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8120 Gagc Street Frederick, Colorado 80516 Telephone (303) 666 -6657 Fax (303) 666 -6743 <br />Thursday 31 March 2011 <br />To: Adjacent Surface Owner of Record <br />Subject: Statement of Understanding regarding significant, valuable and permanent man -made <br />structures. located within 200 feet of planned extraction activities for. Varra Companies, Inc. <br />— Heintzelman Project — Regular Impact (112) Permit Application M- 2009 -018. <br />Contact: Varra Companies, Inc. <br />8120 Gage Street <br />Frederick, Colorado 80516 <br />Dear Property Owner: <br />Varra Companies, Inc. <br />Office of Special Projects <br />Varra Companies, Inc. (8120 Gage St., Frederick, CO, 80516, Telephone: 303- 666 - 6657), plans to conduct <br />extraction activity over a parcel of land identified as the Varra Resources Project 110 (OMLR Permit #: <br />M- 1984 -036 formerly Dakolios Pit), and is located at or near Section 31, Township 3 North, Range 67 West; <br />6 P.M.; Weld County, Colorado. <br />You have received this notice because we believe you are the owner of one or more significant, valuable and <br />permanent man -made structure(s) located within two hundred (200) feet of the planned extraction and related <br />affected land. A qualified man -made structure may include a fence, a residence or out building, a road, utility, or <br />other significant, valuable and permanent man -made structure. <br />As the owner of a qualified man - made structure located within 200 feet of our planned extraction activity, the <br />Colorado Division of Reclamation, Mining and Safety requests we provide evidence of our efforts to protect <br />such structures from injury during the planned extraction activities; and to assure you that damage caused <br />to your structures as a direct result of our active operations will be compensated for, consistent <br />with established law. <br />Also included is a map showing the approximate area of land affected under our planned extraction activities, <br />our permit area and the relationship to your property. A line showing the approximate extent 200 feet from our <br />permit boundary is shown for your reference. <br />Since this is an existing operation, we've included the written portion of Exhibit D — Extraction Plan to give a <br />better description of what changes are addressed in the Amendment application. You may review the complete <br />permit application at the Division of Reclamation, Mining, and Safety (1313 Sherman St., Room 215, Denver, <br />CO 80203, Telephone 303 -866- 3567), or at the Weld County Clerk to the Board (915 10' Street, 3 "' Floor, <br />Greeley, Colorado 80632), or at our corporate headquarters in Frederick, above. <br />Please review the available materials, and. if you agree that activities will not impact your qua.li_fied <br />structures, verify this understanding by your notarized signature, below. Please return it to us in the <br />enclosed self- addressed stamped envelope. Letters not returned to us within ten (10) days of your <br />receipt of this notice will act as evidence of your approval as well. <br />Please submit any objections in writing to our Gage Street Office within 10 days of receipt of this <br />correspondence. If you have any questions or concerns about our planned activities and your structures we want <br />to discuss them with you. You are encouraged and welcomed to contact us as soon as possible at our Gage <br />Street Office at the telephone number, above. Please ask for Garrett C. Varra, Vice President of Operations. <br />