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L.G. EVERIST, INC. <br />April 9, 2009 <br />Mr. Eric Scott <br />Division of Reclamation, Mining, and Safety <br />1313 Sherman Street, Suite 215 <br />Denver, CO 80203 <br />CORPORATE OFFICE <br />300 S. PHILLIPS AVE. - SUITE 200 <br />P.O. Box 5829 <br />SIOUX FALLS, SO 57117-5829 <br />PHONE 605.3345000 <br />FAX 605.334-3656 <br />MOUNTAIN DIVISION <br />7321 E. 88TH AVENUE - SUITE 200 <br />H,EN DE RSON, COLORADO 8(7840 <br />303.287-9506 <br />$AX 303-289-1348 <br />RE: L.G. Everist, Inc.'s Fort Lupton Sand and Gravel Mine, DRMS Permit M-1999-120 and <br />Agreement with City of Aurora for Beneficial End Use of properties <br />Dear Eric, <br />This letter is a follow up to our previous discussion regarding the City of Aurora's (Aurora) vested interest <br />in L.G. Everist, Inc.'s (L.G. Everist) Fort Lupton Sand and Gravel Mine, M-1999-120. <br />The Fort Lupton site has been permitted to be mined and then reclaimed as water storage reservoirs, <br />some of which L.G. Everist has already sealed or will be sealing with slurry walls. Aurora has entered into <br />a Purchase and Sale Agreement with L.G. Everist to acquire the properties that make up the Fort Lupton <br />Sand and Gravel Mine and the water storage reservoirs being created as described in the permit. As the <br />mining and reclamation progresses, Aurora will be taking ownership of the reclaimed water storage <br />reservoirs and associated properties sequentially. The first water storage reservoir - the Golden Property - <br />is scheduled to be sold to Aurora in June, 2009. <br />Aurora has moved forward with the design of a pump station, associated pipelines and outfall structures <br />on the Golden Property. Construction of these facilities is scheduled to commence in the fall of 2009. <br />For ease of coordination and construction, Aurora is willing to accept the Golden Property and all <br />subsequent reclaimed water storage reservoirs included in DRMS Permit M-1999-120 and their <br />associated properties that Aurora has purchased from L.G. Everist in a less than fully vegetated state. <br />L.G. Everist is responsible for all mining and reclamation up to and including the initial seeding which <br />begins the revegetation process for each reservoir. L.G. Everist will request a partial permit release from <br />the DRMS at that time for the reclaimed section. Upon permit release, Aurora will take over the property <br />as is and ensure that final revegetation occurs on the property after the transfer has taken place. A <br />signature from a representative of Aurora is provided below to show acknowledgement of the terms <br />provided in this letter. <br />Sincerely. <br />Lynn Mayer Shults <br />Regulatory Manager <br />Aurora Water acknowledges the terms set forth a <br />Signature: <br />Representative: L-Cisabarling, <br />cc: Austin Hamre, Esq. Special Water Counsel for Aurora Water <br />Rick Marsicek, Aurora Water <br />Tim Flanagan, Esq., Special Water Counsel for L.G. Everist, Inc. <br />Jim Sittner and Matthew Noteboom, L.G. Everist. Inc. <br />F L-DRMS-VegetationAurora•033109.doc