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Kennedy Law Firm A Professional Corporation Cynthia T.Kennedy 308'/z E.Simpson Street Lafayette,Colorado 80026 Telephone:303-604-1600 Fax:303-604-1601 aked kennedylawyer.com May 10, 2019 Colorado Division of Reclamation Mining and Safety 1313 Sherman Street- Room 215 Denver, Colorado 80203 Re: Permit No. M-1994-117 To Whom It May Concern: I write this letter on behalf of Colorado Milling Company, LLC in regard to its Application for an Amendment to the Gold Hill Mill Permit, Permit No. M-1994-117. I have reviewed the Easement for Water Line With Access dated September 24, 2015 between Gene L. Sapp and Dene F. Sapp (the "Sapps") and Colorado Milling Company, LLC (the "Agreement") with regard to addressing the question of the extent of the indemnity afforded the Sapps under the Agreement and whether the Agreement is sufficient to provide for compensation in the event of damage to structures. It is my opinion, having reviewed the recorded document(the Easement for Water Line With Access)that the definition of"real property" within that document at paragraph 1 includes the entire Eureka Millsite, MS 601 B, and the provision at paragraph 3 requiring Colorado Milling Company, LLC as Grantee "to restore the real property as nearly as reasonably possible to its condition prior to any material disturbance from the construction, operation, maintenance, repair or replacement of the water line" is sufficient to require indemnification against any damage to structures on the Eureka Millsite as well as the raw land. I have discussed this matter with Colorado Milling Company, LLC, and the entity acknowledges its obligations to restore structures as well as raw land should any damage occur as a result of the activities covered by the Agreement. Please feel free to contact me if you have any further questions. Very truly yours cc: client nthia T. Kennedy