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Ms. Lorraine Stepenske Division of Minerals and Geology October 15, 1992 Page 3 (b) The operator agrees to monitor the groundwater level in the five monitoring wells and the two adjoining wells (if permission is received) on a quarterly basis and will submit this information to you in an annual report. We will begin the monitoring before the operation begins so we can obtain some baseline data. These above commitments constitute our monitoring plan. We still question the need to monitor temperature and conductivity in each of the wells. The reason a temperature reading would be needed escapes me. We discussed conductivity giving some indication of possible suspended solids in the groundwater and thus giving an indication of water quality impacts to the groundwater from mining. Please remember we are doing a dry mining operation and will not have a lake with turbid waters which could push into the groundwater. The groundwater to be monitored is the groundwater that is already there but we expect it might be at a lower level. We do not expect any increased suspended solids because our mining operation has no way of introducing this into the present groundwater. Therefore, we prefer not to include temperature and conductivity in our monitoring plan. (r_J If recharge ponds are used, the operator will submit a design for the ponds prepared by a professional engineer. Also we will locate the ponds on Exhibit C and determine how these ponds might affect the stability of dwellings. 9. Acknowledge 10. We accept your calculation of $56,702.09 as the amount of the financial warranty. 11.. Acknowledge 12. Acknowledge With this letter we are including a copy of the Substitute Water Supply Plan and the well permit application. In previous applications the submittal of this information has satisfied the Exhibit G requirements because the State Engineer had been fully informed of the affects of mining and measures to augment water.