 x AGR in bracket 4)
     Where:

     AGR       =        [(LT + SS) x (proration %)] + GRAF


AGR            is       adjusted gross revenue;

LT             is       revenue from sales of alpine and nordic lift tickets and
               passes;

GRAF           is       gross year-round revenue from ancillary facilities;

Proration %    is       the factor to apportion revenue attributable to use of
               National Forest
System lands;

SAPF           is       the ski area permit fee for use of National Forest
               System lands; and

SS             is       revenue from alpine and nordic ski school operations.

     1. SAPF shall be  calculated  by summing  the  results of  multiplying  the
     indicated  percentage  rates by the amount of the holder's  adjusted  gross
     revenue (AGR), which falls into each of the four brackets. Follow direction
     in paragraph 2 to determine  AGR. The permit fee shall be calculated  based
     on the holder's fiscal year, unless mutually agreed otherwise by the holder
     and the authorized officer.

     The four revenue brackets shall be adjusted  annually by the consumer price
     index  issued in FSH  2709.11,  chapter 30. The revenue  brackets  shall be
     indexed for the  previous  calendar  year.  The holder's AGR for any fiscal
     year shall not be split into more than one set of  indexed  brackets.  Only
     the  levels of AGR  defined  in each  bracket  are  updated  annually.  The
     percentage rates do not change.

     The revenue brackets and percentages  displayed in Exhibit 01 shall be used
     as shown in the preceding formula to calculate the permit fee.

      Adjusted Gross Revenue (AGR) Brackets and Associated Percentage Rates
                for Use in Determining Ski Area Permit Fee (SAPF)

                   Revenue Brackets (updated annually by CPI*)
                              and Percentage Rates

      Holder FY       Bracket 1       Bracket 2       Bracket 3      Bracket 4
                      (1.5%)          (2.5%)          (2.75%)        (4%)

      FY 1996         All revenue     $ 3,000,000     $15,000,000    All revenue
       CPI:           below                to              to        over
       N/A            $3,000,000      <$15,000,000    $50,000,000    $50,000,000

      FY 1997         All revenue     $ 3,090,000     $15,450,000    All revenue
       CPI:           below                to              to        over
      1.030           $3,090,000      <$15,450,000    $51,500,000    $51,500,000

      FY 1998         All revenue     $ 3,158,000     $15,790,000    All revenue
       CPI:           below                to              to        over
      1.022           $3,158,000      <$15,790,000    $52,633,000    $52,633,000

      FY 1999         All revenue     $ 3,212,000     $16,058,000    All revenue
       CPI:           below                to              to        over
      1.017           $3,212,000      <$16,058,000    $53,528,000    $53,528,000

      FY 2000               BRACKETS WILL BE UPDATED ANNUALLY BY CPI*
      and beyond


*The authorized officer shall notify the holder of the updated revenue brackets
based on the Consumer Price Index (CPI) which is revised and issued annually in
FSH 2709.11, chapter 30.

                                       6
<PAGE>

     2. AGR shall be calculated by summing the revenue from lift tickets and ski
     school operations prorated for use of National Forest System lands and from
     ancillary facility operations conducted on National Forest System lands.

     Revenue  inclusions shall be income from sales of alpine and nordic tickets
     and ski area passes; alpine and nordic ski school operations; gross revenue
     from ancillary  facilities;  the value of bartered goods and  complimentary
     lift tickets (such as lift tickets  provided free of charge to the holder's
     friends or relatives); and special event revenue. Discriminatory pricing, a
     rate based solely on race,  color,  religion,  sex,  national origin,  age,
     disability,  or place  of  residence,  is not  allowed,  but if it  occurs,
     include the amount  that would have been  received  had the  discriminatory
     pricing  transaction  been made at the market  price,  the price  generally
     available to an informed public, excluding special promotions.

     Revenue  exclusions  shall be income  from  sales of  operating  equipment;
     refunds;  rent paid to the holder by subholders;  sponsor  contributions to
     special events; any amount  attributable to employee gratuities or employee
     lift tickets;  discounts;  ski area tickets or passes provided for a public
     safety or public  service  purpose  (such as for National Ski Patrol or for
     volunteers to assist on the slope in the Special Olympics); and other goods
     or services (except for bartered goods and complimentary  lift tickets) for
     which the holder does not receive money.

