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Mike Boulay 3 October 21, 2013 <br />Mr. Fontanari alleges agricultural development on the once -irrigated land above the <br />permitted areas is unlikely due to subsidence effects on hydrology. <br />SCC - Mr. Fontanari purchased the land suitable for agricultural development from SCC <br />in 2003. Mr. Fontanari purchased the land as -is where is and furthermore Mr.Fontanari <br />agreed to release, indemnify and hold harmless, and defend SCC and its successors and <br />assigns, affiliated companies, and all of its and/or their officers, directors, employees, <br />and agents from and against any and all claims, demands, losses, liabilities, damages, <br />fines, penalties, costs and expenses (including without limitation, costs for site <br />remediation, and costs for reasonable attorney fees) known or unknown, arising or <br />alleged to arise in any manner whatsoever from any condition on or under the Premises, <br />or the failure of the Premises to comply with applicable environmental laws and <br />regulations, or arising or alleged to arise in any manner from any claim for personal <br />injury or disease or death of any person occurring or accruing from and after the date of <br />Closing, or arising or alleged to arise from any claim for damage to any property, <br />including loss of use thereof, or which SCC may sustain or incur in connection with any <br />litigation, investigation, or other expenditures incident to any of the foregoing, including <br />any suit instituted to enforce this agreement of indemnity, except for any claims arising <br />or alleged to arise from any personal injury or disease or death of any person occurring <br />or accruing from the acts or omissions of SCC prior to the date of Closing. This <br />indemnification obligation and release and waiver shall survive the Closing of the <br />sale/purchase of the Premises. <br />Additionally, all of the land Mr. Fontanari owns in the area was purchased many years <br />after the land was undermined. Mr. Fontanari knew coal had been extracted under <br />most if not all of the land he has purchased. <br />4. Mr. Fontanari is concerned that subsequent landowners may claim that Western Slope <br />Flagstone is liable for hydrology changes, when the causes for subsidence in the area are clearly <br />related to the subsurface mining activities. <br />SCC - This speculative concern expressed by Mr. Fontanari can easily be mitigated by a well <br />written purchase and sale agreementthat indemnifies Mr. Fontanari of claims from subsequent <br />land owners. Mr. Fontanari cannot be adversely affected by speculative concerns. <br />Sincerely, <br />J. E. over, P.E. <br />Consulting Engineer <br />Enclosure: <br />Figure 1 <br />7-3 <br />