1
EXHIBIT 10.23
FS-2700-23 (9/96)
OMB No. 0596-0082
- ------------------------------------------------------------------------------------------------------------------
U.S. DEPARTMENT OF AGRICULTURE | Holder No. | Type Site | Authority |
Forest Service | 4008-1 | 161 | 545 |
|------------------|----------------------|-------------------------------|
AMENDMENT | Issue Date | Expir. Date | Region |
FOR | 02/26/98 | 01/07/06 | 09 |
SPECIAL-USE PERMIT |------------------|----------------------|-------------------------------|
| Forest | District | State | County |
| 22 | 04 | 33 | 009 |
- ------------------------------------------------------------------------------------------------------------------
AMENDMENT NUMBER 2
This Amendment is attached to and made a part of the special-use permit for a
year-round resort issued to Loon Mountain Recreation Corporation on 1/7/76
which is hereby amended as follows:
On February 26, 1998 control of the holder was obtained by LMRC Holding Corp.
Following this transaction, the holder and the Forest Service agreed that this
permit and all associated terms and conditions remain in full force and effect.
This Amendment is accepted subject to the conditions set forth herein, and to
conditions 18.0 to 20.0 attached hereto and made a part of this Amendment
=========================================================================================================
Loon Mountain Recreation Corporation
By:
Holder: [sig] Authorized Officer: Donna L. Hepp
--------------------------- -------------------------------
Holder: Title: Forest Supervisor
--------------------------- -------------------------------
Date: Date: 2/26/98
--------------------------- -------------------------------
=========================================================================================================
2
According to the Paperwork Reduction Act of 1995, no persons are required to
respond to a collection of information unless it displays a valid OMB control
number. The valid OMB control number for this information collection is
0596-0082.
This information is needed by the Forest Service to evaluate requests to use
National Forest System lands and manage those lands to protect natural
resources, administer the use, and ensure public health and safety. This
information is required to obtain or retain a benefit. The authority for that
requirement is provided by the Organic Act of 1897 and the Federal Land Policy
and Management Act of 1976, which authorize the Secretary of Agriculture to
promulgate rules and regulations for authorizing and managing National Forest
System lands. These statutes, along with the Term Permit Act, National Forest
Ski Area Permit Act, Granger-Thye Act, Mineral Leasing Act, Alaska Term Permit
Act, Act of September 3, 1954, Wilderness Act, National Forest Roads and Trails
Act, Act of November 16, 1973, Archeological Resources Protection Act, and
Alaska National Interest Lands Conservation Act, authorize the Secretary of
Agriculture to issue authorizations for the use and occupancy of National Forest
System lands. The Secretary of Agriculture's regulations at 36 CFR Part 251,
Subpart B, establish procedures for issuing those authorizations.
The Privacy Act of 1974 (5 U.S.C. 552a) and the Freedom of Information Act (5
U.S.C. 552) govern the confidentiality to be provided for information received
by the Forest Service.
Public reporting burden for this collection of information, if requested, is
estimated to average 1 hour per response for annual financial information;
average 1 hour per response to prepare or update operation and/or maintenance
plan; average 1 hour per response for inspection reports; and an average of 1
hour for each request that may include such things as reports, logs, facility
and user information, sublease information, and other similar miscellaneous
information requests. This includes the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and
completing and reviewing the collection of information. Send comments regarding
this burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to Department of Agriculture,
Clearance Officer, OIRM, AG Box 7630, Washington D.C. 20250; and to the Office
of Management and Budget, Paperwork Reduction Project (OMB #0596-0082),
Washington, D.C. 20503.