     Include the following in AGR:

         a. Revenue from sales of  year-round  alpine and nordic ski area passes
         and tickets and  revenue  from alpine and nordic ski school  operations
         prorated  according to the  percentage of use between  National  Forest
         System lands and private land in the ski area;

         b. Gross  year-round  revenue from  temporary and  permanent  ancillary
         facilities located on National Forest System lands;

         c. The value of bartered goods and  complimentary  lift tickets,  which
         are  goods,  services,  or  privileges  that are not  available  to the
         general public (except for employee gratuities,  employee lift tickets,
         and discounts,  and except for ski area tickets and passes provided for
         a public  safety or public  service  purpose)  and that are  donated or
         provided   without  charge  in  exchange  for  something  of  value  to
         organizations or individuals (for example,  ski area product discounts,
         service discounts,  or lift tickets that are provided free of charge in
         exchange for advertising).

         Bartered  goods and  complimentary  lift  tickets  (except for employee
         gratuities,  employee lift tickets,  discounts, and except for ski area
         tickets  and  passes  provided  for a public  safety or public  service
         purpose) valued at market price shall be included in the AGR formula as
         revenue  under  LT,  SS,  or  GRAF,  depending  on the  type of  goods,
         services, or privileges donated or bartered; and

         d. Special  event  revenue from events,  such as food  festivals,  foot
         races, and concerts. Special event revenue shall be included in the AGR
         formula  as  revenue  under LT,  SS, or GRAF,  as  applicable.  Prorate
         revenue  according to the  percentage  of use between  National  Forest
         System lands and private land as described in the following  paragraphs
         5 and 6.

                                       7
<PAGE>

     3. LT is the  revenue  from  sales of alpine and nordic  lift  tickets  and
     passes purchased for the purpose of using a ski area during any time of the
     year,  including  revenue  that is  generated on private land (such as from
     tickets sold on private land).

     4. SS is the revenue from lessons provided to teach alpine or nordic skiing
     or  other  winter  sports  activities,  such as  racing,  snowboarding,  or
     snowshoeing,  including  revenue that is generated on private land (such as
     from tickets sold on private land).

     5.  Proration % is the method used to prorate  revenue from the sale of ski
     area passes and lift tickets and revenue from ski school operations between
     National  Forest System lands and private land in the ski area.  Separately
     prorate alpine and nordic revenue with an appropriate proration factor. Add
     prorated revenues  together;  then sum them with GRAF to arrive at AGR. Use
     one or both of the following methods, as appropriate:

         a. STFP shall be the method used to prorate  alpine  revenue.  The STFP
         direction  contained in FSM  2715.11c  effective in 1992 shall be used.
         Include in the  calculation  only  uphill  devices  (lifts,  tows,  and
         tramways) that are fundamental to the winter sports operation  (usually
         those located on both Federal and private land).  Do not include people
         movers whose primary purpose is to shuttle people between parking areas
         or between parking areas and lodges and offices.

         b. Nordic  trail length is the method used to prorate  nordic  revenue.
         Use the  percentage of trail length on National  Forest System lands to
         total trail length.

     6. GRAF is the revenue  from  ancillary  facilities,  including  all of the
     holder's or subholder's lodging,  food service,  rental shops, parking, and
     other ancillary  operations located on National Forest System lands. Do not
     include  revenue that is generated on private land. For facilities that are
     partially  located on National Forest System lands,  calculate the ratio of
     the facility  square footage located on National Forest System lands to the
     total facility  square footage.  Special event revenue  allocatable to GRAF
     shall be prorated by the ratio of use on National  Forest  System  lands to
     the total use.

     7. In cases when the holder has no AGR for a given fiscal year,  the holder
     shall pay a permit  fee of $2 per acre for  National  Forest  System  lands
     under  permit or a percentage  of the  appraised  value of National  Forest
     System lands under permit, at the discretion of the authorized officer.

B. Fee Payments.  Reports and deposits shall be tendered in accordance  with the
following  schedule.  They shall be sent or delivered to the collection officer,
USDA, Forest Service, at the address furnished by the authorized officer. Checks
or money orders shall be made payable to: USDA, Forest Service.

     1. The holder shall calculate and submit an advance payment which is due by
     the  beginning of the holder's  payment  cycle.  The advance  payment shall
     equal 20 percent of the holder's  average permit fee for 3 operating years,
     when  available.  When past permit fee  information is not  available,  the
     advance  payment  shall  equal 20 percent of the permit  fee,  based on the
     prior holder's  average fee or projected AGR. For ski areas not expected to
     generate AGR for a given payment cycle,  advance  payment of the permit fee
     as  calculated  in item A,  paragraph  7 ($2 per acre for  National  Forest
     System  lands  under  permit  or a  percentage  of the  appraised  value of
     National  Forest  System  lands  under  permit,  at the  discretion  of the
     authorized  officer) shall be made.  The advance  payment shall be credited
     (item B,  paragraph 3) toward the total ski area permit fee for the payment
     cycle.

