SITE INFORMATION AND CORRESPONDENCE

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`""ll well founded,resulting from or incurred as a result of the negligent acts or omissions of Permitees, their agents, employees or servants, and the acts or omissions of Permitees,their agents,employees or servants relating to the permitted work or any other act or omission related thereto. In the event that any claim or legal action is threatened or commenced against one or more Indemnitees,Permittees shall select and pay for legal counsel reasonably satisfactory to Indemnitees." The District believes its provision is, to use your phraseology, "...more feasible," than the applicants. The members of our Board of Trustees are public trustees with a fiduciary duty to protect the people and property of our District. The District believes it is authorized by law to require complete indemnification from any loss occasioned by the conduct of the - applicants. However,in an effort to compromise,it proposed the above language which provides for somewhat less than complete indemnification. Apparently, the applicant wants to avoid the expense of a liability policy and thus has created an issue over the indemnity provision. The Board does not desire to issue a permit which calls for less indemnification than as set forth in our Amended Permit. I have not been provided any legal authority which indicates that the District is exceeding its authority in requiring legal protection from the consequences of the negligence of the applicant as set forth in the Amended Permit. Your letter implies that the applicant's delay in completing the work is the fault of the District. The District can take no responsibility for the applicant's actions or inactions. The Permit has been in their hands for ninety-eight days. They are free to begin work at anytime. Further,in an effort to intervene on the part of the applicant, your letter threatens to force the District to perform the assessment work if the District does not modify its indemnity provisions and agree to the terms requested by the applicant. The District believes such a threat is totally inappropriate. If your Board will indemnify us from the consequences of the applicant's negligence relative to the permitted work, we will be pleased to amend the Amended Permit. Otherwise,I believe it totally inappropriate for your Board to threaten enforcement action against the District in an effort to gain an economic advantage for a private owner and contractor simply because the District insists upon that to which it is lawfully entitled 2