3
United States a. Record No. (1-2) b. Region (3-4) c. Forest (5-6)
Department of Agriculture 70 Eastern 09 White 22
Forest Service Mountain
SPECIAL USE PERMIT d. District (7-8) e. User No (9-12) f. Kind (13-15)
(Act of June 4, 1897) Pemigewassett 04 4008 Winter 163
This permit is revocable Sports Resort
and nontransferable g. State (16-17) h. County (18-20) k. Card no. (21)
Ref. FSM 2710 New Hampshire 33 Grafton 009 1
Issue date 1/7/76
Permission is hereby granted to Loon Mountain Recreation Corporation of
Kancamagus Highway, Rt. 112, Lincoln, NH 03251, hereinafter called the
permittee, to use subject to the conditions set out below the following
described lands or improvements:
A portion of Tract 50A on the north slope of Loon Mountain in the Town of
Lincoln, Grafton County, New Hampshire, as is more particularly shown and
described in the attached map titled Permit Area Map and dated 12/04/75, which
is made a part of this permit as Exhibit A.
This permit covers 777.76 acres and is issued for the purpose of:
Constructing, operating, and maintaining a year-round outdoor recreational
development consisting of the improvements, facilities, and services as shown on
the approved development plan which forms a part of this permit.
This permit supersedes a special use permit designated 2720 Loon Mountain
Recreation Corporation and dated 09/24/65.
1. Construction or occupancy and use under this permit shall begin immediately
and construction, if any, shall be completed within N/A months, from the date of
the permit. This use shall be actually exercised at least 365 days each year
unless otherwise authorized in writing.
2. See Clause 18.
3. This permit is accepted subject to the conditions set forth herein, and to
conditions 18.0 to 20.0 attached hereto and made a part of this permit.
4
18. Fees and Payments
Annual fees and payments for this use are covered by provisions of Clause
20.0 of the Term Special Use Permit bearing the same designation.
19. Permit Termination
Unless sooner terminated or revoked by the Regional Forester, Forest
Service, in accordance with the provisions of the permit, this permit will
expire and become void on the same expiration date as the Term Special Use
Permit bearing the same designation.
20. Clauses 20.0 through 27-14 of the Term Special Use Permit bearing the
same designation will apply with equal force to this permit.
5
4/7/97 EXHIBIT 2
MITIGATION MEASURES
for
LOON MOUNTAIN SKI AREA
This document summarizes the mitigating and monitoring measures that will be
implemented in administering the Loon Mountain Special Use Permit authorization
for the Loon Mountain Ski Area. These measures will be implemented through the
terms and conditions of the Special Use Permit and the Annual Operating Plan. A
brief description follows:
Special Use Permit - Authorizes the Loon Mountain Recreation Corporation to
occupy National Forest System Lands for the purpose of operating a
year-round resort. The Special Use Permit, under authority of the National
Forest Ski Area Permit Act of 1986 (16 USC 497b) requires a Master
Development Plan (MDP) and a Site Development Schedule.
Annual Operating Plans - Are prepared for area operations. The operating
plans include at a minimum, sections describing: ski patrol and first aid;
communications; signs; general safety and sanitation; erosion control;
accident reporting; avalanche control; search and rescue; boundary
management; vegetation management; designation of representatives; trail
routes for nordic skiing and mitigation measures.
Conditions
WILDLIFE
The purpose of these mitigation measures is to mitigate impacts on wildlife.
Obtain control of a parcel of land that meets the criteria for off-site
mitigation for deer winter habitat. This was accomplished through the
purchase of parcel 1 (49 acres) and purchase of a conservation easement for
parcel 2 (18 acres), collectively called the mitigation area.
Increase the carrying capacity of winter deer habitat in parcel 1 and the
adjoining Horner Brook deer wintering area.
Forest Service will monitor management control of the mitigation area
per the detailed mitigation plan that has support from appropriate
town, county, state, federal and private entities.
Parcel 1 will be managed by Loon to optimize growth and long term
stability of hemlock, oak and beech components. All cavity trees should
be retained.
Document the permitted and unpermitted human uses for Parcel 2 under
the conservation agreement.
-1-
6
Wherever feasible, the edges of ski runs, lifts and trails will be
maintained in an irregular uneven fashion (scalloped) in order to optimize
the amount of edge habitat for the benefit of deer and other wildlife.
