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UK Milling Company, LLC <br /> Penn Mine / Lake County, Colorado <br /> 4.1.9 Groundwater <br /> 6.3.3(1)(i). If groundwater will be encountered and/or surface water intercepted ordisturbed,describe how mining <br /> will affect the quantity and quality of the surface or groundwater and the methods to be used to minimize <br /> disturbance to the surface and groundwater systems including proposed dewatering,sediment-containment or <br /> chemical treatment systems,storm water runoff controls,and groundwater points of compliance; <br /> No groundwater will be encountered since the deposits are located on the natural surface. Sediments <br /> will be controlled during operations through the use of rock dams which will be placed on the <br /> downgradient side of the deposit. See Figure 6-7, Exhibit E Section 6.4 and also the stormwater <br /> management plan Appendix 7-4. <br /> 4.1.10 Compliance on Colorado Water Law <br /> 6.3.3(1)(j). Specify how you will comply with applicable Colorado water laws andregulations governing injury to <br /> existing water rights; <br /> No surface or groundwater will be impacted during these operations. <br /> 4.1.11 Refuse and Acid or Toxic Producing Materials <br /> 6.3.3(1)(k). Regardless of DMO status, if refuse and acid or toxic producing materials are exposed during mining, <br /> describe how they shall be handled and disposed of in a manner that will control unsightliness and protect the <br /> drainage system from pollution; <br /> Refuse will consist primarily of historic timbers and scrap metal. These materials are not toxic and will be <br /> gathered and taken to the city dump. <br /> The mining plan contemplates the removal of potential- and acid-generating (PAG &AG) material which <br /> was placed on the surface as waste during late 19th and early 20th century mining operations. Mining <br /> these deposits will remediate historic PAG and AG materials. <br /> 4.1.12 Hydrologic Balance <br /> 6.3.3(1)(1). describe what measures will be taken to minimize disturbance to thehydrologic balance,prevent off-site <br /> damage, and provide for a stable configuration of the reclaimed area consistent with the proposed future land use; <br /> and <br /> The Penn Mine is located on the West-sloping side of Breese Hill. The area is dry and there are no natural <br /> water courses on the property. Most water flows during snowmelt and rainstorms will be mitigated by <br /> rock dams. See Figure 6-7, Exhibit E Section 6.4. <br /> 4.1.13 Processing <br /> 6.3.3(1)(m). specify whether the deposit/ore will be processed on site. Processing includes crushing, screening, <br /> washing, concrete or asphalt mixing, leaching or milling.If the deposit/ore will be processed, then describe the <br /> nature of the process, facilities and chemicals utilized. The process area and any structures must be described on <br /> Exhibit E—Map. <br /> Initial Application l March 2021 4-7 <br />