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1 ~. We have discussed modifications to the ore stockpiling plan, which now will not include a geo-membrane or earthen liner under the ore. You have delineated the ore storage area on the new maps, which will consist of an area below the dump whose drainage will report to settling pond SP-C. Is any berming of the perimeter of the ore storage area to be employed, to divert upland water or help contain ore pad water? 6. You stated that sampling of water from station number 5 will be performed weekly, I assume for the purpose of early detection of contamination. Are these weekly samples to be analyzed according to the same paranteters presented th the October l0, 2001, sample? 7. You state that the ore storage area will be prepared by removing all topsoil, down to a "base rock" surface. Will the ore require drying after it is extracted from the mine? Will it be sacked or simply piled on the storage area? It should definitely be protected from precipitation by Carping while stockpiled. Placement of the ore directly on this base rock surface, especially if it is kept dry, will act to reduce the opportunity for water quality degradation. 8. Please review the language involving stockpiled ore (regarded as a potential acid-producing material, if left to weather for prolonged periods) in Rules 1.1(1) and l.l(2). Besides the physical issues of ore stockpile areas, the rules include a 180-day ore storage provision which gives the operator a little room if the ores are removed within that period. 9. The four settling ponds aze linked by surface ditches. Most of the ditches will be short and of gentle gradient, except the one between ponds SP-D and SP-C, which is fairly steep. This ditch should be riprapped or otherwise protected from scouring. You included a statement about logs in the ponds to prevent erosion, and it may refer to this type of practice, but it is not clear. Please decribe what control practices will be used on this section. 10. The settling ponds are not planned to be lined, so they will temporarily detain the water and hold sediment, but the water should be able to percolate into the ground. These ponds are all on the permitted area. Your new map showed a short ditch segment from the lowest pond (SP-A) directly to Red Cloud Creek. Such a planned discharge conveyance route or constructed outlet will probably require a NPDES permit from the Colorado Health Department. If it is at all possible, I would advise against planning a surface discharge from the ponds to the creek or any other location outside the permitted area boundary, and in that way avoid the need for the NPDES dischazge permit. The ponds' capacities should be calculated so that they are sufficient without the need for surface discharges, which might mean a bit more earthwork to build up the downstream sidewalls or deeper excavation. Please comment on this. Exhibit D -Reclamation Plan (Rule 6 3 4) 11. The reclamation of the area will include topsoil replacement and seeding. Will all affected areas be similarly treated, since you have indicated this on the reclamation map? How are the roadways in the permit area be reclaimed? Will there be any difference between road reclamation of roads in the claims and roads on BLM land? Other Items 12. The water sample is being reviewed by our staff in Denver. I was told verbally that the analysis showed very clean water. This quality of water does not allow much margin for degradation. Admittedly, this season of the year typically shows the best water, and since it varies seasonally, eve require five consecutive quarters of sampling. I understand that the site will be inaccessible during winter and sampling impossible. Spring usually shows the worst water, and that is why you must endeavor to sample as early as possible in the spring, and follow that quarterly during summer and fall, at all five sampling stations if you can. 13. Demonstrating your right-of--entry for the 2.09 acres (portal and egipment area) of BLM land will require the submittal of a written agreement of some sort. Mr. Tollefson is discussing this with other staff, so you should be able to get this in-hand soon. However, we will require a copy of it before you can enter to mine.