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Rule 6.4.13 Exhibit M- Other Permits and Licenses 56. The operator indicates that a Chaffee County Conditional Use Permit Application is to be submitted in the fourth quarter of 2005. According to the County's letter of January 23, 2006, an application has not yet been submitted to the County to cover the expanded area. Therefore, the County formally objects to the Division granting approval on CN-O1 until the mine operator has applied for a County Special Use Permit. Please inform the Division as to the status of submittal of the application to the County. Because the County has formally objected to the application, it must be considered before the Mined Land Reclamation Board. Rule 6.4.14 Exhibit N- Source of Leeal Rieht to Enter 57. The operator states that a lease agreement from the Nevans Family will need to be obtained for use of the staging area parcel as a temporary stockpile for the end of season use. However, in another section of the application, the operator provided the Lilly Mill site claim that was added to the Exhibit Ca on January 4, 2006. Please explain this discrepancy for the land ownership of the staging area and provide the appropriate legal right of entry documentation for this azea (either lease agreement from the Nevans Family or USFS approval of the Plan of Operations). 58. Under Rule 6.4.14 of the Construction Materials Rules and Regulations, the operator is required to provide the Division with its legal right to enter and initiate a mining operation on the affected land. Colorado Mazble needs to secure approval from the USFS to initiate the proposed mining operation. According to the USFS, approval depends on many factors including that the operation obtain approval of a Plan of Operation (POO). Until an approved POO is obtained and USFS otherwise authorizes the proposed operation, the operator does not have the right to mine and reclaim on USFS land. Accordingly, prior to the operator obtaining the necessary approvals from the USFS, the Division would be required to recommend denial of the conversion applicarion. Rule 6.4.19 Exhibit S- Permanent Man-Made Structures 59. Please be aware if the applicant encroaches into any easements as a result of the mining and operation plan, then the applicant must obtain legal right of entry document from the easement holder. Please state what easements will be included, and provide legal right of entry agreements. 60. The Colorado Historical Society (CHS) noted that two cultural resources that are eligible or potentially eligible for the National Register of Historic Places (NRHP) are located within or very near the proposed permit area. Please address how these structures will be protected from the mining and reclamation plan as required by Rule 6.4.19, Rule 6.5 Geotechnical Stability Exhibit You may anticipate further application adequacy review items from the Division's engineering staff in the very near future. The engineering staff has identified questions and areas of concern relating to the proposal to rout runoff to the lower pit azea, the proposed road relocation, the construction and reclamation of waste rock piles, and the configuration and reclamation of the highwalls and benches. Because objections were filed with the Division, this matter must be set for a hearing before the Mined Land Reclamation Board (MLRB). The tentative date for the hearing is June 14's and 15'", 2006. However, the Division will need to make a recommendation by May 19, 2006. Please be advised that Lily Mines application may be deemed inadequate, and the application may be recommended for denial on May 19, 2006 unless the above mentioned adequacy review items are addressed to the satisfaction of the Division. If you feel more time is needed to complete your reply, the Division can grant an extension to the decision date. This will be done upon receipt of a written waiver of your right to a decision by May