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MINING PLAN (changed) <br />Setback C/aaracteristics: As mentioned above, the setbacks define the affected land boundary within <br />the mining areas, There are two types of setbacks included in this plan. One involves a setback <br />from a quarter section boundary which, as defined above, is the permit boundary. This setback is <br />always set at a constant 50 feet. That is, no land is to be disturbed within 50 feet of a lease <br />boundary line. <br />The second setback type involves the edge of the mesa that forms Table Mountain. Because <br />the mining and reclamation plans are both based on the concept of virtually no disturbance beyond <br />the rim of the mesa, the operation must stay well back of the actual rim. The reason for this "no <br />disturbance beyond the edge of the mesa" plan is to minimize visual impact. This "no disturbance <br />of the face of the mesa" is also a requirement of both of the leases. <br />This setback does not follow a definite distance, but in no case is it less than 50 feet. That <br />is, no mining or disturbance can occur closer than 50 feet to the edge of the mesa. The only <br />exception to this is where previous operators spilled rock over the edge of the mesa or cut slots in <br />the edge. Those disturbances already exist and have already been addressed in the mining that has <br />occurred up to this point. No disturbances of these types have been identified in the future mining <br />areas. <br />To further clarify the meaning of "no mining or disturbance" the following is added. Within <br />the setback from the mesa edge no disturbance of the ground or the vegetation will occur. No soil <br />strippings or stockpiling can occur in this Area and all tree and shrub cover shall remain <br />undisturbed. This has not been a problem, but most of the quarry edge in mining up to the time of <br />this amendment has been in areas where the setback zone was already disturbed by older mining. <br />From this point on natural mesa edge conditions will be encountered and must be dealt with <br />appropriately. By clarifying this requirement to include disturbances of any kind reduces the risk of <br />creating visual impact beyond the mesa edge, a violation of lease requirements. <br />The actual setback distance from the mesa edge will be determined by the integrity of the <br />mesa edge. In most places the edge of the mesa is very secure with little loose rock or loose blocks <br />of rock. In those situations there is little chance that blasting will break anything significant loose. <br />However, some locations have been found where the edge is clearly undergoing natural collapse. <br />These locations require a greater setback. These will be identified as the mining proceeds and <br />appropriate markers installed to establish the setback. <br />In summary, all setbacks will be no less than 50 feet, whether it is next to a lease boundary <br />or next to the mesa edge. But where the mesa edge is less secure and there is a considerable chance <br />of rock fall being induced from blasting, the setback must be greater and will be set at a maximum <br />of 100 feet. The only exceptions to this is where there are existing disturbances from previous <br />mining. The current condition of the existing disturbance is shown on Exhibit C-2. <br />P/cases clzauged to Areas: In the existing permit two phases are defined. These are separated by <br />land in Section 15 that, at that time, could not be disturbed. Castle Concrete has now acquired <br />permission to mine in that area. Although the amount of quartzite present in that area, when <br />compared to the other two, is small, this connecting land is critical to a very efficient mining of the <br />quartzite. With this addition, [he entire operation becomes a single unit and the phasing can be <br />eliminated from the plan. <br />However, a new complication arises as a result of this change. Because the quarry will now <br />span two ownerships that have different requirements for royalty payments, it is necessary to keep <br />mining in each ownership separate. Furthermore, to comply with timing factors built into the <br />leases, for some period, operations must proceed on two ownerships at once. To keep the <br />Table Mountain Quarry -Castle Concrete Company Exhibit D (Amendment 1) Page 3 <br />