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<br />Permanent Man-Made Structures <br />Letter of Agreement <br />Date: January ~, 2008 <br />To Whom it May Concern: <br />This agreement between CENTENNIAL STATE PAVING, INC., a Colorado <br />corporation, whose address is P.O. Box 11468, Pueblo, CO 81001 <br />(herein ~~CENTENNIAL" or ~~Operator") which is the operator of the <br />PHEASANT RUN GRAVEL PIT and engaged in the activity of gravel <br />mining, and ROCKY FORD HIGH LINE CANAL COMPANY, 25700 STATE <br />HIGHWAY 71, P.O. BOX 800 ROCKY FORD, COLORADO 81067 (herein HIGH <br />LINE or Company). <br />WHEREAS, CENTENNIAL proposes to mine gravel in the vicinity of <br />that portion of the HIGH LINE Canal which is in the SW 1/4 of <br />Section 32, Township 21 South, Range 60 West, of the 6th P.M., <br />Pueblo County, State of Colorado; and <br />WHEREAS, CENTENNIAL has the authority to represent Charles H. <br />Bedard, the owner of the land within the permit boundary per <br />lease agreement for mining, permitting and reclamation of the <br />property to be mined (herein ~~the Property"), which Property is <br />described in the lease between Charles H. Bedard (herein <br />"Bedard") and CENTENNIAL attached hereto as Exhibit A; and <br />WHEREAS, this agreement is intended to (1) allow CENTENNIAL to <br />mine gravel within the Property and within the MLRB Permit <br />Boundary Line subject to the provisions of this Agreement and the <br />provisions of the Permit; (2) to provide that any damage caused <br />by the mining operation to HIGH LINE's Canal and/or structures, <br />equipment or improvements will be compensated by CENTENNIAL to <br />HIGH LINE and its stockholders; and (3) to comply with Rule <br />6.4.19 of the Colorado Division of Reclamation, Mining and <br />Safety, Land Reclamation Board Rules and regulations dealing with <br />any adverse affect on any significant, valuable or permanent man- <br />made structure within 200 feet of the affected land. <br />NOW THEREFORE, in consideration of the mutual promises herein, <br />the sufficiency of which consideration is specially acknowledged, <br />the parties further agree as follows: <br />1. The construction and operation of said gravel pit and all <br />other activities of CENTENNIAL shall be in accordance with all <br />applicable governmental requirements and all permit conditions. <br />2. All operation, construction and mining shall be done in such <br />-1- <br />