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In every instance, the size, volume, and methodology of the values and <br />factors influencing financial warranty are identical. Further, the values <br />utilized for the Western Sugar Project by OMLR via CIRCES, were used <br />for the values identified for the Varra - Coulson Project. <br />Now for the estimates: <br />Item I Varra Companies OMLR estimate ($) <br />estimate ($) <br />Total Warranty I $78,755.69± I $874,700.00± <br />Estimate <br />When compared to the larger Western Sugar Project, the Varra Companies <br />estimate is $24,222.76± less, or lower by 23.5± percent. When compared <br />to an extraction area that is slightly more than 12t percent larger at <br />Western Sugar, and a land area requiring resoiling and reseeding that is <br />46t percent smaller at the Varra- Coulson Project, along with slightly <br />lower percentages for the remaining values, the Varra Companies <br />estimate appears reasonable and consistent with previous OMLR <br />determinations. <br />So how do we examine and clarify the determinations to find common <br />ground with nearly an $800,000.00± difference in estimates recently <br />determined for the Varra Coulson Project? Let's look at the assumptions <br />for the various categories and see if we can better clarify and understand <br />them: <br />Category I OMLR estimate ($) I Varra Companies <br />estimate ($) <br />Dewatering <br />CIRCES used 63 acres <br />instead of the 59.3± <br />acres of estimated <br />surface water area. <br />CIRCES estimated <br />923,786 ',394.30 gallons <br />of water to discharge. <br />This is 160 percent <br />greater than the reported <br />extraction volume and <br />extrapolated water <br />Varra measured the <br />actual extraction <br />volume of <br />3,162,350.51 cu.yds. <br />of material within the <br />65.88± acre extraction <br />limits. The exposed <br />surface water area of <br />59.3± acres is 10 <br />percent smaller, and <br />we translated the total <br />Varra Companies, Inc. Coulson Resource Project OMLR M- 2013 -064 5 <br />Correspondence to Peter Hays 23 March 2014 <br />