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HomeMy WebLinkAbout20100512.tiff Esther Gesick From: Kim Ogle Sent: Wednesday, March 10, 2010 6:12 AM To: Esther Gesick Subject: FW: Heit Pit- USR 1444 Attachments: Master Sand and Gravel Lease.pdf; Water Lease.pdf; Water Lease Extension.pdf Please add to file, USR-1444 Original Message From: Richard Hastings Sent: Tuesday, March 09, 2010 3:38 PM To: David Bauer; Donald Carroll; Kim Ogle; Stephanie Arries Subject: FW: Heit Pit - USR 1444 To All, FYI Rich Hastings Weld County Public Works/Engineering Dept. 1111 H Street (Site Address) P.O. Box 758 (Mailing Address) Greeley, CO 80632-0758 Office:(970) 304-6496 EXT. 3727 Cell:(970) 381-3767 rhastings(dco.weld.co.us Original Message From: David Allen [mailto:dallen@ci.broomfield.co.us] Sent: Tuesday, March 09, 2010 2:43 PM To: Richard Hastings Subject: Heit Pit - USR 1444 Rich, As a follow-up to our telephone conversation last Friday, here are copies of the following agreements: * Master Sand and Gravel Lease Agreement between Broomfield and SW Chambers; * (Water) Lease Agreement between Broomfield and SW Chambers; and * Extension to (Water) Lease Agreement. Please let me know if you have any questions or require additional information. Thanks. David F. Allen, P.E. City and County of Broomfield Deputy Director of Public Works - Operations (303) 438-63488- 2010-0512 (j L yntryt ui i C(A�i o 3-(S--a0/O PL 1697 MASTER SAND AND GRAVEL LEASE THIS MASTER SAND AND GRAVEL LEASE AGREEMENT(this "Lease") is entered into on this `b day of July 2009 between the City and County of Broomfield, a Colorado municipal corporation and county, acting by and through the City of Broomfield Colorado Water Reclamation Activity Enterprise ("Owner"), and SW CHAMBERS, LLC, a Colorado limited liability company("SW Chambers"). RECITALS A. Owner has acquired from SW Chambers and now owns that certain real property consisting of appr oximately sixty-six(66) acres of 1 and as described on Exhibit A attached hereto (the "Leased Premises"). B. Owner intends to lease back to SW Chambers, and SW Chambers intends to lease from Owner, the Leased Premises subject to the provisions and conditions set forth herein so that SW Chambers may conduct or cause to be conducted sand and gravel mining and other operations on the Leased Premises. OPERATIVE PROVISIONS 1. Rights Granted/Leased Premises. Subject to (a)the provisions and conditions of this lease, (b) existing oil and gas leases, (c) easements and rights of way of record or in use, and (d) matters of record, Owner hereby leases the Leased Premises and grants to SW Chambers: a. The exclusive right to explore for, extract by mining, excavate, process, stockpile, remove and sell sand, gravel and gold (or other precious metals) which can be recovered by surface mining operations from the Leased Premises; and b. The right to operate on the Leased Premises a sand and gravel processing plant, a concrete ready-mix batch plant, and an asphalt plant all subject to appropriate governmental approvals, including all applicable permits. 2. Rights/Obligations. Subject to the provisions and conditions of this Lease and provided that(a)there shall be no unreasonable interference with SW Chambers' operations on the Leased Premises, and (b)there shall be no substantial reduction in the sand and gravel reserves available for mining: a. SW Chambers and Owner acknowledge and agree that mining operations commenced at the Leased Premises in August of 2006. b. SW Chambers agrees to use its best efforts to remove: (i) approximately one hundred fifty thousand (150,000) tons of sand and gravel from the area approved for mining during the first year after mining operations have commenced, and (ii) an average minimum of two hundred thousand (200,000)tons of sand and gravel from the area approved for mining each year during the second and third years after mining operations have commenced, and (iii) an average minimum of three hundred thousand (300,000) tons of sand and gravel from the area 1 approved for mining each year during the fourth and fifth years after mining operations have commenced; and (iv) an average minimum of four hundred thousand (400,000) tons of sand and gravel from the area approved for mining each year during the sixth through eighth years after mining operations have commenced; and (v) to remove, on or before the end of the Lease Term, sufficient sand and gravel from the Leased Premises to have resulted in a water storage cell having a water storage capacity of at least one thousand one hundred and fifteen (1,115) acre feet. SW Chambers shall use its best efforts to remove the minimum tonnage described above; however, in the event a minimum is not met and/or in the event the water storage capacity at the end of the Lease Term is not one thousand one hundred and fifteen (1,115) acre feet, SW Chambers shall not be considered in default of this Lease and shall not be liable to Owner for any resulting claim or damages. Nothing herein shall affect the rights of Owner and SW Chambers under the Purchase and Sale Agreement between Owner and SW Chambers dated August 4, 2006, as amended. c. SW Chambers shall construct and pay for all off site requirements of the County of Weld and/or the Department of Minerals and Geology in order to comply with mining permits associated with the Leased Premises. 3. Term. The term of this Lease (the "Term") shall commence on July 10, 2009 ("Commencement Date"), and shall end the earlier of(i)August 31, 2017, or (ii)the date SW Chambers has completed all permitted mining of sand and gravel at the Leased Premises, unless otherwise extended by mutual agreement of the parties("Expiration Date"). 4. Use Of Leased Premises and Operations by SW Chambers. a. Permitted Uses. The Leased Premises shall be used by SW Chambers only in connection with (a)the exploration for, extraction by mining, excavation processing,stockpiling, removal and sale of topsoil, sand, gravel, and gold, (and other precious metals) and incidental activities associated with such operations, all in accordance with the mining permit for the Leased Premises, and (b)the operation of a sand and gravel processing plant, a concrete ready- mix batch plant, an asphalt plant and uses incidental to the foregoing, and (c) the construction of a slurry wall in compliance with, and as described in, the Purchase and Sale Agreement between SW Chambers and Owner dated August 4, 2006, as amended (the "PSA"), SW Chambers shall have the right to make such improvements and take such other actions with respect to the Leased Premises as SW Chambers may deem reasonably necessary for the use and operations permitted under this Lease, including without limitation the right to (a) move in and construct roads on the Leased Premises, (b) make excavations, openings, stockpiles, ditches and drains, (c)place machinery and equipment upon the Leased Premises, (d) construct buildings, crushers and plants on the Leased Premises, and (e) have and to construct and maintain reasonable access to and on the Leased Premises in connection with the foregoing uses. SW Chambers shall have no obligation to explore, extract, mine, excavate, process, stockpile, remove or sell any materials or minerals other than sand and gravel. Offsite materials necessary in connection with SW Chambers' operations and sales of sand and gravel from the Leased Premises may be stockpiled, processed and sold retail or wholesale on or from the Leased Premises. SW Chambers shall have the right to make such improvements and take such other actions with respect to the Leased Premises which are reasonably necessary for the use and operations permitted under this Lease. SW Chambers shall have a duty to complete reclamation of the 2 Leased Premises in accordance with federal, state and county regulations and permits for the sand and gravel mining project. Nothing in this Lease is intended to affect the obligations and rights of Owner and SW Chambers under the PSA. b. Water Storage. SW Chambers shall construct a slurry wall and pit to create an impermeable barrier for water storage, which shall be constructed in compliance with the applicable laws, regulations, permits and plans as provided in Section 5 of this Lease and in compliance with the construction documents described in Exhibit B attached hereto and incorporated herein. The parties understand and agree that Owner intends to use the Leased Premises for water storage after the extraction of sand and gravel and the mining operations are complete and that such mining shall result in a water storage cell having a water storage capacity of not less than one thousand one hundred and fifteen (1,115) acre feet. To this end, and in consideration of the grant of this Lease, SW Chambers has, at its sole cost and expense, constructed a slurry wall prior to mining the cell. It is the intent of the parties that the slurry wall be in place before substantial mining to allow dry mining of the cell. In the event repairs to the slurry wall are required to comply with the applicable laws, regulations, permits and plans identified in Section 5 hereof, the cost of such repairs shall be paid for by SW Chambers during the term of the Lease. 5. Operational Standards. SW Chambers' activities on the Leased Premises shall be in compliance with applicable federal, state and local laws and regulations, including but not limited to, the applicable laws and regulations of the Federal Emergency Management Agency and of the state of Colorado and in accordance with Weld County Use by Special Review Permit No. 1444, Weld County Flood Hazard Development Permit FDHP-459, and Department of Minerals and Geology Section 112 Permit No. M-2003-016, as revised/amended, and the Design Standards in the State Engineer Guidelines for Liner Criteria for Gravel Pits, dated August, 1999. SW Chambers shall be responsible for all operations and expenses pertaining to its activities under this Lease, and SW Chambers shall be responsible for obtaining, maintaining and complying with at all times during the term of this Lease all permits including, but not limited to, air permits, discharge permits, septic permits, mining permits, flood hazard permits, use by special review permit, and for all plans including, but not limited to, site specific development plan and associated development standards, waste handling plans, road improvement plans, flood hazard plans, landscape plans and dust abatement plans. 6. Due Diligence. The parties acknowledge that SW Chambers has received all final cost requirements from Weld County regarding offsite and onsite improvements associated with the Leased Premises. The parties acknowledge that SW Chambers has conducted all tests, elevations, reviews and inspections of the Leased Premises which SW Chambers has deemed necessary or appropriate. SW Chambers accepts the Leased Premises in its "as is, where is" condition, subject only to the requirements of Owner under this Lease. 3 7. Title Insurance. The parties acknowledge that SW Chambers has examined tide to the Leased Premises including copies of all title exception documents. As soon as practicable after the date that this Lease is executed by the parties, Owner will cause Heritage Title Company to issue and deliver to SW Chambers a leasehold title insurance policy, provided that SW Chambers shall pay the premium for the title insurance policy. 8. Assignment/Subleases. a. Consent to Sublease. Owner acknowledges that SW Chambers does not intend to occupy the Leased Premises and the Leased Premises will be sublet to one or more subtenants for the Permitted Uses set forth in Section 4. SW Chambers shall have the right to sublet the Leased Premises under the terms and conditions of a sublease, negotiated and entered into by SW Chambers and its subtenant so long as SW Chambers obtains the prior written consent of Owner, which consent shall not be unreasonably withheld. Owner acknowledges and agrees that SW Chambers currently has a sublease, a copy of which is appended hereto as Exhibit C, with Pioneer Sand and Gravel, and Owner accepts the current sublease with Pioneer. SW Chambers' sublease, assignment or transfer of this Lease shall require the prior written consent of Owner, provided that SW Chambers shal 1 remain liable under this Lease notwithstanding any such assignment or subletting. b. Assignment/Consent Standards. Owner shall not withhold its consent to any assignment or subletting of the Leased Premises, provided that the assignment or sublease is consistent with the terms of this Lease, and provided that the proposed transferee is creditworthy, has a good reputation in the business community in general and the commercial gravel mining industry in particular, will use the Leased Premises for the Permitted Uses set forth in Section 4, and will not use the Premises in any manner inconsistent with the Operational Standards set forth in Section 5. c. Request for Consent. If SW Chambers requests Owner's consent to an assignment or sublease, then, at least fifteen (15) business days prior to the effective date of the proposed assignment or sublease, SW Chambers shall provide Owner with a written description of all terms and conditions of the proposed assignment or sublease, copies of the proposed documentation, and the following information about the proposed transferee: name and address; reasonably satisfactory information about its business and business history; banking, financial, and other credit information; and general references sufficient to enable Owner to determine the proposed transferee's creditworthiness and character. d. Conditions to Consent. If Owner consents to a proposed assignment or sublease, then the proposed transferee shall deliver to Owner a written agreement whereby it expressly assumes SW Chambers' obligations hereunder. No assignment, sublease or other transfer shall release 4W( hambers from itc obligations under this Lease but rather SW Chambers and its transferee shall be jointly and severally liable therefor. Owner's consent to any assignment or sublease shall not waive Owner's rights as to any subsequent assignment or subleases. If SW Chambers defaults while the Leased Premises or any part thereof are subject to an assignment or sublease, then Owner, in addition to its other remedies, may collect directly from such transferee all rents and royalties becoming due to SW Chambers. SW Chambers authorizes 4 its transferees to make payments of rent and royalties directly to Owner upon receipt of notice from Owner to do so following the occurrence of an event of default hereunder. e. Attornment by Subtenants. Each sublease by SW Chambers hereunder shall be subject and subordinate to this Lease and to the matters to which this Lease is or shall be subordinate, and each subtenant by entering into a sublease is deemed to have agreed that in the event of termination, re-entry or dispossession by Owner under this Lease, Owner may, at its option, take over all of the right, title and interest of SW Chambers, as sublandlord, under such sublease, and such subtenant shall, at Owner's option, attorn to Owner pursuant to the then executory provisions of such sublease, except that Owner shall not be liable for any previous act or omission of SW Chambers under such sublease, subject to any counterclaim, offset or defense that such subtenant might have against SW Chambers, bound by any previous modification of such sublease or by any rent or royalty which such subtenant might have paid for more than the current month to SW Chambers, and all such rent or royalties shall remain due and owing, notwithstanding such advance payment, bound by any security deposit made by such subtenant which is not delivered or paid over to Owner and with respect to which such subtenant shall look solely to SW Chambers for refund or reimbursement, or obligated to perform any work in the Leased Premises, and in connection with such attornment, the subtenant shall execute and deliver to Owner any instruments Owner may reasonably request to evidence and confirm such attornment. Each subtenant or licensee of SW Chambers shall be deemed, automatically upon and as a condition of its occupying or using the Leased Premises or any part thereof, to have agreed to be bound by the terms and conditions set forth in this Section 8. The provisions of this Section 8 shall be self operative, and no further instrument shall be required to give effect to this provision. f. Permitted Transfers. Notwithstanding Section 8.a, SW Chambers may transfer all or part of its interest in this Lease or all of the Leased Premises (a "Permitted Transfer") to the following types of entities (a "Permitted Transferee") without the written consent of Owner: (i) an Affiliate of SW Chambers; and the tangible net worth of the surviving or created entity is not less than the tangible net worth of SW Chambers as of the date hereof; or (ii) any corporation, limited partnership, limited liability partnership, limited liability company or other business entity in which or with which SW Chambers, or its corporate successors or assigns, is merged or consolidated, in accordance with applicable statutory provisions governing merger and consolidation of business entities, so long as SW Chambers' obligations hereunder are assumed by the entity surviving such merger or created by such consolidation; and the tangible net worth of the surviving or created entity is not less than the tangible net worth of SW Chambers as of the date hereof; or (iii) any corporation, limited partnership, limited liability partnership, limited liability company or other business entity acquiring all or substantially all of SW Chambers' assets if such entity's tangible net worth after such acquisition is not less than the tangible net worth of SW Chambers as of the date hereof. 5 SW Chambers shall promptly notify Owner of any such Permitted Transfer. SW Chambers shall remain liable for the performance of all of the obligations of SW Chambers hereunder, or if SW Chambers no longer exists because of a merger, consolidation, or acquisition, the surviving or acquiring entity shall expressly assume in writing the obligations of SW Chambers hereunder. Additionally, the Permitted Transferee shall comply with all of the terms and conditions of this Lease, including the Permitted Uses set forth in Section 4, and the Operational Standards set forth in Section 5. No later than thirty (30) days after the effective date of any Permitted Transfer, SW Chambers agrees to furnish Owner with copies of the instrument effecting any of the foregoing Transfers, documentation establishing SW Chambers' satisfaction of the requirements set forth above applicable to any such Transfer, and evidence of insurance as required under this Lease with respect to the Permitted Transferee. The occurrence of a Permitted Transfer shall not waive Owner's rights as to any subsequent Transfers. The term "tangible net worth" means the excess of total assets over total liabilities, in each case as determined in accordance with generally accepted accounting principles consistently applied ("GAAP"), excluding, however, from the determination of total assets all assets which would be classified as intangible assets under GAAP including goodwill, licenses, patents, trademarks, trade names, copyrights, and franchises. Any subsequent Transfer by a Permitted Transferee shall be subject to the terms of this Section 8. 9. Production and Sales Information. For each month in which sand and gravel are removed from the Leased Premises, SW Chambers shall provide Owner with a written report specifying: (a)the amount mined with subtotal setting forth the amount stockpiled on the Leased Premises and the amount removed from the Leased Premises; (b)any other information reasonably necessary to allow Owner to monitor compliance with applicable laws, regulations, permits and plans governing the use of the Leased Premises as allowed under this Lease, all such information to be furnished as soon as the same is reasonably available to SW Chambers in the normal course of business. SW Chambers shall also provide an annual report, whether or not any material was mined during the preceding year, which report shall set forth the amount mined, or indicate that nothing was mined, the amount stockpiled on the Leased Premises and the amount removed from the Leased Premises, broken down by type of material. 10. [Intentionally Deleted.] 11. Reclamation Bonds. SW Chambers shall be responsible to post any and all reclamation bonds and to comply with and complete any mining reclamation plans relative to the Leased Premises. 12. Survey. Upon the execution and delivery of this Lease, SW Chambers shall provide Owner with a survey of the Leased Premises. 13. Conditions Precedent. SW Chambers shall be obligated to complete and/or satisfy the terms and conditions identified on Exhibit D attached hereto and incorporated herein. 14. [Intentionally Deleted.] 15. Water. Included within the Leased Premises shall be the Well with Permit #20136. SW Chambers may use the water from this well so long as SW Chambers has obtained legal 6 authority to use such water in its mining operations SW Chambers shall be required to obtain any additional water needed from third party sources. 16. Water Augmentation. With respect to the legal requirements for water augmentation, if any, in connection with SW Chambers' activities at the Leased Premises: a. SW Chambers shall be responsible for proposing and obtaining approval for any water augmentation and/or temporary supply plan required for sand and gravel mining, or other mining permitted by the Lease, and for implementing and complying with the requirements of any water augmentation plan, including a temporary supply plan, during the term of this Lease, with all costs of such proposal, approval, implementation and compliance, including the cost of constructing any and all improvements required for the implementation of such augmentation plan in accordance with plans and specifications mutually approved by the parties to be paid by SW Chambers. In the event any augmentation plan and/or substitute supply plan requires that a post pumping depletion replacement plan be submitted to and approved by the State Engineer's Office or other entity having the authority to impose said requirement, the costs of proposing, obtaining approval for, implementing and complying with said replacement plan, shall be paid by SW Chambers. b. Owner shall be responsible for implementing and complying with the requirements of any water augmentation plan required for Owner's operation of 1-Ieit Pit as a water storage facility following the termination of this Lease, with all costs of implementation and compliance to be paid by Owner. 17. Insurance. SW Chambers covenants and agrees to maintain on the Leased Premises at all times during the term of this Lease or any renewal hereof a current, paid policy or policies of comprehensive general liability and property damage insurance insuring SW Chambers and Owner against any liability arising out of the use, occupancy, or maintenance of the Leased Premises and all improvements and areas appurtenant thereto used or enjoyed by SW Chambers. Such insurance shall be in an amount not less than Two Million and No/100 Dollars ($2,000,000.00) for any one occurrence for both bodily injury and property damage. Owner shall be named as an additional insured on the policy or policies providing comprehensive general liability and property damage coverage, and a certificate of insurance to such effect shall be issued to Owner upon request. All such policies of insurance shall provide ten (10) days' prior written notice to Owner of cancellation or of a material change in coverage. SW Chambers shall carry workers' compensation coverage on its employees and shall, upon request, furnish Owner with a certificate or other evidence of such insurance. 18. Taxes. SW Chambers shall pay all property and business taxes levied and assessed against SW Chambers'property on the Leased Premises. 19. Exemption for Sales and Use Taxes. To the extent provided in Section 39-26-205(3) of the Colorado Revised Statutes, as amended from time to time, the Leased Premises and all other improvements made to or installed on the Leased Premises, shall, if applicable, be exempt from any lien for sales and use taxes otherwise imposed by the taxing authorities of the State of Colorado. In order to secure this exemption from the date of execution of this Lease, upon 7 execution of this Lease, SW Chambers shall prepare and execute, and Owner shall execute, a Memorandum of this Lease for filing with the Colorado Department of Revenue. 20. Utilities. SW Chambers shall contract in its own name and pay for all charges for water, sewer, electricity, gas, fuel, telephone, trash hauling, and any other services or utilities used in, servicing, or assessed against SW Chambers' activities on the Leased Premises, unless otherwise herein expressly provided. Owner makes no representation or warranty as to the availability of any utilities to the Leased Premises and shall have no responsibility or liability in connection therewith. 21. Quiet Enjoyment. Owner agrees to warrant and defend SW Chambers in the quiet enjoyment and possession of the Leased Premises during the term hereof so long as SW Chambers is not in default hereunder. 22. Compliance with Laws. SW Chambers' operations on the Leased Premises and the use thereof shall be in accordance with good and accepted mining practices and in compliance with all federal, state, county and local laws, statutes, ordinances, zoning regulations, plans and permits. 