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State of Colorado <br />Division of Reclamation, Mining and Safety <br />Department of Natural Resources <br />December 31, 2008 <br />Page 2 <br />trucks running up and down local roads (WCRs 64 and 29) among others, and their use of the <br />Whitney Ditch Lateral running under the area to be mined to the West of our clients' property. <br />This ditch lateral is a buried tile line that provides irrigation water to the Feuerstein parcels. The <br />Feuersteins also have water wells for irrigation, livestock, and domestic use. <br />As such, we have requested that Aggregate indemnify the Feuersteins against damages <br />which may result from Aggregate's expanded mining operations. We are currently in the <br />process of negotiating an indemnification agreement with Aggregate which is intended to protect <br />the Feuersteins against potential damage to their real and personal property which may result <br />from Aggregate's expanded mining operations. <br />At this time, the Feuersteins do not object to the Division's approval of Aggregate's <br />permit application. However, we request that the Division take all action necessary and <br />appropriate to ensure that all possible protections which are available at law to protect the <br />Feuersteins' real and personal property are in place during Aggregate's exploration, mining and <br />reclamation operations and that such protections be made conditions to issuance of the permit(s) <br />to Aggregate. Additionally, we request that the Division encourage Aggregate to continue to <br />negotiate in good faith in their efforts to finalize and execute the indemnification agreement with <br />the Feuersteins. <br />Please feel free to contact our office should you have questions or wish to more fully <br />discuss this matter. <br />Sincerely, <br />DUFFORD & BROWN, P.C. <br />4---- <br />David A. Closson <br />DAC/RJF <br />cc: Clyde W. Feuerstein <br />Larry D. Feuerstein <br />100351134.1}