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Applegate <br />Group, Inc. <br />Water Resource Advisors for the West <br />July 2, 2015 <br />Henderson Aggregate, LTD <br />PO Box 700 <br />Henderson, CO 80640 <br />RE: Structure Agreement, Brannan Sand and Gravel Pit 29 <br />Dear Henderson Aggregate: <br />Brannan Sand and Gravel Company, LLC (Brannan) is proposing to install a drain along the <br />south and west side of the north cell of Pit 29 as shown in Exhibit A attached hereto. This letter <br />has been provided to you as the owner of a structure on or within two hundred (200) feet of the <br />proposed drain. The State of Colorado, Division of Reclamation, Mining and Safety (Division) <br />requires that where a mining operation may adversely affect the stability of any significant, <br />valuable and permanent man-made structure located within two hundred (200) feet of the <br />operation, the Applicant shall either: <br />a) Provide a notarized agreement between the Applicant and the Person(s) having an interest in <br />the structure, that the Applicant is to provide compensation for any damage to the structure; or <br />b) Where such an agreement cannot be reached, the Applicant shall provide an appropriate <br />engineering evaluation that demonstrates that such structure shall not be damaged by such <br />operation; or <br />c) Where such structure is a utility, the Applicant may supply a notarized letter, on utility <br />letterhead, from the owner(s) of the utility that such operation will have "no negative effect' on <br />their utility. (Construction Materials Rule 6.3.12 and Rule 6.4.19 & Hard Rock/Metal Mining <br />Rule 6.3.12 and Rule 6.4.20) <br />The following structures are located on or within 200 feet of the drain: <br />1. Fence <br />2. Drainage ditch <br />Consistent with the requirements of subparagraph (a) above, set out below for your review and <br />execution is a Certification regarding compensation to you for any damage to the above -listed <br />structures caused by the drain that has been executed by Brannan. Please review the Certification <br />and if it is satisfactory to you, please sign it and have your signature notarized. <br />7405 W. Highway 50, Suite 123 1490 W. 121" Avenue, Suite 100 118 W. 6`h Street, Suite 100 <br />Salida, CO 81201 Denver, CO 80234 Glenwood Springs, CO 81601 <br />303-452-6611 <br />www. applegategroup.com <br />