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HomeMy WebLinkAbout20033399 STATE OF COLORADO UNIFORM COMMERCIAL CODE—SECURITY AGREEMENT Tire Mountain, Inc. , Jarrald A. Jamison and Debtor Name: a Colorado corporation Faye L. Jamison _ (Enact Legal Name Required) Address: 15721 WCR 10 Fort Lupton CO 80621 Residence: State Na Street City 12311 WCR 41 Hudson CO 80642 Business: State No. Street Cup Colorado Department of Public Health and Environment, Secured Party: Hazardous Materials and Waste Management Division, Name: a Regulatory Agency of the State of Colorado 4300 Cherry Creek Drive South Denver CO 80246-1530 Address: No. Street City State Debtor, for consideration,hereby grants to Secured Party a security interest in the following property and any and all addi- tions, accessions and substitutions thereto or therefor(hereinafter called the"COLLATERAL"): Merrill Lynch Account 416-10122 (Merrill Lynch Collateral Account Control Agreement) • To secure payment of'theiltdebteduess evidenced-by- te1TatiTpfb55Scsi5ry note GreTti dale faVitli. TnyabterttiCSec'6Fettafi ,-or ade7,asTolrows- for closure and post-closure in connection with Debtor's obligation demonstrated by financial responsibility under Section 1.8.9 of the regulations pertaining'to solid- waste disposal sites and facilities (6 CCR 1007-2) , as amended. The preliminary financial assurances worksheet is attached as Exhibit "A". DEBTOR EXPRESSLY WARRANTS AND COVENANTS: I. That except for the security interest granted hereby Debtor is, or to the extent that this agreement states that the Collateral is to be acquired after the date hereof,will be,the owner of the Collateral free from any adverse lien.security inter- est or encumbrances; and that Debtor will defend the Collateral against all claims and demands of all persons at anytime claiming the same or any interest therein. 2. The Collateral is used or bought primarily for: O Personal,family or household purposes; ❑ Use in farming operations; 3 Use in business. 3. That Debtor's residence,state of organization or chief executive office is as stated herein. and the Collateral will be kept at Merrill Lynch in accordance with a Collateral Account Control Agreement attached hereto as Exhibit "B" . No.and Street City County • State 4—.1.f-any.of-the.Collateral-is-oilygas;eerninerefste,be-retncted-or-timberrvbe-cvrorgtmdrtcltirtra ear 5rZTo become -fiemres--saltt-Cottateral-Conrerns TFe Tolrow5ng aescn6errear estate situate in the County -ot an33T3[e oltoTorado,to wit: CM1.-x2-k1- 10- qt a/1 w�-¢— Iafa003 No.LTC 1205. Rev.8-01.8- UNIFORM COb11IERCIAL CODE—SECURITY AGREENIENT r U p Bradford Publishing,1743 Wazee St..Denver,CO 80202-(303)29'_2500—www.bradtordpublishing.com—1-03 c oc33 — 19 Roct5" 5. Promptly to notify Secured Party of any change in the location of the Collateral. 6. To pay all taxes and assessments of every nature which may be levied or assessed against the Collateral. 7. Not to permit or allow any adverse lien,security interest or encumbrance whatsoever upon the Collateral and not to permit the same to be attached or replevined. 8. That the Collateral is in good condition, and that Debtor will, at Debtor's own expense. keep the same in good condition and from time to time, forthwith,replace and repair all such parts of the Collateral as may be broken. worn out, or damaged without allowing any lien to be created upon the Collateral on account of such replacement or repairs, and that the Secured Party may examine and inspect the Collateral at any time,wherever located. 9. That Debtor will not use the Collateral in violation of any applicable statutes,regulations or ordinances. 10. The Debtor will keep the Collateral at all times insured against risks of loss or damage by fire(including so-called extended coverage),theft and such other casualties as the Secured Party may reasonably require.including collision in the case of any motor vehicle,all in such amounts,under such forms of policies,upon such terms,for such periods,and written by such companies or underwriters as the Secured Party may approve, losses in all cases to be payable to the Secured Party and the Debtor as their interest may appear.All policies of insurance shall provide for at least ten days'prior written notice of cancel- lation to the Secured Party;and the Debtor shall furnish the Secured Party with certificates of such insurance or other evidence satisfactory to the Secured Party as to compliance with the provisions of this paragraph.The Secured Party may act as attor- ney for the Debtor in making,adjusting and settling claims under or cancelling such insurance and endorsing the Debtor's name on any drafts drawn by