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6.4.19 EVIIBIT S Permanent Man- Made Structures <br />... "In accordance with Rule 64.19, when mining operations will (emphasis added) adversely affect <br />the stability of any significant valuable and permanent man-made structure located within 200 feet <br />of the affected area, the applicant may either: <br />a.) Provide a notarized agreement between the applicant and the person(s) having an interest in the <br />structure, that the applicant is to provide compensation for any damage to the structure: or <br />b.) Where such an agreement cannot be reached, the applicant shall provide an appropriate <br />engineering evaluation that demonstrates that such a structure shall not be damaged by activities <br />occurring at the mining operation. " <br />Applicant's Response: <br />The Applicant is actively pursuing agreements with those individuals and or companies that have <br />structures located within 200 feet of areas to be mined (attached is the United Power agreement). <br />The Applicant has met, and continues to meet with representatives of Anadarko (Kerr-McGee) as <br />part of an on going effort to negotiate a Surface Use Agreement (SUA) acceptable to all parties; <br />however, the terms and conditions of the SUA have yet to be fully established and memorialized. <br />Like Kerr-McGee, the Applicant prefers to conclude a mutually acceptable SUA. However, such <br />agreements may not be executed prior to the decision date for the Morton Lakes 112c permit. <br />Therefore, the applicant proposes to use the minimum mining setback formula, described in the Scott <br />Cox Report previously prepared for the adjacent Holton Lakes 112c permit, for all structures within <br />200 feet of areas to be mined but not yet subject to an executed agreement. <br />Having said that, the Applicant believes that there is no evidence that the proposed Morton Lakes <br />mining operation will adversely affect the stability of any significant, valuable, or permanent <br />manmade structure located within 200 feet of the affected land. <br />Per the Scott Cox Report (see attached) minimum mining setbacks from all permanent or manmade <br />structures shall be based on a ratio of horizontal distance to vertical distance of 3:1 with the vertical <br />distance equal to the depth to bedrock in the mined area. <br />Also attached is a cross section prepared by Tetra-Tech for the Lupton Bottom Ditch depicting <br />recommended sand and gravel mining setbacks from the Ditch. <br />3/3/2009