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Martin John A.Gillan <br /> Marietta Associate General Counsel <br /> August 16, 2019 <br /> Via Federal Express <br /> Tim D. and Jeanne Iverson <br /> 5011 West F Street <br /> Greeley, Colorado 80631-9449 <br /> Re: Your SWSP Obligations <br /> Dear Mr. and Mrs. Iverson: <br /> I am writing to you in follow up to the Colorado Division of Water Resources letter to you regarding "Iverson <br /> Lake"and the need for either a substitute water supply plan("SWSP")or an adjudicated water augmentation <br /> plan. To date, we understand that neither of these actions have been completed and that you withdrew <br /> your filings for the SWSP. We are very concerned that this has not been completed. <br /> Pursuant to Section 6 of our Lease with you dated September 13, 2004 (the"Lease") specifically provides <br /> that you as Lessor are responsible for this activity. The Lease provides in pertinent part: "Lessor shall be <br /> responsible for any augmentation plan made necessary by the Company's surface exposure of <br /> groundwater,dewatering or mining operations on the Property....If Lessor fails to obtain the necessary plan <br /> of augmentation...the Company may do so and charge the cost thereof to Lessor." <br /> In 2017, this issue was raised and in good faith on 10/25/2017 the Company released $200,000 of the <br /> remaining royalties to you to enable you to complete this task. Despite this payment, you have failed to <br /> obtain either the SWSP or a water court decree on your lake. Obviously, this is problematic for us and a <br /> breach of the terms of the Lease and if it is not corrected, we may be forced to pursue our legal remedies. <br /> In an effort to amicably bring this matter to closure, we would like to arrange a meeting with you and your <br /> counsel to discuss your plan for bringing closure to this issue. Failing this, we will be forced to consider our <br /> options under the Lease and State law. <br /> We look forward to hearing from you soon within 15 days of the date of this letter. <br /> Very truly yours, <br /> /Jn illan, Esq. <br /> General Counsel <br /> mes Sharn, Julie Mikulas <br /> 2710 Wycliff Road, <br /> Raleigh, NC 27607 <br /> t. (919) 783-4657 f.(919) 783-4535 email.john.gillan@martinmarietta.com <br /> www.martinmarietta.com <br />