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Mr. Mitch Rollings August 5, 1997 Page 2 complaint was completed on July 5, 1994, and it was the conclusion of the CDMG that there was not sufficient evidence to directly link damage to the spring and water pipe with underground mining. The complaint was formally withdrawn by Mautz on May 13, 1994. Specific details regarding the investigation aze provided in the following pazagraphs. The CDMG commenced its investigation with an inspection of the area in question on July 13, 1993. The spring was located on the ground and it appeazed that the spring was currently expressing about 50 feet from where it was originally developed. An old pipe, presumably used previously to direct spring flow, was observed to be broken. The CDMG determined that the spring is located in a landslide area, and that it would not be possible to ascertain whether landsliding and/or subsidence caused a relocation of the spring. Following the inspection the CDMG issued a letter to Mountain Coal Company dated July 19, 1993 summarizing issues requiring additional resolution following the CDMG complaint investigation. An additional letter dated August 11, 1993, was received by CDMG from Larry Mautz ,and subsequent letters were sent to Mautz and MCC on August 16, 1993. By letter dated August 26, 1993, MCC took the position that the spring in question is not an adjudicated spring, and MCC was therefore not responsible for repair of, or compensation for, any damage to the spring. The CDMG continued the investigation regarding the adjudication status of the spring, and the legalities regarding compensation and repair relative to adjudication status. On September 30, 1993, CDMG required additional permitting from MCC. An additional detailed investigation letter dated January 13, 1994, was sent from CDMG to MCC, and in the January 13, 1994 letter, the CDMG asserted that regazdless of adjudication status of the spring, MCC would be responsible for any mine-related damage to the pipeline. On the same date a letter was sent to Mautz requesting any available information which had not yet been provided to CDMG. The letter also proposed a local meeting with Mautz, CDMG and MCC. MCC responded to the January 13, 1994 CDMG letter by correspondence dated February 4, 1994. In the February 4, 1994 response, MCC stated their position that the spring and pipe aze located in an historic landslide area as documented in a Dames and Moore "Landslide Investigation Report" of September 1993 and that there was no evidence to attribute the spring and pipe problems directly to mining. A meeting took place in Paonia on March 29, 1994 with MCC, Mautz, and CDMG representatives, and various issues were discussed, including the problems with the spring and pipe. Following the meeting, Mautz withdrew the pending spring/pipe related complaint by letter dated May 13, 1994. An issue summary document was sent to Mautz from CDMG on July 5, 1994. Monitoring of Water Supplies -The CDMG is not aware of any problems or areas of noncompliance regarding the monitoring plan for water resources on the Mautz property. The monitoring plan was evaluated as a result of the spring/water pipe complaint received in 1993 and the plan was clazified as evidenced by the various correspondence referenced above.