Appraisal Report for ALP 46.27 acres Retro. Value 10/10/02

LOVE APPRAISALS, INC.
Exceptions 21 and 22 are contained below. The documents referenced in
the exceptions are included in the addenda.
21. Reservation ofright of access_to the property.es reserved by the State of Colorado and U.S.Department of
Energy,covenants not.to use the property for any purpose other than public purposes.not to use ground
water form the Site for any purpose, not to construct wells of any means of exposing ground water to the
&urface,:not tC sate or transfer the tend to anyone other than a government entity wltlx the states nott
pe`fort7n onstruotion of any kind unless written approval is acquired,that any habitable structures
constrpoted on the property shall employ a radon ventilation system Or other mitigation measures and that
Its use of tire.propertyahatl notadverseiy Impact ground water rernedlatIon underUMTRCA,all asset forth
In Deed,from the Cotorada Department of Public Health and Environment•to the Colorado Water
Conservation Board teeorded September 0,1G08 as Reception No.7$9190 and in Deed from the Colorado
Water Conservation Board to the Ar+tmas•LaPlata Water Conservancy C?lslrict recorded September 9, 1998
as.Reception NO.7133191, (copies attached)
22. Any loss or damage resulting from the property having been used as a uranium milling site as disclosed in
Deeds from the Colorado Department of Public Health and°the Environment to the Colorado Water
Conservation Board recorded September 0.1998 as Reception No.153190 and from the Colorado Water
ConseivatIon Ward to theAnima-La PlataWatar Conservancy District recorded September 9, 1088 as
Reception No.7153 181.. (copies.attached)
The historic use as part of a milling site is accepted in the market. Because
of prevailing south winds and historic use of mill tailings as fill, many properties in
Durango have similar hazardous materials. For example, a May 28, 1997 headline
article in the Durango Herald identifies more than 70 sites "that still contain
radioactive materials that the federal government never cleaned up". Subject is
environmentally cleaner than many properties in Durango because of the
remediation project. The requirement for radon mitigation measures is also typical
of the market.
The following grids summarize the ownership and easement interests, the
covenants and restrictions with discussion and the potential impact on value. It is
important to understand all the interests and restrictions to arrive at the value of
Reclamation's interest, the purpose of this appraisal.
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