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DANIEL F. BERNARD <br />RICHARD N. LYONS, n <br />){GREY J. KAHN <br />JOHN W. GADDIS <br />BRADLEY A HALL <br />STEVEN P. IEFFEIiS <br />WENDY SLEB RUDNIK <br />ANION V. DWORAK <br />ADELE L. ILEESTER <br />MADOLINE E.S. WALLACE <br />EVE I. CATiFIELD <br />BERNARD LYONS <br />GADDIS & KAHIV <br />A PROFESSIONAL CORPORATION <br />ATTORNEYS AND COUNSELORS <br />December 2, 2003 <br />303-77b-9900 <br />FAX 303-013-1003 <br />E-MAIL info@btglew.com <br />Mailing addreu: <br />POST OFFICE BOX 978 <br />LONGMONT, CO 8 05 02-097 8 <br />Slreec address: <br />SECOND FLOOR <br />515 ICIIvIBARK STREET <br />nlwal/ace@b/glaw. com <br />Asphalt Specialties VIA EMAIL: rlairdnaFJSpl:altsnecialties.conr <br />c/o Rob Laird ORIGINAL WILL FOLLOW VIA U.S. MAIL <br />7321 E. 88`" Avenue <br />Henderson, CO 80640 <br />Re: Proposed Agreement Between the Plumb and Dailey Ditch Company and Fred L. <br />Spallone, Inc. <br />Dear Rob: <br />Thank you for contacting me regazding proposed mining that will affect our client the Plumb and <br />Dailey Ditch Company ("Ditch Company") and the Godding, Dailey and P1tYmb Ditch ("Bitch"). <br />To facilitate mining of Fred L. Spallone, Inc.'s ("Spallone' property located in the NE '/< of <br />Section 31, Township 2 North, Range 68 West, in Weld County, you indicated that Spallone <br />propose to relocate the Ditch. <br />Before pursuing this matter any further, the Ditch Company requires confirmation that Spallone <br />will be responsible for payment of all reasonable legal and engineering fees, as well as any of the <br />Ditch Company's administrative costs, incurred in approving plans and specifications and <br />entering into an agreement between Spallone and the Ditch Company for constmction affecting <br />the Ditch. At your request, the Ditch Company will not exceed $5000 for attorneys' fees and <br />$5000 for engineers' fees without Spallone's prior written approval. <br />Once the Ditch Company is assured that its legal and engineering expenses will be paid, it will <br />authorize its engineers, TetraTech RMC, to review the plans and specifications and its atoomeys <br />to negotiate an agreement with Spallone. Please tmderstand that at this time the Ditch Company <br />is neither granting Spallone percussion to begin construction or to interfere with the Ditch <br />Easement nor guaranteeing that it will enter into an agreement to accept construction. <br />An authorized representive of Fred L. Spallone, Inc. must sign below to confirm that it wiI] be <br />responsible for the Ditch Company's legal and engineering fees in this matter. Upon receipt of <br />this confirmation, the Ditch Company will review plans azid specifications for the proposed <br />construction and will begin to negotiate an agreement. <br />Please contact me if you have questions. <br />G:\CllenblP\PLUMGIAS\L Ldrtl 0.e Pelmbsreamenl Wlth Cap.doc 7/Z/Ga <br />