     2. The holder shall report sales,  calculate  fees due based on a tentative
     percentage rate, and make interim periodic  payments each Month or Quarter,
     at the Authorized Officers discretion, except for periods in which no sales
     take place and the holder has  notified  the  authorized  officer  that the
     operation has entered a seasonal  shutdown for a specific  period.  Reports
     and  payments  shall be made by the end of the month  following  the end of
     each  reportable  period.  Interim  payments  shall  be  credited  (item B,
     paragraph 3) toward the total ski area permit fee for the payment cycle.

     3.  Within 90 days after the close of the ski  area's  payment  cycle,  the
     holder shall provide a financial  statement,  including a completed  permit
     fee  information  form,  Form  FS-2700-19a,  representing  the  ski  area's
     financial  condition  at the  close  of its  business  year  and an  annual
     operating statement reporting the results of operations,  including a final
     payment  which  includes  year-end  adjustments  for the  holder  and  each
     subholder for the same period.  Any balance that exists may be credited and
     applied against the next payment due or refunded,  at the discretion of the
     permit holder.

                                       8
<PAGE>

     4. Within 30 days of receipt of a statement  from the Forest  Service,  the
     holder  shall  make any  additional  payment  required  to ensure  that the
     correct ski area permit fee is paid for the past year's operation.

     5.  Payments  shall be  credited  on the date  received  by the  designated
     collection  officer.  If the  due  date  for  the  fee  or fee  calculation
     financial  statement  falls on a non-workday,  the charges shall not accrue
     until the close of business on the next workday.

     6. All permit fee  calculations  and records of sales are subject to review
     or  periodic  audit as  determined  by the  authorized  officer.  Errors in
     calculation  or payment shall be corrected as needed for  conformance  with
     those  reviews or audits.  In  accordance  with the Late Payment  Interest,
     Administrative  Costs and Penalties clause contained in this authorization,
     interest and penalties shall be assessed on additional fees due as a result
     of reviews or audits.

C.  Correcting  Errors.  Correction of errors  includes any action  necessary to
calculate the holder's  sales or slope  transport fee  percentage or to make any
other  determination  required  to  calculate  permit fees  accurately.  For fee
calculation purposes, an error may include:

     a.  Misreporting or misrepresentation of amounts;
     b.  Arithmetic mistakes;
     c.  Typographic mistakes; or
     d.  Variation from generally accepted accounting principles (GAAP), when
     such variations are inconsistent with the terms of this permit.

Correction of errors shall be made  retroactively to the date the error was made
or to the previous audit period,  whichever is more recent,  and past fees shall
be adjusted accordingly.

D. Late Payment  Interest,  Administrative  Costs and Penalties.  Pursuant to 31
U.S.C.  3717,  et seq.,  interest  shall be  charged  on any fee amount not paid
within  30 days  from the date the fee or fee  calculation  financial  statement
specified in this authorization becomes due. The rate of interest assessed shall
be the  higher of the rate of the  current  value of funds to the U.S.  Treasury
(i.e.,  Treasury tax and loan account rate),  as prescribed and published by the
Secretary  of the  Treasury  in the Federal  Register  and the  Treasury  Fiscal
Requirements Manual Bulletins annually or quarterly or at the Prompt Payment Act
rate.  Interest  on the  principal  shall  accrue  from  the date the fee or fee
calculation financial statement is due.

In the event  the  account  becomes  delinquent,  administrative  costs to cover
processing and handling of the delinquency will be assessed.

A  penalty  of 6  percent  per  annum  shall be  assessed  on the  total  amount
delinquent  in excess of 90 days and  shall  accrue  from the same date on which
interest charges begin to accrue.

Payments  will be credited on the date  received  by the  designated  collection
officer  or  deposit  location.  If the due date for the fee or fee  calculation
statement falls on a non-workday, the charges shall not apply until the close of
business on the next workday.

Disputed  fees are due and  payable  by the due date.  No appeal of fees will be
considered by the Forest  Service  without full payment of the disputed  amount.
Adjustments,  if necessary,  will be made in accordance with settlement terms or
the appeal decision.

If the fees become delinquent, the Forest Service will:

     Liquidate any security or collateral provided by the authorization.

     If no security or collateral is provided,  the authorization will terminate
     and the holder will be responsible for delinquent fees as well as any other
     costs of restoring the site to it's original condition  including hazardous
     waste cleanup.

