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Lorencito Canyon Mine April 11, 2001 Page 2 and revised plans aze currently being developed. The Revision will be submitted by March 1, 2001." " 2. A general description of the revised mine plan will be submitted with the Permit Revision by Mazch 1, 2001. It currently appears that the surface mine will not be eliminated from the plan." Several issues must be resolved as follows: Permit Expiration and Potential Reactivation The DMG cannot accept or review any revisions to an expired permit. Permit No. C-96-084 expired on Ncvember 7, 2000. The DMG has presented reasonable proposals to allow certain information and bonding subrrtittals in support of an extension request. A.P. Maxwell presented specific submittal timeframe commitments, most of which have passed without any submittal to DMG. DMG has been willing to reactivate the permit upon receipt of the required information and receipt of a viable bond, so as to ensure compliance with 2.01.5(2). We will abide by this commitment; however, A.P. Maxwell must provide the information pertaining to the rail line agreement and the right to enter so that permit reactivation can occur before any revisions can be accepted. Bondin A.P. Maxwell has provided a required $1,000,000 bond which replaces the previously existing Frontier Bond #I 10343, and which is acceptable as a good faith submittal in support of the permit extension request. The replacement bond is issued by Lyndon Property Insurance Company, and is bond #L-0201-C-96-084. Now that the Lyndon Property Insurance bond has been provided, the Frontier Bond #110343 will be released and returned. As previously discussed, the bond amount must be adjusted to reflect an approved mining and reclamation plan and the appropriate bond must be submitted prior to initiation of any mining or reclamation activities at the proposed Lorencito Canyon Mine. The previously approved and now expired Permit No. C-96-084 required a $2,000,000.00 bond. Should the permit be reactivated, an appropriate Permit Revision must be submitted and approved which details the new mining and reclamation plan and an appropriate bond amount. Permitting If the permit C-96-084 is reactivated for good cause, then an appropriate Permit Revision, rather than a series of Technical Revisions or Minor Revisions, must be submitted and approved which provides a comprehensive mining and reclamation plan which ensures compliance with all provisions of the Act and Rules. This matter has been discussed extensively, and it is well known that the previously approved mining and reclamation plan is no longer viable. DMG has advised A.P. Maxwell representatives of this issue several times during meetings and conversations over the last few months. The need for a Permit I'