Document:

exv10w29

Exhibit 10.29

	 	 	 

	Auth ID: WTM0796

	 	FS-2700-5b
	(03/06)
	 	 
	Contact ID: ATTITASH

	 	OMB No. 0596-
	0082
	 	 
	Expiration Date: 04/04/2047

	 	     Use Code: 161

U.S. DEPARTMENT OF AGRICULTURE

Forest Service

SKI AREA TERM SPECIAL USE PERMIT

AUTHORITY:

SKI AREA PERMIT ACT October 22, 1986

LBO Holding Inc., Attitash, PO Box 308, Route 302, BARTLETT, NH, 03812 (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 a year round sports resort
including food service, retail sales, and other ancillary facilities, described herein, known as
the Attitash ski area and subject to the provisions of this term permit. This permit within Carroll
County, NH, covers 279 acres described here and as shown on the attached map dated May 1994.

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

Construction, operation, and maintenance of a year round outdoor recreational development called
Attitash Resort to provide the services necessary and desirable for the reasonable comfort and
convenience of the using public.

Attached Clauses. This term permit is accepted subject to the conditions set forth herein
on pages 1 through 17 and to Exhibit I attached or referenced hereto and made a part of this
permit.

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 04/04/2047, 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.

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 1st as part of the annual
Summer Operating Plan, 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 100 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.”

C. Operating Plan. The holder or designated representative shall prepare and annually
revise by May 1st (summer), and October 15th (winter) 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. Special events.

     8. Search and rescue.

     9. Boundary management.

     10. Vegetation management.

     11. Designation of representatives.

     12. Trail routes for Nordic skiing and/or mountain biking.

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

a. Update slope transport feet proration when the fee is calculated by the Ski Area 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.

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

A. Nondiscrimination.

1. The holder and its employees shall not discriminate against any person on the basis of race,
color, sex (in educational activities), national origin, age, or disability or by curtailing or
refusing to furnish accommodations, facilities, services, or use privileges offered to the public
generally. In addition, the holder and its employees shall comply with the provisions of Title VI
of the Civil Rights Act of 1964 as amended, Section 504 of the Rehabilitation Act of 1973, as
amended, Title IX of the Education Amendments of 1972, as amended, and the Age Discrimination Act
of 1975, as amended.

2. The holder shall include and require compliance with the above nondiscrimination provisions in
any third-party agreement made with respect to the operations authorized under this permit.

 

 

3. The Forest Service shall furnish signs setting forth this policy of nondiscrimination. These
signs shall be conspicuously displayed at the public entrance to the premises and at other exterior
or interior locations, as directed by the Forest Service.

4. 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
or the State in which the violation occurs.

B. Equal Access to Federal Programs. In addition to the above nondiscrimination policy, the
holder agrees to insure that its programs and activities are open to the general public on an equal
basis and without regard to any non-merit factor.

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 fifty thousand dollars ($50,000), 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 USDA Forest Service, 99 Ranger Road, Rochester, VT, 05767, 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 USDA
Forest Service, 99 Ranger Road, Rochester, VT, 05767, by the insurance company.”

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

passes;

	 	is     revenue from sales of alpine and mountain bike lift tickets and
	 
	 	 
	GRAF

	 	is     gross year-round revenue from ancillary facilities;
	 
	 	 
	Proration %
Forest

System lands;

	 	is     the factor to apportion revenue attributable to use of National
	 
	 	 
	SAPF
 and

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

	 	is     revenue from alpine 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 below 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

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Bracket 1	 	 	Bracket 2	 	 	Bracket 3	 	 	Bracket 4	 
	Holder FY	 	(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
and beyond	 	BRACKETS WILL BE UPDATED ANNUALLY BY CPI*

 

			
	*	 	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.

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 mountain bike tickets and ski area
passes; alpine 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 mountain bike ski area passes and tickets and
revenue from alpine 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.

3. LT is the revenue from sales of alpine and mountain bike 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 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 mountain bike 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 mountain bike 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 payments each calendar Month 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.

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. 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 Fee Payment Issue 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. Fee Payment Issues.

	 	1.	 	Crediting of Payments. Payments shall be credited on the date received by the deposit
facility, except that if a payment is received on a non-workday, the payment shall not be credited
until the next workday.
	 
