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Banks and Gesso, LLC <br />INTRODUCTION <br />Mountain Aggregates, Inc. is presenting an application to the State of Colorado, <br />Division of Minerals and Geology, Colorado Mined Land Reclamation Board <br />(CMLRB) for an Amendment to existing 112 Operation Reclamation Permit No. <br />M-77-534-TR1 for its Empire Pit. The original reclamation plan identified a <br />reservoir as the potential reclaimed end use. In 1994, the Division of Minerais <br />and Geology approved a Technical Revision (TR1) to this permit which, among <br />other things, allowed a water storage reservoir for the City of Golden as the <br />reclaimed end use. The purpose of this proposed Amendment is to document <br />the final design of the proposed reservoir, and include additional acreage to <br />accommodate the final design. <br />The permit area currently consists of 106.79 acres located just south of State <br />Highway 40, approximately 1 mile west of Empire, Colorado. The site has been <br />used as a gravel pit since 1933. In 1983, the land owners entered into an <br />agreement to lease the reservoir property to the City of Golden for use as a water <br />storage facility. Due to drought conditions, SEO administrative decisions and <br />court rulings that occurred in 2002, construction of the dam in 2003 is critical to <br />help ensure adequate water supplies for the City of Golden this year and into the <br />future. Although the City of Golden's lease agreement for the reservoir is for <br />120 years, Golden negotiated with the land owners and now has a condemnation <br />petition pending in court (see Exhibit N for more information). <br />DMG 112 Permit #M-77-534-TR1 Amendment June 3, 2003 <br />Mountain Aggregates, Inc. -Empire Pit Z <br />