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COLORADO <br /> May 2,2016 <br /> � Division of Reclamation, <br /> Peter Babin Mining and Safety <br /> � Uetarnncnt rrt�Jrhudi R�xwr•=�, <br /> Ca1X Minerals,LLC <br /> 5501 Lakeshore Drive 1313 Sherman Street, Room 215 <br /> Littleton,CO 80123 Denver,CO 80203 <br /> RE.Mid-Continent LST,Permit No. M-1982-121,Approved Acreage and Map Boundaries <br /> Dear Mr.Babin: <br /> On April 12, 2016 the Division of Reclamation Mining and Safety(Division) inspected the above <br /> name site in conjunction with the Bureau of Land Management(BLM) Colorado River Valley Field <br /> Office.During the inspection Mrs.Pearce of the BLM requested data in GIS format and was informed <br /> that Calx's surveyor High Country Engineering,Inc.(HCE) had those files.On April 21, 2016 BLM <br /> received the digitized DRMS permit boundary from HCE as requested.A copy of this data was <br /> forwarded to DRMS. <br /> On April 22, 2016 the BLM pulled the files into ArcGIS and calculated the geometry.It was brought <br /> to the Divisions attention that the GIS permit boundary provided by HCE was approximately 47 <br /> acres.Upon further inspection the polygon shape does not appear to coincide with the approved <br /> permit boundary of AM-2 (enclosed). Additionally the permit boundary approved in AM-2 appears <br /> to be approximately 39 acres rather than the 32.8 acres described in the narrative portion of the <br /> amendment.Map comparing boundaries generated by the BLM is enclosed. <br /> Division staff believes it has identified when some of these errors arose.Beginning April 26, 2010 <br /> the Division received your annual report,map and fee.The map included in this report depicted a <br /> similar permit boundary however the northeast corner was pushed out as compared to previous <br /> maps (enclosed). On October 12,2011 staff inspected the site and cited signs and boundary <br /> markers as a problem.Corrective actions required that the site be resurveyed so that markers could <br /> be replaced.On December 1,2011 Division staff received and email that corrective actions had <br /> taken place and the HCE resurveyed map was included.This map depicted a different permit <br /> boundary than what was approved under AM-2.Since then all annual report have followed the HCE <br /> permit boundary line which incorporates a larger affected area than what is approved. <br /> At this time it is unclear if all disturbances associated with this site are in fact contained within the <br /> original AM-2 approved boundary or if that boundary was the approved 32.8 acres. The Division <br /> strongly recommends that you do not expand the current footprint of the mine until the boundary <br /> and acreage issue is resolved,as that could alter the affected acreage and create a possible violation. <br /> To resolve this matter the Division requests: <br /> • That the site be resurveyed and provide updated,corrected maps to the Division <br /> • Please clarify and depict the total affected land to date. <br /> • Please provide the Division with clarification of the acreage depicted in the AM-2 boundary <br /> • If it is proven to be 32.8 acres,please provide documentation all boundary markers have <br /> been replaced to the shape depicted in the approved AM-2 map. <br /> V.co <br /> 1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http://mming.state.co.us I INS+ is <br /> John W. Hxkenlooper,Governor I Mike King, Executive Director I Virginia Brannon, Director <br /> *18-76` <br />