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August 13, 2015 <br />Yager Partnership, LTD. <br />P.O. Box 816 <br />Granby, CO 80446-0816 <br />RE: Damage Reimbursement Agreement <br />Kattenburg Mine, Permit # M-2004-017 <br />To whom it may concern: <br />RECEIVED <br />AUG 21 ?01, <br />Division of Reclamation, <br />Mining & Safety <br />This letter is being sent to you as part of the permit transfer process that we are working through to <br />transfer the Kattenberg Mine from Willits Company, Inc to Granby Sand & Gravel, LLC.. There is no <br />change to the mining or reclamation plans for extraction of the material in the mine as part of the permit <br />transfer. The mine is located on a tract of land located in the SE'/4SE'/a, Sec 33, T -2-N, R -76-W, 6th <br />Prime Meridian, Grand County, Colorado. <br />This letter and attached Structure Agreement is being sent to you as part of the permitting process to <br />address an MLR rule that requires the operator/permittee to pursue an agreement with owners of any <br />structures within 200 feet of the permit area, in which the operator agrees to reimburse the structure <br />owner for any damage done to their structure as a result of the mining operation. In lieu of obtaining an <br />agreement, the operator can provide the state with a Geotechnical study that demonstrates that any <br />structures within 200 feet of the permit area shall not be damaged by activities occurring at the mining <br />operation. During the original permitting process operator completed the study as part of the planning <br />process for this mine and it indicates that the structures listed in this agreement will not be damaged by <br />mining activities. <br />We are sending this agreement to you as required by law, but also because we wanted to inform you of all <br />the aspects of the MLR rules and also be able to provide you assurances that should something occur that <br />we do not foresee, Granby Sand & Gravel will repair or replace the damaged structure regardless of <br />whether or not the attached agreement is signed. <br />Please return this agreement, signed and notarized, within 30 days of receiving it if possible. Enclosed is <br />a stamped addressed envelope so you can returned the executed agreement to us. We have enclosed a <br />second copy of the agreement for your files. Thank you for your cooperation. <br />If you have any questions or need more information please call me at (970) 627-8834. <br />Sincerely, <br />Granby Sand & Gravel <br />Todd Hammerlund <br />Manager SAMPLE <br />