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August 26, 2013 <br /> Ms. Sylvia Parker <br /> 211 North Balsam Avenue <br /> Greeley, Colorado 80631 <br /> Re: Agreement for Compensation for Damage to Structures within 200 feet of <br /> mining activities <br /> Ms. Parker: <br /> Loloff Construction, Inc. has a Weld County (County) Use by Special Review Permit <br /> AMUSR- 690, and a State of Colorado Division of Reclamation, Mining, and Safety <br /> (DRMS)Reclamation Permit M1985-112 to allow sand and gravel mining on property <br /> within 200 feet of structures located on your property. The Colorado Mined Land <br /> Reclamation Act provides protection for your property, and specific protection for <br /> your structures located within 200 feet of the 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 /> Loloff Construction, Inc. has had an engineering evaluation performed to determine <br /> acceptable setbacks from their proposed mining permit boundary and mining limit to <br /> structures adjacent to the mining. The proposed mining slopes and setbacks were <br /> analyzed using the XSTABL v5.105a computer program. XSTABL was designed to <br /> analyze the slope stability of earth embankments subjected to several critical <br /> situations that may occur during the life of the embankment. The procedure searches <br /> for circular shear failures and automatically searches for the lowest safety factor. <br /> 2,000 separate failure surfaces were analyzed for each case.The required minimum <br /> safety factors are based on the current standards used by the Colorado State <br /> Engineer's Office (SEO) for high hazard embankment dams, and industry accepted <br /> standards for the evaluation of embankments during construction. The safety factors <br /> attained using the setbacks shown on the attached Mining Plan are greater than the <br /> required safety factors specified by the SEO for an earth embankment during <br /> construction, and an earth embankment subjected to earthquake loading, based on <br /> the United States Geological Survey earthquake peak acceleration factors for the <br /> area. This evaluation indicates that damage to structures adjacent to the mining <br /> should not occur, even during earthquake conditions, which are very unlikely to be <br /> present. <br /> Loloff Construction,Inc. P.O.Box 516 Kersey,Colorado 80844 <br /> • <br />