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MINING PLAN <br />Consideration of Other Lessees <br />Oi[ and Gas - Several producing oil and gas wells exist on this property. The mining of <br />the sand must always take into account possible effects of the mining on these wells. Although the <br />mining itself certainly does not extend deep enough to intersect the oil and gas deposits, the <br />companies that operate these wells use many of the same roads used by the operator. Furthermore, in <br />some places, underground pipelines connect wells with storage tanks. Therefore, it is necessary for the <br />mining to be aware of adverse impacts on these wells. <br />REQUIREMENT: No operations will occur within 200 feet of any operating oil or <br />gas well or oil or gas lines without FIRST obtaining permission from the well or pipeline owner and <br />the additional disturbance is also APPROVED by the Colorado State Boazd of Land Commissioners <br />and the Division of Minerals and Geology (or Mined Land Reclamation Board). See "...Setbacks" in a <br />the previous section of this exhibit. <br />Grazing - In the past, grazing has been a major use applied to this land. At this point in <br />time, however, elimination of grazing or, more likely, alteration of the grazing arrangements is being <br />considered by the Colorado Board of Land Commissioners. If grazing occurs on any land being <br />mined, the operator will work with the grazing lessee to coordinate their activities so as to avoid harm <br />to the grazing stock as well as avoid livestock from damaging ongoing reclamation, including <br />revegetation. <br />Water Resource Development - On the various maps included in this amendment <br />application, the location of a proposed reservoir is identified. At this point in time it is not known <br />whether this reservoir will, in fact, be developed. However, this and other reservoir sites have been <br />approved in at least concept. No specific dam designs exist at this time. <br />A portion of the mining area occurs in the same area where one reservoir is planned. Prior to <br />mining within the area of the reservoir site, the operator will coordinate operations with those who are <br />planning to construct the reservoir. Mining in the reservoir area will not occur until late in the North <br />Phase. Mining activities that create a condition where the construction of the reservoir would be <br />prevented or made more difficult may not occur. It is known that the proposed location for the <br />reservoir dam is underlain by sand in the valley bottom. Furthermore, sand deposits also occur on <br />adjacent hillsides to the dam site as well as within the reservoir location. If the operator can <br />implement various actions to improve the site for the reservoir, such as the removal of sandy materials <br />that might be unsuitable for a reservoir end use, the operator will coordinate with the reservoir builder <br />to implement such improvements. Improvements that do not involve the removal of sandy materials <br />Coal Creek Sand Resource Amendment 3 (2005) - M-1988-044 Exhibit D Page 40 <br />