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BRANNAN <br /> 4 Ru TU �­7Q—Ck <br /> Founded 1906 <br /> 30 January 2017 <br /> Peter Hays <br /> Division of Reclamation, Mining and Safety <br /> 1313 Sherman Street, Room 215 <br /> Denver,CO 80203 <br /> Re: Status of 112 Regular Permit Application,Extension of Decision Date <br /> Valley's Edge Resource,M-2016-030 <br /> Dear Mr. Hays: <br /> Prior to this writing,the referenced application for Valley's Edge Resource (M-2016-030) was scheduled for a <br /> hearing based on an objection received during the comment period for the application. As you are aware, <br /> that objection was withdrawn. <br /> It is my understanding that the Division is prepared to issue the 112 Regular Permit based on its <br /> determination of adequacy and standing recommendation to issue the permit. However, in its final review of <br /> the file prior to issuance, the Division determined that two issues could be clarified as technical changes, as <br /> part of the pending initial action on the permit or, alternatively, the operator could process a TR after the <br /> initial issuance of the permit. Brannan is electing the former option, and with this letter I am accordingly <br /> requesting an extension of the Decision Date. <br /> This letter is also an update of Brannan's status as it relates to the two issues you identified. Those issues <br /> were: (1) Resolution of future oil and gas development inside the Affected Land, and (2)Citation of stable side <br /> slopes on the Mining Plan Map. <br /> (1) Oil and gas development. Anadarko/Kerr-McGee (Anadarko) has production rights for oil and gas on <br /> the Affected Land. This prompted Brannan and Anadarko to mutually adopt an "Agreement for <br /> Compatible Use" on 24 January 2017, granting to Anadarko a 14-acre Oil and Gas Operations Area <br /> (OGOA) generally occupying the northeast corner of the Affected Land. As part of this Agreement, <br /> Brannan has the right to extract construction materials from the OGOA, subject to prior review of the <br /> associated grading plan by Anadarko. <br /> The resolution of oil and gas issues in this Agreement with Anadarko preserves Brannan's right to <br /> recover composted material, topsoil and other borrow and fill from the OGOA. As a result, no <br /> changes to mining and reclamation procedures are necessary. For reference, the OGOA will be <br /> identified as the"drilling window"on a revised Exhibit C-2,with an explanatory note. <br /> (2) Side slope citations. The submitted Mining Plan Map (Exhibit C-2) was produced prior to completion <br /> of the geotechnical stability study. Thus, the Mining Plan Map references a yet-to-be determined <br /> 2500 East Brannan Way I Denver I CO 80229 1 303.534.1231 Tel 1 303.534.1236 Fax <br /> www.brannanl.corn <br />