	 	2.	 	Disputed Fees. Fees are due and payable by the due date. Disputed fees must be paid in
full. Adjustments will be made if dictated by settlement terms or an appeal decision.
	 
	 	3.	 	Late Payments

	 	(a)	 	Interest. 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 it became due. The rate of interest assessed shall be
the higher of the Prompt Payment Act rate or the rate of the current value of funds to the Treasury
(i.e., the Treasury tax and loan account rate), as prescribed and published annually or quarterly
by the Secretary of the Treasury in the Federal Register and the Treasury Fiscal
Requirements Manual Bulletins. Interest on the principal shall accrue from the date the fee amount
is due.
	 
	 	(b)	 	Administrative Costs. If the account becomes delinquent, administrative costs to cover
processing and handling the delinquency shall be assessed.
	 
	 	(c)	 	Penalties. A penalty of 6% per annum shall be assessed on the total amount that is more
than 90 days delinquent and shall accrue from the same date on which interest charges begin to
accrue.
	 
	 	(d)	 	Termination for Nonpayment. This permit shall terminate without the necessity of prior
notice and opportunity to comply when any permit fee payment is 90 calendar days from the due date
in arrears. The holder shall be responsible for the delinquent fees, as well as any other costs of
restoring the site to its original condition, including hazardous waste cleanup.

	 	4.	 	Administrative Offset and Credit Reporting. Delinquent fees and other charges associated with
the permit shall be subject to all rights and remedies afforded the United States pursuant to 31
U.S.C. 3711 et seq. and common law. Delinquencies are subject to any or all of the
following:

 

	 	(a)	 	Administrative offset of payments due the holder from the Forest Service.
	 
	 	(b)	 	If in excess of 60 days, referral to the Department of the Treasury for appropriate collection
action as provided by 31 U.S.C. 3711(g)(1).
	 
	 	(c)	 	Offset by the Secretary of the Treasury of any amount due the holder, as provided by 31 U.S.C. 3720
et seq.
	 
	 	(d)	 	Disclosure to consumer or commercial credit reporting agencies.

E. 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.

F. 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.

VIII. REVOCATION AND SUSPENSION

A. Revocation and Suspension. The Forest Service may suspend or revoke this permit in whole
or part:

1. For noncompliance with Federal, State, or local laws and regulations;

2. For noncompliance with the terms of this permit;

3. For failure of the holder to exercise the privileges granted by this permit;

4. With the consent of the holder; or

5. At the discretion of the authorized officer for specific and compelling reasons in the public
interest.

B. Opportunity to Take Corrective Action. Prior to revocation or suspension under clause
VIII.A, the authorized officer shall give the holder written notice of the grounds for each action
and a reasonable time, not to exceed 90 days, to complete the corrective action prescribed by the
authorized officer.

C. Revocation for Reasons in the Public interest. If, during the term of this permit or any
extension thereof, the Secretary of Agriculture or any official of the Forest Service with
delegated authority determines in planning for the uses of the National Forest System that the
public interest requires revocation of this permit, this permit shall be revoked after one
hundred-eighty (180) day’s written notice to the holder. The United States shall then have the
right to purchase the holder’s improvements, to remove them, or to require the holder to remove
them, and the United States shall be obligated to pay an equitable consideration for the
improvements or for removal of the improvements and damages resulting from their removal. If the
amount of consideration is fixed by mutual agreement between the United States and the holder, that
amount shall be accepted by the holder in full satisfaction of all claims against the United States
under this clause. If mutual agreement is not reached, the Forest Service shall determine the
amount of consideration. If the holder is dissatisfied with the amount determined by the Forest
Service, the holder may appeal the determination under the agency’s administrative appeal
regulations.

D. Suspension. The authorized officer may immediately suspend this permit, in whole or in
part, when necessary to protect public health, safety, or the environment. The suspension decision
must be in writing. Within 48 hours of the request of the holder, the superior of the authorized
officer shall 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
suspension.

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.

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

F. 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. As a further guarantee of the faithful performance of the provisions of
terms and conditions of this permit, to be determined when applicable, the holder agrees to deliver
and maintain a surety bond or other acceptable security as 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.

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.

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 1973, 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: LBO HOLDING,
INC., ATTITASH 0082, on 7/19,1994.