insurers of the Collateral. UNTIL DEFAULT Debtor may have possession of the Collateral and use it in any lawful manner, and upon default Secured Party shall have the immediate right to the possession of the Collateral. DEBTOR SHALL BE IN DEFAULT under this agreement upon the happening of any of the following events or con- ditions: (a) default in the payment or performance of any obligation,covenant or liability contained or referred to herein or in any note evidencing the same; (b) the making or furnishing of any warranty,representation or statement to Secured Party by or on behalf of Debtor which proves to have been false in any material respect when made or furnished; (c) loss, theft, damage, destruction, sale or encumbrance to or of any of the Collateral, or the making of any levy seizure or attachment thereof or thereon; (d) death,dissolution,termination of existence,insolvency,business failure,appointment of a receiver of any part of the property of, assignment for the benefit of creditors by,or the commencement of any proceeding under any bankruptcy or insolvency laws of,by or against Debtor or any guarantor or surety for Debtor. UPON SUCH DEFAULT and at any time thereafter, or if it deems itself insecure, Secured Party may declare all Obligations secured hereby immediately due and payable and shall have the remedies of a secured party under Article 9 of the Colorado Uniform Commercial Code. Secured Party may require Debtor to assemble the Collateral and deliver or make it available to Secured Party at a place to be designated by Secured Party which is reasonably convenient to both parties. Expenses of retaking, holding, preparing for sale, selling or the like shall include Secured Party's reasonable attorney's fees and legal expenses (including the allocated fees and expenses of in-house counsel) and such portion of the Secured Party's overhead as it may in its reasonable judgment deem allocable to and includable in such expenses. No waiver by Secured Party of any default shall operate as a waiver of any other default or of the same default on a future occasion. The taking of this Security Agreement shall not waive or impair any other security Secured Party may have or hereafter acquire for the payment of the above indebtedness, nor shall the taking of any such additional security waive or impair this Security Agreement;but Secured Party may resort to any security it may have in the order it may deem proper.and notwithstanding any collateral security.Secured Party shall retain its rights of set-off against Debtor. All rights of Secured Party hereunder shall inure to the benefit of its successors and assigns: and all promises and duties of Debtor shall bind Debtor's heirs,executors or administrators or Debtor's successors or assigns. If there be more than one Debtor, their liabilities hereunder shall be joint and several. Dated: October , 2003 Debtor: Tin Mountain, Inc. By: ,�„` ��� �, Colorado Ste; afr • • . n115O `�•resi, en Debtor's stale of organisation.or if not a registered orcmivmion.chief executive officer • a a a, •v Debtor's State Identification No. Fay- .Ja i-r No.OCC 1205. (Page 21 TIRE MOUNTAIN, INC. Cost Calculation For Dirt Cover At Closure Prepared Aug. 15, 2003 by LaVern C. Nelson, P.E. I. The area of tire surface to be covered at final closure, assuming all planned and existing tire storage pits are filled to four feet above adjacent ground utilizing a 1:1 slope for tires above the adjacent ground, is as follows: Cell Design Cell Filled Surface Area Number Surface Dimension Dimension Filled (sq.ft.) of Cells Area (sq.ft.) 102' x 250' 105' x 253' 26,565 55 1,461,075 102' x 305' 105' x 308' 32,340 18 582,120 102' x 285' 105' x 288' 30,240 1 30,240 102' x 220' 105' x 223' 23,415 1 23,415 50' x 305' 53' x 308' 16,324 • ] 16 324 76 2,113,174 2. The volume of earth to be moved to cover tire surface with 2 feet of dirt assuming a shrinkage factor of 25% is: 2,113,174 sq.ft. x 2 ft. x 1.25/27cu.ft. per cu.yd. = 195,664 cu.yd. 3. The cover dirt availability for final cover using dirt from the 50-foot wide fire lanes is: The total length of fire lanes upon completion of all cell filling is 38,627 feet. Required end area of fire lane excavation is: 195,664 cu.yd. x 27/38,627 = 136.77 sq.ft. At a 4-foot depth of fire lane excavation, the average width of excavation is: 136.77 sq.ft./4 ft. = 34.19 feet. 34.19 ft. =top width+ (top width—16 ft*)/2; then w*= 34.19 x 2 +16/2=42.19 ft. *Using 2:1 slope in excavation and w representing top width EXHIBIT "A" - Thus the dirt available in the built-up fire lanes is totally adequate for final cover. 