2006-05-23_REVISION - M1982015 (3)

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Rule 6.4.12 Exhibit L- Reclamation Costs 23. Since ground water is already exposed in these pits, the Operator will not be eligible for the 20 percent slurry wall bonding option until after the slurry wall is installed. A 100 percent slurry wall bond will be required upon approval of the amendment. Pursuit of the 20 percent option may not provide a significant financial advantage, depending on the timing of the leakage rate test to be conducted following installation of the slurry wall. If the Operator anticipates lag time between construction of the slurry wall and conduct of the leak test (note that a minimum 90-day leak test term is required by the State Engineer) it may be advisable to reduce the bond during the lag period. Bear in mind that once the leak test is completed, and the State Engineer has accepted the results, DMG will release the slurry wall bond in its entirety. Unless the Operator chooses to pursue the 20 percent option, relatively minimal design information, specifications, and quality assurance detail is required in this amendment application. To be eligible for the 20 percent bonding option following slurry wall installation, DMG must have a high degree of assurance that the slurry wall will meet the State Engineer's performance standard. This assurance is provided through inclusion of design documents, plans and specifications, and a quality assurance program as enforceable components of the reclamation permit. The factors that must be addressed in the reclamation plan include the design of the slurry wall (including construction plans and appropriate drawings), technical specifications, construction quality controUconstruction quality assurance (CQA) and a final construction report including the CQA Engineer's certification. Rule 6.4.13 Exhibit M- Other Pennits and Licenses 24. Please inform the Division if the following permits aze necessary: Air Pollutant Emission Notice (APEN) and Storm Water Management Permit (SWMP) through Colorado Department of Public Health and the Environment (CDPHE). If these permits are necessary, please revise Exhibit M. Rule 6.4.19 Exhibit S-Permanent Man-made Structures 25. It appears that the construction of a slurry wall azound the Siegrist Construction ponds will cross a number of gas/oil lines on the property. The operator will need to demonstrate that such gas/oil lines will be stable with the construction of the proposed slurry walls in the form of an engineering evaluation, or provide a notarized agreement -' - from the -owners of the- structures and Siegrist Construction-Company that meets the requirements of Rule 6.4.19 and Section 34-32.5-115(4)(e), C.R.S. Please be aware that if any of the gas/oil lines need to be relocated as a result of the mining and reclamation operation, then a notarized agreement between the operator and the owner of the structure must be obtained prior to approval of the application. 26. Where the slurry wall construction will adversely affect the stability of any significant, valuable and permanent man-made structure located within two hundred (200) feet of 4