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The Colorado Milling Company, LLC has moved the location of the Pump House and the fuel <br /> storage tank well above the Left Hand Creek floodplain and floodway. It is very unlikely that these <br /> structures could be mobilized by a flood in this location. The need for a footbridge is no longer an <br /> issue, because our Registered Mineral Surveyor has located a gap between the patented mining <br /> claims and the patented millsite in this area that will provide our employees with a safe access to <br /> operate and service the pump and generator. <br /> With regard to your concerns about the release of water from the mill tailings impoundment, the <br /> present tailings impoundment has never been the source of process water flowing into Four Mile <br /> Creek. The Gold Hill Mill is operated as a zero discharge facility. There has never been a loss of <br /> tailings from this pond. It is situated on Horsfal Flats, which is well above any streams or water <br /> courses. The lined tailings pond and the diversion ditches that protect it were properly designed <br /> and regularly inspected. They all worked as designed during the unprecedented 2013 flood. <br /> As to the other concern that you expressed regarding the possibility of a loss of water from a <br /> malfunction of the pump, the three stage Bean pump will have an automatic pressure sensitive <br /> shut-off system installed on it. At the fifty gallons per minute maximum rate of withdrawal from <br /> Left Hand Creek, it is not possible that a malfunction of the pump could cause excess diversions <br /> from the creek that would be in exceedance of the decreed water rights allowance. The Colorado <br /> Milling Company, LLC will have employees monitoring the Gold Hill Mill Waterline during all <br /> of the hours that it will be pumping water. Records will be kept showing compliance with the terms <br /> and conditions of the Water Court Decree that entitles the company to divert, transport, store and <br /> consume this water. <br /> The Colorado Milling Company, LLC will obtain all of the permits that are required to operate its <br /> milling facility to ensure that it is in compliance with all of the applicable County of Boulder, State <br /> of Colorado, and U.S. Federal Agencies and Departments' Rules and Regulations. <br /> Sincerely, <br /> Mark A. Steen <br /> Colorado Milling Company, LLC <br /> 2 <br />