23. Ownership of Improvements. a. During Term. During the Term, title to any infrastructure improvements including, without limitation, roadways, utilities, mains and lines, curbs and drainage facilities and the slurry wall constructed, installed or erected on the Leased Premises ("Infrastructure Improvements") by SW Chambers during the Term shall, immediately upon completion thereof, vest in Owner, subject, however, to the rights and obligations of SW Chambers to use and maintain the same during the Term. Notwithstanding any other provision hereof to the contrary, ownership and title to any sand and gravel processing plant, concrete ready-mix batch plant, and asphalt plant and appurtenant buildings ("Plant Facilities") erected, installed or constructed by SW Chambers on the Leased Premises and all personal property of SW Chambers located on the Leased Premises shall remain with SW Chambers. b. Title to Improvements at Termination. Upon the Expiration Date, title to all Infrastructure Improvements erected, installed or constructed by SW Chamber shall remain in Owner without any further act on the part of either party, and Owner shall have no responsibility, liability or obligation to pay SW Chambers for such improvements. Notwithstanding anything to the contrary in this Lease, upon the Expiration Date, the Plant Facilities and all personal property of SW Chambers located in,on, or at the Leased Premises shall be owned by, and shall belong to SW Chambers. All benefits and burdens of ownership of the Plant Facilities and all personal property foregoing, including title, depreciation, tax credits, and all other tax items, shall be and remain in SW Chambers during the Term and thereafter. 24. Representations and Warranties. a. Owner Representations. Owner represents and warrants to SW Chambers that the following facts and conditions exist and are true as of the Commencement Date and,to the extent specifically so stated, will remain true throughout the Term. 8 (i) Due Authorization and Execution. Owner has full right, title, authority, and capacity to execute and perform this Lease, and any other agreements and documents to which Owner is a party and referred to or required by this Lease (collectively, the "Lease- Related Documents"); the execution and delivery of the Lease-Related Documents has been duly authorized by all requisite actions of Owner; the Lease-Related Documents constitute valid, binding, and enforceable obligations of Owner; neither the execution of the Lease-Related Documents nor the consummation of the transactions contemplated thereby violates any agreement (including Owner's organizational documents), contract or other restriction to which Owner is a party or is bound; and Owner has obtained all consents, approvals, authorizations or orders of any court or governmental agency or body or any person or entity required for the execution, delivery and performance by the Owner of the Lease-Related Documents. Owner's representations and warranties contained in this paragraph shall continue to apply in full force and effect throughout the Term as if made continuously during the Term. (ii) No Litigation. Except for Owner's water court proceeding for the Heit Pit pending in Case No. 2006CW288 in Water Division No. 1, there is no existing or, to Owner's actual knowledge,pending or threatened litigation, suit, action, or proceeding before any court or administrative agency affecting the Leased Premises that would, if adversely determined, adversely affect the Leased Premises, or SW Chambers' ability to develop and operate the Leased Premises. (iii) No Condemnation. There are no pending or, to Owner's actual knowledge, threatened actions or legal proceedings, including without limitation, pending or, to Owner's actual knowledge, threatened condemnation actions, affecting the ability of Owner to enter into this Lease or affecting the ability of SW Chambers to conduct its contemplated business upon the Leased Premises. (iv) Liens. There are no deeds of trust or mortgages (or any amendments or modifications thereof) encumbering the Fee Estate.. Owner is not in default under any such mortgage or deed of trust. (v) No Judgments. There are no judgments, orders, or decrees of any kind known to Owner against Owner unpaid or unsatisfied of record nor any legal action, suit or other legal or administrative proceeding pending, or, to Owner's actual knowledge, threatened or reasonably anticipated which have been or could be filed before any court or administrative agency which has, or is likely to have, any material adverse effect on the Owner's right or ability to complete the transactions contemplated herein. (vi) No Insolvency Proceedings. Owner has not filed any petition seeking or acquiescing in any reorganization, arrangement, composition readjustment, liquidation, dissolution or similar relief under any law relating to bankruptcy or insolvency, nor has any such petition been filed against Owner. No general assignment of the Leased Premises has been made for the benefit of creditors, and no receiver, master, liquidator or trustee has been appointed for Owner or any of the Leased Premises. 9 (viii) Assessments. Owner has received no notice, and has no actual knowledge, of any unconfirmed or pending assessments against the Leased Premises. (ix) Compliance with Laws. To Owner's actual knowledge, the Leased Premises is in compliance in all material respects with all applicable Laws; and Owner has received no notices of violation of any Laws. b. SW Chambers' Representations. SW Chambers represents and warrants to Owner that the following facts and conditions exist and are true as of the Commencement Date. (i) Due Authorization and Execution. SW Chambers has full right, title, authority, and capacity to execute and perform this Lease, and any other Lease-Related Documents to which SW Chambers is a party; the execution and delivery of the Lease-Related Documents has been duly authorized by all requisite actions of SW Chambers;the Lease-Related Documents constitute valid, binding, and enforceable obligations of SW Chambers; neither the execution of the Lease-Related Documents nor the consummation of the transactions contemplated thereby violates any agreement (including SW Chambers' organizational documents), contract or other restriction to which SW Chambers is a party or is bound; and SW Chambers has obtained all consents, approvals, authorizations or orders of any court or governmental agency or body or any person or entity required for the execution, delivery and performance by the SW Chambers of the Lease-Related Documents. SW Chambers' representations and warranties contained in this paragraph shall continue to apply in full force and effect throughout the Term as if made continuously during the Term. (ii) No Litigation. There is no existing or, to SW Chambers' actual knowledge, pending or threatened litigation, suit, action, or proceeding before any court or administrative agency affecting SW Chambers that would, if adversely determined, adversely affect SW Chambers' ability to develop and operate the Leased Premises in accordance with this Lease. (iii) Judgments. There are no judgments, orders, or decrees of any kind known to SW Chambers against SW Chambers unpaid or unsatisfied of record nor any legal action, suit or other legal or administrative proceeding pending, or, to SW Chambers' actual knowledge, threatened or reasonably anticipated which have been or could be filed before any court or administrative agency which has, or is likely to have, any material adverse effect on the business or assets or the condition, financial or otherwise, of SW Chambers, or on SW Chambers'right or ability to complete the transactions contemplated herein. (iv) No Insolvency Proceedings. SW Chambers ha s not filed any petition seeking or acquiescing in any reorganization, arrangement, composition readjustment, liquidation, dissolution or similar relief under any law relating to bankruptcy or insolvency, nor has any such petition been filed against SW Chambers. No general assignment of SW Chambers' property has been made for the benefit of creditors, and no receiver, master, liquidator or trustee has been appointed for SW Chambers or any of its property. 25. SW Chambers' Indemnification. SW Chambers shall indemnify and hold harmless Owner from and against any and all claims arising from SW Chambers' use of the Leased 10 Premises or from the conduct of its business or from any activity, work, or other things done, permitted or suffered by SW Chambers in or about the Leased Premises, and shall further indemnify and hold harmless Owner against and from any and all claims arising from any breach or default in the performance of any obligations on SW Chambers' part to be performed under the terms of this Lease, or arising from any act or negligence of SW Chambers, its officers, agents, guests, employees or invitees, including without limitation: O.S.H.A. violations and/or Mine Safety and Health Administration violations. This obligation to indemnify Owner should also include all costs and reasonable attorney's fees and liabilities incurred in defense of any claim or any action. 26. Owner' Indemnification. To the extent permitted by law, Owner shall indemnify and hold harmless SW Chambers from and against any and all claims arising from Owner's use of the Leased Premises or from the conduct of its business or from any activity, work, or other things done, permitted or suffered by Owner in or about the Leased Premises, other than the business, activities or work of SW Chambers hereunder, and shall further indemnify and hold harmless to to the extent permitted by law SW Chambers against and from any and all claims arising from any breach or default in the performance of any obligations on Owner' part to be performed under the terms of this Lease, or arising from any act or negligence of Owner, its officers, agents, guests, employees or invitees, and from all costs and reasonable attorney's fees and liabilities incurred in defense of any such claim or any action or proceeding brought thereon. 27. Environmental Conditions. With respect to environmental conditions: a. Hazardous Materials. SW Chambers shall not violate any Environmental Law or regulation of any federal, state or local governmental authority having jurisdiction over Hazardous Material. As used in this Lease,the term "Hazardous Material" means any flammable items, explosives, radioactive materials, hazardous or toxic substances, material or waste or related materials, including any substances defined as or included in the definition of"hazardous substances", "hazardous wastes", "hazardous materials" or "toxic substances" now or subsequently regulated under any applicable federal, state or local laws or regulations, including without limitation petroleum-based products, paints, solvents, lead, cyanide, DDT, printing inks, acids, pesticides, ammonia compounds and other chemical products, asbestos, PCBs and similar compounds, and including any different products and materials which are subsequently found to have adverse effects on the environment or the health and safety of persons. SW Chambers shall have the duty and obligation to cure any environmental contamination of the Leased Premises caused by SW Chambers or any sub-lessee during the term of this Lease, in compliance with all applicable Environmental Laws and regulations, and SW Chambers agrees to indemnify and hold harmless Owner from and against all claims and damages of whatsoever nature, asserted against the Owner or the Leased Premises as a result of SW Chambers' or any sub-lessee's use and occupancy of the Leased Premises, including but not limited to dewatering, all clean-up and remediation costs, claims of personal injury or property damage, and court costs and reasonable attorneys' fees incurred in any mediation, arbitration trial or appellate proceeding pertaining thereto. b. Environmental Laws. "Environmental Law" or "Environmental Laws" means any Law related to environmental conditions on, under, or about the Leased Premises, or relating to soil, air and ground water conditions at, under, in, or upon the Leased Premises, or governing the 11 use, generation, storage, transportation, disposal, release, clean-up or control of Hazardous Material in, under, on, at, to, or from the Leased Premises. Environmental Law shall also include any and all federal, state and local environmental, health or safety laws, statutes, ordinances, codes, regulations, rules of common law, orders, decrees or any other requirement of any governmental authority, as now or at any time hereafter are in effect, relating to or imposing liability or standards of conduct concerning gasoline, petroleum and other petroleum by- products, asbestos (including any product or construction material containing sufficient asbestos to be subject to any applicable Environmental Laws) explosives, PCBs, radioactive materials or any "hazardous" or "toxic" material, substance or waste that is defined by those or similar terms or is regulated as such under any statute, law, ordinance, rule or regulation of any Government having jurisdiction over the Premises or any portion thereof or its use, including any material, substance or waste which is: (i) defined as a "hazardous substance" under Section 311 of the Water Pollution Control Act(33 U.S.C. § 1317), as amended; (ii) defined as a "hazardous waste" under Section 1004 of The Resource Conservation and Recovery Act of 1976, 42 U.S.C. § 6901, et seq., as amended; (iii) defined as a "hazardous substance" or "hazardous waste" under Section 101 of The Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), as amended by the Superfund Reauthorization Act of 1986, 42 U.S.C. § 9601 et seq. ("SARA") or any so-called "superfund" or "superlien" law, including the judicial interpretations thereof; or (iv) defined as a "pollutant" or "contaminant" under 42 U.S.C.A. § 9601(33); (v)defined as "hazardous waste" under 40 C.F.R. Part 260; (vi) defined as a "hazardous chemical" under 29 C.F.R. Part 1910. c. No Representation by Owner. Owner makes no representations as to the condition of the Leased Premises at the time of the execution hereof or at the commencement of the term hereof. d. SW Chambers' Environmental Representations, Warranties and Covenants. SW Chambers hereby represents,warrants and covenants that: (i) SW Chambers agrees not to knowingly allow the release of any Hazardous Material on, onto or from the Leased Premises that could result in a violation of any Environmental Law or in the creation of liability or obligations, including, without limitation, notification, deed recordation or remediation, under any Environmental Law, provided that the use, generation, release, manufacture, refining, production, processing, storage, or disposal of any Hazardous Material, or the transportation to or from the Leased Premises of any Hazardous Material, shall be permitted if: (i)usual and customary for the conduct of SW Chambers or any subtenant's business in accordance with customary standards for SW Chambers or any subtenant's industry or business, or to operate and maintain the Leased Premises for uses this Lease permits and (ii) in compliance with all applicable Environmental Laws. (ii) SW Chambers further agrees not to handle, use or otherwise manage any Hazardous Material in violation of any Environmental Laws, except as otherwise permitted in subsection 27.d(i) above. (iii) If SW Chambers is in breach of any of its agreements set forth in this Section 27, SW Chambers, at its sole expense, shall take all action required, including environmental cleanup of the Leased Premises, to comply with the covenants herein or 12 applicable legal requirements and, in any event, shall take all action deemed necessary under all applicable Environmental Laws. (iv) SW Chambers agrees to indemnify and hold Owner, its directors, officers, stockholders, partners,joint venturers, employees, agents, attorneys, consultants, contractors and its successors and assigns, harmless from and against any and all claims, losses, damages, liabilities, fines, penalties, charges,judgments, administrative orders, remediation requirements, enforcement actions of any kind, and all costs and expenses incurred in connection therewith (including, but not limited to, reasonable attorneys' fees and expenses), arising out of any breach by SW Chambers of its obligations under this Section 27. 28. Fixtures and Equipment. SW Chambers shall maintain the Leased Premises in good order and repair. At the end of the term of this Lease or any renewal hereof, SW Chambers shall quit and surrender the premises. In the event that SW Chambers fails to maintain the Leased Premises as required herein, Owner shall have the right, but not the obligation, to perform such maintenance and/or repairs, and SW Chambers shall promptly reimburse Owner for its costs in providing such maintenance and/or repairs. 29. Mechanic's Liens. SW Chambers shall not permit any mechanic's liens or other liens to be placed upon the Leased Premises during the term of this Lease, and in the case of the filing of any such lien, SW Chambers shall promptly pay same; however, SW Chambers shall have the right to contest the validity or amount of any such lien. SW Chambers agrees to pay all legal fees that might be incurred by Owner because of any mechanic's liens or other liens placed upon the Premises. If SW Chambers elects to contest the validity or amount of any such lien, SW Chambers may do so only after posting a bond in substitution for the lien on the Leased Premises in accordance with the provisions of Section 38-22-131, C.R.S. 30. Permits-Governmental Moratorium. In the event that any permit necessary to complete the Lessee's operations and mining activity under this Lease, is suspended or revoked (due to a moratorium or otherwise), through no fault of SW Chambers, at the option of Owner,the term of the Lease shall be (i)terminated or (ii) suspended through the moratorium and extended by the length of time of such moratorium. 31. Condemnation. In the event of the taking any portion of the Leased Premises (or any portion thereof)by condemnation, eminent domain or other governmental action, Owner and SW Chambers shall be entitled to receive any and all proceeds relating to or arising out of their respective interests in any such proceeding. In the event of a taking that includes all of the Leased Premises, SW Chambers shall be entitled to receive any relocation benefit paid by any governmental authority. Additionally and in the event the taking includes all of the Leased Premises, the parties shall reimburse to SW Chambers the actual cost to demobilize its operations at the Leased Premises. Such sums shall be due ninety (90) days after Owner'receipt of an accounting of such costs. 32. Subordination. SW Chambers agrees to subordinate its interest in this Lease to any mortgage lien securing the Leased Premises, so long as the lender(s) secured by such mortgage lien, execute a non-disturbance and attornment agreement, in a form reasonably acceptable to SW Chambers, (i) affirming SW Chambers' interest in this Lease; (ii)providing a right to cure in 13 favor of SW Chambers, and (iii) confirming that unless SW Chambers is in material default hereunder, the realization of such lender's collateral (by foreclosure or otherwise) will not affect SW Chambers' interest in the Leased Premises and this Lease. 33. Surrender of Possession Upon Termination. At the termination of this Lease at the end of the term or otherwise, SW Chambers shall, without unnecessary waste or injury to the Leased Premises, remove all Plant Facilities and all of SW Chambers' personal property located on, in or at the Leased Premises and surrender and redeliver the Leased Premises to Owner. SW Chambers shall complete removal within sixty (60) days after the Expiration Date. SW Chambers shall repair any material damage from such removal. All rights to topsoil, sand, gravel and gold(and other precious metals) found on or under the Leased Premises shall revert to Owner upon the termination of this Lease. 34. Real Estate Brokers. The parties mutually represent and warrant to each other that no real estate or other broker or finder has been employed or retained in connection with this Lease. 35. Notices. Any notices required or permitted hereunder shall be in writing and delivered to the other party or the other party's authorized agent, either in person by a courier service providing a delivery receipt or by United States certified mail, return receipt requested, postage fully prepaid, to the addresses set forth hereinafter,or to such other addresses as either party may have designated in writing, and delivered as herein provided: a. If to SW Chambers: SW Chambers, LLC Attn: Mark D. Campbell 7600 E. Orchard Road, #370-S Greenwood Village, Colorado 80111 With a copy to: Robert J. Bruce,Esq. Lawlis & Bruce, LLC 1875 Lawrence St., Ste. 750 Denver, CO 80202 b. If to Owner: City and County of Broomfield Attn: Director of Public Works One DesCombes Drive Broomfield, Colorado 80020 With a copy to: Harvey W. Curtis, Esq. Harvey W. Curtis&Associates 14 8310 South Valley Highway, Suite 230 Englewood, CO 80112 c. Either party may change the person and address for notices by sending the appropriate notice pursuant to this section. 36. SW Chambers' Default. Any of the following events shall, after failure to cure upon ten (10) days prior written notice, constitute a default under this Lease by SW Chambers: a. The failure by SW Chambers to perform or comply with the covenants,terms and conditions set forth in this Lease, provided that the same are not cured within thirty (30) days after written notice thereof from Owner to SW Chambers, provided that SW Chambers' time to cure such default shall be extended for such additional time as shall be reasonably necessary if (i) SW Chambers proceeds with due diligence during the period to cure any such default and is unable by reason of the nature of the work involved to cure the same within such period, (ii) such extension of time shall not subject Owner or SW Chambers to any liability, civil or criminal, and (iii)the interest of Owner in this Lease or the Leased Premises shall not be jeopardized by reason thereof. Notwithstanding the preceding sentence, SW Chambers shall not be entitled to any cure period for failure to comply with Section 2.b b. The failure of SW Chambers to comply with a material condition of any and all applicable federal, state and local laws and regulations, permits and plans, including but not limited to,the law,regulations,permits and plans identified in Section 5. 37. Owner's Remedies. In the event of a default under this Lease by SW Chambers, Owner shall have the following rights,which rights and remedies shall be non-exclusive: a. To re-enter and take possession of the Leased Premises and all personal property therein and to remove SW Chambers;and at the election of Owner to take over the gravel mining operations; b. To commence proceedings against SW Chambers to recover (i) possession of the Leased Premises; and (ii) damages for any default under or breach of this Lease by SW Chambers. 38. Owner's Default. The failure by Owner to perform or comply with the covenants, terms and conditions set forth in this Lease shall constitute a default, provided that the same is not cured within thirty (30) days after written notice thereof from SW Chambers to Owner, provided that Owner's time to cure such default shall be extended for such additional time as shall be reasonably necessary if(i) Owner proceeds with due diligence during the period to cure any such default and is unable by reason of the nature of the work involved to cure the same within such period, (ii) such extension of time shall not subject Owner or SW Chambers to any liability, civil or criminal, and (iii) the interest of SW Chambers in this Lease or the Leased Premises shall not be jeopardized by reason thereof 15 39. SW Chambers' Remedies. In the event of a default under this Lease by Owner, SW Chambers shall have the following rights: a. To commence proceedings against Owner to recover damages for any default under or breach of this Lease by Owner. 40. Memorandum of Lease. Upon request by either, the parties shall promptly execute, acknowledge, and deliver duplicate originals of a "Memorandum of Lease" (herein so called) in the form mutually acceptable to the parties. Either party may record such Memorandum of Lease. Any recording charges imposed upon such recording shall be paid by the party that caused such recordation to occur. If the parties amend this Lease, then the parties shall have the same rights and obligations regarding a memorandum of such amendment as they do for the Memorandum of Lease, provided that such memorandum of amendment shall be in form and substance reasonably acceptable to Owner and SW Chambers. If a party does not respond to approve or disapprove any such Memorandum of Lease or memorandum of amendment within twenty(20) business days of being provided with a copy of the same by the other party, the non- responding party shall be deemed to have approved the same. This Master Sand and Gravel Lease shall not be recorded. 41. Waiver. No waiver of any breach of anyone of the conditions or covenants of this Lease by Owner or SW Chambers shall be deemed to imply or constitute a waiver of any other condition or covenant of this Lease. The failure of either party to insist on strict performance of any condition or covenant, herein set forth, shall not constitute or be construed as a waiver of the rights of either or the right thereafter to enforce any other default of such condition or covenant; neither shall such failure to insist upon strict performance be deemed sufficient grounds to enable either party hereto to forego or subvert or otherwise disregard any other term, provision, condition or covenant of this Lease. 42. Attorney's Fees and Costs. In the event of any legal proceedings brought as the result of a dispute under this Lease,the prevailing party, as determined by the court,shall be entitled to its reasonable attorney's fees and costs. 