4. The original design height of fire lanes is seven (7)feet. The top four(4) feet of that 7-foot embankment would be used to provide the desired cover over the stored tires. Based upon the 4-foot depth of cut and the calculated 136.71 sq.ft. end area, the top width (w)of the fire lane excavation, as shown above, is 42.19 feet and the bottom width is 42.19 ft.- 16 ft. = 26.19 ft. when cut to the prescribed 2:1 side slopes. A 3.9-foot horizontal ledge remains at each side of the excavated fire lane which will be the support or base for the tire cover dirt that is to be placed on the sloped tire pile. 5. The foregoing analysis shows at completion of all tire cells (at an estimated 10 years hence),that among the other detailed calculations, the total earthwork yardage needed to cover all cells with 2 feet of dirt is 195,664 cu. yds. and that there are a total of 76 tire cells planned for that time. Thus the average dirt volume required to cover each tire cell is 195,664 cu.yd./76 cells or 2,574.5 cu.yd. per cell. 6. The cost to move the soil from the adjacent fire lanes onto the stored tires is based upon the estimated cost of a bulldozer at year 2003. That cost is $1.70 per cu. yd. according to the letter quote given to the Colorado Department of Health and Environment by Mountain Constructors dated July 7, 2003. A copy of that letter is attached hereto. Therefore,the estimated average cost for dirt moving to cover each cell is 2,574.5 cu.yd. x $1.70 = $4,376.65, say$4,377. There are presently 42 cells filled and 4 in the working stage for a total of 46 cells that would be covered now should closure occur at this time. The total cost for dirt cover and closure of 46 cells at year 2003 is estimated as follows: Dirt Cover 46 cells x $4,377= $201,342 Supervision 3,500 Miscellaneous 3 000 Total Cost $207,842 7. The cost for tire cell cover and supervision and miscellaneous in future years can be adjusted for inflation by using the implicit price deflator or its successor published by the U. S. Department of Commerce, or other mutually agreeable inflation factor. The adjusted cost for dirt cover can be applied to the number of actual cells to be covered. The total cost in future years an be determined by adding the adjusted cost of supervision and miscellaneous to the calculated dirt cover cost as is appropriate for each succeeding year. I, • July 7, 2003 Mr. Glenn F. Mallory Solid Waste Unit, Compliance Program Hazardous Materials and Waste Management Division Colorado Department of Health and Environment 4300 Cherry Creek Dr. S. Denver, CO 80246-1530 RE: Amended USR-842 (Tire Mountain) Financial Assurances for fire fighting and final closure. This letter is to confirm our availability to perform emergency work, such as fire fighting and dirt replacement as a result of its use for temporary cover to smother fire and to cover filled tire pits are to be filled to grade with soil at that same time. A Caterpillar D7 and a Caterpillar 623 Scraper is available for emergency dirt movement. The Caterpillar D7 is available for final cover that is anticipated in 2023, which is 20 years hence. In an emergency such as a fire, the dozer will be used to push dirt over the tires from the adjacent fire lanes while the scraper will be used to replace the used fire lane dirt from the available dirt replacement locations as shown on the plans. For final cover in 2023, the dozer will be used to push dirt from the existing fire lanes onto the top of the tires. It is estimated that the dozer has a production rate of about 76 cubic yards per hour. At its current rate of $130.00 per hour, the cost of material moved is $1.70 per cubic yard. It is estimated that the scraper has a production rate of about 90 cubic yards per hour. At its current rate of $150.00 per hour, the cost of material moved is $1.50 per cubic yard. The above rates are expected to rise as time passes due to inflationary,influences. Based upon an estimated inflation rate of 2% per year, the rate 20 years hence would be $158.47 per hour for the dozer and $193.17 per hour for the scraper. Based on that predicted cost for the dozer, the cost for moving cover dirt onto the tires in 2023 would be $2.09 per cubic yard. Costs for intervening years would be increased in accordance with the inflation rate for that time. Each here-in equipment hourly cost includes a qualified equipment operator. P.O. BOX 405 • PLATTEVILLE,COLORADO 80651-0405 • (970)785-6161 Page 2 Glenn Mallory Since the work anticipated by this letter may be as much as 20 years hence, no confirmation of actual equipment costs can be given for a time so far in advance. However, it is our best estimate of conditions and costs that can now be given. If you have any questions