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9. Defendant took possession of and began removing material from the <br />Property in winter of 2009. <br />10. From January 2010 to September 2010 Defendant paid to Plaintiff only <br />$0.75 per ton of mined material, $0.10 per ton less than the Contract price. <br />11. On October 27, 2008, Adams County approved Defendant's application <br />to remove sand and gravel from the Property (the "ADCO Permit"). A copy of the <br />ADCO Permit is attached hereto as Exhibit 2 and incorporated herein by reference. <br />12. The ADCO permit required Defendant to: <br />a. Import to the Property only clean inert and structurally sound fill <br />material from two specific approved sources: Denver Water Board <br />utility excavations and Defendant's Clear Creek County quarry; <br />b. Obtain prior approval from the Colorado Department of Health for use <br />of material originating from other sources; <br />c. Process and remove from fill material used below, and up to two feet <br />above, the water table of all but negligible amounts of asphalt and <br />concrete; <br />d. Use only a mixture of inert clean soils and crusher fines in fill placed <br />two feet above the water table and higher; <br />e. Use structural fill in order to facilitate future development of the site. <br />13. On May 1, 2009 the Colorado Division Reclamation, Mining & Safety <br />issued a Mined Land Reclamation Permit (the "MLR Permit") to Defendant. A copy of <br />the MLR Permit is attached hereto as Exhibit 3 and incorporated herein by reference. <br />14. As required by the application for the MLR Permit, Defendant provided <br />Plaintiff with a Damage Reimbursement Agreement letter, in which Defendant <br />agreed to reimburse Plaintiff for any damages done to the structures, including three <br />water wells, located on the Property (the "Reimbursement Agreement"). A copy of <br />the Reimbursement Agreement is attached hereto as Exhibit 4 and incorporated <br />herein by reference. <br />15. As part of the application for the ADCO Permit, Defendant created, <br />without any input from Plaintiff, and submitted to Adams County, a post -mining <br />drainage plan (the "Initial Drainage Plan") for the Property. <br />16. Adams County incorporates and adopts the Colorado Department of <br />Transportation's definition of structural fill. <br />3 <br />