43. Successors. All of the terms, conditions, covenants and provisions set forth in this Lease shall inure to the benefit of and be binding upon the heirs, legal representatives, successors, executors and permitted assigns of the parties. 44. Intentionally Deleted. 45. Entire Agreement. This Lease and the Purchase and Sale Agreement dated August 4, 2006, by and between the parties pertaining to the Leased Premises constitute the entire agreement of the parties hereto. No representations, promises, terms, conditions, obligations or warranties whatsoever referring to the subject matter hereof, other than those expressly set forth in said documents, shall be of any binding legal force or effect whatsoever. No modification, change or alteration of this Lease shall be of any legal force or effect whatsoever unless in writing, signed by all the parties hereto. 16 46. Severability. In the event any provision or any portion of this Lease shall be held invalid, illegal or unenforceable under applicable law, the remainder of this Lease shall remain valid and enforceable. 47. Section and Other Headings. The section and other headings contained in this Lease are for reference purposes only and shall not affect the meaning or interpretation of this Lease. CITY AND COUNTY OF BROOMFIELD, a Colorado municipal corporation and county, acting by and through the CITY OF BROOMFIELD COLORADO WATER RECLAMATION ACTIVITY ENTERPRISE ATTEST: By. —• _ f� 'R ZoAt) By: �� Ci , Clerk -Th^ �, Char es Ozaki, "^ Deputy City an ounty Manager AP-PROnD Ir TOFO City and County Attorney SW CHAMBERS, LLC, a Colorado limited liability company By: Chambers Management Corp. Its: Man er By. Its: 17 • EXHIBIT A • LEGAL DESCRIPTION Lot B of Recorded Exemption No. 1311-13-04RE-4554,recorded March 6,2006 at Reception No. 3540116,together with an easement for ingress and egress as contained in instrument recorded July,3,2009 at Reception No.'C3C// County of Weld, State of Colorado A-1 EXHIBIT B CONSTRUCTION DOCUMENTS B-1 n a 9 g in -34 ill a X 58I c I a :1 Q QJ 1 g z 8 a w itC4 I F %r� d w W 10 P4 CI W z5 yW..� VNL%% /P4 CI 6 WU7 .nNWMVI W IX Clt O Q ix o ,..,,- z €€ O a g ' I, . 4 N (��JJ o i f r x Si p'' vi 0 .. n ao. 1 • 1 S 31 T 3 s u r \ �� a yU !: R O O V) .N f3 Hn4 s. 3 r Wi \�. W < I ,C""c ; _ O w \\ / g s ' \ is be :0 3 ( I as : g/ i ii ag 8 II ,s s a: \ t.. / % , , € 0 t Its 11 9 iz tk;k gri o "X m \ Sow 9 I a, y 0 g i ii h .7, ll. .. r 0, i 4 31 30 3 a p F� pp pp pp % nf. %. `A S 33 ₹8`x 3 r3 a W� W 3 41 gal Y[ 0 3 33 35 Z 'Ig§ ie333a I IL 3 i c s ilk 1 i Z agillillaiLI S I .' C -�z�� s I I ' ` s £ 1 e 6 g w a�a�a O j 3 = Y C i ,. C,g w I R gwi 5f fa is 0 gli ? i I 4' ' a 0 q1ili a 3 $ sea gs 3pp@°s i gage i; I 1 --/ . ' RI / i d, s. 1 ai 1 m .a . \ r It 3 ,3 I \,�_. I 1 r1 ( 3 � i r A3 ct P 5b R4s Ra kid ,r'. - II. EL-0 NOtralce e! 3 3 3 3 3 3 3 £ 3 3 4 3 3 3 # i In w, a m_ i 1,j 1 \ \ ! g 2 ° 7 i \\ \\ & 3 g 7 1 * = i 3 4 I—.— \t't'_ a # �33 y Y ig�;3p"1' __i'_ i i I r3 o All I 4 I - I I 3 z g y₹ s I \ \ ali I $ • I _ iw ourna� " If 313133 ! 31333 : I I I a i °q- rsv.vmnw .m.v�I.:la wasoan ..1 61 g 8 3 I I I I _ _ 1J i 0RI1il I - I 1.:-g 1 -i 5g :._ :::: a I. I 1 i 333 I n ," P 34. 1 B_ I j 1 •4A 6 I I i �.k 8 Li. I .. ; II : , , iII §II A S VI II v � b i 1 - F. 1 1 a t. • I I 13d @ II ! a1 � II 1 a 4 a< S� ! i i s l -t I I al i • 1 . II a hill 51 IN• • wT 11 ! ' I I I 4 ¢ 2 . 1 I 4 I I I;. I I i o I I I 1 1 3 III III wz I I I - 1 i I. I w ' C� i I I § 1 i : III s Y : i I-I-- 3 i I I i 3 I. II - i ' I I 11 _ I I I II III 4 I I ,:� I I § 4 Xi T 1 .1 ae Ir.:. r• a III i - 3 3 8 3 3 3 3 £ 4 3 3 3 3 !4i II / , - - I I / / } €= a I I II 4/ / a_ ! I I a 1 I.i I -! 11 , / / i. I I 1 I 1-1 e i i=y I - e ! ?"g. / I 4 i y 3 I 3a I / / 35x' g.5 ' • a M. :3 &o. a I ; I a ! I I a I . I II I 1 1 I , I IR n : i _ x II I I i _ I i h i - $� ! I a §Yi 1 2 i. 3Is II ill 1$'' I 4 3 1 4 IY 4 I a b i 11 3IigI I a I I I a i ! ! a ! I I Si a I I • / / I I ' . i. . / 1 e 9.! I i It2 I# 4 I _ !• I I now e 4 3 3 x 3 4r'n.! 33 4v- 3 3 ! 3 3 3 3�s=n:3 x e ;,',is a smi "- 8 8 i is iw. £psi sin#s,3 i Ill P»rir an LS xu;.wln LLY Nardn3.. • LEASE AGREEMENT THJS LEASE AGREEMENT(hereinafter"Agreement")is entered into this / day of 2007,by and between the City and County of Broomfield, a Colorado Municipal ora'on and County(hereinafter"Broomfield")and SW Chambers,LLC,a Colorado limited liability company(hereinafter"Lessee"). Broomfield and Lessee agree as follows: 1. Leased Water_ Broomfield hereby agrees to lease to lessee the'water rights described as follows:463 acre-feet per year,plus 8.33 acre feet to cover transit losses,for a total of 54.63 acre- feetper year ofBroomfield's Windy Gap effluent(the"Leased Water")to be delivered and measured at Broomfield of Broomfield Wastewater Reclamation Facility on BigDry Creek,at or near apoint described as follows:commencing at the center of Section 32,Township 1 South,Range 68 West of the 61 Principal Meridian,whence the Bast.one•quarter section corner of said Section 32 bears South 89°46'32" East a distance of 2,646.68 feet,said line forming the basis of bearings for this description,thence South 69°09'23"East,a distance of 1,006.42 feet to the Broomfield Discharge Diversion Point,whence said East one-quarter comer bears North 78°28'47"East,a distance of 1,741-17 feet, in the City and County of Broomfield, Colorado. The GPS location has been - determined by a GPS handheld device to be:Easting:498202,Northing:4418700,Lat:39 deg 55 min 13 sec,Long: 105 deg 01 min 16 sec. Lessee agrees that the Leased Water is suitable,both legally andphysically,for Lessee'sintendeduse Lessee shailbearanyand all stream and/or carriage losses incurred and/or assessed below the point of delivery described in this paragraph 2. Tea This Agreement shall be for an initial term of two (2) years commencing on September 1,2007(the"Term").The Term may be extended for successive one(I)year periods upon mutual written agreement ofthe Parties executed at least 12 months prior to the last day ofthe then Term. 3. Lease Price. Lessee shall pay$300.00 per acre foot fox a total of$16,389.00 to Broomfield on or before August 1,2007 for the Leased Water for the first year's deliveries under this Agreement.The Lease Price shall be increased annually by the change during the previous • calendar year in the Consumer Price Index for Denver-Boulder-Greeley, Colorado -All Urban Consumers,and the Lessee shall pay the adjusted Lease Price for the Leased Water to Broomfield on or before August 1 of 2008 for the second year of the Term and on or before August 1 for each successive one year extension of the Term under paragraph 2,above. 4 Delivery Schedule- On or before July I,2007,Lessee shall provide to Broomfield an estimated monthly schedule for deliveryofthe Leased Water duringthe initial one year ofthe Lease. Lessee shall provide an estimatedmonthly delivery schedule for the Leased Water to Broomfield on orb cThre July 1'of 2008 for the second year ofthe Term,and on orbefore July 1 for each successive one year extension of the Term under paragraph 2,above.If Lessee wishes to change the delivery schedule provided to Broomfield, Lessee shall notify Broomfield at least 30 days prior to the • requested delivery of water pursuant to any revised delivery schedule, i 5. Aoytovals,. Lessee shall be responsible for obtaining any necessary approvals far the use by Lessee under this lease of the Leased Water from the Northern Colorado Water Conservancy District and any of its Subdistricts,the Division Engineer,the Water Commissioner,the Colorado State Engineer, and/or the Water Court for Division 1. Lessee shall be solely responsible for obtaining any water court decrees for any plans of augmentation or exchange,or both,and/or any substitute water supplyplan approvals from the Colorado State Engineer needed to make use of the waterleased under this Agreement. Lessee shall bearits costs ofobtaining the approvals and decrees described in this paragraph. Should Broomfield intervene or otherwise participate in any pror.eMint s necessary to obtain the approvals and decrees described in this paragraph,Broomfield will bear its own expenses incurred in doing so. 6. No Adverse Legal Position. Irmo,agrees that,during the term of this Lease,it will not take a legal position adverse to Broomfield in connection with the operation or administration of Broomfield'swaterrights,includiggthe water rights associatedherewith,except as maybe necessary to enforce the terms of this Agreement. Broomfield agrees that,during the term ofthis Lease,it will not take a legal position adverse to Lessee in connection with the Lessee's application for approval of an augmentation plan or substitute water supply plan using the Leased Water. 7. No Assignment Lessee shall not assign or sublet this Agreement or any interest therein without the prior written consent of Broomfield,and,absent such written consent,any attempted assignment or sublease shall be null and void. 8. Lessee's Exclusive Remedy In the event of anydefàultor claimed default by Broomfield, Lessee's sole and exclusive remedy shall be to terminate this Lease. Broomfield shall not be liable or responsible for any consequential,incidental,punitive or special damages related to the Leased Water or any other matter relating to this Agreement. 9. Compliance with Laws. With respect to this Agreement and the Leased Water,Iecaee shall(i)comply with any and all applicable federal,state,local or agency laws,regulations,rules, ordinances or other directives,and(ii)obtain all releases,licenses,permits or other authorizations required by any governmental body or authority. 10.No Warranties.BROOMFIELD MAKES NO WARRANTY,EXPRESS ORIMPIIED, CONCERNING THE QUALITY OF T lE LEASED WATER,AND EXPRESSLY DISCLAIMS ANY IMPLIED WARRANTIES OF MERCHANTABILITYORFITNESS FORA PARTICULAR PURPOSE OR OTHERWISE I, 11. Notices. Notices and inquires shall be made as follows: Broomfield: City and County of Broomfield Attn:Director of Public Works One DesCombes Drive Broomfield,Colorado 80020 Page 2 of'5 Lessee: SW Chambers,LLC Attn:Mack D.Campbell 333 West Hampden Avenue,Suite 810 Englewood,Colorado 80110 12. Force Mai curt Each Party shall be excused from performance under this Agreement while and to the extent that it is unable to perform,for any cause beyond its reasonable control, except that Lessee's payment obligations hereunder shall not be delayed or excused by reason of force majeure. Such causes shall include, but not be restricted to, fire, drought, storm, flood, earthquake, explosion, war; labor disputes, total or partial failure of transportation or delivery facilities,shortage of tabor,raw materials or supplies,interruption ofutilities or power,and any act of government or military authority.In the event either Party is rendered unable wholly or in part by three majeme to carry out its obligations under this Agreement then the Party affected by force majeure shall have the right to terminate this Agreement upon thirty(30)days'written notice to the other Party. 13. Default The occurrence of any one or more of the following events shall constitute a default under this Agreement: a. Failure by either party to observe or perform any of its obligations,covenants, conditions, representations or warranties pursuant to this Agreement,where such failure is not remedied within ten(10)days after receipt of a written notice thereof from the other Party;or b. Except as otherwise provided herein,failure by Lessee to make anypayment due as required by this Agreement and such breach continues for a period ofthree(3)days after written notice thereof from Broomfield 14. Termination. Except as otherwise provided herein,this Agreement may be terminated by either Party,with cause(mcluding a breach of this Agreement by the other Party which is not cured during any notice and cure period),immediately upon written notice to such Party. 15. Governing Law and Venue. The laws of the State of Colorado shall govern this Agreement.Any litigation shall be brought in District Conti,City and County of Broomfield,State of Colorado,and each Party submits to the exclusive jurisdiction of said court and waives the right to contest,jurisdiction and/or change venue. 16. No Waiver. Either Party's failure in any one or more instances to insist upon strict performance of any of the terms and conditions of this Agreement or to exercise any right herein conferred shall not be construed as a waiver or relinquishment of that right or of that Party's right to assert or rely upon the terms and conditions of this Agreement Any express waiver-of a term ofthis Agreement shall not be binding and effective unless made in writing and properly executed by the waiving Patty. 17. Amendments.This Agreement may not be amended except hr wxitingproperly executed by all the Parties hereto. Except as specifically amended,this Agreement shall remain in full forte and effect Page 3 of 5 18. Headings for Cony lance Only,The headings,captions and title contained herein are intended for convenience and reference only and are not intended to define,limit or describe the scope of intent of any of the provisions of this Agreement 19. BntireAgreement These terms and conditions constitute the entire Agreement between the Parties. All prior agreements, discussions and negotiations are deemed merged in this - Agreement No statement,promise,or inducement by anyparty hereto,or by an agent thereof,that is not contained in this Agreement shall have any force or effect. 20. Severability.In the event that any terms,covenants or conditions of this Agreement or their application shall be held invalid as to any person,corporation or circumstance by any court having jurisdiction,the remainder of this Agreement and the application and effect of its tams, covenants or conditions to suchpersons,corporations or circ mstancesshallnotbeaffectedthereby_ 21. Breach. Breach of this Agreement shall consist of failure by a patty to observe or perform any of its obligations,covenants,conditions,representations or warranties pursuant to this Agreement,where such failure is not remedied timely,as provided in Paragraph 12, above,upon written notice thereof from the nonbreaching party to the breaching party 22. Governmental Immunity.The parties understand and agree that the monetary limitations and all other rights,immunities and protections provided by the Colorado Governmental Immunity Act,C.R.S. §24-10-101 et seq.,as amended from time to time,may apply to actions arising from or related to this Agreement 23. Benefit,Notwithstanding any benefits which may incidentally accrue to other patties because ofthis Agreement,this Agreement is solely for the benefit ofthe parties hereto,and no third party shall be entitled to claim any rights hereunder or enforce anyprovision of this Agreement IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed the day and year first above written. CITY AND COUNTY OF BROOMFIELD, • a Colorado Municipal Corporation and County, lir 2$I Br �Etit George DiCiero,City and County Manager ee C xiUC;G 00 LA, ‘b49;“- City and County APPROVED AS TO FORM: 9 . ACC Ci and County Attorney Page 4 of 5 crweneeanwswcrnAMBEAnEAsr*»srs.wa SW CHAMBERS,LLC, a Colorado limited liability company, BY /141 Page 5 of 5 c:%wmocstsxansw FnsuensFmmsuS.daa >Lb:of EXTENSION TO LEASE AGREEMENT THIS EXTENSION TO LEASE AGREEMENT(hereinafter`"Extension")is entered into this b'day of August, 2008, by and between the City and County of Broomfield, a Colorado Municipal Corporation and County (hereinafter "Broomfield") and SW Chambers, LLC, a Colorado limited liability company(hereinafter"Lessee"). Broomfield and Lessee agree to extend the July I,2007 Lease Agreement(the"Lease",copy attached hereto as Exhibit A)under the terms and conditions described below: I. Leased Water. Broomfield hereby agrees to lease to Lessee the water rights described as follows: 36 acre-feet,plus 6.48 acre feet to cover transit losses, for a total of 42.48 acre-feet of Broomfield's Windy Gap effluent(the"Leased Water")to be delivered and measured at Broomfield of Broomfield Wastewater Reclamation Facility on Big Dry Creek,at or near a point described as follows: commencing at the center of Section 32, Township 1 South, Range 68 West of the 6'" Principal Meridian, whence the East one-quarter section corner of said Section 32 bears South 89°46'32" East a distance of 2,646.68 feet, said line forming the basis of bearings for this description, thence South 69°09'23" East, a distance of 1,006.42 feet to the Broomfield Discharge Diversion Point, whence said East one-quarter corner bears North 78°28'47" East, a distance of 1,741.17 feet, in the City and County of Broomfield, Colorado. The GPS location has been determined by a GPS handheld device to be: Easting:498202,Northing: 4418700,Lat: 39 deg 55 min 13 sec, Long: 105 deg 01 min 16 sec. Lessee agrees that the Leased Water is suitable, both legally and physically, for Lessee's intended use. Lessee shall bear any and all stream and/or carriage losses incurred and/or assessed below the point of delivery described in this paragraph. 2. Term. This Extension shall be for a term of one(1)year commencing on September 1, 2009(the"Term").The Lease may be further extended for up to 54.63 a.f.of Leased Water per year for further successive one(1)year periods upon mutual written agreement of the Parties executed at least 12 months prior to the last day of the Term. 3. Lease Price. Lessee shall pay to Broomfield $300.00 per acre-foot for a total of $12,744.00,plus the percentage change between August 1,2007 and July 1,2009,in the Consumer Price Index for Denver-Boulder-Greeley,Colorado-All Urban Consumers,on or before August 1, 2009 for the Leased Water delivered under this Extension. 4. Delivery Schedule. On or before July 1, 2009, Lessee shall provide to Broomfield an estimated monthly schedule for delivery of the Leased Water during the Term. If Lessee wishes to change the delivery schedule provided to Broomfield, Lessee shall notify Broomfield at least 30 days prior to the requested delivery of water pursuant to any revised delivery schedule. 5. Requests for additional water (subject to availabilitvl. During the Term, Lessee may request in writing from Broomfield additional Lease Water for operation of its batch plant in excess of the 42.48 acre-feet in paragraph I, above. Such written request shall be made in writing to Broomfield at least 30 days before the first date for which said additional Lease Water is requested. To the extent Broomfield,in its sole discretion,determines that Broomfield has water available for which a request is made by Lessee,Broomfield agrees to deliver additional water to Lessee upon payment to Broomfield of$300.00 per acre-foot, plus the percentage change between August 1, 2007 and July 1, 2009 in the Consumer Price Index for Denver-Boulder-Greeley, Colorado - All Urban Consumers. Payment by Lessee shall be included with Lessee's written request for additional Lease Water. If Broomfield determines no additional Lcasc Water is available, said payment shall be returned by Broomfield to Lessee. 6. Other Lease Terms Unchanged. Except as expressly set forth above, all terms and conditions of the July 1,2007 Lease Agreement shall remain unchanged,and the terms of said Lease Agreement are hereby incorporated into this Extension. IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed the day and year first above written. CITY AND COUNTY OF BROOMFIELD, a Colorado Municipal Corporation and County, By: • 2Si �Wft� George DiCiero,City and County Manager ATTEST: 0City a d County Clerk 1. 11ra aidr . �J APPROVE S TO FORM: City and County Attorney SW CHAMBERS,LLC, a Colorado limited liability company, 1 By: /#44 C:\Documents and Settings\DLK?My Documents\wpdocslbroomficld\puleelsw lease\LEASE extension 082008.wpd 14W Chris Gathman From: Richard Hastings Sent: Thursday, September 24, 2009 7:50 AM To: Jon Benallo Cc: 'mark@swinvest.com'; David Bauer; Don Dunker; Donald Carroll; Josh Holbrook; Stephanie Arries; Chris Gathman; 'Sam Kingsfield'; M. Walker Baus; Heidi Hansen Subject: Asphalt Repairs on WCR 25 as part of USR-1444 Attachments: P9230034.JPG Jon, A site inspection yesterday(9-23-09) on WCR 25 near the Pioneer Pit showed that the asphalt tears, we discussed in our last meeting, were still not repaired. Attached is a photo of one of these failures I observed yesterday. The failures are beginning to fill with water, as shown in the photo, and will cause severe degradation of the pavement as soon as freezing occurs. A temporary repair now, consisting of filling in the tears with asphalt, could allow the tears to withstand the winter driving season ahead. Failure to repair the tears now, will more than likely cause severe failures of both the top and bottom pavement lifts. This will result in immediate and more costly repairs being mandated by the County in order to maintain a safe driving surface for Weld County citizens throughout this upcoming winter driving season. Just wanted to update you on the present condition of this roadway portion. Thanks, Rich Hastings Weld County Public Works/Engineering Dept. P.O. Box 758, Greeley, CO 80632-0758 Office: (970) 304-6496 EXT. 3727 Cell:(970) 381-3767 rhastings@co.weld.co.us c9042-U.5/a 1 /9Z «97 v KR- myq Chris Gathman From: Richard Hastings Sent: Monday, July 20, 2009 11:31 AM To: Chris Gathman Cc: David Bauer; Don Dunker; Donald Carroll; Stephanie Arries Subject: Probable Cause Proceedings for SW Chambers (USR-1444) Chris, Weld County Public Works Department has not received the 3rd installment payment ($29, 048.45) , due 6-31-09, as part of the AMENDMENT TO LONG-TERM MAINTENANCE AND IMPROVEMENTS AGREEMENT FOR COUNTY ROADS 18 AND 25 (SW Chambers) - Document # 2008-3278. SW Chambers has been advised of this past-due status, on several occasions, and still has failed to provide payment in a timely manner. Public Works would like you to begin the steps necessary to initiate Probable Cause proceedings against SW Chambers (USR-1444) . Pioneer Sand & Gravel Company is now the operator of the facility and should be advised of the situation, in case the permit is revoked for the site. News Flash - Disregard preceding message - Public Works has just been advised by the Treasury Department that a check for $29, 048. 45 from SW Chambers has been inadvertently delivered to their office. It will be inter-office to Public Works tomorrow. Thanks anyway, Rich Hastings Weld County Public Works/Engineering Dept. P.O. Box 758, Greeley, CO 80632-0758 Office: (970) 304-6496 EXT. 3727 Cell: (970) 381-3767 rhastings@co.weld.co.us <mailto:rhastings@co.weld.co.us> P.S.- Please keep preliminary message information available as the last installment is due September 31, 2009. Only a few bits of information need be changed in order for it to be utilized for 4th installment problems that might arise. RH 1 eRecorded in Weld County, CO Doc Id: 3636160 07/14/2009 08:58 A Receipt#: 7422156 Page: 1 of 8 Total Fee: $446.00 Steve Moreno, Clerk and Recorder SPECIAL WARRANTY DEED THIS DEED, made this ?day of July, 2009 between SW Chambers,LLC, a Colorado limited liability company, GRANl'OR, whose address is 7600 E. Orchard Road, #370-S, Greenwood Village, Colorado 80111, and the City and County of Broomfield, a Colorado municipal corporation and county, acting by and through the City of Broomfield Colorado Water Reclamation Activity Enterprise, GRANTEE,whose address is One DesCombes Drive, Broomfield, Colorado 80020. WITNESSETH,that the Grantor,for and in consideration of the sum of Four Million Fifty Thousand and no/100 Dollars ($4,050,000.00),the receipt and sufficiency of which is hereby acknowledged,has granted, bargained, sold and conveyed, and by these presents does grant,bargain, sell, convey, and confirm,unto the Grantee,its successors and assigns forever, all the real property, together with improvements, if any, situate, lying and being in the County of Weld, State of Colorado, described as follows: See Exhibit A attached hereto and incorporated herein by this reference together with all water and water rights appurtenant to the real property described on Exhibit A attached hereto and incorporated herein, including,but not limited to,tributary,not non-tributary, non-tributary water and water rights;EXCLUDING AND EXCEPTING 101 shares of The Lupton Meadows Ditch Company presently evidenced by Certificate Number 553. AND All of Seller's interest in minerals and mineral rights, sand and gravel rights,together with improvements,if any,appurtenant to the real property described on Exhibit A attached hereto and incorporated herein by this reference,EXCLUDING AND EXCEPTING all rights of Grantor under a Master Gravel Lease between Grantor and Grantee, of even date herewith,to mine such topsoil, sand, gravel and gold(or other precious metals)until August 31, 2017; TOGETHER with all and singular the hereditaments and appurtenances thereto belonging,or in anywise appertaining,and the reversion and reversions, remainder and remainders,rents, issues and profits thereof, and all the estate,right title,interest, claim and demand whatsoever of the Grantor, either in law or equity,or, in and to the above bargained premises,with the hereditaments and appurtenances; TO HAVE AND TO HOLD the said premises above bargained and described with the appurtenances,unto the Grantee, its successors and assigns forever. The Grantor,for itself,its successors and assigns does covenant and agree that it shall and will WARRANT AND FOREVER DEFEND the above-bargained premises in the quiet and peaceable possession of the Grantee, its successors and assigns, against all and every person or persons claiming the whole or any part thereof,by,through or under the Grantor. EXCEPT AND SUBJECT to those matters Page I of 3 eRecorded in Weld County, CO Doc Id: 3636160 07/14/2009 08:58 A Receipt#: 7422156 Page: 2 of 8 Total Fee: $446.00 Steve Moreno, Clerk and Recorder set forth on Exhibit B attached hereto and incorporated herein by this reference. IN WITNESS WHEREOF,the Grantor has caused its name to be hereunto subscribed the day and year first above written. GRANTOR: SW Chambers, LLC, a Colorado limited liability company By: Chambers Management Corp., a Colorado corporation U^By: "! Its: STATE OF COLORADO ) )ss. COUNTY OF��,,,, . ) , " This Special Warranty Deed was acknowledged before me thip'6t. .day of July,2009 by r', . A a. i1p /e a- as of Chambers Management Corp.,a Colorado corporation as Manager o SW Chambers, LLC, a Colorado limited liability company. Witness my hand and official seal. My commission expires: (1/► of y./, 'at o 0.6F. yot Notary Public QQ. OTAq TZ + Margaret M. Newton Notary Public %;;;,Q8 1.