or require further information, please feel free to call. Sincerely, 9Oe frit'''15 Joe Kuntz President RCL_Th Corporate Sec (seal) • 1 C 1/ 7 • 7- 3-02: 5:43PM: ' Collateral Account Control Agreement Instructions: Complete Boxes A,B, C and Client and Creditor acknowledge that the following Names and Addresses and Sign Below assets are not covered by this Agreement even if shown, for information purposes, on a periodic 1.The Parties account statement for the Account, because Merrill The Parties to this agreement ("Agreement") are the Lynch is not the legal custodian of such assets: Client named below, the Creditor named below and money market deposit account (MMDA) balances, Merrill Lynch, Pierce, Fenner & Smith Incorporated shares of ML Ready Assets Trust, USA Government ("Merrill Lynch"). and USA Treasury money market funds and of the Merrill Lynch Institutional Funds, non-listed limited 2.The Pledged Account partnership interests, annuities and life insurance Box A contracts, and precious metals. Merrill Lynch will not Client has granted Creditor a security Interest in be responsible for assuring that any of these assets Merrill Lynch account 416-10122 are not acquired with assets from the Account. ("Account") pursuant to a separate Security 4 Client's Authority over the Account Agreement between Client and Creditor. Until Creditor delivers to Merrill Lynch a Notice of IfExclusive Control pursuant to section 6, Client will Client the hereby instructs tl be a new tLo account,transfer te have full authority to give instructions with respect to I MeMettre Lynch Account.o Acc the assets in the Account in regard to voting end other assets ll listed t Exhibit a a cash he The account unt rights, but will not have the authority to give any shall be maintained e a securities t] Pledged oa and entitlement orders with respect to, or terminate the will u titled o "mama rofe Client] Collateral Account, without written consent by Creditor. Client's Account for[Name of Creditor]." authority with respect to trading in the Account and Threceipt of income from the Account will be governed Creditor's e 's security o this Agreement stIn th cs uto perfect ygranting the by the completion of boxes B and C, which authority interest In the Account by granting Creditor may revoke at any time by written notice Creditor control over the Account; however, this delivered to Merrill Lynch. Agreement does not create Creditor's security interest in the Account inasmuch as Client and Creditor have a separate Security Agreement for that purpose. Box B Is Client permitted to trade In the Account? Client has not granted a security Interest In the Yes Oft Account to any party other than Creditor, except for If yes, except as otherwise provided in section 6, Merrill Lynch's broker lien referenced in section 7 and Merrill Lynch may comply with any trading Instructions any lien for service fees to an Investment Manager or from Client or the Investment Manager or Agent Agent named in Box B in section 4. Merrill Lynch has named below without further consent by Creditor. not entered into a Control Agreement with respect to the Account with any other party and agrees that it will Print name of Investment Manager or Agent not do so while this Agreement Is In effect. The designated by separate power of attorney or manager signing this Agreement on behalf of Merrill equivalent document on file with Merrill Lynch Lynch hereby represents, to the best of his or her knowledge,that no person other than Client,Creditor, Box C Merrill Lynch and any Investment Manager or Agent Is Client permitted to withdraw income? named in Box B in section 4 have any claim, lien or No interest in the Account or the assets in the Account. If yes, Client is authorized to receive all interest and regular cash dividends earned on assets In the All assets in the Account will be treated as financial Account monthly: • assets under Article 8 of the New York Uniform by check Commercial Code. or 416-37881 by transfer to account no. 3. Excluded Assets , ' 7- 3-O2: 5:43PM; If an Investment Manager or Agent is named In Box of Exclusive Control or any instructions received from B,Creditor agrees that the assets in the Account are any person Merrill Lynch reasonably believes subject to Client's agreement with such manager or represents Creditor. Merrill Lynch has no duty to agent and that periodic payment of normal advisory investigate whether Creditor is authorized under the and service tees from assets in the Account pursuant Security Agreement to give such Notice of Exclusive to such an agreement is permitted without consent of Control or such instructions. Creditor. Client hereby agrees