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Porzak Browning & Bushong LLP <br /> A t t o r n e y s a t L a w <br /> 2120 13th Street,Boulder,CO 80302 <br /> Glenn E.Porzak Michael F.Browning <br /> Steven J.Bushong Karen L.Henderson <br /> Kristin H.Moseley Of Counsel <br /> Kevin J.Kinnear <br /> 303 443-6800 Tel. <br /> Cassidy L.Woodard August 25 2020 303 443-6864 Fax. <br /> Gunnar J.Paulsen ' www.pbblaw.com <br /> ,Via email: russ.larsen@kilgorecoMpanies.com <br /> Russell A. Larsen <br /> Colorado Companies COO <br /> Kilgore Companies, LLC, dba Peak Materials <br /> 556 Struthers Avenue <br /> Grand Junction, CO 81501 <br /> Dear Mr. Larsen: <br /> I am water counsel for the Town of Breckenridge ("Town") and I am in receipt of your <br /> August 3, 2020 letter to the Town's Public Works concerning the Structure Agreement and <br /> Certification for the proposed gravel mining operation on the former Hillyard property north of <br /> Silverthome. As you are aware, the Town owns an easement for a drainage facility that is <br /> located on the property Peak Materials proposes to mine. <br /> By decree of the District Court in and for Water Division No. 5 ("Water Court") in <br /> Consolidated Case Nos. 80CW444, 81CW107, 81CW487 and 81CW488, this drainage facility <br /> insures that certain property is not being re-irrigated and is an element of the adjudication of <br /> senior water rights that are used to fill the Town's municipal storage facility. These water rights <br /> are also a source of water to repay Denver for the Dillon Reservoir water it provides to the <br /> Town. In turn,that Dillon Reservoir water augments the diversions at the Town's North <br /> Treatment Plant pursuant to the decree of the Water Court in Case No. 13CW3094. In short,the <br /> drainage facility is as important component in assuring that the Town's municipal water supply <br /> sources are not interrupted. <br /> Given the foregoing, if the mining operations of Peak Materials adversely impacts the <br /> Town's drainage facility, it will not be sufficient to compensate the Town for the damage to the <br /> physical structure. The financial impact to the Town will be the loss of an important municipal <br /> water supply which has an enormous financial impact. <br /> Therefore,the Town is not in a position to execute the documents you submitted. On the <br /> other hand,the Town is willing to discuss means by which the proposed mining operations can <br /> protect the Town's drainage facility located on its easement. Please do not hesitate to contact me <br /> if you have any questions regarding this matter. <br /> 114610 <br />