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LIME APPLICATION -INTERIM CONTINGENCY Productivity: 0.75 acres/hr. Labor: 1 Equipment Operator @ $22.51/hr $30.01/acre Equipment: 1 D8N Tractor Q 108.32/hr $144.43/acre 1 Hopper ~a 28.00/hr $37.33/acre Materials Lime (10 tons per acre) $814.00/acre Total: Acres: 581.30 $1025.77/acre Total additional amount for warranty for lime application: $596,280.00. This is added to the financial warranty in the two replacement pages for the warranty computation provided as Attachment 3. Ground Water [n Vicinity of Upper Squaw Gulch Overburden Storage Area and Victor Mill: As CC&V presented to the OMLR, CC&V has not encountered ground water in or around the Upper Squaw Gulch Area in the area of the Globe Hill or the Ironclad Mines, which lay in parts of Sections 17 and 18. These areas are located on and west of the Squaw Gulch Drainage divide, thereby placing them in the area modeled to recharge the historic underground drainage Tunnels. The Ironclad and Globe Hill Mines, excavated to depths of 300 to about 500 feet, were always dry. The deep core hole drilled in the area noted by the OMLR did not encounter measurable water. (That drilled core hole was not retained and was closed.) Further, CC&V does not have a record of registering a 2,000 foot "well" with the Colorado Division of Water Resources, nor does CC&V have any knowledge of any "well" being drilled to that depth. The monitoring wells downgradient of the Upper Squaw Gulch Overburden Storage Area are in the monitoring program. Based on this information and our discussions, CC&V understands that the previously submitted monitoring well map and the accompanying descriptions of the hydrogeology satisfy the applicable regulatory requirements. Reasonably Potential Ground Water Uses: The remaining OMLR concern about the limited ground water resources in the area was understood to concern the potential uses of that ground water. To elucidate on CC&V's prior descriptions of the hydrogeology and the absence of operating wells downgradient of the monitoring wells in the monitoring program, where CC&V explained the general absence of reasonably potential uses of ground water, CC&V wishes to offer the following, demonstrating that it is not reasonable to anticipate potential uses of ground water within or affected by the proposed activities: 1. The watershed area down-gradient of the Amendment No. 7 activities is over- appropriated for surface water. Ground water that is or may be affected by Amendment No. 7 activities is considered to be part of the surface-water system. Any well claiming withdrawal for more than 15 gpm from such ground water, or any group of wells for a residential subdivision, regardless of the capacity, must be supported by a water court approved "plan for augmentation," a time consuming and expensive process that usually 4