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L.G. EVERIST, INC. <br />Rocrc Soup 5r.VCc 1876 <br />7321 E. $$ir Avt:rwE. Sun E 200 <br />HmomsoN. CoLomw 80640 <br />PHoNF 303-287-9606 Y FAx 303-289-1348 <br />Please note that LGE is asking Firestone for this "as is" acknowledgment because the DRMS prefers to <br />have self -regenerating growth on reclaimed vegetated areas in order to release them from a permit. <br />However, the DRMS will approve an acreage release request when: all reclamation is acceptably <br />completed up through initial seeding, and the operator has an agreement with a municipality to take <br />over the site upon permit release, and the municipality accepts the reclamation "as is" <br />The acreage that LGE is requesting the DRMS to release is 63.3 acres, which includes all of Area A <br />(10.6 acres) and most of Area B (62.7 of the 54,4 total acres) of the "Carbon Valley Parcel". By <br />releasing the "Carbon Valley Parcel" from the DRMS permit, the Town of Firestone can take over the <br />property for water storage reservoir development as described in the PSE Agreement. <br />The only part of the "Carbon Valley Parcel" in Area B that will not be released from the DRMS permit at <br />this time is the 1.7 acres which contain the office and shop area, and which are located outside the <br />water storage reservoir in the northwest corner of Area B of the "Carbon Valley Parcel". This area is <br />needed for the on-going mining operation in the west side of the Carbon Valley Resource, known as <br />both "Brooks Farm" and Area C. Licensing requirements (between LGE and Firestone) of the "fixtures" <br />(buildings and scale) in this area are described in the PSE Agreement, Paragraph 3.1 (b) (iii). <br />With all of the reclamation completed in the "Carbon Valley Parcel' as stated above, and in accordance <br />with Section 8.4 (a) of the PSE Agreement, LGE hereby requests an acknowledgement from Firestone <br />stating that you accept the reclamation of the 63.3 acres to be released from the DRMS permit "as is". <br />An Affidavit of Acceptance of Reclamation is attached (2 copies). Please sign and return it to us as <br />soon as possible, as we would like to include a copy of this letter and the affidavit in our acreage <br />release request submittal package to the DRMS. <br />If you have any questions, please contact Lynn Shults (303-286-2247, imshults@lgeverist.com), or <br />Harry Karakatsanis (303-286-2244, hkarakatsanis@lgeverist.com). <br />Sincerely, <br />JIM—A,I /t <br />Lynn Mayer Shults <br />Regulatory Manager <br />CC - via email: <br />- Dennis L. Fields, Matthew S. Noteboom, Harry Karakatsanis (LGE) <br />- Mike L. Fredregill, Esq. (Moye White LLP) <br />CC - via email and Federal Express: <br />- Bradley C. Grasmick, Esq. <br />Lawrence Jones Custer Grasmick, LLP <br />5245 Ronald Reagan Blvd., Suite 1 <br />Johnstown, CO 80534 <br />CV-TownFirestone- ReciamationAsis-Sep2018.doex <br />