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i <br />L. <br />i• <br />Technical Revision <br />Coal Creek Resources <br />Schmidt Construction Company <br />M-1988-044 <br />March 2004 <br />Purpose: To add land to the bonded area within the affected land area and to increase the bond <br />amount accordingly. <br />Description: In 2002 an amendment was approved that altered several aspects in the permitted <br />plan. One aspect that was altered involved the definition of affected land and the bonding. <br />Previously, a floating bond was used, but that became unwieldy in such a large operation with so <br />many different classes and locations of affected land. In the new arrangement, an affected land <br />boundary was defined (prior to the amendment there was no affected land boundary which <br />caused confusion). Within that affected land, specific areas were defined that became the bonded <br />affected land. So, in effect, the affected land area became rather large, but the land that could be <br />affected became restricted to only that land defined as bonded. <br />Under this arrangement, and as stated in the permit amendment and on the maps, it <br />became possible to alter the bonded land (add or release land) without requiring a permit <br />amendment. In late 2002 over 50 acres of bonded land was released from bond. <br />This operation is nearing the end of its current permitted life and although a lease <br />extension has been requested which would add much more land to the permit, that lease <br />extension is still under consideration. In order to continue with an active operation it has become <br />necessary to add more bonded land to specific areas. Other areas that were defined in 2002 and <br />are currently bonded have not been depleted and mining will continue there. But due to the wide <br />variety of sand products this operation produces not all of those products can be manufactured <br />from sand in currently bonded land. Therefore, a total of 31 acres of additional bonding is <br />requested through this technical revision. <br />This land is divided into two parcels and are adjacent to existing mining activities. One <br />parcel adds 18.5 acres and the other parcel adds 12.5 acres for a total of 31 acres. Sufficient land <br />has been included in these parcels to not only account for the mining of identified deposits, but <br />also some additional land for topsoil and overburden storage. <br />Maps: Two maps are provided with this technical revision. One map shows the entire upland <br />area within the permit. The land requested for addition is shown in red cross-hatch. Also, land <br />that was released from bond in 2002 is shown with a green pattern. <br />The second map is a detailed view of the specific area where the additional bonded land <br />is located. Everything that is on the larger view map is also on this map, but with about a two <br />times enlargement. <br />Coal Creek Resources - M-1988-044 Bond Increase TR March 2004 Page 1 of 2 <br />