2016-07-14_PERMIT FILE - M2016010

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June 30, 2016 Page 3 Mining Operations Will Not Unreasonably Interfere with ROWs None of the ROWs are exclusive in nature, meaning that, as noted in the Objection Letter, the owner of Hitch Rack Ranch continues to enjoy all the rights and benefits of ownership that are consistent with the purpose of the ROWS. Moreover, nothing in the ROWs expressly prohibits the Mining Operations, and the ROWS generally reserve to the owner of Hitch Rack Ranch the right to "use" the area of Little Turkey Creek Road in addition to the rest of Hitch Rack Ranch. In fact, the Mining Operations were anticipated well before the grant of the ROWs--the State of Colorado reserved the mineral rights to Hitch Rack Ranch in the early 1900s. Accordingly, the appropriate analysis in determining whether the Mining Operations are permitted by the ROWs is not whether the Mining Operations will interfere with the rights granted by the ROWS, but rather whether such interference is unreasonable under the circumstances. The Mining Operations will not unreasonably interfere with the Permittees' use of the ROWs. As a preliminary matter, the Mining Operations will not be performed in any location within 50 feet from either outer edge of Little Turkey Creek Road. Accordingly, for the majority of the Mining Operations, there is little to no likelihood of any interference with Little Turkey Creek Road. The only effects that the Mining Operations may have on the free flow of traffic over Little Turkey Creek Road are (a) the construction and installation of two crossings over and across Little Turkey Creek Road (the "Crossings"), and (b) occasional, limited closures of portions of Little Turkey Creek Road necessary in order to protect Permittees from possible danger from the effects of blasting activities undertaken in connection with the Mining Operations (the `Blasting"). However, Transit Mix has taken great care to ensure that neither the Crossings nor any Blasting will unreasonably interfere with access over and across Little Turkey Creek Road in violation of the ROWS. With respect to the Crossings, Transit Mix intends to install the Crossings prior to commencing the Mining Operations at a time and in a manner that limits closures of Little Turkey Creek Road. For example, Transit Mix will ensure that at least one lane of Little Turkey Creek Road remains open at all time during construction and maintenance of the Crossings (except as necessary in connection with the Blasting, as discussed in more detail below). As such, expected interference with Little Turkey Creek Road should not materially exceed that resulting from the continued maintenance, or installation and construction, of the Permittees' culverts to facilitate passage on Little Turkey Creek Road. Moreover, the ROWs expressly permit the owner of Hitch Rack Ranch to erect locked gates across Little Turkey Creek Road so long as the Permittees are provided with keys. The Crossings, which will grant traffic on Little Turkey Creek Road the right-of-way, will not interfere with the ROWs to an extent greater than that resulting from locked gates, which would require a Permittee to stop and exit his or her vehicle in order to unlock the gate prior to passing. At worst, the Crossings may require Permittees to slow or stop their vehicles until oncoming traffic has passed, and even those slight delays will occur only during the limited periods of construction of the Crossings. As such, Transit Mix's installation and operation of the Crossings in connection with the Mining Operations will not unreasonably interfere with the Pennittees' use and enjoyment of the ROWs. Transit Mix expects that Blasting will require brief closures of Little Turkey Creek Road, which closures clearly interfere, to some extent, with the free flow of traffic. However, Blasting will not constitute an unreasonable interference with the ROWs. In addition to complying with all applicable laws and regulations and the