2004-09-14_GENERAL DOCUMENTS - M1993041

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Erica Crosby Division of Mineral and Geology Page 2 of 4 September 14, 2004 Research: On February 23, 1994, the Division sent an "approval with conditions" letter to SHB Agra, Inc. (see attached). Stipulation No. 5 of this approval letter states "The Division must receive copies of all signed letters for all owners of structures..." (emphasis ours). SHB Agra, Inc. responded to this condition in a letter to the Division dated March 3, 1995 (attached) by providing proof of mailing of a letter to all structures owners in which Southdown claimed responsibility for any damage resulting from mining operations. We admit that this is a matter of unclear semantics, however, and only bring this to your attention to demonstrate that Southdown was attempting in good faith to comply with the perceived stipulation. We therefore request your patience as Cemex attempts to obtain notarized agreements with currently existing structure owners within 200 feet of affected areas for which an agreement does not already exist. Following is a table containing structures believed to be within 200 feet of affected areas {based on recent document reviews and field work). Table 1; Structures Within 200 Feet of Affected Areas of Dowe Flats Mine Structure Owner Agreement (attached or pending) Palmerton Ditch Palmerton Consolidated Ditch Co. dated Nov. 21, 1994 Highland Ditch Highland Ditch Co. dated Nov. 21, 1994 Supply Ditch Supply Irrigating Ditch Co. dated Dec. 6, 1994 Rough and Ready Ditch The Rough and Ready Irrigating Ditch Co. dated Nov. 23, 1994 County Roads and Bridges Boulder County pending Water Pipelines City of Longmont pending Highway 66 Colo. Dept. of Transportation Access Permit # 497171 Railroad Tracks Burlington Northern ROW Occupancy Permit No. RW94-22596 Communication Lines Qwest Corporation pending Aboveground power lines and substation Poudre Valley Rural Electric Authodty pending Natural Gas Pipeline Xcel Energy pending Conclusion: Southdown did comply with the wording (albeit unclear) of the February 23, 1994 approval letter, but not with the March 3, 1994 Stipulation E. Copies of existing agreements which we believe satisfy Stipulation E are attached. Cemex is now diligently seeking to get notarized agreements with owners of structures within 200 feet of affected areas for which an agreement does not already exist, and will submit either the agreements or an engineering analysis to the Division prior to December 31, 2004 (to allow time to discuss these agreements with fhe structure owners, and prepare an engineering analysis, if necessary).