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`I9 - ?v a y7 - -0 PO W-.11111 <br />February 13, 2009 <br />DCP Midstream <br />1324 N. 7`h Avenue <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 />Journey Ventures, LLC has applied to Weld County (County) for a Use by Special <br />Review Permit, and to the State of Colorado's Division of Reclamation, Mining, and <br />Safety (DRMS) for a Reclamation Permit to allow sand and gravel mining on <br />property within 200 feet of structures located on your property. The Colorado Mined <br />Land Reclamation Act provides protection for your property, and specific protection <br />for your structures located within 200 feet of the mining activities. <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 />Journey Ventures, LLC has had an engineering evaluation performed to determine <br />acceptable setbacks from their proposed mining permit boundary and mining limit to <br />structures adjacent to the mining. The proposed mining slopes and setbacks were <br />analyzed using the XSTABL v5.105a computer program. XSTABL was designed to <br />analyze the slope stability of earth embankments subjected to several critical <br />situations that may occur during the life of the embankment. The procedure searches <br />for circular shear failures and automatically searches for the lowest safety factor. <br />2,000 separate failure surfaces were analyzed for each case. The required minimum <br />safety factors are based on the current standards used by the Colorado State <br />Engineer's Office (SEO) for high hazard embankment dams, and industry accepted <br />standards for the evaluation of embankments during construction. The safety factors <br />attained using the setbacks shown on the attached Mining Plan are greater than the <br />required safety factors specified by the SEO for an earth embankment during <br />construction, and an earth embankment subjected to earthquake loading, based on <br />the United States Geological Survey earthquake peak acceleration factors for the <br />area. This evaluation indicates that damage to structures adjacent to the mining <br />should not occur, even during earthquake conditions, which are very unlikely to be <br />present. <br />Journey Ventures, LLC P.O. Box 129 Greeley, Colorado 80632