to indemnify and hold harmless 5.Control by Creditor Merrill Lynch, its officers, directors, employees and Merrill Lynch agrees to comply with any instructions it agents,and any Investment Manager or Agent named receives from Creditor at any time to transfer, sell, In Box B in section 4, against claims, liabilities and redeem,close open trades or otherwise liquidate any expenses arising out of maintenance of the Account assets in the Account (including instructions to pursuant to this Agreement (including reasonable transfer assets directly to, or Into an account in the attorneys' fees), except if such claims, liabilities or name of, Creditor), without further consent by Client. expenses are caused solely by Merrill Lynch's or such All instructions to transfer assets from the Account manager's or agent's gross negligence or willful must be in writing. If Creditor is an entity, Merrill misconduct,respectively. Lynch is authorized to take instructions from any person Merrill Lynch reasonably believes represents Creditor hereby agrees to indemnify and hold Creditor. harmless Merrill Lynch, its officers, directors, employees and agents, and any Investment Manager 6.Notice of Exclusive Control or Agent named in Box B in section 4,against claims, Creditor may at any time deliver to Merrill Lynch a liabilities and expenses (Including reasonable "Notice of Exclusive Control"substantially in the form attorneys' fees) arising out of Merrill Lynch's of Exhibit B. Upon receipt of such notice by the compliance with any instructions from Creditor with manager of the Merrill Lynch office servicing the respect to the Account except if such claims,liabilities Account, Merrill Lynch will cease complying with or expenses are caused solely by Merrill Lynch's or trading instructions from, or on behalf of, Client with such manager's or agent's gross negligence or willful respect to the Account, cease distributing to Client misconduct,respectively. Interest and regular cash dividends earned on assets In the Account, and refuse to accept any other This Agreement does not create any obligations for instructions from Client Intended to exercise any Merrill Lynch except for those expressly set forth in authority with respect to the Account except upon this Agreement. Instruction of Creditor. 10.Termination;Survival 7.Priority of Creditor's Security Interest Creditor may terminate this agreement by written So long as this Agreement is in effect, Merrill Lynch notice to Merrill Lynch. Merrill Lynch may termi-hate subordinates in favor of Creditor any security interest, this agreement on thirty (30) days written notice to lien, or right of setoff it may have,now or in the future, Creditor and Client. Upon notification by Creditor to against assets in the Account, except Merrill Lynch Merrill Lynch that Creditor's security Interest in the may retain a prior lien on assets in the Account to Account has terminated, this Agreement will secure payment for assets purchased for the Account automatically terminate. Section 9, 'Responsibility and to collect normal commissions and service fees. and Protection of Merrill Lynch; will survive termination of this Agreement. B.Duplicate Statements end Confirmations Merrill Lynch will send Creditor duplicate copies of 11. Effect of Agreement periodic account statements and trade confirmations, Client and Creditor agree that this Agreement if any,contemporaneously with those sent to Client. supplements the applicable Merrill Lynch account agreement with respect to the Account, and any 9.Responsibility and Protection of Merrill Lynch related agreement if the Account is a managed Except for permitting a transfer of assets from the account under a Merrill Lynch advisory program with Account in violation of section 4,Merrill Lynch will a manager named in Box B,and that it does not not be liable to Creditor for complying with instruc- abridge any rights that Merrill Lynch might otherwise tions from Client that are received by Merrill Lynch have, except as provided in section 7. If there is any before Merrill Lynch receives a Notice of Exclusive inconsistency between this Agreement and such Control in accordance with section 6. Merrill Lynch Merrill Lynch account agreements this Agreement will will not be liable to Client for complying with a Notice control. The Parties also acknowledge that there are NOV-05-2003 14:15 MERRILL LYNCH MTN.DIST. 3036896093 P.07'26 no other understandings or agreements with Merrill No amendment of, or waiver of a right under, Ihie Lynch concerning the Account except for this AgrstomeM will be binding a eIt Is In writing end Agreement the Manta Lynch account agreements signedby