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conducted within the defined area boundaries and will involve a methodical pedestrian search for existing surficial evidence of wells, boreholes, or other structures. Any existing surficial evidence observed will be located using a portable GPS unit to determine coordinates, described relative to the type and nature of surficial evidence (i.e.: type, size, and condition of surface casing, etc.), any designations or markings will be recorded, and wells/boreholes will be correlated in [he field to previously documented exploration sites, where possible. It is presently anticipated that the proposed field reconnaissance and inventory will be completed during second quarter 2000 contingent on suitable Field access conditions. Determination of Potential for Beneficial Use Using information from the initial well inventory and available documentation for Kerr's historic exploration activities, any existing wells that could reasonably be used (criteria would be proximity to or location within existing or potential pit areas; completion interval; and suitable casing size, type, and condition) for ground water monitoring of existing or potential future operations will be identified. Similarly, any existing wells that could reasonably be used (criteria would be suitable casing size (minimum 4-inch I.D.), type, and condition; water level (less than 55 feet); and well location relative to existing drainages or watering sources (isolated upland is favorable)) as water supply wells will be identified. Identified wells that could reasonably be used for either monitoring or water supply will then be screened to eliminate those where retention for beneficial use could not be reasonably justified and brief justifications prepared for any remaining wells recommended for retention. BLM Review and Concurrence on ~~ell Retention for Beneficial Use Recommendations and justifications for any wells proposed for retention for beneficial use will be submitted for BLM review and subsequent joint. BLM/Kerr determination of potential disposition. For any wells proposed for retention as a result of this inventory, evaluation, review, and determination process, Kerr will coordinate with the BLM to define and implement well transfers or repairs as reasonable and necessary [o achieve the proposed beneficial use(s). In general, for any wells that would remain as monitoring wells, repairs will be limited to placement or repair of surface casing and locking well caps to prevent access and maintain well integrity. If the estimated cost of reasonable and necessary well repairs exceeds the projected cost of plugging and reclaiming a given well, Kerr re[ains the option of plugging and reclaiming the well(s). For any wells [hat would be converted to water supply wells, wells would be transferred in their current condition to either the BLM or surface leasee, who would then be responsible for testing to determine suitability for development as a water supply; obtaining the necessary water rights; well repair, rehabilitation, and development; and installation, operation, and maintenance of any pumps or other equipment necessary to provide for consistent water supply flows. Well Plu~~in~ and Reclamation For any wells that would not be retained for future beneficial use, Kerr would complete well plugging and reclamation. Well plugging and reclamation would involve completion of [he following activities: P1uQ~in~ - For boreholes or wells not completed in an identified aquifer, the holes would be filled with drill cu[tings, sand, or ocher suitable (non-toxic) materials to within 10 feet of [he natural or reclaimed ground surface and the remainder of the hole would be filled to within 3 feet of the ground surface with cement