\°•\,. State of Colorado OF COO Pogo 2 of 3 eRecorded in Weld County, CO Doc Id: 3636160 07/14/2009 08:58 A Receipt#: 7422156 Page: 3 of 8 Total Fee: $446.00 Steve Moreno, Clerk and Recorder Exhibit A Lot B of Recorded Exemption No. 1311-13-04RE-4554,recorded March 6,2006 at Reception No. 3540116,together with an easement for ingress and egress as contained in instrument recorded July IL,2009 at Reception No. 2-34-367/ R, County of Weld, State of Colorado Page 3 of 3 eRecorded in Weld County, CO Doc Id: 3636160 07/14/2009 08:58 A Receipt#: 7422156 Page: 4 of 8 Total Fee: $446.00 Steve Moreno, Clerk and Recorder Exhibit B Permitted Exceptions Page 4 of 4 eRecorded in Weld County, CO Doc Id: 3636160 07/14/2009 08:58 A Receipt#: 7422156 Page: 5 of 8 Total Fee: $446.00 Steve Moreno, Clerk and Recorder Permitted Exceptions 1. Taxes and Assessments not certified to the Treasurer's Office. 2. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or by making inquiry of persons in possession thereof. 3. Easements, or claims of easements,not shown by public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, and any facts which a correct survey and inspection of the land would disclose, and which are not shown by the public records. r 6. [Any and all unpaid taxes,assessments and unredeemed tax sales.] 7. Water rights, claims or title to water,whether or not shown by the public records. 8. Right of way,whether in fee or easement only, for railway, as reserved by Denver Pacific Railway and Telegraph Company in the Deed recorded May 2, 1878 in Book 25 at Page 11. (Affects that part of Lot 4 in the Southwest 1/4 Northeast 1/4 and that part of Lots 5 and 6 in the Northwest 1/4 Southeast 1/4) 9. Rights of way, whether in fee or easement only, for county roads 30 feet wide on each side of section and township lines as established by Order of the Board of County Commissioners for Weld County,recorded October 14, 1889 in Book 86 at Page 273. (Affects Lot 4 only) 10. Right of a proprietor of any penetrating vein or lode to extract his ore, as set forth in U.S. Patent recorded January 26, 1891in Book 57 at Page 128. (Affects that part of Lot 4 in Southeast 1/4 of the Northeast 1/4) 11. Easements,notes,covenants,restrictions and rights of way as set forth on the recorded plat of Lupton Meadows Land Co., Division No.1, recorded September 3, 1909 at Reception Number 145051. 12. All ores and minerals, including oil and gas, and also gravel from the gravel pits, and other reservations as set forth in the Deed from the Great Watem Railway Company recorded December 1, 1948 in Book 1238 at Page 252,and any and all assignments thereof or interests therien. (Affects strip of land 100 feet wide in the Northwest 1/4 Southeast 1/4) 14. Oil and gas lease between Casper Heit and Anna M. Heit a/k/a/Anna Mary Heit eRecorded in Weld County, CO Doc Id: 3636160 07/14/2009 08:58 A Receipt#: 7422156 Page: 6 of 8 Total Fee: $446.00 Steve Moreno, Clerk and Recorder and Energy Minerals Corporation recorded June 10, 1970 in Book 627 at Reception Number 1548851, and Ratification and Consent to Unitization in connection therewith recorded January 6, 1983 at Reception Numbers 1913575, and any and all assignments thereof or interests therein. NOTE: Affidavits of Production in connection therewith recorded January 13, 1976 in Book 757 at Reception Number 1678697, June 8, 1993 in Book 1386 at Reception Number 2336159, May 26, 1995 in Book 1493 at Reception Number 2440009,and March 26, 2001 at Reception Number 2834922. (Affects lots 4, 5 and 6) 13. Right of way for pipeline and incidental purposes as granted to Amoco Production Company,a Delaware corporation recorded January 25, 1978 in Book 821 at Reception Number 1742597. Purported release of a portion of said right of way in QuitClaim Deed and Release recorded November 7, 2007 at Reception No. 3515980. 14. The effect of the following notices pursuant to CRS 9-1.5 103 concerning underground facilities, which are general in nature and do not necessarily give notice of underground facilities within the property: (a) Mountain Bell Telephone Company recorded October 1, 1981 in Book 949 at Reception Number 1870705. (b) Public Service Company of Colorado of Colorado, recorded November 9, 1981 in Book 952 at Reception Number 1874084. (c) Colorado Interstate Gas Company,recorded August 31, 1984 in Book 1041 at Reception Number 1979784. (d) Panhandle Eastern Pipe Line Company,recorded June 26, 1986 in Book 1117 at Reception Number 2058722. (e) Associated Natural Gas. Inc.,recorded April 10, 1989 in Book 1229 at Reception Number 2175917. (f) United Power,Inc., formerly Union Rural Electric Association, Inc.,recorded January 24,1991 in Book 1288 at Reception Number 2239296. 15. An undivided six-tenths interest in all oil, gas, condensate,products and by- products in and under and that may be produced from subject property, as reserved in Deeds recorded March 7, 1989 in Book 1226 at Reception Numbers 2172701,2172702,2172703, 2172704, 2172705, 2172706,2172707, 2172708, 2172709 and 2172710, and any and all assignments thereof or interests therein. 16. All oil, gas, condensate,products and by-products, as reserved in the deed recorded February 8, 2000 at Reception Number 2748554,and any and all eRecorded in Weld County, CO Doc Id: 3636160 07/14/2009 08:58 A Receipt#: 7422156 Page: 7 of 8 Total Fee: $446.00 Steve Moreno, Clerk and Recorder assignments thereof or interests therein. 17. The effect of Request for Notification of Surface Development recorded May 28, 2002 at Reception Number 2955315. 18. Terms,conditions,provisions, obligations, easements, and agreements as set forth in Agreement recorded April 16,2003 at Reception Number 3053083. 19. Terms, conditions, provisions, obligations and agreements as set forth in Surface Use Agreement recorded May 6,2003 at Reception Number 3059959. 20. Terms, conditions,provisions,obligations and agreements as set forth in the Agreement recorded may 21, 2004 at Reception Number 3182489. 21. Terms, conditions,provisions,obligations and agreements as set forth in the Long-Term Road Maintenance and Improvements Agreement for County Roads 18 and 25 (Chambers)recorded April 8,2005 at Reception Number 3275788,and re-recorded May 10, 2006 at Reception Number 3387005. Amendment thereto recorded January 9, 2009 at Reception No. 3598820.Resolution by the Board of County Commissioners Approving Collateral recorded December 18,2007 at Reception No. 3524314. 22. Terms, conditions,provisions, obligations, easements and agreements as set forth in the map entitled "SW Chambers, LLC. Heit Sand and Gravel Mine use by Special Review#1444", recorded December 15,2005 at Reception Number 3347617. 23. Terms,conditions,provisions, obligations, easement and agreements as set forth in the Right-of-Way Grant recorded May 8, 2006 at Reception Number 3385970 and on May 2, 2007 at Reception No. 3473148. 24. Terms,provisions, and easements as contained in Easement Agreement and Grant recorded September 19,2007 at Reception No. 3505095. 25. Pipeline easements granted to DCP Midstream, LP, as contained in Non- Exclusive Pipeline Right-of-Way Grant recorded August 29, 2007 at Reception No. 3500446. 26. Notes, easements, and any other matters shown or set forth on the plat for RS- 1133,Resubdivision of Lupton Meadows Land Company Subdivision,recorded January 30,2008 at Reception No. 352263,and Recorded Exemption No. 1311- 13-04 RE-4554, recorded March 6,2008 at Reception No. 3540116. 27. Terms and provisions of Purchase and Sale Agreement by and between SW Chambers, LLC, and Hydrosource Acquisitions,Inc.,dated August 4, 2006, recorded January 9,2008 at Reception No. 3528058. eRecorded in Weld County, CO Doc Id: 3636160 07/14/2009 08:58 A Receipt#: 7422156 Page: 8 of 8 Total Fee: $446.00 Steve Moreno, Clerk and Recorder 28. Any existing leases or tenancies. 29. Terms and conditions of the Easement Agreement and Grant recorded July(J?2009 at Reception No. 3636//r eRecorded in Weld County, CO Doc Id: 3636162 07/14/2009 08:58 A Receipt#: 7422158 Page: 1 of 3 Total Fee: $31.00 Steve Moreno, Clerk and Recorder SPECIAL WARRANTY DEED THIS DEED,made this ill day of July,2009 between SW Chambers, LLC, a Colorado limited liability company, GRANTOR,whose address is 7600 E. Orchard Road,#370-S, Greenwood Village, Colorado 80111, and Heit Farm, Ltd.,LLP,a Colorado limited liability partnership, GRANTEE,whose address is 4520 Weld County Road 27, Fori Lupton, Colorado 80621. WITNESSETH,that the Grantor,for Ten Dollars ($10.00) and other good and valuable consideration,the receipt and sufficiency of which is hereby acknowledged, has granted, bargained, sold and conveyed, and by these presents does grant,bargain, sell,convey, and confirm,unto the Grantee, its successors and assigns forever, all the real property,together with improvements,if any, situate, lying and being in the County of Weld, State of Colorado, described as follows: See Exhibit A attached hereto and incorporated herein by this reference. TOGETHER with all and singular the hereditaments and appurtenances thereto belonging,or in anywise appertaining,and the reversion and reversions, remainder and remainders,rents, issues and profits thereof,and all the estate,right title, interest, claim and demand whatsoever of the Grantor, either in law or equity, or, in and to the above bargained premises, with the hereditaments and appurtenances; TO HAVE AND TO HOLD the said premises above bargained and described with the appurtenances, unto the Grantee, its successors and assigns forever. The Grantor,for itself, its successors and assigns does covenant and agree that it shall and will WARRANT AND FOREVER DEFEND the above-bargained premises in the quiet and peaceable possession of the Grantee,its successors and assigns, against all and every person or persons claiming the whole or any part thereof,by, through or under the Grantor;except and subject to any and all matters of record. IN WITNESS WHEREOF,the Grantor has caused its name to be hereunto subscribed the day and year first above written. GRANTOR: SW Chambers,LLC, a Colorado limited liability company By: Chambers Management Corp.,a Colorad corporation By: i Its: Page I of 3 eRecorded in Weld County, CO Doc Id: 3636162 07/14/2009 08:58 A Receipt#: 7422158 Page: 2 of 3 Total Fee: $31.00 Steve Moreno, Clerk and Recorder STATE OF COLORADO ) ) ss. COUNTY OF JO 0,11 A P ) • This Special/ Warranty Deed was cknowledged before me this/o day of July,2009 by n c/l Cm vg n/e� as fC.<.r.. Lt of Chambers Management Corp., a Colorado corporation as Manager of SW Chambers,LLC, a Colorado limited liability company. Witness my hand and official seal. My commission expires:/VJce /Pj 9O/O _gyp Notary is 4o1aq}hr Margaret M. Newton • l 7 Notary Public ';m;.o State of Colorado ,'FOp COLOQ'Pspir ?age 2 of 3 eRecorded in Weld County, CO Doc Id: 3636162 07/14/2009 08:58 A Receipt#: 7422158 Page: 3 of 3 Total Fee: $31.00 Steve Moreno, Clerk and Recorder Exhibit A Lot A of Recorded Exemption No. 1311-13-04RE-4554,recorded March 6,2006 at Reception No. 3540116, County of Weld, State of Colorado Page 3 of 3 INS-989(0O)1o; I LIUS-9B9(066)R°°0 ww oo mmr aaa+nee sroa mr�s'oe m.o,a ,Dove e 9 @ 05508 opuo�o�'+ovpw,p anu❑uap+ep 059 �\ m n."""v s " I ' , - 6SS -11 10-CI-I00 i1 o r it ,� a 'DNI `S1IOA3A21f1s DNI}I !.V* ..e ry xea... ON N0LLdW3%3 030d033tl a 3- i 3' a o o �i 3i iii ' l }fa 'z at.W8 F it f Pi ❑ P ❑ `tti a ❑ _,,''65� Y i ,rq e �Y 76 ,I ,11! 1 v 'll !I I' I F I! ' I ' I `il, I t 1}@Il l-1 i, I= ill=It ill 1'I' CF .p }I1 6 I fj ! q ill I. 11 'I )4!II I !i j+° ! ;I ' i. tl+ III ISS lilt!� ri .-II ! a ,! �' II , �, ! ,! �. , iki ., llillij ..1it+' l°� tt ij °O' z i• ! I i"1{, i Ia , I! 1 il- I t'{ i I. ! 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W z A� Sept 4a bs� /�1--,7 a C�r—-�f V Feb \� �.. Y p oO ppP S 8 a h ) 99"Il� _ ...Noesesrw JFe4 3 `��ar / ____ - we x'vEe ii MppgasW5p L95:4 O �-4- NSWYa'51'W F4INDAAVEN7.+2i -- R AVAUTED DE 5TEPNPAILPDAD __ 9J al Idew`Iwil- 'E _ I Ws' P e E k _ Ag63a 8 a 9 . Y Ptct 44 p[2 R @ Ft.f 8`s E#�e ieW�e t.«, 1_�.�; __-_ -- _'ggg-- -- ,. 2,„„ .,_. - -- -- .i., . ,tai 2e5ek+ i $ MtIsg thiuinmIBIIIIIIIIIIIIY111 80 s . ci;c'cRNet i o1912cO7 - E. rat ‘0".**%; DEPARTMENT OF PLANNING SERVICES Code Compliance Division WWW.CO.WELD.CO.US O E-mail Address: cgathman@co.weld.co.us • 918 10th Street, Greeley, CO 80631 COLORADO Phone (970) 353-6100 Fax(970) 304-6498 October 9, 2008 Jon D. Benallo Vice President of Land Development SW Chambers, LLC 333 West Hampden Avenue, Suite 810 Englewood, CO 80110 Subject: USR-1444, Lots 4,5 and 6, Lupton Meadows Land Division No. 1; located in part of the N2SE4 and part of the S2NE4 of Section 13, T2N, R67W of the 6th P.M., Weld County, Colorado Dear Sir, Notice is hereby given that on November 3rd at 9:00 a.m, or as soon thereafter as the agenda of the Board of County Commissioners permits, the Board of County Commissioners of Weld County will hold a Probable Cause public hearing pursuant to Chapter 23, Article 11(2), Division 4, Section 23-2-270 of the Weld County Code. This meeting will take place in the Commissioner's Hearing Room, Weld County Centennial Center, 915 10th Street, Greeley, Colorado. The purpose of this public hearing will be to review case number USR-1444 for compliance with the Conditions of Approval and Development Standards as approved by the Board of County Commissioners on January 7, 2004 to determine if probable cause exists to hold a hearing of revocation of USR-1444. Inspection by representatives of the Weld County Department of Public Works have determined that you are not in compliance with the following Condition of Approval: I. The applicant shall enter into a Long-Term Road Maintenance and Improvements Agreement with the Weld County Public Works Department for the designated haul route. The improvements agreement shall include the portion of the haul route to be upgraded, paving and shouldering from the pit entrance south to the existing asphalt section and any overlay and shouldering requirements on County Road 18 and County Road 25 as determined by the Department of Public Works to accommodate the proposed heavy hauling. The improvements agreement shall address proportional cost share base on truck traffic to Weld County Road 18 and 25. The improvements including the widening of Bridge 25/18A, a right turn lane (free right) onto the acceleration lane at U.S. Highway 85, and turning radii at intersections associated with the gravel pits. Engineering design and construction plans shall be the responsibility of the gravel haulers. Construction drawings shall be provided by the applicant with approval by the Weld County Department of Public Works. The realignment of County Road 18 and bridge 18/258 replacement have not been paid for as required by the Long-Term Road Maintenance and Improvements Agreement. If it is determined at the public hearing that there is probable cause that you are not in compliance with USR-1444, the Board of County Commissioners will schedule a Show Cause public hearing to consider revocation of the Use by Special Review permit. Any information you have that may help to resolve this matter will be helpful. Should you have any questions regarding this letter, or if you need any further information, please feel free to contact me at the above address, telephone number or e-mail address. If you wish to see me personally, please call to schedule an appointment so that I may reserve a sufficient amount of time with you. Sincerely, Chris Gathman Planner II -AICP pc: USR-1444 Stephanie Arries—County Attorney's Office Rich Hastings—Public Works lu.S. Postal ServiceTM • o CERTIFIED MAIL,. RECEIPT u'm (Domestic Mail Only;No Insurance Coverage Provided) 1•U F•r•ellvery int.rmati•nvisit•ur we•site at www.us•s.c•ns cr m Postage $ Certified Fee 0 Postmark Return Receipt Fee Here CI (Endorsement Required) Restricted Delivery t Required) qu r Fee - (Endorsement m e ) ri rR Total Postage&Fees $ DUI Sent To Jot-} DeAc.Alo- 5u% Cl'trti++�b c4 LC-L. NStreet Apt No.; _ (i- ^ t. )5,41C c.1 ' NO or PO Box No. 333 U . I-iavr�On^, Au t. 1C O Ci".3aM,Z,P4.4 00d CO. 'Sa1\O PS Form 3800.June 2002 See Reverse for Instructions PUBLIC WORKS DEPARTMENT 1111 H STREET, P.O. BOX 758 GREELEY, COLORADO 80632 WEBSITE: WWW.CO.WELD.CO.US PHONE (970) 356-4000, EXT. 3750 FAX: (970) 304-6497 October 5, 2007 Jon D. Benallo Vice President of Land Development SW Chambers, LLC 333 West Hampden Avenue, Suite 810 Englewood, CO 80110 Subject: USR-1444, Lots 4, 5, and 6, Lupton Meadows Land Division No. 1 Dear Mr. Benallo: The Weld County Public Works Department has been trying very hard to work with you on your Heit Farms gravel pit operation. In honoring your request on May 18, 2007, we allowed hauling from the facility in exchange that you would honor and complete your portion of the Long-Term Road Maintenance and Improvements Agreement for the upgrade, paving, and other improvements associated with WCR 18 and WCR 25 during the 2007 construction season. Your failure to complete these items is grounds for a Probable Cause hearing and revocation of USR-1444. If your USR mining permit is not revoked, the Weld County Public Works will require SW Chambers to maintain, patch, and repair the existing north one mile of WCR 25 throughout the 2007-2008 winter months until widening and paving is completed. The requirement to complete the widening and paving of the north one mile of WCR 25 will be extended until June 15, 2008. Bonding of your proportional share of the project shall be required. Items to also be bonded at this time, include realignment of Bridge 18/25B approaches, the free right turn lane on to U.S. Highway 85, and the maintenance of the north one mile of WCR 25 during the 2007-08 winter driving season. These items have proportional percentage share that you are responsible for and shall bond. The total bonding amount is $420,000. Any other proportional share obligations between other gravel haulers associated with this project should be worked out between companies by you. If bonding in the amount of $420,000 is not provided by Oct. 31, 2007 and a revised construction schedule cannot be agreed upon, you will be receiving a notice from the Department of Planning Services indicating the date, time, and location for Probable Cause public hearing pursuant to Chapter 23, Article II, Division 4, Section 23-2-270 of the Weld County Code. This meeting will take place in the Commissioner's Hearing Room, Weld County Centennial Center, 915 10th Street, Greeley, Colorado. Please feel free to contact the Weld County Public Works Department, if you have any questions or concerns regarding this matter, at (970) 304-6496. Thank you. Sincerely, jQO�� w? ¶CL )40,5\4,455 evir R. a .oh Donald Carroll (osca aj to "r5 Engineering Administrator IXdn, 0, 5„es.w.,.„...Ad Co"s pc: Bruce Barker, County Attorney Chris Gathman, County Planner 'o 5w C.i bc-s d Mr'"? Pioneer Sand & Gravel Co ILicro4 car o$\ oc• ba; Danna Ortiz, Civil Resources Planning Services 1,^^Q*"^4-' \S C.ct,.Jii , loti-y— Josh Holbrook, Inspection " '� -"4c CC- ZS. USR-1444 } p. Nor 5g-A- `. ' Focc Ra t WCRs 18 and 25 C > v.,(nss !Attu- - ;m . PlA9. Bridge 25/18A file M:\PLANNING—DEVELOPMENT REVIEW\Correspondence\USR-1444 JohnDBenallo.DOC MEMORANDUM ifto t TO: Chris Gathman DATE: 27-September-2007 WFROM: Rich Hastings, Compliance Specialist, Weld County Public Works � Ci SUBJECT: Request from S W Chambers, LLC to extend the timeframe for COLORADO completion of improvements to WCR 25 as part of the Long-Term Maintenance and Improvements Agreement for USR-1444 Weld County Public Works Department has received a request from Jon D. Benallo, representing S.W. Chambers, LLC. This request proposes to extend the timeframe to complete the roadway work that is set forth in the improvement agreement for WCR 25 to the end of the second quarter of 2008. At this time, Public Works denies this request and wishes to proceed forward with the steps necessary for a Probable Cause Hearing relative to USR-1444. The reasons for this denial are as follows: •Analysis of the roadway surface, by our pavement-management and inspection staff, indicates that it is in sub- standard condition and would require extensive maintenance in order to remain safe to the public during the upcoming winter driving season. • S W Chambers, LLC has been provided ample time to comply with the mandates of their agreement, as stated in a letter from Weld County, dated 5/18/2007, and have so far failed to take the necessary steps in order to fulfill their obligation. pc: Dave Bauer, Weld County Public Works Don Carroll, Weld County Public Works Wayne Howard, Weld County Public Works Josh Holbrook, Weld County Public Works Dean Dreher, Weld County Public Works Kim Ogle, Weld County Planning Page I of I 26-September-2007 i::nenincni uotnartaaII rinca Settings I Inrvn Wei na lilt'UI R I. 'Iemn SW rn„nner.I r.mic PUBLIC WORKS DEPARTMENT 1111 H STREET, P.O. BOX 758 GREELEY, COLORADO 80632 WEBSITE: WWW.CO.WELD.CO.US PHONE: (970) 356-4000, EXT. 3750 FAX: (970) 304-6497 August 31, 2007 Jon D. Benallo Southwestern Investment Group, Inc. 333 West Hampden Avenue, Suite 810 Englewood, CO 80110 RE: The Implementation of Long-Term Maintenance and Improvements Agreements; USR- 1255, USR-1394, & USR-1444, between L.G. Everist, NCCI, S.W. Investments, and Weld County for WCR 18 between WCR 25 and HWY 85. Dear Mr. Benallo: Following CDOT's completion of their work on HWY 85, Weld County is now ready to move ahead with the necessary improvements to the portions of WCR 18, as addressed in the above mentioned USR agreements. Specifically, the improvements as agreed to in the USR include the realignment of the roadway approaches to Bridge 18/25B and the free-right turn lane onto U.S. Highway 85. Not included in the agreements, is the replacement of Bridge 18/25B. Due to the low sufficiency rating and deteriorating substructure, Weld County is currently designing a replacement structure which includes approach roadway realignment. Proportional shares for the improvements as per Exhibit B of the above mentioned agreements, not including the bridge replacement, are as follows: Weld County (1%), S.W. Investments (34%), NCCI (28%), and L.G. Everist (37%). L.G. Everist will be provided a credit of $210,395.62 for previously constructed lane improvements made to U.S. Highway 85. I would like to schedule a meeting on September 26, 2007, 1:30 pm at the Public Works Department located at 1111 H St, Greeley, CO with all parties involved to discuss the details of this project including the project schedule and possible road closures during construction. Please feel free to contact me if you have problems making the meeting or any questions or concerns regarding this matter. My phone number is (970) 304-6496, ext. 3788 or email at whoward@co.weld.co.us. Sincerely, Wayne Howard, P.E. Chief Sr Engineer Cc: C:\Documents and Settings\cgathman\Local Settings Temporary Internet Files\OLKE\Zadel Everist SW inv notification-Mr Benallo.doc Weld County Public Works Department P.O.Box 758 Greeley, CO 80632-0758 Include copies of paid invoices Show 100%total billings Bill County I°o Show: Total due to date SS Previous Total paid SS Amount due SS • I ■ • SW CHAMBERS , LLC Mr Bob Patrick Project Manager Weld County Public Works Dept 1111 H Street PO Box 758 Greeley, Colorado 80632-0758 RE: Request for extension—WCR 25 roadway improvements Dear Mr. Patrick I wanted to thank you for taking the time to meet with us last week regarding the proposed roadway improvements on WCR 25 Pursuant to our meeting,please accept this as a request to extend the timef ame to complete the roadway work that is set forth in the roadway improvements agreement for WCR 25 to the end of the second quarter of 2008. Unfortunately, phases of the slurry wall project that preceeded the roadway improvements on WCR 25 were delayed resulting in a very narrow timeframe to complete the roadway work specified in the agreement. Due to the fact that we are rapidly approaching the end of the construction season and weather conducive to paving operations will be limited, we respectfully request that the 2007 requirement to complete the obligations specified in the roadway improvements agreement be extended.. We appreciate your consideration and welcome any questions you may have e ards, n Benallo Vice President of Land Development CC: Mark Campbell Bob Bruce Josh Holbrook 333 West Hampden Avenue Suite 810 Englewood CO 80110 Bus:(303)534-1040 Far(303)534-6700 Subject: Pre-Paving Meeting �� ic Project: Long Term Maintenance Agreement (WCR 25 & 18) Aa North Section of WCR 25 Improvements Meeting Date: July 12th, 2007, 11:00 a.m. 1119€ COLORADO Location: Dean's Conference Room Distribution: Rich Hastings, Weld County Dean Dreher, Weld County Bob Patrick, Weld County T. Jay Gilpatrick (Land Development Project Manager), J2 Development Management Jon Benallo, (Vice President of Development), SouthWestern Investment Group, Inc. Agenda: Pre-Paving Topics: • J2/SouthWestern's requirements—minimum per agreements paving specifications, with the caveat that maintenance of this section of road would be the responsibility of SouthWestern Investment Group in the future. Additional support and stabilization of the area, beyond the 3"x 32' HMA required, might be necessary in order to provide a relatively low