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lwa� K� <br />9071 \V('R 10 * Fort Lupton, C'O S062 1 <br />PHON1 i 103-857-1--; <br />FAX: 303-8571-20',3 <br />w�rw.nccunstru�tor�.r, : <br />January 8, 2014 <br />The Consolidated Mutual Water Company RECEIVED <br />Attn: Mr. Mike Queen, President <br />12700 West 27th Avenue JAN 14 2014 <br />Lakewood, Colorado 80215 <br />Division of Reclamation, <br />Mining S Safety <br />Re: Agreement for Compensation for Damage to Structures within 200 feet of <br />mining activities <br />To Whom It May Concern: <br />Northern Colorado Constructors, Inc. has a State of Colorado Division of <br />Reclamation, Mining, and Safety (DRMS) Reclamation Permit M1990 -098 to allow <br />sand and gravel mining on property within 200 feet of structures located on your <br />property. The Colorado Mined Land Reclamation Act provides protection for your <br />property, and specific protection for your structures located within 200 feet of the <br />mining activities. <br />DRMS Permit requires a notarized agreement between the permit holder and owners <br />of structures within 200 feet, providing compensation for any damage to the structure; <br />or preparation of an engineering evaluation acceptable to the DRMS, demonstrating <br />that such structures shall not be damaged by the mining activities if an agreement <br />cannot be reached. <br />Northern Colorado Constructors, Inc. has had an engineering evaluation performed <br />to determine acceptable setbacks from their proposed mining permit boundary and <br />mining limit to structures adjacent to the mining. The proposed mining slopes and <br />setbacks were analyzed using the XSTABL v5.105a computer program. XSTABL <br />was designed to analyze the slope stability of earth embankments subjected to <br />several critical situations that may occur during the life of the embankment. The <br />procedure searches for circular shear failures and automatically searches for the <br />lowest safety factor. 2,000 separate failure surfaces were analyzed for each case. <br />The required minimum safety factors are based on the current standards used by the <br />Colorado State Engineer's Office (SEO) for high hazard embankment dams, and <br />industry accepted standards for the evaluation of embankments during construction. <br />The safety factors attained using the setbacks shown on the attached Mining Plan <br />are greater than the required safety factors specified by the SEO for an earth <br />embankment during construction, and an earth embankment subjected to <br />earthquake loading, based on the United States Geological Survey earthquake peak <br />acceleration factors for the area. This evaluation indicates that damage to structures <br />