Pb to be rtY and any agreement with an Investment Manager or Agent named in Box B to which Menili Lynch may be 14.Severability a party. To the ardent a provloien of this Agreement is unenforceable,this Agreement will be construed as It 12. Goverrdng law the unenforceable provision were omitted. This Agreement and the Account will be governed by the internal laws of the State of New York with 15.Successors and Assigns of Creditor respect to interpretation and enforcement.. A successor to or assignee of Creditor's rights and obligations tinder the Secutlty Agreement between 19.Amendments Creditor and Client will succeed to Creditors rights and obligations under this Agreement. SIGNATURES ADDRESSES Client: Jerry amison 15721 Weld Cty 10 Pilo /G JA ispn/ Fort Lupton, CO. 80621 j•5k�c a.fa �Gr 03 Tab frt appikble) r_ Director, Colorado Department of Public Health and Environment, Creditor: Hazardous Materials aattl1d Waste Management Division, a Regulatory encv of he State n eolnraAn / Mail code: ItrhND-CP-H2 va J.1 /� /D —4300.? 1 of Creek 11.. C. dere •sd7 a1 !! Denver, O380246-1530 eye tan and au )waste Management Division •This la the name to whom periodic account statements and trade eonflrmations will be addressed unless another officers name Is provided to Merrill Lynch for this purpose. Merrill Lynch,Pierce,Fenner a smith Incorporated: t.1 rAA�,y 1 .� et'l r c �.] Address Is the address servicing the Account as print yam Indicated on account statement. /];tj . signature data Resid tl«Idant Viso President(or designee) This Agreement maybe exebuted In counterparts,butths profaner er should provide the completed original to Merrill Lynch with signed photocopYcourrterpana provided to Client and Creditor. Client: pap Jam on s cf-cc d/71/<'4I- 8.2 :(en r i%fR((files'-.c'i !I p/ 'n1�l if ( T - r,,yrcer) - siafuir date As Personal Rep. Of the Estate Of Jarrald A. Jamison Fayt Jamison /f- /≤ .C3 signature date . 7- 3-O2; 5:43P,.1; ; 1 R 4/ 7 (Must be initialed by the creditor) Account No. 44/4 4O702-e Exhibit A Use Exhibit A to list the assets to be transferred into the Merrill Lynch Pledged Collateral Account. If available,you can attach a copy of the most recent monthly account statement,initialed by the Creditor) and write"See attached statement"below.) Quantify Description 40,000 Denver Colo CY—CO Excise Tax Rv Cony SR A Feb01 5.00%C o t ap 50,000 Denver Colo City—00 Arpt Rv Airprt Sys Rv FSA Amt Nov98 5.00; Nov /.525 50,000 Colorado Hlth FCS AT Rev Sist Charity OID MBIA Mar98 5.00% Dec O/ .25 50,000 E-470 Pub Hwy Auth Colo Rev Sr-Ser A OID MBIA Aug 97 5.00% 55,000 University Colo Univ Rev Enterprise Sys A OID MBIA Ju103t 4.2` 50,000 Dallas Fort Worth Tex RV Intl Arp A OID AMBAC Amt May03 5.00; Nov01 32 • Code 1226-0198 Please transfer the above assets from ML Account 416-37881 to pledge account 416-10122. ,yh2/LfiL, Faye Jamison ion �/� e^ry mi 7- 3-02; 5:43PM; ; i a 5, 7 Exhibit B Sample Notice of Exclusive Control [Letterhead of Creditor] Note: If this notice is sent by fax, it must be addressed to Resident Vice President with receipt confirmed by telephone,and the original mailed or-delivered to the office servicing the Account as indicated on the account statement. October 3, 2003 Date: To: Resident Vice President Merrill Lynch,Pierce,Fenner Sc Smitb jocQrporation Plaza Tower One, Suite 1V1 6400 S. Fiddlers Green Circle Englewood, CO. 80111 (insert address of Merrill Lynch office servicing Account as indicated on Account Statement) RE; PledaJamisonellar ral Account number 416-10122 in the name of yPledged Collateral Account for Director, Colorado Department of Public Health name of Client and Environment, Hazardous Materials and Waste Management Division, a Regulatory Agency of the State of Colorado This is to notify Merrill Lynch that the above-referenced pledged collateral account("Account")is now under the exclusive control of Creditor named above. Merrill Lynch is hereby instructed to cease complying with trading instructions given by or on behalf of Client(named above)relating to said Account, to cease distributing interest and regular cash dividends earned on property in the Account,and to refuse to accept any other instructions from Client intended to exercise any authority with respect to the Account unless instructed by the undersigned on behalf of Creditor. Creditor warrants to Merrill Lynch that this Notice of Exclusive Control is lawful and authorized by the Security Agreement between Client and Creditor. All future instructions on the Account shall be given solely by the undersigned on behalf of Creditor unless further evidence of authority is provided to Merrill Lynch. Director, Colorado