maintenance pavement. J2 would investigate possible enhanced stabilization protocols immediately prior to paving. J2 asked if a road closure was possible, but was informed that one lane of traffic would have to remain open to the public. J2 will coordinate proper traffic control programs and geotechnical testing services. SouthWestern will interact with adjacent land owners in an effort to inform them of the upcoming construction and its possible changes to normal daily travel routines. SouthWestern was also informed that Right-of-Way issues might need to be addressed in order to install the 32' wide pavement. cautioned to keep Work a irhirr ROIF'SouthWestern will provide a final total cost analysis for the project, in order to receive payment for Weld County's proportional share. -Weld County requirements—patching of"popped-out" asphalt areas in order to provide a stable paving surface. Weld County will provide on-site inspections of new paving during the construction phase. Schedule: •Weld County will begin patching efforts as soon as the patching crews are available(ww ithin the next couple of weeks). •J2 will begin construction as soon as the patching efforts are complete or will roordliwIr, with possible gravel work, on the extreme northern section, beginning the week of 7-16- 07. County Billing: Send I % monthly billing to: Bob Patrick PUBLIC WORKS DEPARTMENT 1111 H STREET, P.O. BOX 75R GREELEY, COLORADO 80632 WEBSITE: WWW.CO.WELD.CO.US PHONE (970) 356-4000, EXT. 3750 FAX: {970) 304-6497 May 18, 2007 Danna Ortiz Civil Resources RE: Representative for SW Chambers, LLC (Heit Farms) LTD USR-1444 Dear Ms. Ortiz: I have received your email request. The staff has approved your request to allow limited hauling of two to three trucks per hour, maximum. During the start-up at your gravel pit location, your trucks should use the designated haul route identified in your Long-term Road Maintenance and Improvements Agreements for WCR 18 and WCR 25. By allowing limited hauling, your commitment shall be to complete your items identified in your agreement in the 2007 construction season. Failure to complete these items will be grounds for a Show Cause Hearing with the County Commissioners on your USR case. Work with Tracy Dyer, Inspector, cell: 590-2577, on scheduling improvements to WCR 25 during the construction season. Please provide a construction schedule and time-line for improvements associated with the project so that we may schedule inspections appropriately. Please provide copies to the appropriate individuals associated with the Heit Gravel Pit operation, such as Pioneer Sand & Gravel, S. W. Chambers, and any subcontractors or contractors associated with the road improvements. If the County road requires closure, please contact the Public Works office for notification and a time line for the closure as we need to contact emergency response crews, school districts, etc. Sincerely, Donald Carroll Engineering Administrator pc: Tracy Dyer, Inspector, Public Works Pioneer Sand & Gravel SW Chambers CIVIL RES"JURCES, LLC ENGINEERS G PLANNERS June 28,2005 Mr. Chris Gathman, Planner Weld County Department of Planning Services 918 10Th Street Greeley, CO 80631 RE: SW Chambers, LLC; Heit Sand and Gravel Mine USR#1444 Update for the Resolution Response Dear Mr. Gathman: The purpose of this letter is to resolve the outstanding issues on the Heit USR 1444, so that we can finalize and record it as soon as possible. The following information corresponds to the Weld County Resolution for USR#1444 signed January 27, 2004: 1. Prior to recording the plat: A. We have labeled the plat drawings USR-1444 as required. We have made minor changes to the plans to satisfy the revisions that you requested. We have enclosed copies for your final review and approval. Please let us know if these are acceptable and we will submit mylar plans for recording. B. Complete. Please refer to Civil Resources, LLC January 6, 2005 correspondence. C. Complete. Please refer to Civil Resources, LLC January 6, 2005 correspondence. D. Complete. I spoke with Weld County Health Department Director Trevor Jiricek about the fact that the operator does not intend to discharge dewatering water from the site on June 22, 2005. Mr. Jiricek requested that the applicant submit letter stating that they will not discharge any water from the site and that the Temporary Substitute Water Supply Plan addresses this fact. This letter is attached. E. Complete. The applicant submitted a Waste Handling Plan to the Weld County Dept of Public Health and Environment in February 2004. F. Complete. The operator is not proposing a maintenance facility floor drain. Vehicles will be maintained with mobile equipment and all waste will be hauled off site and disposed of in accordance with local, state and federal rules and regulations. G. Complete. This condition has been addressed in the Long-Term Road Maintenance Agreement approved by Weld County. The County approved this agreement on March 28, 2005 and recorded it on April 8, 2005. H. Complete. Dave Kline prepared a pavement design and submitted it to Keith Meyers for review. The final pavement design is included with the road 451 OAK STREET, SUITE 209 • P.O. Box 660 • FREDERICK, CO 80530 • (303) 833-1 41 6 • (303) 833-2850 - FAX Mr. Chris Gathman June 2,2005 Cr) Page 2 of 3 CIVIL RES'JURCES,LLC improvements design materials that is being processed through Mr. Keith Meyer, per the Long-Term Road Maintenance Agreement. I. Complete. The applicant has entered into a Long-Term Road Maintenance Agreement approved by Weld County. J. Complete. It is our understanding that the Improvements Agreement According to Policy Regarding Collateral for Improvements was part of the approved Long-Term Road Maintenance Agreement. K. Complete. We provided you a copy of the letter that the applicant sent to Dave Tuttle at the Weld County Sheriff's office February 11, 2004 in our January 6, 2005 submittal to you. L. Complete. Flood Hazard Development Permit FDHP-459 was issued on March 25, 2004. M. Complete. Please refer to Civil Resources, LLC January 6, 2005 correspondence. N. A copy of the requested revised Conceptual Reclamation Landscape Plan is attached for your review and approval. Please also refer to Civil Resources, LLC January 6, 2005 correspondence. O. Please refer to the attached TSSP submitted to Colorado Division of Water Resources (Office of the State Engineer). P. Please refer to the attached well permit application submitted to Colorado Division of Water Resources (Office of the State Engineer). Q. Complete. We have revised the plat per your comments. 2. We have enclosed two paper copies of the plat for your review and approval. 3. We will provide the Mylar plat upon the County's final approval. 4. We have enclosed a CD containing the .dwg file of the plat. 5. Pioneer Sand and Gravel will obtain building permits prior to constructing any permanent structures. 6. Prior to operation: A. The operator is proposing to utilize portable toilets for this operation. If they decide to use the house as an office,they will obtain an Individual Sewage Disposal System (ISDS) evaluation and ISDS permit prior to using the septic system. However, it is probable that the house will be demolished. B. The applicant will coordinate with CDOT and the Weld County Public Works Department to construct the improvements to the northbound to westbound turn land on Highway 85 to Weld County Road 18. C. The Dust Abatement Plan is attached. We have also submitted a copy to the Environmental Health Services Division of the Weld County Department of Public Health and Environment for approval. D. We have submitted a copy of the site drawings to Fort Lupton Fire Protection District. A copy of the certified mailing return receipt is attached. E. A copy of the Division of Minerals and Geology Mined Land Reclamation 112 Permit is attached. F. The operator shall obtain approval from the Lupton Meadows Ditch Company Board before conducting any work in the ditch easement. Mr. Chris Gathman June 2, 2005 Page 3 CIVIL RESIPURCES,LLC Thank you for your time and attention in this permit process. Please contact me with any comments or questions at 303.833.1416 extension 3#. Sincerely, CIVIL FlaSOURCES, LLC kelmAit Danna Ortiz Planner End. Cc: Mark Campbell, SW Chambers, LLC Ginny Duncan, SW Chambers, LLC Joe Kraig, Pioneer Sand and Gravel Company Z:\projects\SW Investment Group-123\Heit Property\Weld Cty USR\Gathman Ltr 6-6-05.doc PIONEER SAND COMPANY INC. June 20, 2005 Chris Gathman, Planner Weld County Department of Planning Services 918 10th Street Greeley,CO 80631 RE: CDPS Permit for the Heit Sand and Gravel Mine USR-1444 Dear Mr. Gathman: A Colorado Discharge Permit System (CDPS) permit is not required because we will not be discharging any water from the site. We will be retaining the discharge water on site to be used in our processing operations. Our Temporary Substitute Water Supply Plan takes this into account. If, in the future we determine that it is necessary to discharge water,we will obtain a CDPS permit from the Colorado Department of Public Health and Environment Water Quality Control Division prior to discharging. We will submit a copy of the application to the Weld County Department of Public Health and Environment. Sincerely, e 9 / P sident C: Char Davis P.O. Box 7650 • Colorado Springs, Colorado 80933-7650 • (719) 599-8100 — t 6(" 01.(4(.&( � , . Four; No: COLORADO DIVISION OF WATER RESOURCES For Office Use only 0 WS- 7 DEPARTMENT OF NATURAL RESOURCES RE,JFhr`r) 6/2003 1313 Sherman St.,Rm 818, Denver, Colorado 80203 Phone:(303)866-3581 - REVIEW INSTRUCTIONS PRIOR TO COMPLETING FORM SEP 1 0 2003 GRAVEL PIT WELL PERMIT APPLICATION „i.,ESRE;O,L_,_` 1. TYPE OF PERMIT war Ee enc.r. cio. EWPIT(S) PREVIOUSLY RECEIVED ON g-a2 0 -o3 PIT(S) EXIST, CONSTRUCTED AFTER DEC. 31, 1980 FOR NEW FEE SCHEDULE. 2. APPLICANT INFORMATION NAME(S) au ivir'UC2tco s LL-t- - -Mailing Address 333 W. illnynnaidfri , 51P._ ea) City, St. Zip EII3lieabtot CO Od ii Phone ( CJO3 )" ,q3 4- `04-0 3. CONSULTANT/ATTORNEY/OPERATOR CONTACT(If different than#2) }�- / NAME(S) tJ.iur`l Soo cec LC _ - PIT NAME I CI h ?i-& Mailing Address 45-1 (eC 9, 45-:}e, ZO`3 Pe Box 6980 City, St.Zip i redjUe7C SO530 DMG NO. --103 - (��l7 Phone( 3O, ) P133 /4-16 • 4. GENERAL LOCATION OF PIT(S): COUNTY Wdie LA-' LA 1/4' JC 1/4, Sec. OD Twp. Z !!N. S., Range (,� E. Z W. . G'/' P.M. 5. Estimated maximum water surface to be exposed: Ala Acres. Number of Pits Z --- 6. Estimated depth of pit(s)/C`— Ze) FL Estimated depth to groundwater E'-to Ft. 7. Estimated date to expose groundwater once o.,2 ect&{ ;to complete mining 5'10 c et.t2 8. ATTACHMENTS:��/ (Check which have been attached.) U (a) -/�Scaled map of pit area with range, township, &section clearly identified (REQUIRED). (b) Copy of the reclamation permit, if applicable. (c) Copy of pre 1/15/89 water conservancy dist. or water user assoc.augmentation agreement, if applicable. (d) Copy of proposed substitute water plan or:augmentation plan application, if applicable. (e) Copy of court approved augmentation plan, if applicable. Case No. (f) Other - 9. Detailed description of any use, other than evaporation, and method of diversion, rate of diversion, and.annual amount of diversion of any water withdrawn from the pond.a J / A Ur l J a ak (Lf -61A hs C.e/vn.tlf r-gtA.4191 - dus1- C&icka / s. G '.uu n/ ✓t g ar J 10. I (we)have read the statements made herein and know the contents thereof, and that they are true to my (our) knowledge. [Pursuant to Section 24-4-104 (13)(a) C.R.S., the making of false statements herein constitutes perjury in the second degree and is punishable as a class 1 misdemeanor.] Name/Title (Please type or print) Signature'] ,J Date ` ' '/1Otieckr -IS, -iSc.'0�1(��I>b tit ILA '', / / V b/ /s/z't j Invoice 1 51514 For Office Use only LJ 1/ i/10R0ba 1 Cashier.ID: 01 $480.00 Check Purchase- Court Case No. Div. I Co. WD a Basin_MD_Use .. STATE OF COLORADO OFFICE OF THE STATE ENGINEER oF•coto Division of Water Resources aw 'E Department of Natural Resources iNo� 1313 Sherman Street, Room 818 Denver,Colorado 80203 •*1846** Phone(303)866-3581 FAX(303)866-3589 Bill Owens www.waterstate.co.us December 21, 2004 Governor Russell George Executive Director Hal D.Simpson,P.E. State Engineer Mr. Andrew Rodriguez Civil Resources, LLC. 451 Oak Street, Suite 209 Frederick, CO 80530 Re: Heit Sand and Gravel Mine, Substitute Water Supply Plan DMG File No. M-03-016 Section 13, T2N, R67W, 6th P.M. Water Division 1, Water District 2, Weld County Dear Mr. Rodriquez: This letter is in response to the application submitted in August of 2003 requesting a substitute water supply plan (SWSP) for a sand and gravel pit to be operated by S.W. Meadows, LLC ("Applicant") in accordance with Section §37-90-137(11), C.R.S. Additional information for the plan was submitted November 24, 2004. The Applicant shall be responsible for compliance with this plan, but the State Engineer's Office may also pursue the landowner for eventual compliance. The required fee of$1,343 for the substitute water supply plan has been paid. The anticipated net annual depletions for this plan is 46.3 acre-feet for operation at a site with up to 4.8 acres of water surface exposed after December 31,1980. You have provided a monthly breakdown of the annual depletions at this site. Annually, these are made up of 14.2 acre-feet of evaporative loss from 4.8 acres of water surface exposed after December 31,1980, 14.7 acre-feet of water lost with 500,000 tons mined product, 15.5 acre-feet consumed by batching 150,000 cubic-yards of concrete and 1.9 acre-feet used for dust suppression. According to the plan, a slurry wall will be constructed around the perimeter of the site to hydraulically disconnect the mine from the surrounding groundwater system. Once the slurry wall is constructed the site will be dewatered and the area will be dry mined. For purposes of this SWSP it is conservatively assumed that the slurry wall will be ineffective. Therefore, depletions accruing to the South Platte River will be replaced as if the slurry wall did not exist. According to the plan, an existing well, permit no. 20136-R, will occasionally be used for dust suppression and concrete batching. The maximum monthly amount that will be pumped from the well will not exceed the values specified in attached Table 2. Mr. Andrew Rodriguez December 21, 2004 Page 2 The proposed source of replacement water for this pit is 56.1 acre-feet of fully consumable effluent leased from the City of Thornton. The Thornton water will be released from the Metro Wastewater Treatment plant, which is located approximately 35 mile upstream of the operation. Of the 56.1 acre-feet of lease water from the City of Thomton, approximately 8.1 acre- feet will cover transit losses (17.5% total based on 0.5% per mile for the 35 miles from the Metro wastewater treatment plant to the Heit Sand and Gravel Mine). The amount of City of Thomton replacement water that reaches the Heit Sand and Gravel Mine is 48.0 acre-feet. The monthly depletions and replacement requirements are found on the attached Table 3. As required by Section 8 of Senate Bill 89-120, this substitute water supply plan has been provided to an outside consultant for review. I hereby approve the proposed substitute water supply plan in accordance with §37-90-137(11), C.R.S., subject to the following conditions: 1. This plan approval shall be valid through March 31, 2006, unless otherwise revoked or modified. If this plan will not be made absolute by a water court action by the plan's expiration date, a renewal request must be submitted to this office with the statutory fee (currently$217) by February 1, 2006. 2. A well permit must be obtained for the gravel pit in accordance with §37-90-137(2) and (11), C.R.S. prior to the exposure or use of groundwater. A well permit must also be obtained for well no. 20136-R in accordance with §37-90-137(2), C.R.S. to change the use of the well to dust suppression and concrete batching prior to commencing such uses. Any application will be evaluated subsequent to approval of this plan. The provisions of§37-90-137(2) C.R.S. prohibit the issuance of a permit for a well to be located within 600 feet of any existing well, unless the State Engineer finds that circumstances so warrant after a hearing held in accordance with the procedural rules in 2CCR402-5. This hearing may be waived if you are able to obtain statements from the owners of all wells within 600 feet, verifying that they have no objection to your use of the proposed well. Should a new well permit be denied for reasons of 600 foot spacing, or any other legitimate reason, approval of this substitute supply plan will be cancelled. 3. The losses associated with this mining operation must not exceed a total of 46.3 acre-feet for the duration of this permit approval. These losses include 14.2 acre- feet of evaporation from the proposed exposure of 4.8 acres of groundwater, 14.7 acre-feet of water lost in 500,000 tons of mined aggregate, 15.5 acre-feet consumed in batching of 150,000 cubic yards of concrete and 1.9 acre-feet used for dust suppression. Should the annual losses at the site exceed 4.31 acre-feet prior to the expiration of this plan, an amendment will need to be filed. 4. A copy of the signed City of Thornton lease shall be submitted to the Division Engineer and State Engineer's Office prior to exposing ground water at the site. 5. Approval of this plan is for the purposes as stated herein. Any additional uses of this water must first be approved by this office. Mr. Andrew Rodriguez December 21, 2004 Page 3 6. The Water Commissioner responsible for the administration of this plan is Mr. Robert Stahl, 9378 WCR 25, Fort Lupton, CO 80621, phone no. (303) 857-0742. The applicant shall maintain daily records of all diversions, replacements, and the amount of water used for each particular purpose. The applicant shall provide a report of these records to the Division Engineer and the Water Commissioner on a monthly basis on a form approved by them. The accounting must be submitted, within five (5) calendar days of the end of the month for which the accounting is being made. In addition, the applicant shall submit a report from the entity making replacement; for this plan that entity is the City of Thornton. The report shall include an accounting of all of the Denver Metro wastewater plant water effluent controlled by Thornton, showing the total volume of water under its control and the amount committed to each of the recipients of the water. (The applicant and Thornton shall coordinate the implementation of this accounting with the Division Engineer. This condition will become effective 90 days after the above date of plan approval.) 7. The name, address, and phone number of a contact person who will be responsible for the operation and accounting of this plan must be provided on the accounting forms to the Division Engineer and Water Commissioner. 8. Dewatering at this site will produce delayed depletions to the stream system. As long as the pit is continuously dewatered, the water returned to the stream system should be adequate to offset the depletions. However, once dewatering at the site ceases the delayed depletions must be addressed. At least three years prior to completion of dewatering, a plan must be submitted that specifies how the post pumping dewatering depletions will be replaced, in time, place and amount. 9. The approval of this substitute water supply plan does not relieve the Applicant and/or the landowner of the requirement to obtain a Water Court decree approving a permanent plan for augmentation or mitigation to ensure the permanent replacement of all depletions, including long-term evaporation losses and lagged depletions after gravel mining operations have ceased. If reclamation of the mine site will produce a permanent water surface exposing groundwater to evaporation, an application for a plan for augmentation must be filed with the Division 1 Water Court at least three (3) years prior to the completion of mining, to include, but not be limited to, long-term evaporation losses and lagged depletions. If a lined pond results after reclamation, replacement of lagged depletions from mining and dewatering shall continue until there is no longer an effect on stream flow. 10. This substitute water supply plan may be revoked or modified at any time should it be determined that injury to other vested water rights has or will occur as a result of this plan. Mr. Andrew Rodriguez December 21, 2004 Page 4 11. Should this substitute water supply plan expire without renewal or be revoked prior to adjudication of a permanent plan for augmentation, all excavation of product from below the water table, and all other use of water at the pit, must cease immediately. - 12. In accordance with amendments to §25-8-202(7), C.R.S., and "Senate Bill 89-181 Rules and Regulations" adopted on February 4, 1992, the State Engineer shall determine if this substitute water supply plan is of a quality to meet requirements of use to which the senior appropriation receiving the substitute supply has normally been put. As such, water quality data or analyses may be requested at any time to determine if the requirement of use of the senior appropriator is met. 13. The decision of the State Engineer shall have no precedential or evidentiary force, shall not create any presumptions, shift the burden of proof, or serve as a defense in any water court case or any other legal action that may be initiated concerning the substitute water supply plan. This decision shall not bind the State Engineer to act in a similar manner in any other applications involving other plans or in any proposed renewal of this plan, and shall not imply concurrence with any findings of fact or conclusions of law contained herein, or with the engineering methodologies used by the Applicant. Please contact Joanna Williams in Denver at (303) 866-3581, or Scott Cuthbertson in Greeley at (970) 352-8712, if you have any questions concerning this approval. Sincerely, c_ 1) .,_,te_i ick Wolfe, P.E. Chief of Water Supply Attachments DW/JMW cc: Scott Cuthbertson, Assistant Division Engineer Robert Stahl, Water Commissioner, District 2 Mark McLean, Tetra Tech RMC, Inc. 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THIS MATTER came before the Mined Lands Reclamation Board ("Board')on September 24,2003 in Denver, Colorado for a hearing on the Section 112c application for a reclamation permit by SW Meadow,LLC("Applicant") in accordance with C.R.S. § 34-32.5-114. Robert Bruce, Rcq appeared on behalf of the Applicant.. Objectors Robert and Lavenia Temmer, and Neil and Laura Coyle appeared on their own behalf. Kate Pickford appeared on behalf of the Division of Minerals and Geology("Division"). The Board, having considered the parties' presentations and having been otherwise fully informed in the premises,hereby enters the following findings of fact, conclusions of law and order: 1. The Applicant seeks a Section 112c reclamation permit for a 102 acre surface sand and ravel pit known as the Heit Pit located in Section 13, T2N, R67W, 6th P..M., Weld County, Colorado. 2. The proposed permit area is located west of the South Platte River,three miles from Fort Lupton.. The Applicant proposes a mining disturbance of approximately sixty- one acres. The proposed post-mine land use is a reservoir. The Applicant proposes to construct a slurry wall around the pit, de-water the pit during mining, and discharge the water into the South Platte River The proposed pit would average twenty-six feet in depth. 1 3 The Division received timely objections from Leonard K. Vargas,Aquatic and Wetland Company, William Gee, Will and Linda Piper,Robert E&Lavenia Temmer,Todd and Audrey Schroeder,Robert L. and Mary Ellen Stamm, and Neil and Laura Coyle 4 The Board has jurisdiction over the parties and the subject matter of this case pursuant to C.R.S § 34-32 5-114 5. The Board appointed a prehearing conference officer who conducted a prehearing conference on June 20,2003 in Denver, Colorado, and prepared a proposed prehearing order.. Parties who appeared at the prehearing conference included the Applicant, and Objectors Aquatic and Wetland Company, Robert and Lavenia Temmer, and Neil and Laura Coyle. All other objectors failed to appear, and thereby lost their party status in accordance with Construction Materials Rule 2.7.3(4).. 6. At the commencement of the hearing,Aquatic and Wetland Company announced that it has settled its dispute with the Applicant and withdraws as an objector in this matter.. 7. The Board adopted the proposed prehearing order with modifications to reflect the withdrawal of Aquatic and Wetlands Company. 8. The Division recommends approval of this application with two stipulations, set forth below. 9. The issues set forth in the prehearing order are: A) Has the Applicant proposed measures to minimize impacts to the hydrologic balance in the aquifer beneath the proposed mine site to protect surface vegetation, including nursery stock and wetlands? B) Has the Applicant complied with the State Engineer's rules governing injuries to water rights? C) Has the Applicant planned to minimize impact to surface water systems within and adjacent to the proposed permit area? 2 D) Did the Applicant post notice of the application at the site of the proposed mine of sufficient size and number to clearly identify the site,providing its name, address and phone number? E) Has the Applicant proposed a plan that complies with state and federal water quality protection laws? F) Has the Applicant proposed a plan to strip, stockpile and protect topsoil? G) Has the Applicant proposed a weed control plan? H) Is the proposed financial warranty amount set at a level, which reflects the actual current cost of completing the reclamation plan? Impacts to Surface Water and Ground Water 10 The Objectors are concerned that the proposed operation could impact shallow water wells as well as wetlands in the vicinity of the pit They seek a condition that would require the Applicant to monitor groundwater and report results. They are also concerned about possible impact to surface waters. 