                                       9
<PAGE>

Upon termination or revocation of the  authorization,  delinquent fees and other
charges  associated  with the  authorization  will be  subject to all rights and
remedies  afforded  the  United  States  pursuant  to 31  U.S.C.  3711  et  seq.
Delinquencies may be subject to any or all of the following conditions:

     Administrative offset of payments due the holder from the Forest Service.

     Delinquencies  in  excess of 60 days  shall be  referred  to United  States
     Department of Treasury for appropriate  collection action as provided by 31
     U.S.C. 3711 (g), (1).

     The  Secretary  of the Treasury may offset an amount due the debtor for any
     delinquency as provided by 31 U.S.C. 3720, et seq.)

E.  Nonpayment.  Failure of the holder to make  timely  payments,  pay  interest
charges or any other charges when due,  constitutes  breach and shall be grounds
for termination of this authorization.  This permit terminates for nonpayment of
any monies owed the United States when more than 90 days in arrears.

F. Access to Records.  For the purpose of administering  this permit  (including
ascertaining that fees paid were correct and evaluating the propriety of the fee
base),  the holder  agrees to make all of the  accounting  books and  supporting
records to the business  activities,  as well as those of  sublessees  operating
within the  authority  of this  permit,  available  for  analysis  by  qualified
representatives  of the Forest Service or other Federal  agencies  authorized to
review the Forest Service activities.  Review of accounting books and supporting
records shall be made at dates convenient to the holder and reviewers. Financial
information  so  obtained  shall be  treated  as  confidential  as  provided  in
regulations issued by the Secretary of Agriculture.

The holder shall retain the above records and keep them available for review for
5 years after the end of the year  involved,  unless  disposition  is  otherwise
approved by the authorized officer in writing.

G. Accounting  Records.  The holder shall follow Generally  Accepted  Accounting
Principles or Other Comprehensive  Bases of Accounting  acceptable to the Forest
Service in recording  financial  transactions  and in  reporting  results to the
authorized officer.  When requested by the authorized officer, the holder at its
own expense,  shall have the annual accounting  reports audited or prepared by a
licensed  independent  accountant  acceptable to the Forest Service.  The holder
shall  require  sublessees to comply with these same  requirements.  The minimum
acceptable accounting system shall include:

     1. Systematic internal controls and recording by kind of business the gross
     receipts derived from all sources of business  conducted under this permit.
     Receipts  should be recorded daily and, if possible,  deposited into a bank
     account  without  reduction  by  disbursements.  Receipt  entries  shall be
     supported by source documents such as cash-register  tapes,  sale invoices,
     rental records, and cash accounts from other sources.

     2. A permanent record of investments in facilities (depreciation schedule),
     and current source documents for acquisition costs of capital items.

     3.  Preparation and maintenance of such special records and accounts as may
     be specified by the authorized officer.

VII. TRANSFER AND SALE

A. Subleasing.  The holder may sublease the use of land and improvements covered
under this permit and the operation of  concessions  and  facilities  authorized
upon prior written notice to the authorized officer. The Forest Service reserves
the right to disapprove subleasees.  In any circumstance,  only those facilities
and  activities  authorized  by this permit may be  subleased.  The holder shall
continue to be responsible  for compliance with all conditions of this permit by
persons to whom such premises may be sublet.  The holder may not sublease direct
management  responsibility  without  prior  written  approval by the  authorized
officer.

B.  Notification  of Sale.  The holder shall  immediately  notify the authorized
officer when a sale and transfer of ownership of the permitted  improvements  is
planned.

C.  Divestiture  of  Ownership.  Upon  change  in  ownership  of the  facilities
authorized by this permit,  the rights granted under this  authorization  may be
transferred to the new owner upon  application to and approval by the authorized
officer.  The new owner must qualify and agree to comply  with,  and be bound by
the terms  and  conditions  of the  authorization.  In  granting  approval,  the
authorized officer may modify the terms, conditions, and special stipulations to
reflect  any new  requirements  imposed  by current  Federal  and state land use
plans, laws, regulations or other management decisions.