Department of Public Health and Environment, By: Hazardous Materials and Waste Management Division, a Regulatory Print name Agency of the State of Colorado signature date title(an authorized officer) LIND, LAWRENCE & OTTENHOFF LLP ATTORNEYS AT LAW THE LAW BUILDING 1011 ELEVENTH AVENUE P.O.BOX 326 GREELEY,COLORADO 80632 WEB PAGE:LLOLAW.COM GEORGE H.OTTENHOFF TELEPHONE KENNETH F.LIND (970)353-2323 KIM R.LAWRENCE (970)356-9160 TELECOPIER P.ANDREW JONES (970)356.1111 RICHARD T.LiPUMA ken®Iblaw.com KELLY J.CUSTER BRADLEY C.GRASMICK December 1, 2003 Weld County Department of Planning Services 1555 North 17th Avenue Greeley, CO 80631 Attention: Sheri Lockman Weld County Department of Public Heath & Environment 1555 North 17th Avenue Greeley, CO 80631 Attention: Cindi Etcheverry • Re: Tire Mountain (USR-1361) Dear Ms. Lockman and Ms. Etcheverry: Enclosed please find an Addendum to the Fire Safety Evaluation and Fire Control Plan as authored by Schirmer Engineering Corporation. Even though Mr. Caro presented his testimony concerning this change (and corresponding Development Standard No. 39) at the October 22, 2003 hearing, it was our opinion that a written supplement should be prepared for your records. We would suggest that you place this with the original Schirmer Engineering Corporation report dated April 28, 2003 which was submitted with the USR application. If you have any questions, please contact th dersigned. Very truly y rs, LIND, R & OTTENHOFF LLP K F. Lind KFUcg Enclosure pc: Tire Mountain, Inc. Colorado Department of Public Health & Environment Platteville/Gilcrest Fire Protection District F:\XFLUAMISON\PLANNING LOCKMAN LTR 12 1 03.wpd SCHIRMER ENGINEERING CORPORATION 350 INDIANA STREET. STE 500 A GOLDEN. COLORADO 80401♦ PHONE(303)279-8900♦ FAX(303)279-8905 November 26, 2003 VIA EMAIL: KEN@LLOLAW.COM Mr. Kenneth Lind Lind, Lawrence & Ottenhoff, LLP Attorneys at Law The Law Building 1011 Eleventh Avenue Greeley, Colorado 80632 Re: Addendum — Fire Safety Evaluation & Fire Control Plan (dated April 28, 2003) Tire Mountain, Incorporated Weld County Road 41 Hudson, Colorado SEC Project No. 2403005-000 • Dear Ken: This correspondence serves to document those modifications made to the original fire safety evaluation and fire control plan (developed by Schirmer Engineering Corporation [SEC) & dated April 28, 2003) that have been approved by the Board of Weld County Commissioners. The fire control plan with modifications was presented to the Board on October 22, 2003 to assist in justifying the board's approval of the site-specific development plan for the expansion of the Tire Mountain operation. This approval was granted under the Weld County special review process. Currently, three gas and oil well operations are located within the 120-acre site and Patina Oil and Gas Corporation (PO&GC) plans a 4'" drill site, however the exact location of this drill site has not been determined. The existing three locations will maintain a 200-foot setback or separation from adjacent tire storage cells to avoid any fire exposure issues. It is important to note that the Oil and Gas Conservation Commission Regulations of Colorado require a minimum separation of 150-feet. Recommendation #3 included in the original report (p.18) identified that a 200-foot separation would be maintained between tire storage cells and potential gas and oil well operations to meet recommendation outlined in NFPA 231/231D. After further evaluation and discussion with PO&GC, the 4'h drill site will be located in the general area as identified in the attached sketch. Therefore, minimum potential separation distances (at the 4'h drill site only) could be 150-feet. Fire Protection Engineering ♦ Code Consulting ♦ Loss Control ♦ Security Consulting Mr. Kenneth Lind -2- November 26, 2003 Lind, Lawrence & Ottenhoff, LLP SEC Project No. 2403005-000 Therefore, to mitigate this distance (less than 200-feet), SEC recommends keeping the earthen berms (50-foot wide fire lanes) 2-feet above the tire surface. In other words, the earthen berms will have a fill height of not less than 10-feet above the adjacent grade or original ground surface. This approach meets the intent of NFPA 231/231D and reduces any radiation exposure from an involved gas well to an adjacent tire storage cell or vice versa. Please do not hesitate to contact our office if you should require further information. Sincerely, SCHIRMER ENGINEERING A -- Tony Caro, P.E. Denver Regional Engineering Manager Attachment: Site Plan ACC/JP:tcc I:\Projects\2400 Denver\2003\2403005-000 Tire Mountain\Rpt addendum Ltr to Lind 112603.doc A o N n I e A m _ A 200'X i3oo' / r 1 I z OS FOIL ° m nri... .,r,s 1 I Of 61411 NO '1 N m 1., o s}F:f :—�Bfl• twee. 