Establish a public education program directed at improving the awareness of
users of the ski area to the needs and requirements of native wildlife. Part
of this program should explain why deer in the winter are vulnerable and
need to be left alone. It should also explain why it is important not to
habituate black bears to people or allow them to feed on garbage. This may
involve producing information pamphlets and holding informational meetings
for users of the area of concern. The central theme of the education
program should be that in order to protect bears and maintain their presence
in the environment, people should not present them with opportunities to
become a nuisance or hazard.
WATER
Loon may make snow on National Forest System lands subject to the following
limitations:
MONITORING MINIMUM FLOW - Loon must measure rates of withdrawal. Recording
devices must be installed at the East Branch of the Pemigewasset River,
Boyle Brook and Loon Pond water withdrawal sites. The recording devices must
be: capable of recording the rate of water withdrawal and the total volume
pumped over time utilizing on-line mechanical measurements and off-line
electronic recording; installed in a tamper-proof manner; maintained by the
permittee; visible through glass/plexiglass from the outside of the
pumphouse/intake port; and operated from the onset of the snowmaking season
until the end of the ski season.
No withdrawal will occur when these recording devices are not running,
unless the Forest Service is notified and verifies that the stream gauging
site clearly indicates low-flow requirements are being met. Non-operation of
the recording devices will be corrected as soon as practicable, as
determined by the authorized officer.
WATER QUALITY MONITORING PROGRAM - The permittee shall develop and carry out
a water quality monitoring program in cooperation with the Forest Service,
State of New Hampshire, Environmental Protection Agency, Town of Lincoln,
and other interested agencies to document future water quality changes and
to determine if predictions were accurate. Loon is responsible for
implemetation of the water quality monitoring program. Should water quality
problems be identified, the Forest Service will require Loon to conduct
additional appropriate mitigation. The authorized officer may require
changes in the monitoring practices based on results and changes in
technology. Listed below are components of the water quality monitoring
program:
Goals of the Water Quality Monitoring Program are: to evaluate the
effectiveness of mitigation measures and best management practices; provide
a system to trigger corrective action in the event of a water quality
problem;
-2-
7
verify the modeling used in the development of the Final EIS; provide a
basis for detecting trends over time and assessing the current status of
water quality; and ensure compliance with New Hampshire water quality
standards, including future non-point pollution control standards.
Assumptions include: this is not a research project; the number of
samples will not meet statistical analysis criteria on a short term
basis; samples will be collected, handled, preserved and analyzed using
EPA approved techniques and Standard Methods for the Examination of
Water and Wastewater; sampling will develop a 1 to 2 year baseline for
the program; data will be available to any interested party as soon as
possible after analysis is completed; monitoring will focus on the East
Branch, but tributaries may be sampled if changes occur in critical
parameters; the permittee is responsible for the cost of collecting,
transporting, analyzing and evaluating samples unless otherwise noted;
and samples will be analyzed at the State water quality lab in Concord,
NH or other EPA-certified lab.
Sampling Stations - Four primary and two secondary sampling stations
will be used and located as shown on the attached map. Primary stations
are EB1, EB2, EB4 and LP1. Secondary stations are WL1 and LP2. The need
for additional sampling stations will be determined by the authorized
officer, in consultation with New Hampshire Department of Environmental
Services (NHDES) on the tributary stations MS1, BB1, CB1 and PB1.
The Forest Service will, on a periodic basis and not less than once a
year, call a meeting of the cooperating agencies including State of New
Hampshire, Town of Lincoln, EPA and US Fish and Wildlife Service. The
purpose of the meeting will be to review the data collected, recommend
adjustments for future monitoring, and adjust the frequency of
sampling. parameters measured and sites monitored.
Grab sampling will be utilized at all stations. Other methods may be
employed if the authorized officer determines they are needed for
better sampling. The permittee will collect the samples or may contract
for their collection. Any signs of excessive erosion or other potential
water quality violations will be reported immediately to the Forest
Service, Pemigewasset Ranger District, Plymouth, NH.
Baseline monitoring - Has been done and accepted. The WQMPG will
address the need to resample baseline at each annual meeting.
Only those parameters that would be likely to change due to permittee's
actions will be continued to be monitored. Decisions to change the
parameters will be discussed at the annual meeting and will be
confirmed by notification from the authorized officer.
