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The oil and gas resources owned byKerr-McGee in the Application Lands have <br />substantial value. Kerr-McGee is concerned about any surface use of plan that would <br />preclude or materially restrict the use and enjoyment of those rights by Kerr-McGee. <br />Kerr-McGee is also concerned about the health and safety issues raised by the proposed <br />mining operations. Although mining can occur in a manner compatible with the current <br />and future oil and gas development on these lands, this requires mutual cooperation and <br />coordination during the planning process. <br />In these circumstances, Kerr-McGee's preferred practice is to meet with the <br />Applicant and attempt to structure a mutually acceptable surface use agreement that <br />allows the proposed mining operation to co-exist with oil and gas development. Kerr- <br />McGee has been successful in reaching such agreements with a number of sand and <br />gavel operators in th.e area.. Although there ha~~e heen sporadic dise>>ssions between *.Ire <br />Applicant and Kerr-McGee, the parties have not entered into a surface use agreement that <br />would allow for any mining to take place closer than 200' from the existing oil and gas <br />well on the property or to accommodate future wells and Facilities. In the absence of <br />such agreement, Kerr-McGee vigorously objects to the proposed application. <br />If you have any questions, please contact Cluis Greneaux at 720-264-2627. <br />Very truly yours, <br />MOUNTAIN CORPORATION <br />Staff Counsel <br />cc: Chris Greneaux <br />Danna Ortiz- RMC <br />