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W~ilaad~ln~. Envfrcnmental & Engfne¢ring October 2, 2003 Erica Crosby Environmental Protection Specialist Division Of Minerals and Geology 1313 Sheirnan St., Room 215 Denver, Colorado 80202 Dear Erica Crosby: RECEIVED OCT 10 2003 / Division rf Minerals and Geology .%I -19~'-~a ~ "(~S 4~ ernArarunerrta! Support Ior: • Transportatbn • Lard Devebpment • M/ntng • Ir)mr5try As you requested, I have documented our correspondence with the State Engineers office regarding the Challenger Pit Temporary Substitute Supply Plan. In April of 2000 Sugnet and Associates was contracted to evaluate the TSSP that Tuttle Applegate submitted in 1998. During the evaluation it was discovered that the plan was-never approved. A revised plan was submitted to the state in May of 2000. A Letter for additional information was sent by the state's consultant (RMC) in February of 2001. We responded to the comments in June of 2001 and received approval from Bill McIntyre over the phone in August 2001. We recently received a letter from Jeff Deatherage in Jan 2003 indicated the need for additional information. We were under the impression this had been approved years ago. Apparently Bill McIntyre had never officially completed the paper work and passed it on the his successor. Coulson has been paying water on the plan for the life of the mine and continues to do so. Coulson has made considerable effort to get this plan through: In retrospect, we should have followed through with Mr. McIntyre to send us a copy of the well permit approval letter, but typically they are sent directly to Coulson. I have enclosed a paper trail that documents the events described above. I have also included Coulson correspondence with City of Loveland for replacement water for Challenger. We are currently working in a final TSSP that will operate until permanent augmentation is finalized. Sincerely P~., Peter Wayland President 10395 Ca/fax Ave.. Suite 350, Lakewood CD 9D215 ph 3D3-436-D957 fax 3D3-436-0953