All water quality data will be stored in the EPA's national water
quality data storage and retrieval system (STORET). Data will be made
available as soon as possible after analysis and will be supplied to
the Forest Service, EPA, NHDES, Town of Lincoln and Loon. The public
may request
-3-
8
TABLE 1. LOON MOUNTAIN SOUTH MOUNTAIN WATER QUALITY MONITORING PLAN
Site ID Intent Responsibility Collection Parameters Threshold for
(Annual costs) and Analysis Further Action
- -----------------------------------------------------------------------------------------------------------------------------------
Primary Stations
East Branch at EB1 Provide background data Loon Standard Methods - Turbidity Background station:
Forest Boundary on water quality upstream [$6500] - Temperature represents natural
downstream of of influence by Loon or - Major ions conditions normally
Kancamagus Bridge Lincoln - Conductance beyond human control
- Minor elements Lincoln will be given
- Bacteria results as soon as
- Alkalinity possible
- Nitrogen
- Phosphorus
- pH
East Branch below EB2 Monitor the impact of Loon Standard Methods - Turbidity Any elevated levels
Loon Pond Brook and the ski area expansion, [$2500] - Temperature greater than EB1/EB2
above South Mountain and housing development - Major ions will trigger invest-
Bridge on the quality - Conductance igation for source
of the water in the East - Minor elements and may create need
Branch Provide an upstream - pH for more sampling
station for monitoring the - Alkalinity sites between EB2
effects of the sewage - Nitrogen and EB3
treatment outflow - Phosphorus
- Bacteria
- BOD5
- Pesticides (golf
course)
East Branch at EB4 Measure cumulative impacts Loon Standard Methods - Turbidity Any elevated level
confluence with of all activities in the [$6500] - Temperature will trigger site
main stem project area including a - Major ions evaluation by the
sewage treatment facility - Conductance State/Lincoln
- Minor elements
- pH
- Alkalinity
- Nitrogen
- Phosphorus
- Bacteria
- BOD5
Loon Pond LP1 Determine effects of Loon Standard Methods - Turbidity Change from natural
ski area development [$5000] - Temperature conditions. Notify
on Loon Pond - Major ions State/Loon
- Minor elements
- pH
- Alkalinity
- Nitrogen
- Phosphorus
- Bacteria
- Oil & grease
Sampling Sampling Duration
Frequency Methods
- --------------------------------------------------------------------
Monthly for all Grab, Long term for
parameters, including integrated for all parameters
major events all parameters
Monthly for all Grab, All parameters:
parameters, including integrated for Three years minimum,
major events all parameters longer if impacts are
detected. One year prior/
during and two years
beyond completion of
Phase I Repeat for
Phase II Longer if
impacts are detected.
Monthly for all Grab, Long term,
parameters, including integrated for same as EB1
major events all parameters
Monthly for all Grab, Until shown that no
parameters, including integrated for problems exist and
major events all parameters control measures are
effective
9
TABLE 1. CONTINUED
- -----------------------------------------------------------------------------------------------------------------------------
Site ID Intent Responsibility Collection Parameters
(Annual costs) and Analysis
- -----------------------------------------------------------------------------------------------------------------------------
Secondary Stations
Water Line to WL1 Determine the quality of Loon Standard Methods - Turbidity
Loon Pond the water being pumped [$1000]
to Loon Pond
- Conductance
- Bacteria
- -----------------------------------------------------------------------------------------------------------------------------
Loon Pond Brook LP2 Provide data on the effect Loon Standard Methods - Turbidity
at Lincoln's reservoir of slope development on water [$1200]
quality of a water supply - Bacteria
stream
- -----------------------------------------------------------------------------------------------------------------------------
Threshold for Sampling Sampling Duration
Further Action Frequency Methods
- ---------------------------------------------------------------------------------------------------
5 NTU-pumping Before and during Turbidimeter Life of permit
with lease pumping
100 Mmhos/cm - Daily during pumping Conductance Life of permit
pumping will cease meter
Class A standards Daily during pumping Grap Sample Life of permit
- ---------------------------------------------------------------------------------------------------
5 NTU Monthly for all Grab, One year prior and two
parameters plus one integrated for all years beyond initiation
Class A Standards major storm event parameters and completion of trails
crossing the watershed.