11 Construction Materials Rule 3.1.6 provides that "disturbances to the prevailing hydrologic balance of the affected land and of the surrounding area and to the quantity or quality of water in surface and groundwater systems both during and after the mining operation and during reclamation shall be minimized..." 12.Among other means of satisfying this requirement is that the Applicant comply with applicable Colorado water laws and regulations governing injury to existing water rights,and that the Applicant comply with applicable federal and Colorado water quality laws. 13. The Applicant plans to monitor groundwater for sixteen months prior to constructing the slurry wall to establish existing conditions. It expects the slurry wall to draw down the aquifer approximately two or three feet down-gradient from the pit, and cause the water level to rise, or"mound"to the same degree on the up-gradient side of the pit. However, these effects on groundwater level should occur only in the 3 immediate vicinity of the pit; there should be no draw-down or mounding effect in the aquifer at the locations of any domestic wells. 14 According to data from the Office of the State Engineer, the average depth of wells within six hundred feet of the proposed pit is thirty feet, and the average static water level is six feet below ground level. Thus, a drawdown of three feet would not adversely affect any of these wells, assuming the drawdown is that significant at any one well location;the drawdown effect substantially decreases as the distance from the wall increases. 15.The Applicant also proposes to minimize the mounding and drawdown effect of the slurry wall through means of a French drain system. The Applicant plans to install the system along the southern and western sides of the proposed permit area to divert water from the areas of mounding to the areas that could be affected by a draw-down. 16..1f this mining operation did de-water a well,the Applicant has proposed several alternative measures to ensure that the water right is replaced. 17.The State Engineer's Office recognizes that the proposed operation will consume water through evaporation, dust control and de-watering the pit. The Applicant must have an approved Temporary Substitute Supply Plan and a Gravel Well permit prior to affecting groundwater. The State Engineer's Office requires that the Applicant identify the location of all wells within 600 feet of the permit area and obtain a waiver of objections from the owners. Alternatively, any dispute over these rights would be addressed through a formal hearing with the State Engineer's Office. 18. This operation would be subject to a Stormwater Management Plan through the Department of Health to protect surface water from such events as a hazardous 4 material spills or flooding from a major storm.. Aggregate processing water will be managed separately. The slurry wall will seal groundwater from the pit, preventing infiltration and possible contamination. 19. The Applicant proposes to store hazardous materials on site. It would store these materials in approved, above-ground vessels within an area that is protected with berms and a heavy-duty liner to ensure that leaks and small spills are contained. 20. The weight of the evidence supports the conclusion that impacts to the prevailing hydrologic balance and to the quantity and quality of surface and groundwater systems in the vicinity of the proposed mine site would be minimized, and would comply with state and federal water quality laws and the laws governing injury to existing water rights as well as Colorado water quality laws 21.The Applicant's plan complies with Construction Materials Rule 3.1.6. Notice At the Proposed Mine Site 22. The Objectors argue that the Applicant did not post a notice at the proposed mine site for a sufficient duration, and that the notice was too small to practically inform the public.. 23. Construction Materials Rule 1.6.2(1)(b)requires the Applicant to post notices at the location of the proposed mine site of sufficient size and number to clearly identify the site as the location of a proposed mining operation. 24.. The Applicant posted a 24"X36"sign on a post at the entrance to the mine site on February 28th,prior to the time the Division found the application complete. This notice was sufficient to identify the site as a proposed mining operation. 5 Topsoil Protection 25. The Objectors are concerned that the Applicant will remove topsoil and fail to protect it from erosion. 26 Construction Materials Rule 3,1.9 requires that mine operators strip and stockpile topsoil in a location separate from overburden and mineral. Operators must stockpile topsoil in locations and configurations that minimize erosion, vegetating the stockpiles as necessary to stabilize the stockpiles.. 27 The Applicant plans to segregate topsoil from overburden and vegetate any stockpiles that exist for longer than one growing season. The Applicant plans to spray the stockpiles with water to control dust. It plans to redistribute topsoil at a depth of approximately sixteen inches on the reservoir shorelines, with contour furrows to reduce erosion and encourage plant growth. 28. The weight of the evidence supports the conclusion that the Applicant's plan would adequately protect topsoil. 29. These measures satisfy Rule 3.1.9 Weed Control 30.. The Objectors are concerned that weeds will infest the Applicant's mine site. 31. Construction Materials Rule 3..1.10(6)requires the Applicant to control all prohibited noxious weeds. 32. The Applicant plans to inspect the mine site for noxious weeds at least twice per month once it has commenced operations. If it fords noxious weeds,it plans to use 6 mechanical controls first; if that fails to effectively control the weeds,it plans to use chemical controls, and cultural or biological controls would be used as a last resort,in accordance with the Weld County Code and the Colorado Noxious Weed Management Act. 33.The weight of the evidence suggests that this plan would control weed infestation. 34. The Applicant's plan satisfies Rule 3.1 10(6). Financial Warranty 35. The Objectors are concerned that the size of the financial warranty is sufficient to ensure that the proposed operation is adequately reclaimed. 36. Construction Materials Rule 4,2..1 requires that the Applicant post a warranty that reflects the actual current cost of fulfilling the requirements of the Reclamation Plan. It must include an amount equal to five(5%)percent of the cost of reclamation to cover the Division's administrative costs.. 37. The Division evaluated the sufficiency of the Applicant's proposed warranty using a computer program designed for use in the coal program and approved by the U.S. Department of Interior, Office of Surface Mining. This program assigns values to each reclamation task based on the details associated with the particular operation, including time, equipment and materials. The program also accounts for the Division's 5% administrative costs. 38. Based on this evaluation,the Division is requiring a warranty of$1,052,152.00. 39. The weight of the evidence supports the conclusion that this warranty amount is sufficient to cover reclamation costs for the proposed operation. 7 40. The Applicant's proposed warranty amount satisfies Rule 4.2.1. 8 ORDER Based on the foregoing findings of fact and conclusions of law,the Board orders that the application of SW Meadow, LLC for a 112c reclamation permit,M-2003-016 is hereby approved,with the following conditions. 1) A reportable spill is a spill of any toxic or hazardous substance(including spills of petroleum products) within the mined land permit area reportable to any Division of the Colorado Department of Public Health and the Environment, the National Response Center, the Colorado Emergency Planning Commission, any local Emergency Planning Commission,local Emergency Planning Committee, or the State Oil Inspector. The Mine Operator shall notify the Division of Minerals and Geology (DMG) of a reportable spill within the mined land permit area using the same time frame required by the permit, license, notice, statute,rule or regulation governing the reporting of the spill to the other appropriate agency. Notice of a reportable spill shall be faxed to Minerals Program Supervisor, Division of Minerals and Geology,Fax Number(303) 832-8106. The fax shall include a callback number of a responsible company official for DMG staff to use as a contact. 2) The operator will implement the groundwater monitoring system as outlined in the Wright Water Engineers, Inc. report,titled"Groundwater Monitoring and Mitigation Plan for Heit Aggregate Resource Operation, Weld County,Aquatic and Wetland Nursery and Coyle Property," and as defined in adequacy review. At least 16 months of data will be collected prior to initiating mining activities and/or slurry wall installation at the Heit Mine, Based on analysis of collected data, an augmentation trigger mechanism will be proposed to DMG in the form of a Technical Revision to the permit and approved by DMG prior to initiating mining and slurry wall activities at the site, This trigger mechanism must be specific as to volumes of water involved, times of year for delivery, and the length of time augmentation will occur 3) The operator has submitted its proposed mining plan to Weld County for review of potential floodplain impacts from the mine. The operator will implement any floodplain requirements by Weld County,resulting from this review, as part of its mining plan. DATED this /711 day of A - ,2003. FOR THE COLORADO MINED LAND RECLAMATION BOARD Harry Jav 'ck, ice Chairman Mined Land Reclamation Board 9 CERTIFICAfb OF SERVICE I, flrL \ L„sp_r(li a , hereby certify that on this 20 day of On:1Qb Q I - ,2003,I deposited a true copy of the foregoing Findings Of Fact, Conclusions Of Law,And Order in the United States Mail, first class postage paid, addressed to the following: S W.Meadow,LLC Robert Bruce,Esq.. 333 W. Hampden Ave., Suite 810 730 17th Street,Suite 370 Englewood, CO 80110 Denver, CO 80202 Counsel for the Applicant Robert and Lavenia Temmer Neil and Laura Coyle 10691 WCR 25 9046 WCR 25 Fort Lupton, CO 80621 Fort Lupton, CO 80621 Aquatic and Wetland Company Leonard K.Vargas 9999 WCR 25 11503 WCR 20 % Fort Lupton, CO 80621 Fort Lupton, CO 80621 William Gee Will and Linda Piper 8995 WCR 25 11230 WCR 20 Fort Lupton, CO 80621 Fort Lupton, CO 80621 Todd and Audrey Schroeder Robert L. and Mary Ellen Stanun 8721 WCR 25 11076 WCR 18 , Fort Lupton, CO 80621 Fort Lupton,CO 80621 And by inter-office mail to: Tawnya Deherrera Division of Minerals and Geology Kate Pickford Division of Minerals and Geology Stephen Brown Attorney General's Office , • 10 CIVIL RESliURCES, LLC ENGINEERS & PLANNERS June 29,2005 Fort Lupton Fire Protection District via:Certified Mail Return Receipt Requested 1121 Denver Avenue Fort Lupton,CO 80621 RE: Heit Reclamation Permit#M-2003-06 Enclosed,please find site plans for the SW Meadow, LLC Heil Sand and Gravel Mine. Asa condition of the resolution,we are required to submit these plans to you for your review. If you have any questions,please give call me at 303.833-1416 ext 3. Sincerely, CIVIL SOURCES,LLC OM\ a,m, Danna M.Ortiz V Planner U.S. Postal Service.:: FL' CERTIFIED MAILTM RECEIPT (Domestic Mail Only;No Insurance Coverage Provided) F natively inf•rmatl•n visit•ur we•site twww.us•s.c•m; —0 Postage s rt C`' O Certified Fee ( ` 0 ' . Postmark Return Receipt Fee r (Endorsement Required) . 7( Here i' P1 Restricted Delivery Fee fTl (Endorsement Required) O Total Postage&Fees C Sent To Ff trio if Pte .,. , 4q ry Street,Apt.No.;or PO Boy No. /al pey/y�y�p NUec fivcAire_ City,Stale,Z,P+4Ff. 866) l Dust Abatement Plan — USR 1444 1. Dust abatement efforts will focus on the unpaved roads since the mined material will be moist. Internal haul roads shall be watered as necessary to minimize fugitive particulate emissions. 2. Water trucks will be used as necessary to minimize fugitive particulate emissions during extraction of topsoil and overburden. 3. Topsoil, overburden, raw material and finished product stockpiles shall be watered as needed to minimize fugitive particulate emissions. Stockpiles that are left undisturbed for over a year shall be vegetated in the spring or fall. 4. During loading in and out of raw material and finished product stockpiles, water trucks shall be used as necessary to minimize fugitive dust. 5. Disturbed areas will be restricted to those areas necessary for the function of the mine. 6. Speed limits on the site shall be limited to 20 miles per hour. CIVIL RESURCES, LLC ENGINEERS & PLANNERS January 6, 2005 Chris Gathman, Planner Weld County Department of Planning Services 918 10th Street Greeley, CO 80631 RE: Update for the Heit Sand and Gravel Mine USR-1444 Dear Mr. Gathman: In an effort to address any outstanding issues concerning the Heit Sand and Gravel Mine, we would like to update you on the status of the Heit Sand and Gravel Mine. We have made changes to the reclamation plan in response to comments made by Kim Ogle in a memo dated September 15, 2003 as well as those comments noted in the letter from Norman Wells, Jr. from the Platte Valley Soil Conservation District dated August 28, 2003. We have sent copies of the revised reclamation plan to Fort Lupton Fire Marshall, Larry Richardson and Ken Kobel with the Platte Valley Soil Conservation District and have received signed statements from them indicating that they have no further comments. In response to the memo from Kim Ogle dated September 15, 2003 we have made the following revisions to the reclamation plan: 1. The shape of the reservoir could be described as square at best. For the development of a wildlife habitat area, the reservoir shall have an undulating shoreline with terraced shelves to accommodate a wide variety of wildlife species. The Mining Area 2 has been withdrawn from consideration in response to the Soil Conservation Districts comments and will remain intact for wildlife habitat. The corners of the reservoir have been rounded and the slurry wall has been changed at the Northeast corner of the reservoir to reflect a more realistic alignment. 2. The applicant shall contact the Colorado Division of Wildlife for direction on how to provide adequate cover and a positive environment to accommodate the newly created habitat area(s). Written evidence of the Colorado Division of Wildlife requirements and methods of implementing said requirements shall be submitted to the DMG and this office. Because this is a water storage reservoir water levels will fluctuate greatly. For this reason we are concerned that the site will not be able to sustain trees or shrubs inside the slurry wall and have not provided any. However, in response to the concerns regarding the wetlands, we have withdrawn the proposal to mine Area 2 and will not disturb sensitive habitat in this area. 451 OAK STREET, SUITE 209 1 P.O. BOX 680 1 FREDERICK, CO 80530 1 (303) 833-1 41 6 1 (303) 833-2850 - FAX Mr. Chris Gathman January 3, 2005 C� Page 2 of 2 CIVIL RES'AURCES,LLC 3. Per the application materials, the ground plane will be planted in native and/or drought tolerant grasses. Future correspondence shall identify the species of grass seed mix and whether the mix is to be drilled or broadcast for installation. We have revised the Reclamation Plan Map to include a specific native seed mix recommended by the Platte Valley Soil Conservation District. This native seed mix will be beneficial to wildlife and provide adequate cover to the ground plane. Notes have been added to the Reclamation Plan Map to indicate that the mix will be drill seeded using a native seed drill on slopes less than 3:1. Broadcast seeding will be permitted only on small areas not accessible to machine methods. 4. Future correspondence shall identify the erosion control devices including but not limited to riprap and seeding that will be placed within and adjacent to this area. If plant material is proposed, please identify the species and how this plant material will be installed. The Reclamation Plan Map includes the following note: #14. If an engineer deems necessary, permittee shall install appropriate erosion control devices, such as riprap or upstream slope protection (well-graded mixture of 12 inches of sand, gravel, and cobbles remaining from mining operations and six inches of the underlying weathered claystone bedrock). See the response to number 3 above for information on plant material. 5. Staff has concerns with the selection of the native grasses and the potential for noxious weeds to gain a foothold and establish themselves within the open space areas. The application materials state that this proposal greatly increases the amount of wildlife on site. The attached correspondence from the Division of Wildlife does not indicate this to be the case. Future correspondence shall identify the proposed management plan for the open space, particularly given the close proximity to the agricultural production lands. A note has been added to the Reclamation Plan Map stating that mowing will be performed for at least 2 years following seeding to establish regenerating stands of grasses and to control weed infestation (see note#16). The applicant shall follow a weed management plan throughout the life of the operation. All disturbed areas will be seeded immediately after topsoil is graded and site is prepped in order to prevent the establishment invasive weed species. We have also responded to the letter from Norman Wells, Jr. from the Platte Valley Soil Conservation District dated August 28, 2003 and have addressed the comments as follows. For your convenience we have also included a copy of the letter from Banks and Gesso dated February 11, 2004 that was written in response to the letter from Norman Wells Jr. (refer to Appendix B of the Banks and Gesso response). Mr. Chris Gathman January 3, 2005 Page 3 of 3 CIVIL RES'IPURCES,LLC Temporary Topsoil Berm: 1, It is recommended that the berm have a 4:1 slope to allow the planting, establishment and maintenance of cover vegetation. Please refer to the Banks and Gesso letter for the response to this comment. 2. The topsoil stockpiles should be re-seeded with temporary cover immediately following the completion of the berms, or as appropriate depending on the weather and season. Note 17 has been added to the reclamation plan to respond to this comment. Site Reclamation: 3. During site reclamation, topsoil should be spread in lifts not to exceed 4 inches and worked into the slopes to ensure good adhesion and to minimize soil creep. Soil testing should be performed to determine if fertilizer is needed prior to applying the reclamation seed mix. Notes 1 and 2 have been added to the reclamation plan to respond to these comments. 4. Recommended seed mix and application rates. As requested we have changed the seed mix and application rates to the NRCS recommended mix and rates. 5. Recommended seeding dates are November 1sf through April 15th. All seeding shall take place on unfrozen soils. A good quality seed drill with an agitator and press wheels is recommended. If the seed is broadcast, rates would be doubled. Notes 7 and 10 have been added to the reclamation plan to respond to these comments. 6. We recommend mulching with clean weed free straw or native hay. Mulch should be applied at a rate of 4,000 lbs. per acre. After the mulch is applied, it should be 'crimped'into the soil to help anchor it. Crimping should be cross slope or on the contour, if at all possible. The State of Colorado has a list of'certified weed free'straw available on the internet or through the local county Extension Service Office. Note 9 has been added to the reclamation plan to respond to these comments. Wetlands: 7. According to the National Wetlands Inventory, mine area 2 may contain wetland areas. The applicant needs to be aware of federal regulations and permitting requirements governing wetlands and waterways administered by the U.S. Army Corps of Engineers. It is highly recommended that applicant contact Terry McKee for assistance on this issue. Please refer to the Banks and Gesso letter for the response to this comment. Mr. Chris Gathman January 3, 2005 Cr) 4 of 4 CIVIL RESa.URCES,LLC Dust Control: 8. Given the proximity of the sand and gravel mine to the residential area, good dust control during operation is important to minimize a nuisance situation. Applying water to the work area also can help control soil erosion during windy conditions. Please refer to the Banks and Gesso letter as well as note 13 on the reclamation plan for the response to this comment. SW Meadow, LLC applied for an Air Pollution Emission Notice (APEN) permit from the Colorado Department of Health and Environment, Air Quality Control Division in March of 2004. The permit number is 04WE0266F and a copy of the permit status as listed on the Colorado Department of Health and Environment website is attached. Sincerely, Civil Resources, LLC. Danna Ortiz Planner Enclosures CIVIL RES' URCES.LLC: EMnINEE,s 6 PLANNERS December 16, 2004 Fort Lupton Fire Department do Larry Richardson,Fire Marshall 1121 Denver Avenue Fort Lupton,CO 80621 Sent via Fax RE Heit Sand and Gravel Mine (M2003-012) Dear Mr. Richardson: Thank you for reviewing the Heit Sand and Gravel Mine Plans(M2003-012). From our phone conversation earlier today, it is my understanding that the Fort Lupton Fire Department has no issues or comments on the plans as submitted, As we talked about in our conversation, the access road around the processing area will be at least 20'wide and will be able to support fire trucks. The access road is shown as approximately 21'on the plans as submitted. If you agree with the above statement and have no additional comments regarding the Heit Sand and Gravel Mine, please sign below and fax this letter back to us at(303)833-2850. Again,we appreciate your consideration on this project and please feel free to contact me with any questions or comments at 303-833-1416 ex 4/1. Sincerely, Civil Resources, LL Debbie Flan rs Landscape Architect Larry Richardson, Fire Marshall Date 451 OAK STREET, Sore 209 • P.O. Box 690 • FREDERICK. CO 80530 • 1303) 833-1416 • (303) 833-2850 - FAX 2 's OS8266acoc zi'u0 euuea eS0 :30 40 Li oda • CIVIL RES'79URCES, LLC ENGINEERS S. PLANNERS Decembor 20,2004 Ken Keto?I Platte Valley Soil Conservation District 57 West Bromley Lane Brighton, CO 80601 303-659.1768 • Sent Via Fax • • RE: Approval of the revised reclamation plan for the Heit Sand and Gravel Mine USR-1444 Dear Mr.Kiel; Thank ycu for reviewing the Heit Sand and Gravel Mine Plans. Based on our phone conversation on Monday,December 20,2004, it is my understanding that you have reviewed the revised reclamation plan and response letter dated November 10,2004 for the Heit Sand and Gravel Mine,USR-1444. I understand that you lave no additional comments regarding this pi. .• . - • If you ag.ve with the above statement and have no additional comments regarding the Heit Sand and Gravel Mine, please sign below and fax this letter back to us at(303)833-2850. Again,ww!appreciate your consideration on this project and please feel free to contact me with any • questions or comments at 303-833-1416 ex 4#. • Sincerel}, Civil Resources, • Debbie Fiend r Landscape c tect • [21-7-1/24771--- Ken K ?I Date 451 OAK JTRccr, &UWE 209 • P.O. Box 6B0• FREOERIOK, G❑ 6210530 • (30311:333.I 416 • (303) u33-2eS0 -PAX Z 'd OSBZEEOCOC xtz..O euuer d1,1 ;90 40 0Z eat CIVIL RESlURCES, LLC `l\ ENGINEERS & PLANNERS November 10, 2004 " , Mr. Norman Wells, Jr. Platte Valley Soil Conservation District z 57 West Bromley Lane g. -L Brighton, CO 80601 RE: Revised reclamation plan for the Heit Sand and Gravel Mine USR-1444 Dear Mr. Wells: • Enclosed please find a copy of the revised reclamation plan for the Heit Sand and Gravel Mine (USR- 1444). We have made changes based on your letter to Chris Gathman dated August 28, 2003. For your convenience we have also included a copy of the letter from Banks and Gesso dated February 11, 2.Q4 that was written in response to your above-mentioned letter. Your comments have been addressed as follows: Temporary Topsoil Berm: 1. It is recommended that the berm have a 4:1 slope to allow the planting, establishment and maintenance of cover vegetation. Please refer to the Banks and Gesso letter for the response to this comment. 2. The topsoil stockpiles should be re-seeded with temporary cover immediately following the completion of the berms, or as appropriate depending on the weather and season. Note 17 has been added to the reclamation plan to respond to this comment. Site Reclamation: 3. During site reclamation, topsoil should be spread in lifts not to exceed 4 inches and worked into the slopes to ensure good adhesion and to minimize soil creep. Soil testing should be performed to determine if fertilizer is needed prior to applying the reclamation seed mix. Notes 1 and 2 have been added to the reclamation plan to respond to these comments. 4. Recommended seed mix and application rates. As requested we have changed the seed mix and application rates to the NRCS recommended mix and rates. 