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BATES HUNTER MINE LIMITED IMPACT OPERATION APPLICATION Second Deficiency Responses DEFICIENCY RESPONSE 1 In the event that Central City Consolidated Mining Corporation (CCCM) changes any of the reagents that are to be used in the Golden Gilpin Mill, the MLRD will immediately be notified before use. DEFICIENCY RESPONSE 2 CCCM will commit to performing EP Toxicity tests on the ashed peat every time that the peat in the peat pond is changed. CCCM cannot at this time designate a specific area of the Bates Hunter Mine in which to store the ashed peat. However, the static water level of the Bates Hunter Mine is approximately 82 feet below the collar level of the Bates Hunter shaft. Ashed peat storage will occur between the collar of the shaft and the static water level in the shaft. CCCM plans to drift into the sidewall from the Bates Hunter shaft and cut a small chamber in which to store the ashed peat. DEFICIENCY RESPONSE 3 Attached are copies of court documents that have determined that the Mead and Polar Star Ditch was owned by the Gunnell Mines and Milling Company (Item 1). These documents further state that Gunnell Mines and Milling owned Mead and Polar Star Ditch water rights in the amount of 34.6 cubic feet per second (Item 5). These documents also state that the water is to be used for milling and power purposes (Item 6). This water right became effective in 1859 and was granted to Gunnell Mines and Milling and its successors (Item 7). I have also enclosed a letter from George Uranesh, one of the foremost water attorneys in Colorado, to Norman Blake, the former director of the Colorado Division of Mines. In this letter Mr. Uranesh states, "In my opinion, little trouble would be encountered from a water rights standpoint in using the water (from the Mead and Polar Star Ditch) for a similar industrial purpose in the vicinity of the old mills". CCCM feels that this documentation, combined with the documentation previously supplied in the permit application, should adequately document the water rights to the Mead and Polar Star Ditch that were purchased by CCCM.