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. Noxious Weed/Exotic Plant Prevention and Control. The holder shall be responsible for
the prevention and control of noxious weeds and/or exotic plants of concern on the area authorized by this
authorization and shall provide prevention and control measures prescribed by the Forest Service.
Noxious weeds/exotic plants of concern are defined as those species recognized by (county weed
authority/national forest) in which the authorized use is located.

The holder shall also be responsible for prevention and control of noxious weed/exotic plant
infestations which are not within the authorized area, but which are determined by the Forest
Service to have originated with the authorized area.

When determined to be necessary by the authorized officer, the holder shall develop a site-specific
plan for noxious weed/exotic plant prevention and control. Such plan shall be subject to Forest
Service approval. Upon Forest service approval, the noxious weed/exotic plant prevention

 

and control plan shall become a part of this authorization, and its provisions shall be enforceable
under the terms of this authorization.

O. 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.

P. Drinking Water Systems. 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.

Q. 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.

R. 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.

 

S. 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.

T. 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.

U. 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.

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

	 	 	 	 	 

	ACCEPTED:
	 	 	 	 
	 
	 	 	 	 
	LBO HOLDING INC.

/s/ Stephen Mueller

	 	Stephen Mueller
	 	4/3/07
	 
	HOLDER NAME AND SIGNATURE

	 	PRINT NAME
	 	DATE
	 
	 	 	 	 
	APPROVED:
	 	 	 	 
	 
	 	 	 	 
	/s/ Barnie T. Gyant

	 	Deputy Forest Supervisor
	 	4/5/07
	 
	AUTHORIZED OFFICER SIGNATURE

	 	NAME AND TITLE
	 	DATE

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a
person is not 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. The time
required to complete this information collection is estimated to average 1 hour 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.

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and
activities on the basis of race, color, national origin, gender, religion, age, disability,
political beliefs, sexual orientation, and marital or family status. (Not all prohibited bases
apply to all programs.) Persons with disabilities who require alternative means for communication
of program information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center
at 202-720-2600 (voice and TDD).

To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, 1400
Independence Avenue, SW, Washington, DC 20250-9410 or call (800) 975-3272 (voice) or (202) 720-6382
(TDD). USDA is an equal opportunity provider and employer.

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.exv10w30

Exhibit 10.30

			
	 	 	 
	Auth ID: MAN101325
	 	FS-2700-5b
	(03/06)	 	 
	Contact ID: MAN4040
	 	OMB No. 0596-
	0082	 	 
	Expiration Date: 04/04/2047
	 	Use Code: 161

U.S. DEPARTMENT OF AGRICULTURE

Forest Service

SKI AREA TERM SPECIAL USE PERMIT

AUTHORITY:

SKI AREA PERMIT ACT October 22, 1986

MOUNT SNOW, LTD., 12 Pisgah Road, West Dover, VT, 05356 (hereafter called the holder) is hereby
authorized to use National Forest System lands, on the Green Mountain National Forest, for the
purposes of constructing, operating, and maintaining a year round sports resort including food
service, retail sales, and other ancillary facilities, described herein, known as the Mount Snow
ski area and subject to the provisions of this term permit. This permit within Windham County
covers 893.86 acres described here and as shown on the attached map dated 12/1989.

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

Construction, operation, and maintenance of a year round outdoor recreational development called
Mount Snow Ski Area to provide the services necessary and desirable for the reasonable comfort and
convenience of the using public.

Attached Clauses. This term permit is accepted subject to the conditions set forth herein
on pages 1 through 17 and to Exhibit I attached or referenced hereto and made a part of this
permit.

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 04/04/2047, 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.

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 1st as part of the annual
Summer Operating Plan, 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 100 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.”

C. Operating Plan. The holder or designated representative shall prepare and annually
revise by May 1st (summer), and October 15th (winter) 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. Special events.

8. Search and rescue.

9. Boundary management.

10. Vegetation management.

11. Designation of representatives.

12. Trail routes for Nordic skiing and/or mountain biking.

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

a. Update Slope Transport Feet proration when the fee is calculated by the Ski Area 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.

