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3.1 Dirk Richards Land Use Change <br />The former James Martin property is now owned by Dirk Richards. This sale took place in 2004. <br />This land was primarily irrigated in the pre -mine condition. It has come to New Horizon's <br />attention via the Colorado Cooperate Company (CCC) (the local irrigation water provider) that <br />the previous landowner of this parcel, James Martin, sold his remaining fifteen (15) shares of <br />CCC ditch water in May of 1988 to another party. These fifteen shares were used in the past to <br />irrigate a portion of his fifty-four (54) acre parcel of pasture land. There has been no other <br />irrigation water allocated to this parcel since this time according to CCC records. This is <br />includes since 1993, when New Horizon started operations in the immediate vicinity of the <br />Dirk Richards property. Since there is no water available for this parcel, New Horizon has <br />elected to reclaim the mine disturbance area on Dirk Richards property back to dryland pasture. <br />This was a land use change from Irrigated Pasture (IP) to Dryland Pasture (DP).See Map 2.03.4- <br />1 for location of Dirk Richards Property. The land was reclaimed in 2004 and was temporarily <br />irrigated in 2004 and 2005 to give the land a good reclamation start. This is the reason that aerial <br />photos after the reclamation date show an area of irrigated pasture. The land is now fully <br />reclaimed as dryland pasture. <br />The letter on the following page documents the sale of the water rights. <br />Page 11 May 2016 (TR -75) <br />