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MITIGATION AGREEMENT <br />This agreement ( "Agreement ") is entered into this !r? day of July, 2014, by <br />Stonewall Springs Quarry, LLC ( "Stonewall "), Fremont Paving & Redi Mix, Inc. <br />( "Fremont "), and Southwest Farms, Inc. ( "Southwest "). Stonewall, Fremont, and <br />Southwest may hereinafter be collectively referred to as "parties" or individually as a <br />"party" <br />RECITALS <br />1. Stonewall is the owner of certain real property in Pueblo County, Colorado, more <br />fully described in Exhibit A, attached hereto (the "Stonewall Property "). <br />2. Fremont and Stonewall entered into a Sand and Gravel Lease, whereby Fremont <br />obtained the right to mine aggregate materials from the Stonewall Property. <br />3. Southwest is the owner of certain real property located at 214 39 'h Lane, Pueblo <br />Colorado, more fully described in Exhibit B, attached hereto as Exhibit B. <br />( "Southwest Property "). Southwest operates a farm on the Southwest Property. <br />The mine on the Stonewall Property is referred to as the Evans #2 Pit. Fremont <br />is currently mining Phase 1 of the Evans #2 Pit. <br />4. The Stonewall Property and the Southwest Property share a common border, <br />with the Stonewall Property situated to the south and east of the Southwest <br />Property. The Stonewall Property and the Southwest Property may be <br />hereinafter collectively referred to as the "Properties ". <br />5. Certain disputes have arisen between Fremont and Southwest regarding water <br />usage at the Properties, including a dispute about the effect that dewatering the <br />gravel mine within the Stonewall Property has on Southwest Farms' wells. <br />6. The parties intend by this Agreement to fully and completely resolve all existing <br />and potential claims between them regarding water usage at the Properties. The <br />Parties have agreed to submit a monitoring plan to the State, separate from this <br />Agreement. This Agreement is a compromise of disputed claims, and is entered <br />into without admission of liability or wrong doing by any party. <br />AGREEMENT <br />NOW, THEREFORE, the parties agree as follows: <br />A. Southwest claims de- watering of Phase I has adversely effected the water <br />available to it from its' agricultural wells. Fremont denies its' de- watering <br />activities have adversely affected Southwest's agricultural wells. Nonetheless, as <br />a compromise. Fremont agrees to install at its expense before October 31, 2014, <br />up to 2700 linear feet of pipeline capable of delivering a minimum of 1200 gallons <br />