Longer if impacts are
detected
- ---------------------------------------------------------------------------------------------------
10
copies of the data from any of these entities. The Forest Service and
Loon will coordinate their sampling stations with those of the State so
overlapping stations are recorded as the same location in STORET.
In the event a threshold for further action is triggered (ie. a
parameters value exceeds the threshold level set in this plan), Loon
will report as soon as possible all threshold exceedances to NHDES, and
all exceedances on streams draining from National Forest System lands
to the Forest Service. Threshold levels for this plan will be developed
following the baseline monitoring. The source of any exceedance of
these thresholds will be located and appropriate action will be taken
by the permittee to correct the situation.
Monitoring stations EB1 and EB4 will be long term water quality
stations. Monitoring stations on tributary streams may be phased out
after their particular monitoring need has been met.
GEOLOGY & SOILS
These mitigation measures will be implemented to reduce the potential impacts
of any soil disturbing activities to minimal levels.
Best management practices for water and soil resource protection will be
followed whenever maintenance work is performed within the permit area. Best
management practices are based upon those in the Environmental Protection Agency
Ready Reference Guide to Non-point Source Pollution for the New England States
(EPA 1988), and have been found generally effective if applied appropriately in
most non-point source situations. The list includes applicable Forest Plan
standards and guidelines.
The interpretation of ecological land types and ecological land type phases
will be used to guide all land management activities.
Inspection as soon as possible after snowmelt will identify areas needing
reseeding. Reseeding will occur by June 1.
Any revegetaion necessary will be with native plant species.
VISUALS
The purpose of these mitigation measures are to minimize impacts on the visual
resource.
Lift towers and related structures will be painted dark, non-reflective
colors which blend with the background during both the summar and winter
periods.
Ski lift terminals will be designed to blend with the summer environment.
Temporary or seasonal removal or covering of facilities with camoflage
netting will be considered to conceal some facilities if highly dominant in
the landscape and veiwed from sensitive areas.
-7-
11
Visual impacts which were not adequately predicted or caused by unforseen
circumstances, such as tree blow-down, will be corrected by additional
vegetation clearing, replanting or other methods.
ANNUAL OPERATING PLANS
In preparing and approving annual operating plans for the ski area, the Forest
will:
Emphasize use and operation of snowmaking equipment that reduces noise
impacts from snowmaking activities;
Schedule work needed to comply with water resource monitoring and management
of the white-tailed deer mitigation area;
Schedule work needed to complete the modification of the area's snowmaking
system.
The Forest Service will meet at least annually with the permittee and
representatives of state and local government to review the status of
operation of the ski area, the effectiveness of mitigation measures, and the
results of monitoring programs. The Forest Supervisor will exercise her/his
authority under the terms of the permit to suspend operation of the area if
it is believed that it is needed to address problems with human health or
safety or environmental impacts. Any suspension may result in such things as
modification of the annual operating plan or the terms and conditions of the
permit itself.
Emergencies may occur. Procedures will follow the Annual operating plan.
-8-
12
SOIL EROSION AND SEDIMENT CONTROL PLAN
LOON MOUNTAIN RECREATION CORPORATION
(3/24/97)
The purpose of this plan is to minimize accelerated soil erosion and sediment
delivery to streams at Loon Mountain Ski Area. It focuses on three situations:
- - Maintenance of existing soil erosion control measures on ski trails, service
roads, lift lines and around structures
- - Completion of conservation measures, as necessary, on the more recently
constructed trails and lift lines at South Mountain
- - Emergency soil erosion and sediment delivery problems
Routine Maintenance
The following are regular, annual soil erosion control maintenance activities
routinely reviewed by the Forest Service, and implemented by Loon Mountain
Recreation Corporation. This applies to all locations, including designated
cross-country and mountain biking trails, but not including the remainder of
South Mountain.
