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TECHNICAL REVISION #2 (TR-2) FOUNTAIN COLONY PIT RECEIVED PERMIT M-87-171 KIEWIT WESTERN CO. FEB 2 3 2001 SUBMITTED: February 23, 2001 Division of Minerals and Geology Summary: Technical Revision N2 is a change that primarily increases the bond for the removal of permanent structures to be established in the plant site. Most of the equipment in the plant site will be portable, but will require various types of primarily concrete supports. Because the concrete structures will be poured in place, removal of those will be required to fully establish the final land use. This technical revision lists what will be constructed and provides estimated costs for removal in the event of bond forfeiture. Of course, Kiewit Western's cost for removal will probably be less than the prices provided. Permit History: The original permit was obtained by and issued to the Fountain Colony Investment Company located in Colorado Springs. This company was the original land owner. During the years since the permit was issued there was no activity at the site and a minimal bond was kept in effect to keep the permit active. The original landowner repeatedly attempted to find an operator for the pit, but was unable to do so. At one point the permittee considered withdrawing the permit and simply developing the land. Finally, the original landowner sold the land to another party who then pursued the process of finding an operator for the permit. In 1999, Kiewit Western Co. examined the site and decided to become the operator. On December 13, 1999, a succession of operator was approved by the Division of Minerals and Geology and Kiewit Western Co. became the permittee. The name of the operation was not changed. Kiewit Western put up a bond in the amount of 592,000 which was also accepted and approved on December 13, 1999 After assuming the permit, Kiewit Western examined the plan with respect to their needs and decided the pit would most conveniently be operated in a different sequence from that which was originally approved. On May 23, 2000, a technical revision (TR-1) was submitted which reversed the sequence and proposed a new access route. The reversed sequence was accepted and approved on June 15, 2000. The new access route was not accepted. Technical Revision: This technical revision k2 is fundamentally a bond adjustment revision. Kiewit Western recognizes that any "permanent" structures or features constructed at the site may require an increase in the reclamation bond. Now that the plant facilities have been determined these structures can be included. All of the equipment will be portable and therefore does not require bonding, but many of these facilities will require some kind support. Most of the permanent structures will be Technical Revision #2 Fountain Colony Pit M-87-171 Page 1 of 2