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• Our current groundwater monitoring indicates there has been no substantial It: <br /> change since the 2006 levels. <br /> • The hydrologic balance at issue is the level of the Ponds on the Swift Pond <br /> property and the groundwater monitoring is a secondary measure. <br /> • The status of the Piezometers have changed over the years for various reasons. <br /> o Well #1- CRI property-appears to have been hit by the farmer adjacent to <br /> the property or a piece of equipment cleaning the irrigation ditch. <br /> Nonfunctional. <br /> o Well # 2 —CRI property-fully functional <br /> o Well #3—CRI property-missing—probably removed for a major sewer <br /> line in 2008. Nonfunctional. <br /> o Well #4—CRI property-fully functional <br /> o Well #5 —CRI property-fully functional <br /> o Well #6—CYO property -fully functional <br /> o Well #7—CYO property-not found — probably damaged by Colorado <br /> Youth Outdoors during mowing or maintenance <br /> o Well #8—CYO property-fully functional <br /> o Well #9—CYO property-fully functional <br /> Our proposed corrective action is that Connell Resources Inc. will restart monitoring and <br /> continue to monitor the groundwater on a monthly basis from the remaining <br /> piezometers #2, #3, #4, #5, #7, #8 and #9 and provide the data as required with the <br /> annual report. The data shows the groundwater levels were consistent over time and <br /> were stable once the recharge ponds were functional. The true determination of <br /> hydrologic balance is the pond levels rather than the groundwater levels. <br /> Sincerely, <br /> Kevin D. Anderson <br /> Aggregate and Asphalt Manager <br /> (970) 223-3151 Main Office <br /> (970) 530-4692 Direct Line <br /> (970) 214-1601 Cell Phone <br /> kanderson@connellresources.com <br /> 2 <br />