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7~" <br />~~ Banks and Gesso, LLC <br />~~ <br />/,~ <br />26 July 2007 <br />Carl Mount <br />Colorado Division of Reclamation, Mining, and Safety <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />Re: Grand River Park Project, Exploration Release and Baseline Data <br />G/,J <br />RE~~EVED <br />JUL 2' 2001 <br />Division of Re>~'amalion, <br />Mining and Safely <br />Dear Carl: <br />Please find the enclosed items conceming the Grand River Park Project (M-2006-046) in <br />Garfield County, Colorado. At the time this project was approved as a 112 operation, in January <br />2007, Rick Wenzel was the assigned specialist; since Mr. Wenzel has departed the Division, I <br />am forwarding this information to you as the other contact in the project's review. In anticipation <br />of start-up of resource recovery in the near future, we are submitting two items concerning this <br />approved 112 Construction Materials permit. <br />First, we are hereby requesting release of the exploration permit (P-2006-006) under which <br />assessment of the sand and gravel resources took place prior to application for the 112 permit <br />in 2006. The exploration permit is no longer necessary, as the entire site is now subject to <br />permitting, including executed warranties, fora 112 operation. Double-bonding is a practical <br />concern, as it should not be necessary for the state to hold a financial warranty to reclaim the <br />same land twice. In addition, we note that the enactment of Colorado Senate Bill 06-236 <br />clarifies as a matter of state policy that exploration activities below a certain threshold of land <br />disturbance do not warrant oversight through the Reclamation Permit process; the P-2006-006 <br />permit was obtained shortly before the enactment of SBO6-236 and would not require a permit <br />under the revised statute. In any event, all exploration potholes were backfilled immediately <br />following reserve testing in 2006 are in a condition appropriate to the current land use, and <br />should be eligible for release. <br />Second, the operator is submitting baseline monitoring for groundwater data, as compiled by <br />Colorado River Engineering in the attached letter. The baseline condition is established as a <br />means to compare effects of dewatering and groundwater exposure, relative to other natural <br />processes in the area. Dewatering operations, as noted in the approved mine plan, will be <br />phased in and out across the site, following the schedule of concurrent reclamation process. <br />Please contact me at Banks and Gesso, LLC (303-274-4277), with any questions or comments <br />about this letter or the Grand River Park Project. <br />Sincerely, <br />BANKS AND GESSO, LLC <br />Alex Schatz <br />ri <br />M <br />720 Kipling St., Suite 117 <br />Lakewood, Colorado 80215 <br />(303)274-4277 <br />Fax (303)274-8329 <br />www. banksandgesso. com <br />