                                       10
<PAGE>

VIII.  TERMINATION

A. Termination for Higher Public Purpose.  If, during the term of this permit or
any  extension  thereof,  the  Secretary of  Agriculture  or any official of the
Forest Service acting by or under his or her authority shall determine by his or
her  planning  for the uses of the  National  Forest  that the  public  interest
requires  termination  of this  permit,  this permit  shall  terminate  upon one
hundred-eighty  (180) day's written notice to the holder of such  determination,
and the United States shall have the right  thereupon,  subject to Congressional
authorization  and  appropriation,  to purchase  the holder's  improvements,  to
remove  them,  or to  require  the holder to remove  them,  at the option of the
United  States.  The  United  States  shall  be  obligated  to pay an  equitable
consideration  for the  improvements  or for  removal  of the  improvements  and
damages to the  improvements  resulting  from their  removal.  The amount of the
consideration  shall be fixed by mutual agreement  between the United States and
the  holder and shall be  accepted  by the  holder in full  satisfaction  of all
claims  against the United  States under this clause:  Provided,  that if mutual
agreement is not reached,  the Forest Service shall determine the amount, and if
the holder is  dissatisfied  with the amount thus  determined  to be due him may
appeal the  determination  in accordance  with the Appeal  Regulations,  and the
amount as  determined  on appeal  shall be final and  conclusive  on the parties
hereto;  Provided  further,  that upon the  payment  to the holder of 75% of the
amount fixed by the Forest Service,  the right of the United States to remove or
require the removal of the  improvements  shall not be stayed  pending the final
decision on appeal.

B. Termination,  Revocation and Suspension.  The authorized officer may suspend,
revoke, or terminate this permit for (1) noncompliance with applicable statutes,
regulations,  or terms and conditions of the  authorization;  (2) for failure of
the holder to exercise the rights and privileges  granted;  (3) with the consent
of the holder; or (4) when, by its terms, a fixed agreed upon condition,  event,
or time occurs. Prior to suspension,  revocation, or termination, the authorized
officer shall give the holder  written notice of the grounds for such action and
reasonable time to correct curable noncompliance.

IX. RENEWAL

A. Renewal.  The authorized use may be renewed.  Renewal  requires the following
conditions:  (1) the land use allocation is compatible  with the Forest Land and
Resource Management Plan; (2) the site is being used for the purposes previously
authorized and; (3) the enterprise is being continually  operated and maintained
in accordance  with all the provisions of the permit.  In making a renewal,  the
authorized officer may modify the terms, conditions, and special stipulations.

X. RIGHTS AND RESPONSIBILITIES UPON TERMINATION OR NONRENEWAL

A.  Removal  of  Improvements.  Except  as  provided  in  Clause  VIII.  A, upon
termination or revocation of this special use permit by the Forest Service,  the
holder shall remove within a reasonable  time as  established  by the authorized
officer,  the  structures  and  improvements,  and shall  restore  the site to a
condition  satisfactory to the authorized  officer,  unless  otherwise waived in
writing or in the authorization. If the holder fails to remove the structures or
improvements  within  a  reasonable  period,  as  determined  by the  authorized
officer,   they  shall  become  the  property  of  the  United  States   without
compensation  to the holder,  but that shall not relieve the holder's  liability
for the removal and site restoration costs.

XI. MISCELLANEOUS PROVISIONS

A.  Members of  Congress.  No Member of or  Delegate  to  Congress,  or Resident
Commissioner  shall be admitted to any share or part of this agreement or to any
benefit that may arise  herefrom  unless it is made with a  corporation  for its
general benefit.

B.  Inspection,  Forest  Service.  The Forest Service shall monitor the holder's
operations  and  reserves  the right to inspect  the  permitted  facilities  and
improvements  at any  time  for  compliance  with  the  terms  of  this  permit.
Inspections by the Forest Service do not relieve the holder of  responsibilities
under other terms of this permit.

                                       11
<PAGE>

C. Regulating Services and Rates. The Forest Service shall have the authority to
check and regulate the adequacy and type of services  provided the public and to
require that such services conform to satisfactory standards.  The holder may be
required to furnish a schedule of prices for sales and  services  authorized  by
the permit.  Such prices and services  may be  regulated by the Forest  Service:
Provided,  that the holder shall not be required to charge prices  significantly
different than those charged by comparable or competing enterprises.

D. Advertising.  The holder, in  advertisements,  signs,  circulars,  brochures,
letterheads,  and like materials,  as well as orally,  shall not misrepresent in
any way either the  accommodations  provided,  the status of the permit,  or the
area covered by it or the vicinity.  The fact that the permitted area is located
on the National  Forest  shall be made  readily  apparent in all of the holder's
brochures and print  advertising  regarding  use and  management of the area and
facilities under permit.

E. Bonding.  The authorized  officer may require the holder to furnish a bond or
other security to secure all or any of the  obligations  imposed by the terms of
the authorization or any applicable law, regulation, or order.

