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~ ~ III IIIIIIIIIIIIIIII STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Department of Natural Resources 1313 Sherman St., Room 215 Denver, Colorado 80203 Phone: (303) 866-3567 FAX:(303)832-8106 Jnly 27, 2001 Mr. Steve Baker 3B Enterprises 2100 E. 9'" St. Craig, CO 81625 RE: 3B Enterprises, File No. M-2001-060 Deakins Pit, 110 New Permit Application- Compensation Agreement Dear Mr. Baker, According to 6.3.12 Exhibit L -Permanent Man-Made Structures, ~~ DIVISION O F MINERALS GEOLOGY RECLAMATION MININ G•SAFETY Bill Owens Governor Greg E Watcher Executive Director Michael B. Long Division Director Where the mining operation will adversely affect the stability of any significant, valuable or permanent man-made structure located within two hundred feet of affected land, the Applicant may either: (a) provide a notarized agreement between the Applicant and the Person(s) having an interest in the structure, that the Applicant is to provide compensation for any damage to the stmcmre; (b) or where such an agreement can not be reached, the Applicant shall provide an appropriate engineering evaluation that demonstrates that such structure shall not be damaged by activities occurring at the mining operation. In that the railroad right-of-way adjacent to the permit area of the Deakins Pit contains railroad tracks, one of the above items is necessary in order to disturb portions of the permit area within 200 feet of the structure. Included is a sample of a compensation agreement. If such an agreement cannot be reached with the railroad, mining within 200 feet of the strucmre may be conducted only if an appropriate engineering evaluation is submitted. If you have any questions, please do not hesitate to call me at (303)866-4935. Sincerely, Kate Pickford Environmental Protection Specialist cc: Carl Mount; DMG