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~, <br />„~; Department of Energy <br />l,~r Office of Legacy Management <br />OCT 1 3 2004 <br />Mr. Rich Ziegler <br />Executive Vice President and General Manager <br />Cotter Corporation <br />7800 East Dorado Place, Suite 210 <br />Englewood, CO 80111 <br />Subject: Revised Mining Plan for DOE Lease Tract C-SM-18 <br />Dear Mr. Ziegler: <br />The "Revised Mining Plan" for the U.S. Department of Energy (DOE) Lease Tract C-SM-18, <br />submitted by Cotter Corporation on August 30, 2004, has been reviewed by DO$ and its <br />contractor, and in accordance with Lease Agreement DE-RL13-96GT89467 for DOE Lease <br />Tract C-SM-18, is hereby approved as proposed subject to the following stipulations: <br />• Ores originating from DOE Lease Tract C-SM-18 shall be segregated and stored <br />sepazately from all other ores while being stored on-site (underground or on the surface), <br />at Cotter's milling facility in Canon City, Colorado, or any other place of delivery; <br />- Cotter personnel shall advise DOE when underground mine workings approach and/or <br />cross the boundary line of DOE Lease Tract C-SM-18 and proceed onto privately <br />controlled claim(s). In such cases, Cotter personnel shall immediately establish the <br />boundary line within the underground workings by standard surveying techniques; and <br />The access road to the vent site shall be improved only to the extent necessary to provide <br />reasonable access of the equipment to the site. These improvements shall include water <br />bars sufficient in number and placed as required to minimize the potential for future <br />erosion of the road. <br />• All personnel associated with the proposed activities shall be fully advised of all <br />applicable lease requirements and the contents of this approval letter, including the <br />stipulations contained herein. <br />As mining and ore-production activities aze resumed, please take note that through past amiual <br />royalty payments, Colter Corporation has accrued a royalty credit of $245,700 for DOE Lease <br />Tract C-SM-18. This credit may be used to offset an equitable amount of production royalties <br />that become due and payable to the Government as a result of new ore-production activities. <br />Approval of this plan is conditioned upon the faithful compliance with the terms, conditions, and <br />stipulations set forth herein, in letters from DOE approving previous plans, and in the lease <br />agreement. This approval is restricted solely to the activities set forth in your plan. Activities <br />3610 Collins Ferry Road, P.O. Box 880, Morgantown, WV <br />