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Additionally, it was also agreed at that time to provide a written report with our own assessment <br />of the concern, and other matters mentioned in the 28 August inspection report. <br />Based upon the meeting of the 13'" inst., the due date for our report was set for 30 days <br />subsequent. <br />This soon proved too short a time line in which to properly analyze a total of five (5) known <br />projects the OMLR provided as representative of past OMLR action of like kind, and `operated <br />similar to the Heintzelman and Kurtz projects,' as stated in later a -Mail of 21 January, that also <br />served to extended the due date for our reply to 30 March; which this report is intended to <br />satisfy. <br />Part I Reply to observations made in the OMLR inspection report respective of the <br />Operation, in general, and specifically as they pertain to Tracts A and C: <br />1. Unlined Ponds <br />Tract C and the permitted lands (inspection commentary and approved permit language): <br />The OMLR has indicated that, `The Operator started to construct a clay liner at Tract C and <br />Tract A to create sealed ponds. The construction of sealed ponds is a change in the post - <br />mining land use to developed water resources. The change in post -mine use will require an <br />amendment to the reclamation permit be submitted by the Operator and approved by the <br />Division prior to any future consideration of release request for the site.' <br />As acknowledged earlier in the inspection report, `The Operator has complied with the <br />Colorado Division of Water Resources (DWR) requirement for long -term augmentation for <br />exposed groundwater by committing shares to the DWR. The approved post - mining land use <br />is general agriculture with three unlined ponds.' Varra Companies, Inc. is committed to the <br />conservation of both the natural and mineral resources of our lands, consistent with Title 34. <br />The mineral deposit, including the wash fines rejected at the crushing and screening <br />facilities, and all accessible insitu shale, are of value and a benefit to the State of Colorado <br />under Title 34, and are managed consistent with that understanding. The resulting basin <br />forms a valuable and beneficial end use, whether it is lined or remains unlined. As such, <br />having sufficient water resources at our command, Varra Companies, Inc. will meet the <br />existing reclaimed land use of General Agriculture, unless altered to Developed Water <br />Resources by Amendment within the Life of the Mine permit. <br />With respect to Tract C, and observations made there as reflected in the OMLR inspection <br />report: Technical Revision #3 (pg.2, 13), as approved on 23 August 2011, states: `Either <br />method will follow with the use of bottom shale material to establish 3H:1 V finished <br />slopes...' The observed shale on the side slopes at Tract C is consistent with the approved <br />Varra Companies, Inc. correspondence of 30 March 2015 to the Colorado Office of Mined Land Reclamation in 2 <br />reply to the OMLR Inspection Report of 28 August 2014 — Kurtz Project — M- 1999 -006 <br />