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': ;Applegate Group, t~~. RECEIVED JUL 1 2 2001 Division of Minerals and Geology June 28, 2001 Ms. Mary Harnett Western Mobile Northern, Inc. dba Lafazge Northern Colorado Division 1800 North Taft Hill Road PO Box 21R7 Fort Collins, CO 80522 RE: Summary of Substitute Supply Plan for the North Taft Hill Expansion Area Dear Mary, Per your request, Applegate Group, Inc. has summarized the information on the substitute supply plan for the North Taft Hill Expansion Area. As you mentioned in our phone conversation, there was a question about whether the substitute supply plan must be approved by the State Engineers Office (SEO) prior to the DMG approving the mining permit for the site. The substitute supply plan for Jtte""site remains in draft form and was not submitted to the SEO. During the preparation of the DMG and County permits, the decision was made to use the North Taft Hill site as an aggregate reserve. When the adjacent Home Office Pit is complete, then the mining operation would transfer to the North Taft Hill site several years from now. Prior to exposing any groundwater during mining at North Taft Hill, a substitute supply plan must be approved by the SEO. I spoke with Tom Schreiner of the DMG and Rob Helmik at Larimer County, and they both agreed the delay on the substitute supply plan was appropriate since no groundwater will be exposed for several years. Both Mr. Schreiner and Mr. Helmik ~t~ted that Lhe pe.:..its from. their respective abe^.cies could be issued •.vith a cond.~tior. tl:~t substitute supply plan must be submitted and approved. prior to the start of mining at the North Taft Hill site. Another reason not to complete the substitute supply plan at this time is to prevent Lafarge from having the annual expense for a lease of winter augmentation water from the City of Fort Collins. The Tayloc and Gill shares currently used as summer replacements in the Home Office plan will be used in the future North Taft Hill plan. Page 1 1499 West 120th Avenue, Suite 200 vnvw.applegategroup.com ~ ~ ~ 5441 aoeing Drive, Suite~200 Denver, Colorado 80234-2728 ~ ~ ~ Loveland. Colorado 80538-8855