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Exhibit Page 12 <br />EXHIBIT D -MINING PLAN <br />GENERAL CONCEPT: <br />General Site Information <br />The site consists of alluvial and aolian sand and gravel deposits of up to 23 feet thickness <br />overlaying clay deposits and shale bedrock, and is located on the top of Hay Camp Mesa, <br />which is cut by numerous ravines draining both to Lost Canyon Creek (to the south) and directly <br />to the Dolores River (to the north). Portions of the permit area have been and/or are being <br />mined under permits M-1985-102, M-1985-172, and M-1990-025. Some of these areas have <br />been reclaimed and released, others are reclaimed and waiting for release, and others are still <br />disturbed. (This plan incorporates all those areas.) As part of operations under those permits, <br />and under terms of lease agreements, various roadways, basins, drainage features, and <br />fencing have been constructed. These shall remain during mining or be replaced by similar <br />features during mining and reclamation. <br />The mineable sand and gravel deposits are found primarily on the flat top of the mesa, <br />sometimes exposed and sometimes covered with overburden and topsoil. There is some <br />outwash of sand and gravel along the sides of the mesa and the ravines. The material to be <br />mined generally falls into two categories: a predominantly red material with a high fines content <br />which can be processed and used as the surface of gravel roads; and a predominantly white <br />material which is coarser and can be crushed and screened into a variety of sand and rock <br />products for multiple uses. The thickness of mineable sand and gravel and the thickness of <br />overburden varies enormously within a very short distance, frequently making mining of some <br />areas unproductive. <br />Operations <br />Mining of the permit area will continue to be done both by Montezuma County Highway <br />Department (MCHD) and by Four States Aggregates LLC (d/b/a Hay Camp Gravel) (4SA). As <br />much as possible, the actual mining, processing, and reclamation operations will be kept <br />separate between the two entities under the Memorandum of Agreement signed between <br />MCHD and 4SA. There will obviously be some joint use of roadways, stockpile and backfill <br />areas and other support. <br />Mining of the area began in the southwest comer of the proposed permit area and operations <br />moved north and then west. The extreme eastern edge of the permit area has been mined and <br />reclaimed, with some release of reclaimed land done. At present, mining is underway in the <br />western portions of the original permit areas. Of the 460 acres permitted, a total of <br />approximately 307 acres will ultimately be affected by operations. Of this, approximately 139 <br />acres has already been disturbed, leaving approximately 168 acres for 2002-2012. It is the <br />landowners' desire that whenever feasible, no small pockets of gravel are to be left. This <br />includes a small area to the north of the current permit area, and some areas that were <br />bypassed during previous mining and were left outside the area. However, mining of the permit <br />area will continue to proceed generally from the east to the west along the mesa top, which <br />narrows from the current permit areas. <br />Mining will generally include all areas with sand and gravel. The exception to this will be <br />establishment of two circular areas of 200-foot radius around two large electrical transmission <br />line towers for the line which runs north-south across the property. Mining in the vicinity of this <br />powerline is expected to be conducted mostly by 4SA. To prevent any damage to these <br />