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Laughlin Water <br />E N G I N E E R S LTD. <br />March 15, 2011 <br />Division of Reclamation Mining & Safety <br />Attn: Mr. Michael Cunningham <br />1313 Sherman St., Rm 215 <br />Denver, Colorado 80203 <br />Re: Adjacent Owner Compensation Agreements - Goose Haven No. 2 Complex Expansion <br />Dear Mr. Cunningham: <br />Attached are two documents. One is an example agreement with owners of structures within 200 feet <br />of the proposed affected area. It is our belief it satisfies the requirements of the act for compensation <br />agreements and will satisfy the provision of the Colorado State Constitution which prohibits <br />municipalities from entering into such contracts. We are requesting approval to use this agreement <br />format for the Goose Haven No. 2 - Complex Expansion permit application. The second document <br />is a letter from the City of Lafayette legal counsel outlining the specific provision of the Tabor <br />amendment limiting such agreements. <br />It states in part, "The Colorado Constitution, specifically including the TABOR Amendment (Article <br />X, Section 20), prohibits municipalities fi-om entering into contracts that would obligate the City to <br />make monetary payments in fixture years, unless the obligation is approved by the electorate." , <br />We desire a speedy resolution to this issue so that we may provide the adjacent structure owners an <br />agreement in compliance with the Construction Materials Act and the State Constitution; and to be <br />able to move forward with the City of Lafayette project. If necessary, in order to approve the mining <br />application, in the event this issue is not resolved by the time our revised decision date is reached, we <br />commit to not affect land within 200 ft. of any adjacent structures not owned by the City of <br />Lafayette. (The City of Lafayette as the land owner, owner of structures on its own land and <br />operator, will be responsible for its own structures and facilities.) We also reserve the right to <br />provide engineering evaluations, as may be necessary. <br />Encl: Example compensation agreement <br />Memorandum from Williamson & Hayashi, LLC, Attorneys at Law <br />Respectfully, <br />Aaron Asquith, PE <br />Consultant for The City of Lafayette <br />