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, 0.. ,„x _. r,i, <br /> 9,, <br /> W.W. Clyde & Co. <br /> 10303 East Dry Creek Road, <br /> Suite 300 <br /> Englewood, CO 80112 <br /> January 26, 2024 <br /> Re: Agreement for Compensation for Damage to Structures within 200 feet of mining <br /> activities <br /> To Whom It May Concern: <br /> W.W. Clyde & Co. (formerly IHC Scott) is the new operator of the former Broken Arrow <br /> Investments, LLC Derr Pit. W.W. Clyde &Co. are in the process of doing a succession of operator <br /> with the State of Colorado Division of Reclamation, Mining and Safety. One of the requirements <br /> for the succession of operator is to send out structure agreements for structure owners that are <br /> within 200 feet of the mining permit boundary. The State of Colorado Division of Reclamation, <br /> Mining, and Safety (DRMS) Reclamation Permit for the Derr Pit is M2008-078. The Colorado <br /> Mined Land Reclamation Act provides protection for your property, and specific protection for your <br /> structures located within 200 feet of the mining activities. Your property is adjacent to the mine <br /> property and within 200 feet of the mining activities. <br /> DRMS approval requires a notarized agreement between the applicant and owners of structures <br /> within 200 feet of the mining activities, providing compensation for any damage to the structure; <br /> or preparation of an engineering evaluation acceptable to the DRMS, demonstrating that such <br /> structure(s) shall not be damaged by the mining activities if an agreement cannot be reached. <br /> W.W. Clyde & Co. has had an engineering evaluation performed to determine acceptable <br /> setbacks from their mining permit boundary and mining limit to structures adjacent to the mining. <br /> The proposed mining slopes and setbacks were analyzed using the Galena v7.1 computer <br /> program. Galena was designed to analyze the slope stability of earth embankments subjected to <br /> several critical situations that may occur during the life of the embankment. The procedure <br /> searches for circular shear failures and automatically searches for the lowest safety factor. 5,000 <br /> separate failure surfaces were analyzed for each case. The required minimum safety factors are <br /> based on the current standards used by the Colorado State Engineer's Office (SEO) for high <br /> hazard embankment dams, and industry accepted standards for the evaluation of embankments <br /> during construction. The safety factors attained using the setbacks shown on the Mining Plan are <br /> greater than the required safety factors specified by the SEO for an earth embankment during <br /> construction, and an earth embankment subjected to earthquake loading, based on the United <br /> States Geological Survey earthquake peak acceleration factors for the area. This evaluation <br /> indicated that damage to structures adjacent to the mining should not occur, even during <br /> earthquake conditions, which are very unlikely to be present. <br /> 10303 EAST DRY CREEK ROAD, SUITE 300 I ENGLEWOOD COLORADO 80112 I WWCLYDE.NET 1303.790.9100 <br />