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May 12, 2003 <br />Mr. Tom Krueger, Manager <br />The Henderson Water Ski Club <br />15037 West 49th Place <br />Golden, Colorado 80403 <br />Subject: 124th Estates Sand and Gravel Mine <br />Dear Tom, <br />In December 2001, I sent to you a letter that included an outline of a monitoring and <br />mitigation plan, prepared to assure the Henderson Water Ski Club, LLC that the water <br />elevation in its ski lake would be maintained during mining activity at the 124 Estates <br />Sand and Gravel Mine, and thereafter. With your signature on that document, the 124 <br />Estates Partners and the Henderson Water Ski Club, LLC now consider it to be a formal <br />agreement between the parties. <br />As you know, the 124th Estates Partners is now applying to the Colorado Division of <br />Minerals and Geology (DMG) to amend its permit (No. M- 2001 -085) to add <br />approximately 41.2 acres to the 124 Estates Sand and Gravel Mine. The new acreage <br />is located adjacent to and south of the Henderson Water Ski Club, west of the Fulton <br />Ditch, and north of 120 Avenue, and will be connected to the original mining area by a <br />short haul road through the southeast corner of the Ski Club's property. If the <br />necessary approvals are received, the 124 Estates Partners will be considered the <br />Operator of the new mining area by the DMG. The owner of this land is a business <br />entity known as the 120 Estates Partners, LLP. <br />With this letter the 124 Estates Partners is proposing to add the bulleted provisions, <br />below, to its agreement with the Henderson Water Ski Club, LLC to assure protection of <br />the Ski Club's interests and a successful mining and reclamation project for the 124 <br />Estates Partners, throughout mining and reclamation steps that will occur on the "new" <br />acreage, located south of the Ski Club property. Ail bulleted provisions, below, are <br />contingent upon approval of an Adams County conditional use permit and successful <br />amendment of Colorado Mined Land Reclamation Board Regular 112 Reclamation <br />Permit No. M- 2001 -085, to allow mining substantially as it was proposed to Adams <br />County and to the DMG in December 2002, on the parcel immediately south of the Ski <br />Club. <br />• The 124 Estates Partners will be responsible for removing bottom material from <br />an area, determined by the Ski Club, of not less than five acres in the southwest <br />portion of its ski lake, to achieve a water depth in that area of at (east seven and <br />one half feet below the benchmark, which was established by the Ski Club /124 <br />Estates Partners agreement of December 2001. That benchmark was described <br />as a point 46 inches below the top of the southwest corner of Tom Krueger's <br />individual dock at the Water Ski Club. This dredging will occur between <br />November and April, inclusive, between March 2003 and April 2008, or at other <br />