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-2- Paragraph 4 of page 2 of your letter. NO the fendng shown on the one map that denotes fencng is rrot the permitted area boundary. The permitted area boundary is the area oontairred with in the metes and bounds description area. The arms that will east between any fencing and the effected area are set back area and is to remain undisturbed. We are acknaMedging that during some pants in time fencing may be required to meet local and/or ranching standards only. All ferrdng showmen is temporary in nature and is to be removed ~ this area is reclaimed. Paragraph 5 of page 2 of your letter. Our rrotation of the acres irwolved with in this project does irrdude total aces indufing all set tmaclc areas and all road and river areas. As such, we are correcting the total acres of the pemitted area to lens 40 acres. This retleQs the acres contained with in the metes and bounds description area. Paragraph 6 of page 2 or your letter. The map "Exhibit E" attached to the March 6, 2002 letter is correct. The direction of miang is to be from the outside boundaries of each excavated area toward the middle of each area. With respect to the area with in Excavated Area "A", Stockpile and Processing area. Excavation of materials will start from the edge bourxlaries of this area and progress toward the Huddle of Area "A" as shown on the map. The edges of this area wit! be excavated using slopes of 2.0 to 1.0 as the excavation process takes place. Contained with in this excavated area will be a road use to remove materials to the process area. The specific location of the road will vary as the exc~vafion process proceeds. The exact location of said road will be detemurted by the materials being excavated and the degree of dewatering that is required at any one time. Exhibit D -Mining Plan (Rule 6.4.4): The Seahorse Ranch (Gately Living Trust) has created an augmentation plan with respell to water application as d applies to the overall operation of the ranch and this gravel extraction operation, Said plan has been filed with the Division of Water Resources and is to be approved by the Water Court. The augmenaton plan is an extension of the first plan that was created at the time the first (Seahorse Porxl Gravel Pic) was approved try the State of Colorado. To t~nfirrrr the information that we presented via telephone the ranch owr>,s more then 44 cIs ~ 1903 water rights. Further it morns several rxue cfs in later decreed water rights. A portion nt the augmentation plan calls for a small portion of these rights to be given up to off set water use and evaporation factors. Paragraph 8 of page 2 of your letter. We are c:onfirtrting that dewatering will take place continuously during all exgvation periods. The exgvation of each area will be as shown on the map atfaGmed to the March 6, 2002 letter. First the out side boundaries of each area will be excavated. This boundary area will betaken down to a depth of 12 feet This area will be excavated using a slope of 3.0 to 1.0. Note: upon completing the excavation of these areas, they are to be reclaimed, seeded and planted. The exception to this is the areas that are the boundary for the stockpile and processing area. These boundaries are covered atxrve, herein, in the March 6, 2002 letter and the original application. Your statement t)mat "mining will take place in terrfoot-deep layers" is rent correct. Excavation ~ material will take place from the outside excavated (3.0 to 1.0 sloped) areas toward the middle of each area. While at times some of the excavation may be at a depth of ten feet, d is rrot determined that exgvation of material will be done in ten-feetiieep layers. All excavation of materials shall be done such that all excavated areas will have a minimum nt 2.0 to 1.0 slope. The depth of a given area being excavated will be determined try the materials found, the materials required at the time and the ongoing plan for excavation of the remaining pertnilted arm. Based on the cunent information of f)me materials available with in the permitted any, it is possible some portions of the excavated arms will betaken down to a final depth by taking out a layer of material at a time. All of this is subject to materials found, dewatering factors, materials required at any given time, etc. Paragraph 9 of page 2 of your letter. We adcnovAedge that the fuel storage area is to be lined with impemteade membrane materials as well as being earth berthed.