Bonds,  Performance.  Use the following  text,  when bonding is called for: As a
further  guarantee of the faithful  performance  of the  provisions of terms and
conditions (to be determined when applicable) of this permit,  the holder agrees
to deliver and maintain a surety bond or other acceptable security in the amount
of ($ to be  determined  when  applicable).  Should  the  sureties  or the bonds
delivered under this permit become  unsatisfactory  to the Forest  Service,  the
holder shall, within thirty (30) days of demand, furnish a new bond with surety,
solvent and  satisfactory to the Forest  Service.  In lieu of a surety bond, the
holder may deposit into a Federal depository, as directed by the Forest Service,
and maintain  therein,  cash in the amounts  provided for above,  or  negotiable
securities  of the United States having a market value at the time of deposit of
not less than the dollar amounts provided above.

The holder's surety bond shall be released, or deposits in lieu of a bond, shall
be returned  thirty (30) days after  certification  by the Forest  Service  that
priority  installations  under  the  development  plan  are  complete,  and upon
furnishing by the holder of proof  satisfactory  to the Forest  Service that all
claims for labor and material on said  installations  have been paid or released
and  satisfied.  The holder agrees that all moneys  deposited  under this permit
may,  upon  failure  on his  or  her  part  to  fulfill  all  and  singular  the
requirements  herein set forth or made a part hereof,  be retained by the United
States to be applied to satisfy obligations assumed hereunder, without prejudice
whatever to any rights and remedies of the United States.

Prior to undertaking additional construction or alteration work not provided for
in the above terms and conditions or when the improvements are to be removed and
the area  restored,  the holder  shall  deliver and maintain a surety bond in an
amount set by the Forest  Service,  which  amount  shall not be in excess of the
estimated loss which the Government  would suffer upon default in performance of
this work.

F. Water Rights. This authorization confers no rights to the use of water by the
holder. Such rights must be acquired under State law.

G. Current Addresses. The holder and the Forest Service shall keep each informed
of current mailing  addresses  including those necessary for billing and payment
of fees.

H.  Identification  of  Holder.   Identification  of  the  holder  shall  remain
sufficient  so that the  Forest  Service  shall  know the true  identity  of the
entity.


Corporation Status Notification:

     1. The holder shall notify the authorized  officer within fifteen (15) days
     of the following changes:

          a. Names of officers appointed or terminated.

          b. Names of  stockholders  who  acquire  stock  shares  causing  their
          ownership to exceed 50 percent of shares issued or otherwise acquired,
          resulting in gaining controlling interest in the corporation.

                                       12
<PAGE>

     2.  The holder shall furnish the authorized officer:

          a. A copy of the articles of incorporation and bylaws.

          b. An  authenticated  copy of a  resolution  of the board of directors
          specifically  authorizing  a  certain  individual  or  individuals  to
          represent the holder in dealing with the Forest Service.

          c. A list of  officers  and  directors  of the  corporation  and their
          addresses.

          d. Upon request,  a certified list of stockholders and amount of stock
          owned by each.

          e. The authorized officer may require the holder to furnish additional
          information as set forth in 36 CFR 251.54(e)(1)(iv).

Partnership Status Notification:

The holder shall notify the  authorized  officer within fifteen (15) days of the
following changes.  Names of the individuals involved shall be included with the
notification.

     1. Partnership  makeup changes due to death,  withdrawal,  or addition of a
     partner.

     2.  Party or parties  assigned  financed  interest  in the  partnership  by
     existing partner(s).

     3. Termination, reformation, or revision of the partnership agreement.

     4. The acquisition of partnership  interest,  either through purchase of an
     interest from an existing  partner or partners,  or contribution of assets,
     that exceeds 50 percent of the partnership permanent investment.

I.  Archaeological-Paleontological  Discoveries.  The holder  shall  immediately
notify the  authorized  officer of any and all  antiquities  or other objects of
historic or scientific interest. These include, but are not limited to, historic
or  prehistoric  ruins,  fossils,  or  artifacts  discovered  as the  result  of
operations  under this  permit,  and shall leave such  discoveries  intact until
authorized  to proceed by the  authorized  officer.  Protective  and  mitigative
measures  specified by the authorized officer shall be the responsibility of the
permit holder.

J.  Protection of Habitat of  Endangered,  Threatened,  and  Sensitive  Species.
Location of areas needing  special  measures for protection of plants or animals
listed as  threatened or endangered  under the  Endangered  Species Act (ESA) of
l973,  as  amended,  or listed  as  sensitive  by the  Regional  Forester  under
authority of FSM 2670, derived from ESA Section 7 consultation,  may be shown on
a separate map, hereby made a part of this permit,  or identified on the ground.
Protective and mitigative  measures specified by the authorized officer shall be
the responsibility of the permit holder.

If protection measures prove inadequate,  if other such areas are discovered, or
if new species are listed as Federally  threatened or endangered or as sensitive
by  the  Regional  Forester,  the  authorized  officer  may  specify  additional
protection  regardless of when such facts become known.  Discovery of such areas
by either party shall be promptly reported to the other party.