5. Recommended seeding dates are November 1st through April 15th. All seeding shall take place on unfrozen soils. A good quality seed drill with an agitator and press wheels is recommended. If the seed is broadcast, rates would be doubled. Notes 7 and 10 have been added to the reclamation plan to respond to these comments. Mr. Norman Wells, Jr. November 10, 2004 Page 2 CIVIL RESURCES,LLC 6. We recommend mulching with clean weed free straw or native hay. Mulch should be applied at a rate of 4,000 lbs. per acre. After the mulch is applied, it should be 'crimped'into the soil to help anchor it. Crimping should be cross slope or on the contour, if at all possible. The State of Colorado has a list of'certified weed free'straw available on the intemet or through the local county Extension Service Office. Note 9 has been added to the reclamation plan to respond to these comments. Wetlands: 7. According to the National Wetlands Inventory, mine area 2 may contain wetland areas. The applicant needs to be aware of federal regulations and permitting requirements governing wetlands and waterways administered by the U.S. Army Corps of Engineers. It is highly recommended that applicant contact Terry McKee for assistance on this issue. Please refer to the Banks and Gesso letter for the response to this comment. Dust Control: 8. Given the proximity of the sand and gravel mine to the residential area, good dust control during operation is important to minimize a nuisance situation. Applying water to the work area also can help control soil erosion during windy conditions. Please refer to the Banks and Gesso letter as well as'r ote 13 on the reclamation plan for the response to this comment. SW Meadow, LLC applied for an Air Pollution Emission Notice (APEN) permit from the Colorado Department of Health and Environment, Air Quality Control Division in March of 2004. The permit number is 04WE0266F and a copy of the permit status as listed on the Colorado Department of Health and Environment website is attached. Thank you for your consideration and please contact us with any questions or comments regarding this revised reclamation plan. If these revisions are not satisfactory, please respond by phone (303) 833-1416 ex. 3#or fax (303) 833-2850 by Friday, November 19th. Sincerely, - Civil Resources, LLC. :OTIP o I$D $tt i E!p *" • •-••••••ivata7h a rsuranee 4ove i efrmv dga� deliViA iorm&H0 t !Sit Our wOPp. ...a....rww,uaptcoMo.ne'�PL` G..�a . For Ianno Q z 555 s (5 ryo i. ; > 5 4 4.YleLri Danna Ortiz r- Posa e $ I Of Planner o ce+lftied Fee '3 9 a� C Return Reclept Fee n Postm 4k 4 (Endorsement Required) k� C�'l lie? s. Enclosures ResMcted Delivery Fee .l (Endorsement Required) 't ru r1J Total Postage&Fees M Soot To or PO Box No. c jnd- ' wyk L j t. Fry,State,ZlP+4 "E rte*" l�".�eC.. Co 80700/ Page 24 of Facility: SUNDANCE CLEANERS (STEAMBOAT SPRINGS) , 1119 LINCOLN AVE, STEAMBOAT SPRINGS, 80488 Source(s) [ DRY CLEANER, AIRS* 107-0043=001, DRY CLEANING - PERC ] - Permit: 95RO446 Service: • FA, Modification Received: 05/19/2004 Status : Final Approval Granted Engineer: Akins, Jon Final Permit on: 08/20/2004 Click to E-mail or call (303) 692-3240 SUNWARD CORP .. Facility: SUNWARD CORP, 7825 N LAVAUN DR, LOUVIERS, 80131 Source(s) ' [ PAINT BOOTH, AIRS* 035-0091-003 , DEVILBISS DF-635 PAINT SPRAY BOOTH ]Permit: 89DG214-2 Service: FA, Modification Received: 01/01/1900 Status: Final Approval Granted Engineer: Fadevi, Sunday Final Permit on: 08/10/2004 Click to E-mail or call (303) 692-3202 SUPER MART CONVENIENCE STORES Facility: BLAIR SALES CO - MAIN ST. , 2127 E MAIN ST MONTROSE, 81401-3833 Source(s) [ SERVICE STATION GASOLINE, AIRS# 085-0056-001, 4 UST - 1- - (12, 000 gal) diesel, 3 (1 8 12, 000 gal, 2 @ 6, 000 gal) gasol ] Permit : 96MO0167S.XP Service: APEN ONLY, Transfer of Ownersn Received: 08/10/2004 Status : Exempt from Permit (XP) Engineer: Fadevi, Sunday Click to E-mail or call (303) 692-3202 SW MEADOW, LLC Facility: SW MEADOW, LLC - HEIT SAND & GRAVEL MINE, S NE SEC 13 T2N R67W, FORT LUPTON, 2 .7 MI NW OF, 80621 Source(s) [ GRAVEL PIT/SAND, AIRS# 123-4463-001, Sand and gravel mine, .. east annual prodn of 5, 000 tpd and 500, 000 tpy. A I Permit: 04WE0266F Service: Final Approval Received: 03/05/2004 Status: In Process • Enginer: None Assigned initial Permit on: O5/06/2004 SWAN CLEANERS (QUAIL ST) Facility: -SWAN CLEANERS - QUAIL ST, 1585 QUAIL ST STE 14, LAKEWOOD, 80215-2754 Source(s) [ DRY CLEANER, AIRS* 059-0335-001, D/D: MUITIMA.TIC MURCURY, SN: 45-0193-5172 ] Permit: 94JE326 Service: FA, Transfer Plant Ownership Received: 05/04/2004 Status : In Process Engineer: Akins, Jon Click to E-mail or call (303) 692-3240. SWIFT BEEF COMPANY (FORMERLY CONAGRA) Facility: SWIFT BEEF COMPANY, 100 N 8TH AVE, GREELEY, 80631-2339 Source(s) [ BOILER, AIRS- 123-0018-010, Temporary rental boiler: Nebraska 80 sn: N-05-2A-58 ] Permit: 04WE0770 Service: Final Approval Received: 06/10/2004 Status : Final Approval Granted Engineer: Seetharam, Ram Final Permit on: 06/17/2004 ji In SOUTHWESTERN INVESTMENT GROUP , LLC August 2, 2004 VLn FAcsmitLE 303-659-1768 r • Norman 1.Wells, k District Conservationist • Platte Valley Soil Conservation District 57 W. Bromley Lane Brighton, CO 80601 Re: USR 1444, Heit Sand and Gravel Mine Weld County Road 25,Adjacent to Weld County Road 20-1/4 Dear Mr. Wells: We understand that there has been no response to the February 11 letter from Banks & Gesso, LLC (copy attached), on behalf of the developer of the above-referenced project site. The purpose of this letter is to confirm that you had no further comments. If, in fact, there are comments, please let us hear from you immediately as we are very near to filing an update with Weld County Department of Planning Services. Thank you. �)04/ del Sincerely, �)—a- � i � c � SW Chambers, LLC riotn P Project Developer for the licit Sand and Gravel Mine J` l zi- 1, 0 By Southwestern Investment Group, LLC l� P� ^ cony Duncan can U/ 1 / Vice President Natural Resources Development 1'gd Attachment FEB-11-2004 WED 10:00 AM BANKS AND GESSO LLC FAX NO. 303 274 8329 P. 04/05 ,r ( Ng 720 Kipling St,Suite117 Banks and Gesso, LLC 720 Colorado 80215 (303)274-4277 Fax(303) 274-8329 tvww.banksandgesso cam February 11, 2004 Platte Valley Soil Conservation District Attn: Norman J. Wells, Jr. 57 West Bromley Lane Brighton, CO 80601 RE Referral Comments to Weld County for USR-1444; Heit Sand and Gravel Mine Dear Mr. Wells, On January 6, 2004. the Weld County Board of County Commissioners approved the above referenced USR application for a sand and gravel mine in southern Weld County. Condition of Plat Recordation 2.i3 requests that the Applicant try to satisfy the concerns of the Platte Valley Soil Conservation District as outlined in your referral letter to the County, dated August 28, 2003. Please allow this correspondence to serve as our attempt to address those concerns. Your first concerns were regarding the slope of the temporary eta y topsoiconfigurationl berms. While the e erm 4:1 slopes would likely be ideal, such slopes would crea would severely encroach Into the mine area and decrease the amount of water storage capacity for the end-use. Standard practice on mine sites throughout the state has shown that 2:1 side slopes on the berms is adequate for establishing temporary stands of vegetation and we hope that such a slope will be acceptable to you. The Applicant is obligated under the terms of the MLR° permit to reseed the stockpiles immediately following completion of the berms, as requested. Your second concern dealt with two aspects of the reclamation procedures to be followed on site. The first was in regards to topsoil placement and the second was in regards to seed applications. Based on your recommendations the Applicant will replace topsoil in lifts not to exceed 4-inches and soil will be tested for determination of whether fertilizer will be needed. The revised seeding rates providedin yourletter will also be used, along with the recommended seed and mulch application practices. Your third concern was for the potential wetlands area in Mine Area 2, which was located in the northwest corner of the site. During the.course of the state and county - permitting process, mining of that 7-acre area was withdrawn from-consideration. Thus, the wetlands concerns have been adequately addressed. Your final concern was in regards to dust control at the site. You recommended water ?r applications to the work area to help reduce and control soil erosion during windy conditions. The Applicant is also applying for an Air Pollution Emission Notice (APEN) permit from the Colorado Department of Public Health and Environment, Air Quality Control Division, which will regulate the amount of dust from wind erosion that is FEB--11-2004 WED 10:00 Am BANKS AND GESSO LLC FAX NO. 303 274 8329 P. 05/05 permitted to be emitted from the site. One of the standard methods of dust control that is applied to sand and gravel mines is the use of water trucks, spray bars, and other means to keep open work areas moist and erosion due to wind at a minimum. These methods are being incorporated into the APEN application. The Applicant will be utilizing water applications in the work area, as requested. We thank you for your comments on this project. if the explanations provided herein meet with your satisfaction, we would appreciate a letter stating such, If you still have additional concerns about this permit, we would also like to know them so that we may continue to try to adequately address them. Should you have any questions, please feel free to contact me at 303-274-4277, Thank you. Si cerel , in Banks and Gesso, LLC - 6 . t •7 (t! JUN-18-2004 FRI 10:04 AM BANKS AND GESSO LLO FAX NO. 303 274 8329 P. 04 - = _SEP-11-2003 THU 04 05 P11 SOUTHWEST WELD PLANNING FAX NO, 722 552 4211 P. 12 ( l r Platte I 57 West Bromley Lan,-B 9hten.CO conservation B08-01t Phone(3C3)632.7004-Fax(303)859.1768 August 28,2O03 Weld County Department of planning Services 1555 N. 17s'Avenue Greeley,CO 80631 RE: USR-1444,Heit Sand and Gravel Mine Attn:Chris Gathman In consultation with the Platte Valley Conservation District,we have reviewed the referenced application and want to provide the following comments on the proposed sand and gravel mine in Weld County, Temporary Topsoil Senn: The berm is shown having 2;1 slopes,such a steep slope can make ( the planting and establishment of temporary cover vegetation difficult. The application describes maintenance consisting of mowing the berm for at least 2 years following seeding to assist in S establishing regenerating stands of grasses and to control weed infestation, With a 2:1 slope, mowing of the berm will he difficult,if not impossible, It is recommended that the berm have a 4;1 slope to allow the planting,establishment and maintenance of cover vegetation. The topsoil stockpiles should be reseeded with temporary cover immediately following 3 completion of the berms, or as appropriate depending On weather and season. Our i recommendation for seeding the topsoil stock piles as soon as possible is based on soil erosion, both from a wind and water standpoint, as well as from a weed standpoint. Weeds are very invasive and move into or onto disturbed areas very fast. Some of these can bo"noxious weeds" and would require control based on the state noxious weed list. sy seeding the temporary cover, the chances for weed invasion will be lessened,as will the potential for erosion. Site Reclamation: During site reclamation, topsoil should be spread in lifts not to exceed 4 inches and worked into the slopes to ensure good adhesion and to minimize soil creep. Soil testing should be performed to determine if fertilizer is needed prior to applying the reclamation seed mix, The following scud mix and application rates are recommended for site reclamation and are based on NRCS"critical area"seeding rates,which are double our normal rates. { CONSERVATION-DEVELOPMENT-SaLr-OOVERNMENr 1 JUN-18-2004 FRI 10:05 AM BANKS AND GESSO LEO FAX NO. 303 274 8329 P. 05 ,SEP-11-2003 THU 04:05 PM SOUTHWEST WELD PLANNING FM N0, 720 652 4211 P. 13 SPECIES VARIETY PLS/AC PERCENT OF NRCS RATE NRCS (Beaks& MIX RECOMMENDED Gesso) RATS Thiffsia Grass Native 33#pLS/se, 30 9,0#/ac Z.7#PLSIac. Side Oats Vaughn 2,0#PLS/ae. I5 3.0 Nat, .5#PLS/ , Blue Grams Lot 33#PLS/ac. 30 3.0 ti/ac, ,9 ifaStae. Little Bluestein Piston 3.0#PLS/ac. 25 7.0 Nao, 1.75#PLS/se, Our normal recommended seeding dates arc November 1 a<through April 15°i. All seeding should take place on unfrozen sails, A good quality seed drill with an agitator and press wheels is recommended. If seed is broadcast,the above recommended rates would be doubled. We recommend mulching with clean weed free straw or native hay. Mulch should be applied at a rate of 4,000 pounds per acre. After the mulch is applied,it should be 'crimped'into the soil to help anchor it, Crimping should be cross slope or on the contour, if at all possible. The State of Colorado has a list of'certified weed free'straw available on the Internet or through the local county Extension.Service office. Wetlands: According to the National Wetlands Inventory,mine area 2 may contain wetland areas. The applicant needs to be aware of federal regulations and permitting requirements governing wetlands and waterways administered by the US.Army Corps of Engineers. It is highly recommended that applicant contact Teny McKee at 303-979-4120 for assistance on this . issue. Dust Contras! Given the proximity of the sand arid gravel mine to the residential area, good dust oontrol during operation is important to minimize a nuisance situation. Applying water to the work area also can help to control soil erosion during windy conditions_ The NRCS and Platte Valley Conservation District welcomes the opportunity to review and comment on proposals such as this. Conservation and wise use of our natural resources are foremost in our goals and objectives. We look forward to working with you in the Mute. If you or the applicant should have any questions, please feel free to contact me at 303-659-7004. Sincerely, No J. W , District Conservationist JUN-18-2004 FRI 10;04 AN BANKS AND GESSO LLC FAX NO. 303 274 8329 P. 02 06/09/04 07:29 FAX 970 304 6498 L LD PLANNING X 002 412- MEMORANDUM TO: Chris Gathrrian, Planner II coLOR,ADO DATE: September 15,2003 • FROM: Kim Ogle, Planner lil Vv' SUBJECT: Helt Farrns, Ltd. • Mark D. Campbell-SW Meadow LLC, applicant c/o Banks and Gesso, LLC The Department of Planning Services reviewed the above referenced Use by Special Review Landscape Plat and offers the following comments; . . Per the application materials,the applicant is proposing Site Specific Development Plan and Special • Use Permit for Mineral Resource Development Facility including wet&dry open pit mining and materiels processing and an asphalt and concrete batch plant In the A(Agriciiltural)Zone District., Staff reviewed the Reclamation Landscape Plan for this application. Staff did not review the mining and excavation plan,as this stage of the application is addressed through the Division of Minerals and Geology(DMG)Permit. On-site landscape treatment consists of existing and proposed deciduous and evergreen trees with a dryland seed mix covering the groundpiane. The plan Is general and non-specific with no common, botanical or cultivar species noted. This . f! plant material is located thoughout the application boundary,typically et the edge of the . proposed lined water storage reservoir and wildlfe habitat areas. The shape of the reservoir could he described as square at best, For the development of a wildlife habitat area,the reservoir shall have an undulating shoreline withlterraced sheivesho accommodate a wide variety of wildlife species. Further,the applicant shall contact the Colorado Division of wildlife for direction on how to provide adequate cover and a positive- environment to accommodate the newly created habitat area(s). Written evidence of the Colorado Division of wildlife requirements and methods of implementing said requirements shall be submitted to the DMG and this office. These comments shall be reflected In the revised Reclamation and Landscape Plan. Per the application materials, the ground plane will be planted in native and/or draught tolerant grasses, Future correspondence shell identify the:speces of grass seed mix and whether the mix is to be drilled or broadcast for installation. Future correspondepce shall identify the erosion control devices including_but not limited to rjelapand seeding_thstwifl within and adjacent to this area, if plant material is proposed, please identify the species and how is plant material will be installed. Staff has concerns with the selection of the native grasses and the potential for noxious weeds to gain a foothold and establish themselves within-the open space emus. The application materiais,state that this proposal greatly increases the amount of wildlife on site. The attached correspondence from the Division of Wildlife does not indicate this to be the case. Future . correspondence shall Identify the proposed management plan for the open space,particularly given trio close proximity of the agricultural production lands. { JUN-18-2004 FRI 10:04 AM BANKS AND GESSO LLC FAX NO, 303 274 8329 P. 03 06/09/04 07;29 FAX 970 304 8498 WELD PLANNING Wt pea The applicant shalt submit an Improvements Agreement for Private Road Maintenance for review and approval by this office if so determined that one is needed. End Memorandum. • • • • ( I II DRAFT OF SUBMITTAL LETTER TO WELD COUNTY Chris Gathman Weld County Department of Planning Services 1555 North 17th Avenue Greeley, Colorado 80631 June 15, 2004 Re: SW Meadow, LLC: Heit Sand and Gravel Mine Plat Recordation for Use by Special Review#1444 Dear Mr. Gathman: In accordance with the provisions of Use by Special Review #1444 (USR-1444), Southwestern Investment Group, d/b/a SW Meadow, LLC, submits the accompanying plat documents for preliminary approval by the Weld County Department of Planning Services. The plat documents have been drafted to comply with the drawing standards set forth in Weld County Code Sections 23-2-260-D and 23-4-270, pertaining to Uses by Special Review and open pit mining, respectively. All conditions precedent to plat recordation have been completed, in compliance with the terms of approval for USR-1444. Following is a list of such items, and a summary of the actions taken to address the issues presented. Any documentation or evidence requested by the Board of County Commissioners as part of fulfilling the condition is attached and labeled as an appendix to this submission. A. The plat shall be labeled USR-1444. See cover sheet of drawing package B. The applicant shall attempt to address the recommendations and concerns of the Platte Valley Soil Conservation District as stated in its referral received September 9, 2003. Written evidence of such shall be provided to the Department of Planning Services. A letter dated February 11, 2004 was sent to Mr. Norman Wells, Jr. of the Platte Valley Soil Conservation District (PVSCD), addressing each of the four areas of concern expressed by PVSCD in its referral. A copy of this letter is contained in Appendix B. The recommendations related to reclamation seeding have been incorporated into the drawings. Explanations were provided addressing other concerns. C. Submit an Air Pollution Emission Notice (A.P.E.N.) and Emissions Permit application to the Air Pollution Control Division of the Colorado Department of Health and Environment for criteria of emissions, hazardous, or odorous air pollutants. Evidence of such shall be provided to the Department of Planning Services Banks and Gesso submitted an APEN and Emissions Permit application for the property. The Colorado Department of Public Health and Environment issued Construction Emissions Permit Number 04WE0266F on May 5, 2004, a copy of which is attached as Appendix C. D. A Colorado Discharge Permit System (CDPS) Permit shall be obtained from the Water Quality Control Division of the Colorado Department of Health for any proposed discharge into State waterways. Written evidence of such shall be provided to the Department of Planning Services. Address upon completion E. The applicant shall submit a Waste Handling Plan, for approval, to the Environmental Health Services Division of the Weld County Department of Public Health and Environment. The plan shall include, at a minimum, the following, and evidence of approval by the Weld County Department of Public Health and Environment shall be submitted to the Department of Planning Services: 1) A list of wastes which are expected to be generated on site (this should include expected volumes and type of waste generated). 2) A list of the type and volume of chemicals expected to be stored on site. 3) The waste handler and facility where the waste will be disposed (including the facility name, address, and phone number). Applicant submitted a Waste Handling Plan in February of 2004, which was approved by Weld County shortly thereafter. The Department of Public Health and Environment did not provide any formal documentation in connection with this approval, but department personnel, including Charlotte Davis, assured that the approval was final. F. For any vehicle maintenance facility located on the site that is equipped with a floor drain, the applicant must apply for an Underground injection Control(UIC) Class V Injection Well Permit through the Environmental Protection Agency (EPA) for the floor drain system, or provide evidence that the applicant is not subject to the EPA Class V requirements. Written evidence of such shall be provided to the Department of Planning Services. SW Meadow, LLC does not plan to construct a vehicle maintenance facility on the Heit property. A letter dated February 11, 2004 was sent to Weld County Planning Services requesting that this condition be considered approved. This request was approved, and a copy of the aforementioned letter is provided in Appendix F of this package. G. The Colorado Department of Transportation (CDOT), in its referral received August 26, 2003, indicated that volumes generated by this proposal alone would trigger improvements to the northbound to westbound left turn lane on Highway 85 to County Road 18. The applicant shall provide an agreement with CDOT in regards to lengthening the left turn lane or provide written evidence that the applicant has addressed the concerns of CDOT. Address upon completion H. The applicant shall provide a pavement design for the pit entrance south to the existing asphalt Intersection for review and approval by the Department of Public Works. Written evidence of such shall be provided to the Department of Planning Services. Address upon completion I. The applicant shall enter into a Long-Term Road Maintenance and Improvements Agreement with the Weld County Public Works Department for the designated haul route. The improvements agreement shall include the portion of the haul route to be upgraded, paving and shouldering from the pit entrance south to the existing asphalt section, and any overlay and shouldering requirements on Weld County Roads 18 and 25 as determined by the Department of Public Works to accommodate the proposed heavy hauling. The improvements agreement shall address the proportional cost share based on truck traffic to Weld County Roads 18 and 25. The improvements include a school bus pull-off, the widening of Bridge 25/18A, a right turn lane (free right) onto the acceleration lane at U.S. Highway 85, and turning radii at intersections associated with the gravel pits. Engineering design and construction plans shall be the responsibility of the gravel haulers. Construction drawings shall be provided by the applicant with approval by the Weld County Department of Public Works. Address upon completion J, The applicant shall enter into an Improvements Agreement According to Policy Regarding Collateral for Improvements (Private Road Maintenance) and post adequate collateral for transportation and landscaping requirements. The agreement and form of collateral shall be reviewed by County staff and accepted by the Weld County Board of Commissioners prior to recording the plat. The improvements agreement and collateral shall address the installation of pavement or concrete for the approach road for the office/scale house to Weld County Road 25 and a small parking area to handle dust control from the gravel pit. Address upon completion K. The applicant shall address the requirements and concerns of the Weld County Sheriff's Office as stated in the referral received September 13, 2003. Written evidence of such shall be provided to the Department of Planning Services. Correspondence dated February 11, 2004 was sent to the attention of Mr. Dave Tuttle of the Weld County Sheriffs Office, addressing their concerns regarding crime prevention and damage from stray gravel. As no written response was received from the Sheriffs Office, and follow up telephone messages likewise elicited no response, it is assumed that the solutions proposed in the February 11 letter adequately addressed these concerns. L. The applicant shall apply and receive approval for a Flood Hazard Development Permit for any buildings and stockpiling of materials. An application for a Flood Hazard Development Permit was filed in October 2003, and was granted by the Weld County Department of Planning Services on [insert date] — we are currently working to obtain a copy of this approval from the county and will include as Appendix L. M. The applicant shall address the requirements of the Department of Planning Services as stated in the landscape referral received September 15, 2003. Written evidence of such shall be submitted to the Department of Planning Services. N. The applicant shall submit a revised Landscape Buffer and Screening Plan identifying the number, size, and species of all plant material to the Department of Planning Services for review and approval. This plan shall include specifications of any proposed berms. The berms should be a minimum 4:1 slope as recommended in the referral from the Platte Valley Soil Conservation District, as received September 9, 2003. Any berm placed in the 100-year floodplain of the South Platte River cannot obstruct passage of flood flows. The applicant shall use breaks in the berm, with landscaping to fill the void, culverts, or some other method that will allow water to flow freely. A new Landscaping Plan has been submitted to the Department of Planning Services for review. [Complete when approved] The concerns relating to berm slopes have been addressed in the February 11, 2004 letter to the Platte Valley Soil Conservation District (PVSCD), in which it was explained that 2:1 berm slopes are standard practice in the mining industry and have proven adequate for establishing vegetation. See Appendix B for a copy of this correspondence. No objections to this alternate proposal have been lodged by the PVSCD, and Applicant requests that the Department of Planning Services consider this condition fulfilled for purposes of recording the final plat for this application. Breaks have been incorporated into the berm design. Please see the Reclamation Plan drawings for details. O. Applicant shall provide an approved copy of a Temporary Substitute Water Supply Plan from the Colorado Division of Water Resources or a court-approved Water Augmentation Plan to the Department of Planning Services. Address upon completion P. The applicant shall provide evidence that the existing irrigation well (Permit#20136) on the property has been permitted for use for the processing facilities, batch plant, and employees of the mining operation. Address upon completion Q. The plat shall be amended to delineate the following: 1. The plat shall be in accordance with Section 23-2-260.D of the Weld County Code. 2. The attached Development Standards. 