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November 15, 2008 <br />City of Greeley <br />Community Development <br />Attn: Jana Easley <br />1100 10th Street, Suite 202 <br />Greeley, Colorado 80631 <br />Re: Agreement for Compensation for Damage to Structures within 200 feet of <br />mining activities <br />To Whom It May Concern: <br />Broken Arrow Investments, LLC has applied to Weld County (County) for a Use by <br />Special Review Permit, and to the State of Colorado's Division of Reclamation, <br />Mining, and Safety (DRMS) for a Reclamation Permit to allow sand and gravel <br />mining on property within 200 feet of structures located on your property. The <br />Colorado Mined Land Reclamation Act provides protection for your property, and <br />specific protection for your structures located within 200 feet of the mining activities. <br />The structure owned by the City of Greeley and located within 200 feet of the mining <br />and reclamation activities is a City street know as Balsam Avenue. <br />DRMS Permit approval requires a notarized agreement between the applicant and <br />owners of structures within 200 feet, providing compensation for any damage to the <br />structure; or preparation of an engineering evaluation acceptable to the DRMS, <br />demonstrating that such structures shall not be damaged by the mining activities if <br />an agreement cannot be reached. <br />Broken Arrow Investments, LLC has had an engineering evaluation performed to <br />determine acceptable setbacks from their proposed mining permit boundary and <br />mining limit to structures adjacent to the mining. The proposed mining slopes and <br />setbacks were analyzed using the XSTABL v5.105a computer program. XSTABL <br />was designed to analyze the slope stability of earth embankments subjected to <br />several critical situations that may occur during the life of the embankment. The <br />procedure searches for circular shear failures and automatically searches for the <br />lowest safety factor. 2,000 separate failure surfaces were analyzed for each case. <br />The required minimum safety factors are based on the current standards used by the <br />Colorado State Engineer's Office (SEO) for high hazard embankment dams, and <br />industry accepted standards for the evaluation of embankments during construction. <br />The safety factors attained using the setbacks shown on the attached Mining Plan <br />are greater than the required safety factors specified by the SEO for an earth <br />embankment during construction, and an earth embankment subjected to <br />earthquake loading, based on the United States Geological Survey earthquake peak <br />Broken Arrow Investments, LLC 699 North 1s` Avenue Greeley, Colorado 80631