Laserfiche WebLink
9. Under MAI's lease the Plaintiffs received production royalties for the material <br />excavated and sold by MAI, as well as advanced royalties for each lease year. <br />10. On January 1, 1983, the Plaintiffs entered into an agreement with Golden, whereby <br />Golden leased the gravel pits on Plaintiffs' property (the "Golden Lease"). The gravel pits were the <br />result of the gravel mining operations conducted by MAI. The Golden Lease was "for purposes of <br />constructing, operating and maintaining a water storage reservoir or reservoirs thereon" and was to <br />expire in December, 2013, with three additional options for 30-yeaz renewals. The Golden Lease <br />covered approximately 117.77 acres of the Plaintiffs' property. <br />11. The Plaintiffs' property consists of eight pazcels; the mining lease and the Golden <br />Lease were essentially limited to the largest of these parcels, Pazcels 1 and 2. <br />12. Despite its 90 year lease, Golden opted to condemn a portion of the leased premises, <br />as well as certain water rights, for purposes of construction and operation of the reservoir, and filed <br />an action in condemnation captioned City ofGolden v. Buckland. et. al, Case No. 03 CV 33, District <br />Court, Clear Creek County (the "Condemnation Action"). Golden acquired Parcel 1 in the <br />Condemnation Action, where the reservoir is now located. In total, Golden was permitted to take <br />immediate possession of approximately 108.8 acres in connection with the Condemnation Action. <br />13. Golden began construction of the reservoir in the Spring of 2003. Upon information <br />and belief, construction is complete and the reservoir is currently being operated and maintained by <br />Golden. <br />14. During construction of the reservoir, however, Golden determined that it was <br />displeased with MAI's mining activities and entered into a private agreement with MAI whereby <br />Golden "acquired" MAI's mining lease (the "Settlement Agreement"). This Settlement Agreement <br />between MAI and Golden, dated May 21, 2003, halted MAI's activities on the property. According <br />to the Settlement Agreement, <br />Golden desires to commence reservoir construction activities on the property subject <br />to the MAI Lease ("leased property") as soon as possible and requires that MAI <br />vacate and surrender portions of the premises so as not to interfere with Golden's <br />reservoir construction activities... <br />As a result of the Settlement Agreement with Golden, MAI ceased mining operations on the <br />Plaintiffs' property, and Golden, through its agent, continued the remaining mining required for <br />construction of the reservoir. MAI also disclaimed an interest in the Condemnation Action. <br />-3- <br />