3. The location of any on-site signs. These amendments have been completed. Please see plat drawings enclosed. Should you have any questions or concerns regarding the enclosed documents or the status of any of the items above, please contact either Wade Jensen of Banks and Gesso at (303) 274-4277, or myself at (303)534-1040. Thank you for your time and consideration. Sincerely, Ginny Duncan Southwestern Investment Group APPENDIX B CORRESPONDANCE WITH PLATTE VALLEY SOIL CONSERVATION DISTRICT NM Banks and Gesso, LLC 720 Kipling St.,Suite117 Lakewood, Colorado 80215 (303) 274-4277 Fax (303) 274-8329 www banksandgesso.com February 11, 2004 Platte Valley Soil Conservation District Attn: Norman J. Wells, Jr. 57 West Bromley Lane Brighton, CO 80601 RE: Referral Comments to Weld County for USR-1444; Heit Sand and Gravel Mine Dear Mr. Wells, On January 6, 2004, the Weld County Board of County Commissioners approved the above referenced USR application for a sand and gravel mine in southern Weld County. Condition of Plat Recordation 2.8 requests that the Applicant try to satisfy the concerns of the Platte Valley Soil Conservation District as outlined in your referral letter to the County, dated August 28, 2003. Please allow this correspondence to serve as our attempt to address those concerns. Your first concerns were regarding the slope of the temporary topsoil berms. While the 4:1 slopes would likely be ideal, such slopes would create a berm configuration that would severely encroach into the mine area and decrease the amount of water storage capacity for the end-use. Standard practice on mine sites throughout the state has shown that 2:1 side slopes on the berms is adequate for establishing temporary stands of vegetation and we hope that such a slope will be acceptable to you. The Applicant is obligated under the terms of the MLRB permit to reseed the stockpiles immediately following completion of the berms, as requested. Your second concern dealt with two aspects of the reclamation procedures to be followed on site. The first was in regards to topsoil placement and the second was in regards to seed applications. Based on your recommendations the Applicant will replace topsoil in lifts not to exceed 4-inches and soil will be tested for determination of whether fertilizer will be needed. The revised seeding rates provided in your letter will also be used, along with the recommended seed and mulch application practices. Your third concern was for the potential wetlands area in Mine Area 2, which was located in the northwest corner of the site. During the course of the state and county permitting process, mining of that 7-acre area was withdrawn from consideration. Thus, the wetlands concerns have been adequately addressed. Your final concern was in regards to dust control at the site. You recommended water applications to the work area to help reduce and control soil erosion during windy conditions. The Applicant is also applying for an Air Pollution Emission Notice (APEN) permit from the Colorado Department of Public Health and Environment, Air Quality Control Division, which will regulate the amount of dust from wind erosion that is permitted to be emitted from the site. One of the standard methods of dust control that is applied to sand and gravel mines is the use of water trucks, spray bars, and other means to keep open work areas moist and erosion due to wind at a minimum. These methods are being incorporated into the APEN application. The Applicant will be utilizing water applications in the work area, as requested. We thank you for your comments on this project. If the explanations provided herein meet with your satisfaction, we would appreciate a letter stating such. If you still have additional concerns about this permit, we would also like to know them so that we may continue to try to adequately address them. Should you have any questions, please feel free to contact me at 303-274-4277. Thank you. Si cerely, in Banks and Gesso, LLC APPENDIX C COLORADO DEPT. OF HEALTH & ENVIRONMENT CONSTRUCTION EMISSIONS PERMIT SAida - Cup 1:L i 1v2 a 19-Zurwt iS Scarivtad t4 OL{CC) — to corK �u_c t -FnQ.clut. i{ cacti_ u � §E5 Banks and Gesso, LLC 720 Kipling St.,Suite117 ■■ Lakewood, Colorado 80215 (303)274-4277 Fax (303)274-8329 www.banksandgesso.com May 19, 2004 SW Meadow, LLC Attn: Ginny Duncan 333 W. Hampden Ave., Suite 810 Englewood, CO 80110 RE: Heit Sand and Gravel Mine—Air Permit Dear Ginny: We received a fax from Melissa Mellett of your office last week regarding the Heit air permit, and I wanted to clarify for you what this packet means. The Heit air permit was issued on May 5, 2004 as an "Initial Approval" (see attached Construction Permit No. 04WE0266F). This is typical, and means that you are authorized by the State Air Pollution Control Division to begin site disturbance as long the operator meets all permit conditions and follows the dust control plan included with the permit. Note especially that SW Meadow or the operator must notify the State at least 30 days prior to commencement of site disturbance, and finalize the permit within 180 days of commencement. A packet containing "Instructions for Obtaining Final Approval of the enclosed Initial Approval Construction Permits"was included along with the permit approval. SW Meadow or the operator must certify that they have met all permit conditions, and submit this document package to the State within 180 days of start-up before the final permit will be issued. With regard to the Weld County plat recordation requirements, this "Initial Approval"will satisfy both the air permit and fugitive dust control plan requirements. When plat recordation requirements are met, this information should be included and submitted with the other required documents. Please let me know if you have any questions. Thank you. Sincerely, Maureen Jacoby attachments: Construction Permit No. 04WE0266F, dated May 5, 2004 "Instructions(or Obtaining Final Approval of the enclosed Initial Approval Construction Permits" Mav 11 2004 3: 07PM No. 2183 P. 10 STATE OF COLORADO .0V-CO COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT AIR POLLUTION CONTROL DIVISION �� 7 �,t TELEPHONE:(303)6924150 •5, /+ •476• CONSTRUCTION PERMIT PERMIT NO: 04WE0266F INITIAL APPROVAL DATE ISSUED: MAY 5, 2004 ISSUED TO: SW Meadow, LLC THE SOURCE TO WHICH THIS PERMIT APPLIES IS DESCRIBED AND LOCATED AS FOLLOWS: Sand and gravel pit, known as Heit Sand & Gravel Mine, located in the South Y. of the Northeast Y.of Section 13,Township 2 North, Range 67 West, in the Northwest quadrant of the intersection of Weld County Road 25 and Weld County Road 20 Y., in Weld County, Colorado. THE SPECIFIC EQUIPMENT OR ACTIVITY SUBJECT TO THIS PERMIT INCLUDES THE FOLLOWING: Sand and gravel extraction, handling, stockpiling,and on-site vehicular traffic. THIS PERMIT IS GRANTED SUBJECT TO ALL RULES AND REGULATIONS OF THE COLORADO AIR QUALITY CONTROL COMMISSION AND THE COLORADO AIR POLLUTION PREVENTION AND CONTROL ACTC.R.S.(25-7-101 et sea),TO THOSE GENERAL TERMS AND CONDITIONS INCLUDED IN THIS DOCUMENT AND THE FOLLOWING SPECIFIC TERMS AND CONDITIONS: 1. This permit shall expire if the owner or operator of the source for which this permit was issued: (i) does not commence construction/modification or operation of this source within 18 months after either the date of issuance of this initial approval permit or the date on which such construction or activity was scheduled to commence as set forth in the permit application associated with this pennifi (ii)discontinues construction for a period of eighteen months or more; (iii)does not complete construction within a reasonable time of the estimated completion date(See General Condition No.6., Item 1.).The Division may grant extensions of the deadline per Regulation No. 3, Part B, IV. G.4. b. (Reference: Regulation No.3, Part B, IV.G. 4.) 2 Within one hundred and eighty days(180)after commencement of operation,compliance with the conditions contained on this permit shall be demonstrated to the Division. It is the permittee's responsibility to self certify compliance with the conditions. Failure to demonstrate compliance within 180 days may result in revocation of the permit (Information on how to certify compliance was mailed with the permit) • 3. The particulate emission control measures listed on the attached page(as approved by the Division)shall be applied to the particulate emission producing sources as required by Regulation No. 1, Section III. D. 1. b. AIRS PT ID: 123/4463/001 �,�� May . 11 . 2004 3 : 07PM No . 2183 P . II SW Meadow, LLC -Heit Sand &Gravel Mine Permit No. 04WE0266F Initial Approval Colorado Department of Public Health and Environment page 2 Air Pollution Control Division 4. This source shall be limited to a maximum production rate as listed below and all other activities, operational rates and numbers of equipment as stated in the application. Daily records of the actual production rate shall be maintained by the applicant and made available to the Division for inspection upon request. (Reference: Regulation No. 3, Part B, Ill.A 4.) Extraction of sand and gravel shall not exceed 5,000 tons per day and 500,000 tons per year 5 Emissions of air pollutants shall not exceed the following limitations(as calculated in the Division's preliminary analysis): (Reference' Regulation No. 3, Part B, III.A.4.) Particulate Matter-Fugitive: 28.9 tons per year. PM10(Particulate Matter<10 µm) -Fugitive: 7.4 tons per year Compliance with the fugitive particulate matter emission limits shall be demonstrated by not exceeding the production limits, and by the application of the control measures. 6. This permit is for mining related activities only, any process equipment(i.e. crushers, screens, etc.)to be located at this site must have a separate permit from the Division (Reference' Regulation No.3, Part B, IV E.) 7. A Revised Air Pollutant Emission Notice(APEN)shall be filed: (Reference' Regulation No, 3, Part A, II. C) a. Annually whenever a significant increase in emissions occurs as follows: For any criteria pollutant: For sources emitting less than 100 tons per year,a change in actual emissions of five tons per year or more,above the level reported on the last APEN submitted. b. Whenever there is a change in the owner or operator of any facility, process, or activity;or c. Whenever new control equipment is installed, or whenever a different type of control equipment replaces an existing type of control equipment or d. Whenever a permit limitation must be modified;or e. No later than 30 days before the existing APEN expires. Ali, Barn N.Seetharam R and C. Flea, P.E. Permit Reviewer Unit Leader "Inn May . 11 . 2004 3 : 07PM No. 2183 P . 12 SW Meadow, LLC -Heft Sand &Gravel Mine Permit No. O4WEO266F Initial Approval Colorado Department of Public Health and Environment page 3 Air Pollution Control Division Notes to Permit Holder 1) The production and emission limits contained in this permit are based on those requested in the permit application. These limits may be revised upon request of the permittee providing there is no exceedance of any specific emission control regulation or any ambient air quality standard A revised air pollution emission notice(APEN)and application form must be submitted with a request for a permit revision 2) This source is classified as a' Minor Source At a: Minor Facility 3) The emission levels contained in this permit are based on the following emission factors: Particulate Matter- Fugitive: 0.1153 pound per ton sand and gravel,controlled PMro(particles less than 10 microns)-Fugitive: 0.0294 pound per ton sand and gravel,controlled May . 11 . 2004 3 : 07PM No. 2183 P. 13 SW Meadow, LLC -Heit Sand &Gravel Mine Permit No. 04WE0266F Initial Approval Colorado Department of Public Health and Environment page 4 Air Pollution Control Division PARTICULATE EMISSIONS CONTROL PLAN FOR MINING ACTIVITIES THE FOLLOWING PARTICULATE EMISSIONS CONTROL MEASURES SHALL BE USED FOR COMPLIANCE PURPOSES ON THE ACTIVITIES COVERED BY THIS PERMIT,AS REQUIRED BY THE AIR QUALITY CONTROL COMMISSION REGULATION NO 1, Section III. D. 1 b. THIS SOURCE IS SUBJECT TO THE FOLLOWING EMISSION GUIDELINES a. Mining Activities -Visible emissions not to exceed 20%, no off-property transport of visible emissions. b. Haul Roads-No off-property transport of visible emissions shall apply to on-site haul roads,the nuisance guidelines shall apply to off-site haul roads.. c. Haul Trucks-There shall be no off-property transport of visible emissions from haul tricks when operating on the property of the owner or operator. There shall be no off-vehicle transport of visible emissions from the material in the haul trucks when operating off of the property of the owner or operator. Control Measures 1. Adequate soil moisture must be maintained iri topsoil and overburden to control emissions during removal. Watering shall be implemented if necessary 2. Topsoil and overburden stockpiles shall be compacted and revegetated within one year 3 Emissions from material handling (i.e. removal, loading, and hauling)shall be controlled by watering at all times unless natural moisture is sufficient to control emissions. 4. Vehicle speed on unpaved roads and disturbed areas shall not exceed a maximum of 30 rap.h. Speed limit signs shall be posted.. 5. Unpaved haul roads shall be graveled,treated with chemical stabilizer(as recommended by the supplier), and frequently watered to control fugitive particulate emissions 6. Reclamation works and sequential extraction of material shall be initiated to keep the total disturbed areas at any one time to a minimum May . TI . 2004 3 :O8PM Nio. 2' 83 P. I4 SW Meadow, LLC-Heit Sand& Gravel Mine Permit No. 04WE0266F Initial Approval Colorado Department of Public Health and Environment page 5 Air Pollution Control Division GENERAL TERMS AND CONDITIONS: (IMPORTANT! READ ITEMS 5,6J AND 8) 1. This permit is issued in reliance upon the accuracy and completeness of information supplied by the applicant and is conditioned upon conduct of the activity,or construction,installation and operation of the source,in accordance with this information and with representations made by the applicant or applicant's agents. It is valid only for the equipment and operations or activity specifically identified on the permit 2 Unless specifically stated otherwise,the general and specific conditions contained in this permit have been determined by the APCD to be necessary to assure compliance with the provisions of Section 25-7- 114.5(7)(a).C.R S 3. Each and every condition of this permit is a material part hereof and is not severable. Any challenge to or appeal of,a condition hereof shall constitute a rejection of the entire permit and upon such occurrence,this permit shall be deemed denied ab initao. This permit may be revoked at any time prior to final approval by the Air Pollution Control Division(APCD)on grounds set forth in the Colorado Air Quality Control Act and regulations of the Air Quality Control Commission(AQCC),including failure to meet any express term or condition of the permit If the Division denies a permit conditions imposed upon a permit are contested by the applicant,or the Division revokes a permit,the applicant or owner or operator of a source may request a hearing before the AQCC for review of the Division's action. 4. This permit and any required attachments must be retained and made available for inspection upon request at the location set forth herein. With respect to a portable source that is moved to a new location,a copy of the Relocation Notice(required by law to be submitted to the APCD whenever a portable source is relocated)should be attached to this permit. The permit may be reissued to a new owner by the APCD as provided in AQCC Regulation No.3,Part B, Section III.B.upon a request for transfer of ownership and the submittal of a revised APEN and the required fee. 5 Issuance(initial approval)of an emission permit does not provide"final"authority for this activity or operation of this source. Final approval of the permit must be secured from the APCD in writing in accordance with the provisions of 25-7-114.5(12)(a)C.R.S.and AOCC Regulation No.3,Part B,Section IV. H. Final approval cannot be granted until the operation or activity commences and has been verified by the APCD as conforming in all respects with the conditions of the permit. If the APCD so determines,it will provide written documentation of such final approval,which does constitute"finer authority to operate. Compliance with the permit conditions must be demonstrated within 180 days after commencement of operation. 6. THIS PERMIT AUTOMATICALLY EXPIRES IF you(1)do not commence construction or operation within 18 months after either the date of issuance of this permit or the date on which such construction or activity was scheduled to commence as set forth in the permit,whichever is later;(2)discontinue construction for a period of 18 months or mere;or(3)do not complete construction within a reasonable time of the estimated completion date. Extensions of the expiration date may be granted by the APCD upon a showing of good cause by the permitee pilot to the expiration date. 7. YOU MUST notify the APCD at least thirty days(fifteen days for portable sources)prior to commencement of the permitted operation or activity. Failure to do so is a violation of Section 25-7- 114.5(12)(a),C.R.S.and AQCC Regulation No.3,Part B.Section IV. H. 1„and can result in the revocation of the permit. You must demonstrate compliance with the permit conditions within 180 days after commencement of operation as stated in condition 5. 8. Section 25-7-114.7(2)(a),C.R.S.requires that as sources required to file an Air Pollution Emission Notice (APEN)must pay an annual fee to cover the costs of inspections and administration. If a source or activity is to be discontinued,the owner must notify the Division in writing requesting a cancellation of the permit. Upon notification,annual fee billing will terminate.. 9. Violation of the terms of a permit or of the provisions of the Colorado Air Pollution Prevention end control Act or the regulations of the AQCC may result in administrative,civil or criminal enforcement actions under Sections 25-7-115(enforcement),-121 (injunctions),-122(civil penalties),-122.1 (criminal penalties), C.R.S APPENDIX D COLORADO DEPT. OF HEALTH & ENVIRONMENT DISCHARGE PERMIT APPENDIX F CORRESPONDANCE WITH WELD COUNTY REGARDING UIC CLASS V INJECTION WELL PERMIT RN Banks and Gesso, LLC 720 Kipling St.,Suite117 NMLakewood, Colorado 80215 (303) 274-4277 Fax (303) 274-8329 www.banksandgesso.com February 11, 2004 Weld County Planning Services Attn: Chris Gathman 1555 N. 171"Ave. Greeley, CO 80631 RE: Weld County USR Permit #1444 SW Meadow, LLC, Heit Sand and Gravel Mine Dear Chris, As you know, the Board of County Commissioners approved the above referenced USR permit on January 7, 2004 with conditions. One condition that must be met prior to SW Meadow LLC recording the plat dealt with the need for an Underground Injection Control (UIC) Class V Injection Well Permit for any vehicle maintenance facility with a floor drain that may be located on the site. SW Meadow LLC has no plans to erect a vehicle maintenance facility on the site at this time. We therefore request that the Department of Planning Services consider this condition satisfied for the purposes of recording the final plat for this permit application. If the need for a vehicle maintenance facility arises at a future date, SW Meadow LLC commits to obtaining the proper permits for any floor drain that my be utilized in the maintenance building. We hope to have the remaining pre-plat conditions resolved in the very near future and will forward the remaining information to your office at a later date. If you have any questions about the request discussed or would like to discuss it further, please don't hesitate to contact me at 303-274-4277. Thank you. Sincerely, (-1/2- Tug Banks & Gesso, LLC APPENDIX K CORRESPONDANCE TO WELD COUNTY SHERIFF •R Banks and Gesso, LLC 720 Kipling St.,Suite117 allLakewood, Colorado 80215 (303) 274-4277 Fax (303) 274-8329 www.banksandgesso.com February 11. 2004 Weld County Sheriff's Office Attn: Dave.Tuttle 1950 O Street Greeley, CO RE: Weld County USR Permit#1444 SW Meadow, LLC, Heil Sand and Gravel Mine Dear Mr. Tuttle: We appreciate your referral comments dated September 13, 2003 regarding the above .referenced USR permit application, which was approved by the Weld County Board of County Commissioners on January 7, 2004. The Board has placed several conditions on the permit that must be met prior to the Applicant being able to record the final plat with the County. One of those conditions of plat recordation requests that we address your concerns as outlined in your letter. Please know that the Applicant agrees to carry out the recommendations outlined in your memo. Loaded haul trucks leaving the site will be covered, per State law, and the access road will be paved a minimum of 300-feet inward from the access point onto Weld County Road 25. Lastly, the Applicant would also be interested in any additional information you can forward regarding the "Crime Prevention Through Environmental Design"program offered by your office. Where possible, any design standards recommended through the program will be incorporated into the finalized landscape plan that is required by the County. If this correspondence sufficiently addresses your concerns, we would greatly appreciate a written response from your office indicating such so that we can move forward with the plat recordation process. If you have additional concerns or feel that the items addressed herein require further discussion, please don't hesitate to contact me at 303-274-4277. We thank you for your attention to this matter. Si cerely, Tug Martin Banks and Gesso, LLC APPENDIX L FLOOD HAZARD DEVELOPMENT PERMIT • 00/10/04 14:13 FAX 070 304 1 I WELD PLANNING 002 .‘8C1(41P VI Department of Planning Services Flood Hazard Development Permit COLORADO Administrative Review Applicant Heit Farm LTD. Case Number.FHDP-459 Planner: CG Legal Description: part of the N2 SE4 of Section 13,T2N, R67W of the 6tli P.M.,Weld County,Colorado Parcel Identification 1311 13 001002 Number: Firm Map Number. 080266 0868 C Sltus: ,Greeley,CO 80631 • Permit is approved-The plans and materials submitted In support of the proposed development are In compliance with the applicable floodplaln management standards In the Weld County Zoning Ordinance. Permit IS conditionally approved. Provided the conditions of approval are met,the plane and X materials submitted in support of proposed development will comply with the applicable flaodplein management standards in the Weld County Zoning Ordinance. Permit is denied. The proposed development is not In Ordinance conformance(explanation with attachable floodplaln management standards In the Weld County Zoning Variance is required. The proposed development will require approval of a variance by the Board of Adjustment is the applicant wishes to proceed with construction. Please call the Department of Planning Services to discuss the appropriate application materials needed to apply for a variance. Request for a Flood Hazard Development Permit for a sand and gravel mining operation, asphalt, and concrete processing plant as approved under USR-1444. Conditions of Approval! Build g ection trnent 1. The statedpinnicant shall address the concerns of the Weld the referral response recetved February 5,2004. Evidence�off such shall be ubmitted In writing to the Weld County Department of Planning Services. 2. Thai Stalplain ppl of policy(ca system t d). Inacwdancewl htheColomrado It comply.Regulations,Ino County systems shall be Installed within the floodway. • •08/14/04 14: 13 FAX. 070 304 8 WELD PLANNING a 003 Installation of utilities shall comply with the conditions gated In the Flood Hazard Development Permit Certificate. 4. Construction shall comply with all requirementslcondftlons of the Weld County Building Code- 6. All proposed or existing structures will or Iddo meet the minimum setback and offset requirements for the zone district In which the property 6. My future structures or uses on site must obtain the appropriate zoning and building permits. 7. Prior to the demolition of anystructure,the applicant criall obtaIn anyrequired demolition permits from the Weld County Building inspection Department and conduct any asbestos related inspections as required by Regulation 8 of the Colorado Air Quality Control Commission. d ch Marsh 25.2004 Chris Gethman, Planner II Date Hello