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Page 2 <br />November 27, 2000 <br />Berhan Keffelew <br />Schlage Lock Treatment Facility <br />In the even[ the facility is still in place when Transit Mix desires to mine this area, Paragraph 6 addresses <br />the procedures that must be followed. Transit Mix must notify Schlage Lock of the desire to mine this area <br />so the facility could be moved to another location and the treatment continue. Paragraph 11 goes on to <br />state that if the treatment ends prior [o Transit Mix moving into the area for extracting the sand then the <br />facilities must be removed within 180 days of the termination of the treatment program. <br />Paragraphs 8 and 9 are especially important with respect to providing protection to Transit Mix and, <br />potentially, the State of Colorado. These passages state that this agreement is binding upon the successors <br />to Transit Mix and also protects Transit Mix and successors from any liability that results from the <br />treatment processes. In effect, if Transit Mix were to go out of business and the State of Colorado, through <br />the Division of Minerals and Geology, were to assume responsibility Eor the reclamation of the site this <br />agreement and all of its requirements would still apply. Therefore, this agreement not only protects <br />Transit Mix but also [he State in the event of bond forfeiture. The State would not incur any additional <br />reclamation costs for the removal of the facility, if that was desired, because those costs, including <br />disturbance reclamation, are required to be paid for by Schlage Lock. <br />In conclusion, it appears that a Technical Revision to address possible effects of the mining on these <br />facilities is not necessary. That is because the facilities will not even be [here when the mining occurs. They <br />will need to be moved somewhere else prior to any possible adverse effects occurring. Transit Mix <br />certainly has no desire to interfere with the Compliance Order on Consent that Schalge Lock must <br />comply with, but that does not include foregoing the mining of sand in Phase 4e. It is clear by the terms of <br />this agreement that it was formulated with a full awareness of the eventual mining of Phase 4e and that <br />Schlage Lock, by agreeing to the terms, is in agreement with these procedures. It also appears to be quite <br />clear that the agreement protects the State in the event Transit Mix were to forfeit the bond. <br />Sincerely, <br />Mark A. Heffner <br />cc: Transit Mix Concrete <br />