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? S00 West 12th Avenue ° r3enver, Colorado 802043Ai2 Phone 303-628-ti4b0 • Fax No. 303-b28•b-V70 Patricia L. 'Neils, General Counsel, Legal ~Jivision January 30, 2003 Mr. Albert Frei Albert Frei and Sons, Inc. P.O. Box 700 Henderson, CO 80640 RECEIVED JAN 3 t 2~3 Division of Minerals swd (i' RE: Hazeltine Pit, PernutlNu~nber M-77-153 ~Con~i/hLr wo ~zr d rec~gi..a ~ai7 e~~ist~ ~j"eYl2r'al rJocun~P.ll~"f Dear Mr. Frei: Under the terms of the January 24, 1998 Purchase and Sale Agreement between the South Adams County Water and Sanitation District (South Adams), Hazeltine Investment Association and Albert Frei and Sons, Inc., Lot 1 Block 1 and Lot 1 Block 2 of the A. F. and Sons Subdivision were sold to South Adams. Section 3.3(b)(ii) of the Agreement provided that Albert Frei and Sons would have the right to complete the gravel mining operations on the property pursuant to a contract to be negotiated. South Adams conveyed an undivided fifty percent fee ownership in the property to the Board of Water Commissioners on February 9, 1998. A contract for Sand, Gravel and Aggregate Mining Operations between Albert Frei and Sons, Inc. and South Adams was agreed to on February 9, 1998. The mining contract provides in part at paragraph 7 that the right of the Contractor to mine the sand, gravel, aggregate, top soil and other materials would expire five (5) years after the date of the contract. In a meeting between representatives of Albert Frei and Sons, Inc., South Adams and Denver Water on December 2, 2002, representatives of Albert Frei and Sons, Inc. notified Denver Water and South Adams that the mining operations had been concluded and the property would be turned over to South Adams and Denver Water by February 9, 2003. Paragraph 7 on the mining contract also provides that Albert Frei & Sons will complete reclamation of the property pursuant to all governmental permits, licenses and regulations governing the mining operations on the property. The property has been acquired for development as a water storage facility. Improvements to the south embankment of the property were previously made by SEMA Construction Company under contract with Denver Water. South Adams and Denver Water aze presently reviewing the feasibility of installing a compacte~. clay liner or a soil-bentonite slurry wall liner azound the perimeter of the Hazeltine property and the adjacent Roadrunners Rest II property. Under the terms of the Mined Land Reclamation permit, Albert Frei and Sons, Inc. is required to install a compacted slope azound the perimeter of the pit, re-grade the sides of the excavation to a 3 to 1 slope, seed and re-vegetate the area. It would not be appropriate for Albert Frei & Sons to -~~_.*~-rte ~O4~tJ~~~' i