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it is best to always be fully bonded,but the fact is all reclamation costs are educated estimates and <br /> never precisely accurate. <br /> In short, this revision officially eliminates the phasing concept for the Fountain Pit. Phasing in <br /> an aggregate mine can turn out to be a marketing and contract fulfillment nightmare when very large <br /> projects need to be fulfilled in a short period of time and there is insufficient land bonded to produce <br /> the product needed. And this lack of phasing will more or less continue on to the end of the operation. <br /> Schmidt simply wants to avoid the problems with phasing and thus be able to respond quickly <br /> to new contracts and bidding no matter how large or small the order is without having to adjust <br /> bonding prior to submitting a bid for a large contract. For many years now that kind of bonding has <br /> been used without difficulty, so long as the bond is periodically reviewed and upgraded as needed. <br /> Plus the Performance Warranty guarantees that even if the bond is insufficient Schmidt and/or its <br /> parent company will complete the reclamation or provide the funds to have that done. <br /> INFLUENCE OF AMENDMENT 3 ON THIS PLAN: In the recent past Amendment 3 was <br /> approved for a parcel of land on the other side of Charter Oak Ranch Road from the main operation. <br /> The site has a lot of similarities to the main pit area in that the mining would be in the same deposit <br /> and the site opens out into the valley south of the operation. The site is rather small,but does contain a <br /> deposit of gravel that is large enough to be worth mining. However, this amendment has no impact on <br /> the mining of the main operation, other than sharing some processing facilities. That is clearly stated <br /> in that amendment at the beginning of both the Mining and Reclamation Plans for that operation. <br /> However,the Reclamation Plan in this technical revision does change the seed mixture in Amendment <br /> 3 to be the same as the one proposed in this revision. <br /> REVERSAL OF MINING DIRECTION: Next,the approved Cooley plan called for mining the <br /> operation from the southern end of the amended acreage to the northern end where it would join the <br /> mined out(original) Christian Pit 2 area. <br /> In this revision the direction of mining is completely reversed and Schmidt will operate the <br /> amended acreage in the Cooley plan from north to south by simply extending the current mining <br /> southward. This is not only more efficient, but it continues to prevent runoff on to adjacent land and <br /> the almost inevitable deposition of sediment beyond the permit boundary as a result of that runoff. <br /> Such discharge constitutes affecting land beyond the permit boundary which is not allowed. The only <br /> remaining provision is that water that accumulates after big storms be discharged, evaporated or <br /> allowed to percolate into the ground quickly(basically in 72 hours in most cases). On this very porous <br /> gravel deposit that is rarely ever a problem. <br /> Fountain Pit Technical Revision#3 - June 2022 M-1982-155 Mining Plan Page 9 of 22 <br />