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1980 -lq 'FF- C 6VW4
<br />Reclamation Permit Amendment Application (M-1980-146: AM-04) -112c Addendum '-P V RA45
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<br />EXHIBIT N - SOURCE OF LEGAL RIGHT-TO-ENTER
<br />This Agreement is made and entered into, effective as of the 19th day of June, 2009 ("Effective Date") by and between John
<br />Gilleland, Manager for Gilleland Family Limited Partnership (GFLP), whose address is 514 CR 509, Ignacio, CO 81137, and is
<br />the owner of parcel # 5669-102-00-007, and for Gilleland Enterprises LLC (GELLC), whose address is 27661 Hwy 160, Durango,
<br />CO 81301, and is the owner of parcels #5669-102-00-015, #5669-102-00-016, #5669-102-00-020, and #5669-102-00-024,
<br />("Landowners"), and, Perry Neil, Operations Manager, C&J Gravel Products, Inc. ("Operator").
<br />RECITALS
<br />A. Colorado Revised Statutes 34-32.5-115 (4) states, in part: "The (Mined Land Reclamation) board or office shall not deny a
<br />permit except on one or more of the following grounds:...
<br />(e) The mining operation will adversely affect the stability of any significant, valuable, and permanent manmade structures
<br />located within two hundred feet of the affected land; except that the permit shall not be denied on this basis where there is an
<br />agreement between the operator and the persons having an interest in the structure that damage to the structure is to be
<br />compensated for by the operator or, where such an agreement cannot be reached, the applicant provides an appropriate
<br />engineering evaluation that demonstrates that such structures shall not be damaged by proposed construction materials
<br />excavation operations.
<br />B. Landowner owns the minerals leases and rights and surface estate or otherwise controls the surface rights in and to the
<br />parcels of property described above ("Property").
<br />C. Operator intends to continue to use a county conditional use permit and amend a state reclamation permit and conduct
<br />construction materials extraction and related activities ("Operations") in a portion of the Property described in Exhibit A ("Montoya
<br />Pit", M-1980-146)
<br />D. Landowner owns or operates potentially significant, valuable, and permanent manmade structures ("Structures") located in or
<br />adjacent to Property which have some potential for the stability adversely affected by the Operator's Operations.
<br />E. Operator and Landowner desire to stipulate and agree on the Operator's right to conduct Operations within the Property,
<br />including access to SH-160, to be included within the permit boundaries of the Montoya Pit, M-1980-146, as required by
<br />applicable Colorado Revised Statute and La Plata County Ordinances and Land Use Plans.
<br />F. Operator and Landowner desire to stipulate and agree on the compensation and damages to be paid for such potential
<br />adverse affect on stability of the Structures, should it occur during the period of said Operations.
<br />AGREEMENT
<br />In consideration of the foregoing recitals and the terms, covenants and conditions contained herein, Landowner and
<br />Operator agree as follows:
<br />1. Right-of-Way. Landowner grants to Operator, and all of its parent, subsidiary, or other affiliated companies, their agents,
<br />employees, and others authorized by them, a private right of way upon and across the Property and lands adjacent to Property
<br />as Operator may reasonably require for roads and associated facilities, related to its Operations ("Right-of-Way"). Landowner
<br />warrants that it is the owner of the Property and has the legal right to grant the Right-of-Way described herein and that Operator
<br />shall have the quiet use and enjoyment of the Right-of-Way in accordance with the terms and conditions of this Agreement.
<br />2. Right to Mine. Landowner grants to Operator, the legal right to conduct Operations on the property; to mine the property for
<br />sand, gravel, and borrow materials and to conduct other activities related to that mining.
<br />3. Operator agrees to indemnify and hold harmless Landowner from any and all claims, demands, causes of action and damages
<br />("Claims") related to Operator's Operations.
<br />EXECUTED as of the date of acknowledgement, but this Agreement is effective as of the first date mentioned above.
<br />-John Gilleland, Manager, for Owners Perry Neil, Operations Manager,-C&J Gravel Products, Inc.
<br />State of Colorado )
<br />County of La Plata ) SS
<br />The foregoing instrument was acknowledged before me this 19th day of June 2009, by the above persons, John Gilleland and
<br />Perry Neil
<br />[SEAL]
<br />My commission expires: 10 JUN 2012 Beth McLaughlin, P4tary Publ1l.-0-
<br />IV
<br />BETH MCLAUGHUN
<br />Notary Pubk
<br />state of coloraft
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<br />C&J Gravel Products Exhibits to Reclamation Ames ty ' 19 June 2009
<br />©WASTELINE, INC 2009 Project 5064.2.LQ (7/16)Final C&J-MoP-005 Addendum 7
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