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

A. Nondiscrimination.

1. The holder and its employees shall not discriminate against any person on the basis of race,
color, sex (in educational activities), national origin, age, or disability or by curtailing or
refusing to furnish accommodations, facilities, services, or use privileges offered to the public
generally. In addition, the holder and its employees shall comply with the provisions of Title VI
of the Civil Rights Act of 1964 as amended, Section 504 of the Rehabilitation Act of 1973, as
amended, Title IX of the Education Amendments of 1972, as amended, and the Age Discrimination Act
of 1975, as amended.

2. The holder shall include and require compliance with the above nondiscrimination provisions in
any third-party agreement made with respect to the operations authorized under this permit.

 

 

3. The Forest Service shall furnish signs setting forth this policy of nondiscrimination. These
signs shall be conspicuously displayed at the public entrance to the premises and at other exterior
or interior locations, as directed by the Forest Service.

4. 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
or the State in which the violation occurs.

B. Equal Access to Federal Programs. In addition to the above nondiscrimination policy, the
holder agrees to insure that its programs and activities are open to the general public on an equal
basis and without regard to any non-merit factor.

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 fifty thousand dollars ($50,000), 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 USDA Forest Service, 99 Ranger Road, Rochester, VT, 05767, 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 USDA
Forest Service, 99 Ranger Road, Rochester, VT, 05767, by the insurance company.”

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 mountain bike 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 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 below 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

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Bracket 1	 	 	Bracket 2	 	 	Bracket 3	 	 	Bracket 4	 
	Holder FY	 	(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
and beyond	 	BRACKETS WILL BE UPDATED ANNUALLY BY CPI*

 

			
	*	 	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.

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 mountain bike tickets and ski area
passes; alpine 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 mountain bike ski area passes and tickets and
revenue from alpine 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.

3. LT is the revenue from sales of alpine and mountain bike 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 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 mountain bike 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 mountain bike 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 payments each calendar Month 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.

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. 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 Fee Payment issue 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. Fee Payment Issues.

	 	1.	 	Crediting of Payments. Payments shall be credited on the date received by the deposit
facility, except that if a payment is received on a non-workday, the payment shall not be
credited until the next workday.
	 
	 	2.	 	Disputed Fees. Fees are due and payable by the due date. Disputed fees must be paid
in full. Adjustments will be made if dictated by settlement terms or an appeal decision.
	 
	 	3.	 	Late Payments

	 	(a)	 	Interest. 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 it became due. The rate of interest assessed
shall be the higher of the Prompt Payment Act rate or the rate of the current value of funds
to the Treasury (i.e., the Treasury tax and loan account rate), as prescribed and published
annually or quarterly by the Secretary of the Treasury in the Federal Register and the
Treasury Fiscal Requirements Manual Bulletins. Interest on the principal shall accrue from the
date the fee amount is due.
	 
	 	(b)	 	Administrative Costs. If the account becomes delinquent, administrative costs to
cover processing and handling the delinquency shall be assessed.
	 
	 	(c)	 	Penalties. A penalty of 6% per annum shall be assessed on the total amount that is
more than 90 days delinquent and shall accrue from the same date on which interest charges
begin to accrue.
	 
	 	(d)	 	Termination for Nonpayment. This permit shall terminate without the necessity of
prior notice and opportunity to comply when any permit fee payment is 90 calendar days from
the due date in arrears. The holder shall be responsible for the delinquent fees, as well as
any other costs of restoring the site to its original condition, including hazardous waste
cleanup.

	 	4.	 	Administrative Offset and Credit Reporting. Delinquent fees and other charges associated with
the permit shall be subject to all rights and remedies afforded the United States pursuant to
31 U.S.C. 3711 et seq, and common law. Delinquencies are subject to any or all of the
following:

	 	(a)	 	Administrative offset of payments due the holder from the Forest Service.
	 
	 	(b)	 	If in excess of 60 days, referral to the Department of the Treasury for appropriate
collection action as provided by 31 U.S.C. 3711 (g)(1).

 

 

	 	(c)	 	Offset by the Secretary of the Treasury of any amount due the holder, as provided by 31
U.S.C. 3720 et seq.
	 
	 	(d)	 	Disclosure to consumer or commercial credit reporting agencies.

