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Lorencito Drill Agreement <br /> 8. Identification of drill holes to be completed as groundwater monitoring <br /> wells,if any; <br /> No holes are being planned to be developed as monitoring wells; however, if any <br /> monitoring wells are needed per Colorado Division of Water Resources or Division <br /> of Reclamation Mining and Safety, the well be converted and the appropriate <br /> permit will be filed through Colorado Division of Water Resources. <br /> 9. Completion of drill holes as cased groundwater wells for the ranch <br /> owner's use; <br /> No holes are being planned to be developed as water wells; however, if water is <br /> detected during drilling and the water production is great enough that it can be used <br /> by either the property owner or New Elk,the hole will be converted to water well <br /> and the appropriate permit will be filed through Colorado Division of Water <br /> Resources. <br /> 10. Plan for disposal of drill cuttings and core(waste); <br /> A pit for the collection of drill cuttings and fluids will be excavated with a backhoe <br /> at each location. The pit will be approximately 8 ft by 40 ft by 6 ft deep. The pit <br /> will be pumped on a regular basis and all fluids transported to a disposal site at the <br /> New Elk Mine. The pit will be backfilled upon completion of the drilling activity. <br /> Present plans call for one pit per drill site. When applicable the drill cuttings will be <br /> mixed in with concrete to plug hole. <br /> 11. Plan for disposal of solid wastes, cardboard/wood crates/pallets, pipe, <br /> etc. <br /> Program will use the same contractor for solid waste disposal as the New Elk Mine <br /> and all materials will be brought to this location for removal at the New Elk Mine. <br /> 12. Plan for drill hole abandonment for those that do not produce water(9. <br /> above) and site reclamation; <br /> Abandoned drill holes will be plugged and capped below ground level, with a <br /> continuous concrete plug from the bottom of the hole to the 1 ft below grade unless <br /> drill holes are to be re-entered to deepen or used for geotechnical testing or <br /> downhole surveys. Those holes will be marked with a 4 ft long by 5/8 rebar pin at <br /> the top of the plug. A 1 '/z inch diameter aluminum cap will be attached to each pin <br /> that will identify it for location and surveying purposes. Holes that will be left open <br /> 9 <br /> Exhibit A 9/24/2020 <br />