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SETTLEMENT AGREEMENT AND MUTUAL RELEASE
<br /> THIS SETTLEMENT AGREEMENT AND MUTUAL RELEASE("Agreement")is
<br /> entered into as of the 4th day of November, 2021 ("Effective Date"),notwithstanding the actual
<br /> date(s)of execution,and is between Robert W. Burton,Jr. and Burton Farms,LLLP(collectively
<br /> `Burton"), and Southway Construction Company, Inc. of Alamosa("Southway").
<br /> RECITALS
<br /> WHEREAS,Burton,whose mailing address is 18918 County Road 15,Del Norte, CO
<br /> 81132, owns that certain real property described as the N1/2,N 1/2, SW 1/4 of Section 19,
<br /> Township 40 North,Range 6 East,N.M.P.M.,Rio Grande County, Colorado("Burton
<br /> Property"),together with rights to all sand and gravel located on or in the Burton Property;
<br /> WHEREAS, Southway is a Colorado corporation whose address is It 7 White Pine Drive,
<br /> Alamosa, CO 81101. Southway is in the business of mining, extracting and selling gravel and
<br /> related materials;
<br /> WHEREAS, on May 22, 2012, Robert W. Burton Jr.,and Betty L.Burton, on the one
<br /> hand, and Southway, on the other hand, entered into that certain Agreement to Buy Material
<br /> ("Materials Agreement")which is attached hereto and incorporated by this reference as Exhibit
<br /> A. The term of the Materials Agreement was for five years,terminating on May 22,2017;
<br /> WHEREAS, Southway is the operator for the Colorado Division of Reclamation,Mining
<br /> & Safety("CDRMS")permit no. M-1987-013, a 112(c)reclamation permit consisting of
<br /> approximately 13.44 acres underlying both the Burton Property and certain real property owned
<br /> by the Rio Grande Canal Water Users Association("Burton Pit");
<br /> WHEREAS, a highwall exists at the Burton Pit which straddles both the Burton Property
<br /> and the Rio Grande Canal Water Users Association's property;
<br /> WHEREAS,the Materials Agreement was not renewed after May 22, 2017;
<br /> WHEREAS, Southway extracted materials from the Burton Property,which were left in
<br /> stockpiles on the Burton Property ("Stockpiles"). Southway did not pay Royalty Fees to Burton
<br /> for the stockpiled materials;
<br /> WHEREAS, at a Colorado Mined Land Reclamation Board("Board")hearing held
<br /> November 18,2020,the Board found that Southway had failed to maintain its legal right of entry
<br /> and was in violation of Permit No. M-1987-013;
<br /> WHEREAS,pursuant to the Findings of Fact,Conclusions of Law and Order issued
<br /> January 11,2021,the Board issued an Order with these findings requiring Southway to Cease
<br /> and Desist any further mining activity and,within 180 days, submit to CDRMS an appropriately-
<br /> executed legal right of entry with Burton or begin reclamation on all land affected by the mining
<br /> operations;
<br /> Settlement Agreement Page I of 5
<br /> Burton Farms,LLLP
<br /> Southway Construction Company,Inc.of Alamosa
<br /> Doc 10:66fadOc58627aec25d26f6a5d8ece84ca0e7b8e1
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