E. 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.

F. 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.

VIII. REVOCATION AND SUSPENSION

A. Revocation and Suspension. The Forest Service may suspend or revoke this permit in whole
or part:

1. For noncompliance with Federal, State, or local laws and regulations;

2. For noncompliance with the terms of this permit;

3. For failure of the holder to exercise the privileges granted by this permit;

4. With the consent of the holder; or

5. At the discretion of the authorized officer for specific and compelling reasons in the public
interest.

B. Opportunity to Take Corrective Action. Prior to revocation or suspension under clause
VIII.A, the authorized officer shall give the holder written notice of the grounds for each action
and a reasonable time, not to exceed 90 days, to complete the corrective action prescribed by the
authorized officer.

C. Revocation for Reasons in the Public Interest. If, during the term of this permit or any
extension thereof, the Secretary of Agriculture or any official of the Forest Service with
delegated authority determines in planning for the uses of the National Forest System that the
public interest requires revocation of this permit, this permit shall be revoked after one
hundred-eighty (180) day’s written notice to the holder. The United States shall then have the
right to purchase the holder’s improvements, to remove them, or to require the holder to remove
them, and the United States shall be obligated to pay an equitable consideration for the
improvements or for removal of the improvements and damages resulting from their removal. If the
amount of consideration is fixed by mutual agreement between the United States and the holder, that
amount shall be accepted by the holder in full satisfaction of all claims against the United States
under this clause. If mutual agreement is not reached, the Forest Service shall determine the
amount of consideration. If the holder is dissatisfied with the amount determined by the Forest
Service, the holder may appeal the determination under the agency’s administrative appeal
regulations.

D. Suspension. The authorized officer may immediately suspend this permit, in whole or in
part, when necessary to protect public health, safety, or the environment. The suspension decision
must be in writing. Within 48 hours of the request of the holder, the superior of the authorized
officer shall 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
suspension.

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.

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

F. 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. As a further guarantee of the faithful performance of the provisions of
terms and conditions of this permit, to be determined when applicable, the holder agrees to deliver
and maintain a surety bond or other acceptable security as 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.

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.

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 1973, 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: MOUNT SNOW,
LTD., MAN404001, on 12/04/1989.

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. Noxious Weed/Exotic Plant Prevention and Control. The holder shall be responsible for
the prevention and control of noxious weeds and/or exotic plants of concern on the area authorized
by this authorization and shall provide prevention and control measures prescribed by the Forest
Service. Noxious weeds/exotic plants of concern are defined as those species recognized by (county
weed authority/national forest) in which the authorized use is located.

The holder shall also be responsible for prevention and control of noxious weed/exotic plant
infestations which are not within the authorized area, but which are determined by the Forest
Service to have originated with the authorized area.

When determined to be necessary by the authorized officer, the holder shall develop a site-specific
plan for noxious weed/exotic plant prevention and control. Such plan shall be subject to

 

 

Forest Service approval. Upon Forest service approval, the noxious weed/exotic plant prevention and
control plan shall become a part of this authorization, and its provisions shall be enforceable
under the terms of this authorization.

O. 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.

P. Drinking Water Systems. 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.

Q. 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.

R. 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.

 

 

S. 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.

T. 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.

U. 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.

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

	 	 	 	 	 

	ACCEPTED:
	 	 	 	 
	 
	 	 	 	 
	MOUNT SNOW LTD
	 	 	 	 
	 
	 	 	 	 
	Stephen Muller Vice President

	 	Stephen Muller
	 	4/3/07
	 
	HOLDER NAME AND SIGNATURE

	 	PRINT NAME
	 	DATE

	 	 	 	 	 

	APPROVED:
	 	 	 	 
	 
	 	 	 	 
	/s/ Maya M. Mitehell

	 	Forest Supervisor
	 	4/4/07
	 
	AUTHORIZED OFFICER SIGNATURE

	 	TITLE
	 	DATE

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a
person is not 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. The time
required to complete this information collection is estimated to average 1 hour 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.

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and
activities on the basis of race, color, national origin, gender, religion, age, disability,
political beliefs, sexual orientation, and marital or family status. (Not all prohibited bases
apply to all programs.) Persons with disabilities who require alternative means for communication
of program information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center
at 202-720-2600 (voice and TDD).

To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, 1400
Independence Avenue, SW, Washington, DC 20250-9410 or call (800) 975-3272 (voice) or (202) 720-6382
(TDD). USDA is an equal opportunity provider and employer.

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.

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