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Mr. Thomas A. Schriever Division of Minerals & Geology December 6, 1993 Page 3 NO. 7 BACKFILLING AND GRADING The owners and operators shall comply with DMG requirements to maintain minimum 3:1 side slopes for all active backfilling. Stable 3:1 side slopes shall be maintained during the backfilling operation as follows: The slurry pipeline shall deposit material at the surface approximately no more than six to ten feet from the new or recently backfilled shoreline to be reclaimed. As the material is dispensed from the slurry pipeline a slope no less than 3:1 shall be maintained throughout the mining operation. For further clarification see the attached sketch showing how the backfill/reclamation process will be handled (Attachment E). NO. 8 SLOPE STABILITY The mining will take place over 200 feet from the actual railroad tracks. Our experience with similar mines and materials, both in the field and by slope stability analysis, tells us this slope will not fail and cause damage to the railroad. Since we are outside the criteria for denial of Section 34-32- 115(4) (d), we do not understand the need for a slope stability analysis. We have carefully designed this mine to be 200 feet away from surrounding structures in order to avoid any question of damage. We request that you reconsider the need for a slope stability analysis. We have discussed our mining and reclamation plans with the AT&SF Rail Corporation. They are aware of the type and size of the mining operation and are assisting the owners with a conveyor system over the railroad tracks and design of the rail spur (Attachment F). NO. 9 RECLAMATION COST Over the past several years, we have discussed with DMG the need to bond for the removal of valuable equipment such as shops, scales, office trailers, concrete plants, asphalt plants, and screening and crushing equipment. In any substantial operation like this, a bond default means business failure due to bankruptcy (debt due exceeding liquid assets). In such a situation, the Court would take control of the assets and either approve a reorganization plan for the business or order then receiver to liquidate assets to pay the creditors. In either event, the DMG could not remove this equipment from the site. Therefore, we believe that bonding for removal of this equipment is not necessary.