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<br />MAY 2 3 [,O3 <br />fbilr?l;? j ?s' iy <br /> <br />?C` <br />RE ED <br />MAY 2 9 20o$ <br />Division of Reclamation, <br />INDEMNIFICATION AND DAMAGE AGREEMENT n9 WW 89 <br />This Agreement is made and entered into, effective as of the day of May, 2008 <br />("Effective Date°) by and between Empire Electric Association whose address is 801 <br />North Broadway. Cortez CO 81321, (°EEA°), and, McStone Mareoates. LLC whose <br />address is PO Box 1568. Cortez CO 81321-1568 ("OPERATOR"). <br />Colorado Revised Statutes 34-32.5415 (4) states, in part: "The [Mined Land <br />Reclamation) board or office shall not deny a permit except on one or more of the <br />following grounds:... <br />(e) The mining operation will adversely affect the stability of any significant, valuable, <br />and permanent manmade structures located within two hundred feet of the affected land; <br />except that the permit shall not be denied on this basis where there is an agreement <br />between the operator and the persons having an interest in the structure that damage to <br />the structure is to be compensated for by the operator or, where such an agreement <br />cannot be reached, the applicant provides an appropriate engineering evaluation that <br />demonstrates that such structures shall not be damaged by proposed construction <br />materials excavation operations.° <br />OPERATOR agrees to indemnify and hold harmless EEA from any and all claims, <br />demands, causes of action and damages ("Claims") related to OPERATOR's operations <br />on the Mud Creek Pit, exhibit A, as such pit may be expanded. This Indemnification and <br />Damage Agreement includes, but is not limited to. Claims relating to all current overhead <br />EXECUTED as of the date of acknowledgement, but this Agreement is effective as of <br />the first date mentioned above. <br />EEA: OP RATOR• <br />By: Neal Stephens <br />Title: General Manager, Empire Electric <br />Association <br />r <br />By: Case cClellan <br />Title: Manager, McStoneManager. Aggregates, LLCLLC. <br />McStone-EEA Agreement Page I of 2 <br />This Agreement is signed by authorized representatives of OPERATOR and EEA.