K. Superior  Clauses.  In the event of any conflict between any of the preceding
printed clauses or any provision  thereof,  and any of the following  clauses or
any provision thereof, the preceding clauses shall control.

L. Superseded Permit.  This permit replaces a special use permit issued to: Loon
Mountain Recreation Corporation, of Lincoln NH on January 7, 1976.

M. Disputes.  Appeal of any provisions of this authorization or any requirements
thereof shall be subject to the appeal  regulations at 36 CFR 251, Subpart C, or
revisions thereto.  The procedures for these appeals are set forth in 36 CFR 251
published in the Federal Register at 54 FR 3362, January 23, 1989.

N. Liquor Sales  Authorized.  The sale of  intoxicating  beverages is allowed by
this  authorization,  contingent  upon a valid  State  license  for the  sale or
serving of alcoholic beverages.

O. Gambling.  Gambling or gambling  machines or devices will not be permitted on
National Forest System lands  regardless of whether or not they are lawful under
State law or county ordinances.

P.  Fire-Control  Plan. The holder shall prepare a fire plan for approval by the
authorized  officer  which  shall set forth in detail  the plan for  prevention,
reporting,  control,  and  extinguishing  of fires on the  authorized  areas and
within the holder's  area of  responsibility  defined on an attached  map.  Such
plans shall be  reviewed  and  revised at  intervals  of not more than three (3)
years.

                                       13
<PAGE>

Q.  Revegetation  of Ground Cover and Surface  Restoration.  The holder shall be
responsible  for  prevention  and control of soil  erosion and gullying on lands
covered by this authorization and adjacent thereto, resulting from construction,
operation,  maintenance, and termination of the authorized use. The holder shall
so construct permitted improvements to avoid the accumulation of excessive heads
of water and to avoid  encroachment on streams.  The holder shall  revegetate or
otherwise  stabilize  all ground  where the soil has been exposed as a result of
the  holder's  construction,  maintenance,  operation,  or  termination  of  the
authorized use and shall construct and maintain necessary preventive measures to
supplement the vegetation.

R.  Removal and Planting of  Vegetation  and Other  Resources.  The holder shall
obtain prior written  approval from the authorized  officer  before  removing or
altering  vegetation or other  resources.  The holder shall obtain prior written
approval from the authorized  officer before  planting trees,  shrubs,  or other
vegetation within the authorized area.

S. Surveys,  Land Corners . The holder shall protect,  in place, all public land
survey monuments,  private property corners, and Forest boundary markers. In the
event that any such land markers or monuments  are  destroyed in the exercise of
the  privileges  permitted  by  this  authorization,  depending  on the  type of
monument  destroyed,  the  holder  shall  see  that  they are  reestablished  or
referenced  in  accordance  with (1) the  procedures  outlined in the "Manual of
Instructions  for the Survey of the Public Land of the United  States,"  (2) the
specifications of the county surveyor,  or (3) the  specifications of the Forest
Service.

Further,  the holder shall cause such official survey records as are affected to
be amended as provided by law. Nothing in this clause shall relieve the holder's
liability for the willful  destruction or modification of any Government  survey
marker as provided at 18 U.S.C. 1858.

T. Drinking Water Systems.


     1. The holder,  as the water supplier and owner or operator of the drinking
     water system,  is responsible for compliance  with all applicable  Federal,
     State,  and local drinking water laws and regulations for the operation and
     maintenance of a public water system. This includes, but is not limited to,
     developing,  operating, and maintaining the system, and conducting drinking
     water testing and taking the appropriate  corrective and follow-up  actions
     in accordance with Federal,  State, and any other applicable  requirements.
     For the purposes of this authorization, public water systems are defined in
     the Safe Drinking  Water Act, as amended (42 U.S.C.  300f et seq.),  and in
     the National Primary Drinking Water Regulations,  Title 40, Code of Federal
     Regulations,  part 141 (40 CFR part 141), or by State  regulations  if more
     stringent.

     2. When the permit holder  operates  Federally  owned systems (for example,
     when the permit is authorized under the Granger-Thye Act), the holder shall
     meet  additional  requirements  for  public  and  nonpublic  water  systems
     consistent  with FSM 7420.  Requirements  under FSM 7420  applicable to the
     permit  holder  are  set  forth  in an  appendix  to  the  permit  entitled
     "Operation   of   Federally    Owned    Drinking   Water   Systems"   (Form
     FS-2700-4h-Appendix F).