- - Drainage ditches and water bars are to be maintained. This may include
rechanneling partially frozen ditches by hand, and hand or machine work
during the snow free season. Special attention should occur after major storms
events when intense rainfall may cause accelerated erosion, and rip-rap or jute
matting may be necessary at culvert outflows.
- - Inspect, and clean out, as necessary, storm culverts on trails, parking
lots, building vicinities and service roads. Pay special attention to outflow
areas where hay bales, silt fences, or rip-rap may be necessary.
- - Grade, re-shape, and restore service roads, ski trails, lift lines and
around structures, as necessary, to manage surface water.
- - Implement routine fertilization, liming and seeding of slopes, lift lines,
roadsides and the vicinity of structures. Fertilization should be at the
rate of approximately 300 pounds per acre using a 20-20-20 application, or
its equivalent. Lime should be applied at the rate of about 1-2 tons per
acre. Seeding, as necessary, should apply those grass species approved by
the Forest Service; it should be done early summer when soil moisture is
less likely to be limiting to its germination; and at a rate of generally
60-80 pounds per acre. Mulching may become necessary if bare rocks or ledge
appear, and is done at the rate of about 2 tons per acre.
South Mountain
South Mountain has one trail which has been completely constructed including
grading, seeding, fertilizer and lime; and it has one trail and a lift line
where the trees have been harvested, and skid trails waterbarred, but no further
work has been done except original soil erosion measures.
The completed ski trail will be left to re-vegetate naturally. The expectation
based on ecological land types in the area is it will gradually return to a
northern hardwood forest beneath 2500' of elevation, and there will be spruce or
balsam fir at the higher elevations. Water bar inspection, and clean-out, should
continue for 2-3 years until the slope hydrology is more controlled by forest
vegetation than the grass cover and drainage structures.
-9-
13
The ski slope and lift line where tree stumps remain will be inspected this
spring for possible areas of accelerated soil erosion. The review will focus
primarily on skid trails where it is most likely mineral soil may remain exposed
from the harvest operations. The skid trails will be waterbarred, as necessary,
using the following general guidelines for spacing (FEIS at B-1). The spacing
will take advantage of natural breaks in terrain for greatest effectiveness.
Percent of Slope 2-5 6-10 11-15 16-20 20-30 30+
Distance Between 300 200- 100- 100 80 60
Bars 300 200
Inspection of waterbars will be done for two years following installation to
insure effectiveness. Waterbars will be earth berms.
Grass seeding, mulching, fertilization and liming will be applied to areas
identified by Forest Service inspection. The kinds and rates will be as
described under routine maintenance. The time of application will be
approximately June 1, 1997 depending on soil moisture as it affects
accessibility of machinery.
Emergencies
In the event of an emergency with soil erosion or sediment delivery impacts, a
site specific soil erosion plan will be jointly devised by the Forest Service
and Loon Mountain Recreation Corporation, and approved by the District Ranger.
It will be implemented by LMRC.
The conservation practices to deal with such emergencies shall include those
items, as applicable, shown in Appendice's B(1-2) (Loon Mountain Erosion Control
Plan) and G(5-8) (Water Resources Mitigation Plan). All conservation measures
will be consistent with the White Mountain National Forest Land and Resource
Management Plan.
14
LOON MOUNTAIN RECREATION CORPORATION
SCHEDULE OF GROSS FIXED ASSETS (GFA)
AS OF APRIL 30, 1993
ASSET CATEGORY APPROVED GFA
Land Improvements $2,028,042
Buildings $5,761,023
Ski Lifts $6,256,541
Trails and Slopes $1,259,862
Vehicles and Machines $2,347,861
Equipment/Furnishings $7,568,790
TOTAL $25,222,119
NOTE: The accounts and amounts appearing in this schedule reflect the
capitalized cost of facilities and improvements used to generate Graduated Rate
Fee System (GRFS) Sales as of April 30, 1993. It is subject to change in
accordance with permit clauses VI E and VI L and current Forest Service Manual
direction.