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REvEIVED <br /> Atmos Energy <br /> 209 Sage Street <br /> Lamar, CO 81052 JUL 1 3 201f) <br /> Division of Re-darnation, <br /> li0a:�&�yfetyi <br /> July 12, 2016 <br /> Re: Agreement for Compensation for Damage to Structures within 200 feet of mining <br /> activities <br /> To Whom It May Concern: <br /> Prowers Aggregate Operators, LLC has a State of Colorado Division of Reclamation, <br /> Mining, and Safety (DRMS) Reclamation Permit M2008-078 to allow sand and gravel <br /> mining on property within 200 feet of structures located on your property. The Colorado <br /> Mined Land Reclamation Act provides protection for your property, and specific <br /> protection for your structures located within 200 feet of the mining activities. The gas <br /> utility line in County Road HH.5 is the structure that is within 200 feet of the mining <br /> activities. Prowers Aggregate Operators, LLC is the new operator but the same <br /> people/employees will be working for us. <br /> DRMS Permit approval requires a notarized agreement between the applicant and <br /> owners of structures within 200 feet of the mining activities, providing compensation for <br /> any damage to the structure; or preparation of an engineering evaluation acceptable to <br /> the DRMS, demonstrating that such structure(s) shall not be damaged by the mining <br /> activities if an agreement cannot be reached. <br /> Prowers Aggregate Operators, LLC has had an engineering evaluation performed to <br /> determine acceptable setbacks from their proposed mining permit boundary and mining <br /> limit to structures adjacent to the mining. The proposed mining slopes and setbacks <br /> were analyzed using the XSTABL v5.105a computer program. XSTABL was designed <br /> to analyze the slope stability of earth embankments subjected to several critical <br /> situations that may occur during the life of the embankment. The procedure searches <br /> for circular shear failures and automatically searches for the lowest safety factor. 2,000 <br /> separate failure surfaces were analyzed for each case. The required minimum safety <br /> factors are based on the current standards used by the Colorado State Engineer's <br /> Office (SEO) for high hazard embankment dams, and industry accepted standards for <br /> the evaluation of embankments during construction. The safety factors attained using <br /> the setbacks shown on the Mining Plan are greater than the required safety factors <br /> specified by the SEO for an earth embankment during construction, and an earth <br /> embankment subjected to earthquake loading, based on the United States Geological <br /> Survey earthquake peak acceleration factors for the area. This evaluation indicated that <br /> damage to structures adjacent to the mining should not occur, even during earthquake <br /> conditions, which are very unlikely to be present. <br /> Prowers Aggregate Operators, LLC 7991 Shaffer Parkway <br /> Suite 200, Littleton, CO 80127 <br /> (303) 369-5100 <br />