     3. For Federally  owned  systems,  the holder shall notify and consult with
     the  Forest  Service  within  24 hours or on the next  business  day  after
     notification  by  the  laboratory  of a  sample  that  tests  positive  for
     microbiological contamination. The holder shall notify and consult with the
     Forest Service  within 48 hours of  notification  of a maximum  contaminant
     level violation or an acute violation.

     4. The holder shall retain all records as required by  applicable  laws and
     regulations.  The holder agrees to make the records available to the Forest
     Service and to any other  regulatory  agency  authorized  to review  Forest
     Service  activities.  Copies of microbiological  test results for Federally
     owned water systems shall be forwarded monthly to the Forest Service by the
     15th of the month  following the sampling  date.  Copies of other  required
     records for  Federally  owned  systems  shall be forwarded  annually to the
     Forest  Service  within  15  days of the end of the  operating  season  for
     seasonal  sites  or  within  15 days of the end of the  calendar  year  for
     year-round  operations.  The  holder  shall  surrender  all  records  for a
     Federally  owned system to the Forest  Service upon permit  termination  or
     revocation.

                                       14
<PAGE>

     5. For Federally  owned  systems,  the holder shall provide the name of the
     water  system  operator  in writing to the  Forest  Service  and notify the
     authorized officer within 72 hours of a change in personnel.

U. Explosives.

     1. Only exploding bridgewire (EBWs) shall be used for blasting.

     2. In the use of explosives,  the holder shall exercise the utmost care not
     to endanger life or property and shall comply with the  requirements of the
     Forest  Service.  The holder shall be  responsible  for any and all damages
     resulting from the use of explosives and shall adopt  precautions that will
     prevent damage to surrounding  objects.  The holder shall furnish and erect
     special signs to warn the public of blasting  operations.  Such signs shall
     be placed and  maintained so as to be clearly  evident to the public during
     all  critical  periods  of the  blasting  operations,  and shall  include a
     warning statement to have radio transmitters turned off.

     3.   All    storage    places    for    explosives    shall    be    marked
     "DANGEROUS-EXPLOSIVES." The method of storing and handling explosives shall
     conform to procedures  contained in the "Blasters  Guide  EM-7100-14,"  and
     Title 27, Code of Federal  Regulations,  parts 1 to 199,  Alcohol,  Tobacco
     Products, and Firearms (Bureau of Alcohol, Tobacco and Firearms (BATF)).

     4. When using  explosives,  the holder shall adopt  precautions  which will
     prevent damage to landscape  features and other surrounding  objects.  When
     directed by the Forest officer in charge,  trees within an area  designated
     to be  cleared  shall  be  left  as a  protective  screen  for  surrounding
     vegetation during blasting  operations.  Trees so left shall be removed and
     disposed of after blasting has been completed.  When necessary,  and at any
     point of special  danger,  the holder shall use suitable mats or some other
     approved method to smother blasts.




According to the  Paperwork  Reduction  Act of 1995,  no persons are required to
respond to a collection  of  information  unless it displays a valid OMB control
number.  The  valid  OMB  control  number  for this  information  collection  is
0596-0082.

This  information  is needed by the Forest  Service to evaluate  requests to use
National  Forest  System  lands  and  manage  those  lands  to  protect  natural
resources,  administer  the use,  and  ensure  public  health and  safety.  This
information  is required to obtain or retain a benefit.  The  authority for that
requirement  is provided by the Organic Act of 1897 and the Federal  Land Policy
and  Management  Act of 1976,  which  authorize the Secretary of  Agriculture to
promulgate  rules and regulations  for authorizing and managing  National Forest
System lands.  These statutes,  along with the Term Permit Act,  National Forest
Ski Area Permit Act,  Granger-Thye  Act, Mineral Leasing Act, Alaska Term Permit
Act, Act of September 3, 1954,  Wilderness Act, National Forest Roads and Trails
Act, Act of November  16, 1973,  Archaeological  Resources  Protection  Act, and
Alaska  National  Interest Lands  Conservation  Act,  authorize the Secretary of
Agriculture to issue authorizations for the use and occupancy of National Forest
System lands.  The Secretary of  Agriculture's  regulations  at 36 CFR Part 251,
Subpart B, establish procedures for issuing those authorizations.

The Privacy Act of 1974 (5 U.S.C.  552a) and the Freedom of  Information  Act (5
U.S.C. 552) govern the  confidentiality to be provided for information  received
by the Forest Service.

Public  reporting  burden for this  collection  of  information  is estimated to
average 12 hours per response,  including  the time for reviewing  instructions,
searching existing data sources,  gathering and maintaining the data needed, and
completing and reviewing the collection of information.


                                       15