'o I { A / [ I ( Brr + A � .. , ' J 2 ' •x➢ftl(C Y60\w Y A --� Cunt,[MI/I ry Y.t`,iIMEI lon r. x .11 1 �... ; rf PA.I l �� 1 R \ 'r / , y M1lr.�.xWII�Area D x J9 - x.f f 1� `, rJ ",.M.lwj'NS'1<N.f�y.s..:. 1 ]l]MN1 r x aCil II �''�+." [ o 1.r"i •t J i r r. is,. Lunar•term • 03 Ul ` Y.Y'YY 'Y• MW<xny M.x1l i & ii .u.• N.= woo ro or I rm• 1 I ....in I •:Ba dl.../,I u.[ < I Ial nvnxxxfaitnn. i. �f" A�!� ovwvn . autrtv_� _ Inn I Nana' ;amp I I a i i i . i' . , . •�: . r [ .., ?Ct••• .�.�_E::: ...�M.i.x .•�.:a. tneasu. s.Ra asewsr ^a . , . . . f . . . • f . ::_ 4M:':M . Vitt' . .•.-'[.� .. -. 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COLORADO .gitlntr slat.Ito'n.na[t ILS•• 3 W LIND, LAWRENCE & OTTENHOFF LLP ATTORNEYS AT LAW THE LAW BUILDING 1011 ELEVENTH AVENUE P.O.BOX 326 GREELEY,COLORADO 80632 WEB PAGE:LLOLAW.COM GEORGE H.OTTENHOFF TELEPHONE KENNETH F.LIND (970)353-2323 KIM R.LAWRENCE (970)356-9160 TELECOPIER P.ANDREW JONES (970)356-1111 RICHARD T.LiPUMA kencllolaw.com KELLY J.CUSTER September 3, 2003 Weld County Department of Planning Services 1555 North 17th Avenue Greeley, CO 80631 Attention: Sheri Lockman Weld County Department of Public Heath & Environment 1555 North 17th Avenue Greeley, CO 80631 Attention: Cindi Etcheverry Re: Tire Mountain (USR-1361) Dear Ms. Lockman and Ms. Etcheverry: Enclosed please find the executed and completed financial assurance agreement between Tire Mountain, Inc., the State of Colorado and Merrill Lynch. Please contact me if you have'any questions. Very truly yours, LIND, L E ENHOFF LLP Ken eth F. ind KFL/cg Enclosure • F:UCFL\JAMISON\PLANNING LOCKMAN LTR 11 20 03.wpd DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT 1555 N 17TH AVE GREELEY, CO 80631 WEBSITE: www.co.weld.co.us ADMINISTRATION (970) 304-6410 FAX (970) 304-6412 11 ip PUBLIC HEALTH EDUCATION AND NURSING (970) 304-6420 FAX (970) 304-6416 O ENVIRONMENTAL HEALTH SERVICES (970) 304-6415 FAX (970) 304-6411 • COLORADO December 5, 2003 Faye Jamison Tire Mountain, Inc. 12311 Weld County Road 41 Hudson, Colorado 80642 Subject: Tire Mountain, Inc. —4th Quarter Inspection, 2003 Dear Mrs. Jamison: On December 3, 2003 I conducted a routine inspection of Tire Mountain, Inc., tire disposal. Tire Mountain, Inc. is located at 12311 Weld County Road 41, in Weld County, Colorado. The purpose of the inspection was to inspect and assess the facility's compliance with the "Regulations Pertaining to Solid Waste Disposal Sites and Facilities" (the Regulations), as promulgated by the Solid Waste Disposal Sites and Facilities Act, Title 30, Article 20, part 1, C.R.S., as amended, and the Development Standards set forth in the facilities' Use by Special Review Permit (AmUSR-842). On this date it was observed that the site was substantially in compliance with both the Regulations and AmUSR-842. If you have any questions regarding this inspection, please contact me at (970) 304-6415, extension 2220. Sincerely, Cindi Etcheverry Environmental Health Supervisor Environmental Health Services cc: Trevor Jiricek, Director,Weld County Environmental Health Services (via email) Sheri Lockman, Weld County Department of Planning Services (via email) Glen Mallory, Colorado Department of Public Health & Environment Doug Ikenberry, Colorado Department of Public Health & Environment Kenneth Lind, Attorney for Jerry Jamison Lee Morrison, Weld County Attorneys Office C\Documents and Seltings\slockman.COWELDCO\Loral Settings\Tenp\GW Viewef\031203insp_3.doc LIND, LAWRENCE & OTTENHOFF LLP ATTORNEYS AT LAW THE LAW BUILDING 1011 ELEVENTH AVENUE P.O.BOX 326 GREELEY,COLORADO 80632 WEB PAGE:LLOLAW.COM GEORGE H.OTTENHOFF TELEPHONE KENNETH F.LIND (970)353-2323 KIM R.LAWRENCE (970)356-9160 TELECOPIER P.ANDREW JONES (970)356-1111 RICHARD T.LiPUMA - ken1llolaw.com KELLY J.CUSTER November 7, 2003 Colorado Department of Public Health & Environment HMWMD-B2 4300 Cherry Creek Drive South Denver, CO 80246-1530 Attention: Glenn F. Mallory Re: Tire Mountain, Inc. Dear Mr. Mallory: Enclosed please find copies of the Resolutions as approved and signed by the Board of County Commissioners of Weld County both as to the Use by Special Review and the Certificate of Designation. I also want to advise you that the final plat map is in preparation. As soon as the plat map is finalized, a complete set will be provided to you for your records both in 24 x 36 and 8'1A x 11 formats. Very truly yours, LIND, LAWREN'/y& 'iTTENHOFF LLP Ke eth F. i KFUcg Enclosure pc: Tire Mountain, Inc. Vern Nelson, P.E. Weld County Department of Planning Services Weld County Department of Public Health & Environment F:UCFLUAMISON\COLO.PUBLIC.HEALTH6.wptl Hello