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Exhibit Page 16 <br />Initial Disturbance and Operations at Beginning of Conversion <br />Initially, disturbance will be limited to: <br />1. Existing affected areas (Up to 3.8 acres on Stone property (blocks C2 -C3) and 8.4 acres on <br />the LMN property (blocks F5 -G5), including 1280 feet of "highwall "), Total 13.2 acres. <br />2. Stripping and removing overburden from block H5, of up to 2.75 acres (based on 600 -foot <br />highwall length and up to 200 feet wide, for a total highwall of up to 1,000 feet 20 feet high. <br />Increases total to 16 acres. <br />3. Construction of a road 'over the fence" to link the existing permanent road on the Stone <br />property with the permanent road and current works on the LMN property east of the WAPA <br />easement, which will require construction of approximately 300 feet of new, 24- foot -wide <br />temporary road and disturbance of approximately 40,400 sf (0.93 acres mostly in block F4). <br />This may not be done immediately but will increase total to 16.9 acres. <br />Sequence of Mining <br />Mining will be conducted in just one block at a time, but more than one area may be open: for <br />example, the existing pit on the Stone property (pit 0.69 acres, highwall 380 feet, height 10 feet) <br />will remain "open" (See Exhibit S) until that entire area is mined at some time in the future, while <br />mining is done on the LMN property. Refer to the diagram below. <br />rte- 200 --- 100 rte— Variable--, <br />County operations reducing hi <br />Zone A. Ceanng, Grubbing, and Strippin <br />Highwall (Working Fac! <br />Zone 8 Work .Area at Foot of Higrrw,, <br />Zone C Plant and Stockpile Are <br />Zone D Soil placed, re+egetatin <br />Highwall reduced to final grade (21 or <br />Highwall reduction in prog <br />Schematic of Pit Operations, Wallace Pit <br />Operations move from right to left (East to West) <br />Initially, the main mining area will be located on the LMN property (1-15), working a face of 600 - <br />feet long (estimated at up to 20 feet high) and narrowing steadily as mining moves west. <br />Vegetation will be removed and soil stripped in an area up to 200 feet wide (average 100 feet) in <br />advance of the highwall. The working area at the foot of the highwall will be maintained at 100 <br />feet wide and up to 600 feet long, and will be (except for the north and south areas) at final <br />grade. The plant and stockpile area behind the working area, also at final grade, including the <br />north and south edges will be approximately 300 feet wide and up to 500 feet long.4 The <br />highwall along the south side (property line and permit boundary) will not be longer than 150 <br />feet before being reduced to final grade. The highwall on the north side (permit boundary) will <br />remain in place until Montezuma County mines the area immediately to the north (being done <br />concurrently with the Stone operations). County mining will eliminate the highwall, which is <br />therefore not expected to be more than 150 feet in length, and located on the permit boundary <br />4 Generally a minimum of 2 acres (400x200) is needed for the plant and at least 1 acre for stockpiles. <br />