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and mitigate the consequences of these naturally-occurring risks. Terror Ditch and <br />Reservoir Company does not participate, financially or otherwise, in the extraction of <br />coal associated with Bowie Resources Limited mining operations. Any risks created by <br />such mining operations cannot be bom by Terror Ditch and Reservoir Company. They <br />must be born by tbe entities deriving benefit from coal extraction. In this instance, those <br />entities include Bowie Resources Limited via operating income from coal extraction, and <br />the State of Colorado via severance and other taxes, and the County of Delta via <br />severance, property and other taxes. <br />Should these benefiting ertities elect to proceed over our objections, Terror Ditch and <br />Reservoir Company must be protected from damage by an appropriate water <br />augmentation/mitigationphn that at a minimum: <br />Provides for monitoring of water loss from all affected portions of the <br />watershed, impoundment facilities, and conveyance facilities. <br />Provides for the immediate replacement of water in the event of damage <br />and/or just compensation for loss due to failwe to deliver irrigation water. <br />Provides for the repair, abe/or reconstruction of any damaged portions of <br />out watershed, impoundment facilities, or conveyance facilities. <br />Provides for the continuation of these protections through any change of <br />ownership, bankruptcy, etc., affecting Bowie Resources Limited or any <br />subsequent operator in the affected area. <br />Provides for the extension of these protections well beyond the date of <br />closure and reclamation ofthe mine. <br />Again, Terror Ditch and Reservoir Company strongly opposes any subsurface mining <br />activity within 1 mile of our dam and reservoQ. <br />Sincerely, <br />John Mata~C~ Brent Helleckson <br />President Secretary <br />For the Terror Ditch and Reservoir Company Boazd of Directors <br />Attachments <br />