2014-10-21_REVISION - M1988044 (5)

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TR-07 MINING PLAN Exhibits C-3 through C-7: Please refer to the original maps in the permit for soils, vegetation, wildlife, wetlands and weeds. Nature of the Sand Deposits The sand deposits to be mined at this operation are derived primarily from alluvial deposits,but also contain significant amounts of aeolian sand. Sand deposited in the past by streams was also subject to blowing and at various times in the distant past small dunes appear to have been present on portions of this land. During the prolonged drought of the xerothermic period (about 5,000 years ago), it is likely that vegetation was sparse and perhaps the landscape looked more like the Sahara or Gobi deserts do today. The sand can occur in what appear to be poorly defined patches or pockets. In fact, these pockets may have more unity than appears to be the case,but the pattern cannot be determined from surface indications. These deposits were created mainly by alluvial processes and probably by Coal Creek when it flowed across old erosion surfaces that are higher than the current stream course. It is likely that the stream exhibited considerable meandering and therefore the sand deposit would exhibit various degrees of meandering as well. But determining where the stream flowed at any particular point in time, which would correspond to an elevation, is virtually impossible without excavating everything in thin, horizontal slices. Furthermore, this pattern may have been broken by old drainages and tributary erosion that may have been subsequently filled. As a result, the sand deposit today follows a pattern that is best described as a patchwork of intermittent deposits that may be associated with an underlying, but unidentifiable specific pattern. In short, the sand is where you find it. This pattern is so mixed that during the exploration, locations where sand was expected did not show any or very little sand and places where sand would not be expected had excellent sand. Surface indicators were rarely found to be reliable. From a mining point of view this is problematic. Because of the patchy character of the sand deposit, developing a precise mining plan and showing exactly where and how mining will be conducted at any time or place is essentially impossible. As has been done in the past, the mining starts where it is known sand exists, from exploration information. The mining must then spread out from there and simply follow the deposit wherever it goes. When that pocket, which may be small or large, runs out then another pocket must be opened and the depleted pocket reclaimed. Permit Boundary vs. Affected Land Boundary vs. Bonding Boundary Permit Boundary Definition: The Permit Boundary described in Exhibit A is defined by and derived from the lease (GL-264) issued by the Colorado State Board of Land Commissioners. The permit includes all land included in the lease, with the exception of oil and gas facilities that have been specifically excluded. Thus, the permit area will always be less than the lease area. The permit area is mapped acreage rather than idealized section areas as in the lease. Coal Creek Sand Resource Amendment 3 (2005)- M-1988-044 Exhibit D Page 6