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Ms. Erica Crosby <br />December 13, 2004 <br />Page Two of Two <br />Regarding the need to revise the East Rigden reclamation plan, as I explained last Friday, <br />the SEO's reference to the "construction ofa clay reservoir liner" requires some clarification. <br />Currently, Lafazge leases the East Rigden site from Cottonwood Land and Farms, Ltd. (Flatiron). <br />Eventually, through a Division approved Succession of Operator, Flatiron will assume the East <br />Rigden mining and reclamation permit (# M-1979-097) from Lafazge and complete the remaining <br />mining and reclamation of the site. In anticipation of succeeding Lafarge as pemuttee, and because <br />long-term augmentation of unlined lakes will require a significant contribution of its water rights, <br />Flatuon is considering its reclamation options including the feasibility of sealing part ofthe pit. As a <br />result, Flatiron initiated limited construction of a clay liner to determine its feasibility at this site. The <br />liner feasibility construction is part of a long-term augmentation planning process for the East <br />Rigden property. Flatiron will determine if reclamation will include unlined lakes as described in the <br />current reclamation plan or a lined reservoir. Once a decision regazding overall reclamation has been <br />made the current reclamation plan will be revised accordingly. <br />Finally, I think that your idea for a site inspection after the first of the yeaz is a good one. Please <br />call me when you are ready to schedule your inspection and if you have any questions or need <br />additional information regazding East Rigden. <br />Sincerely, <br />Michael J. (Mike) Hart <br />cc: Bill McDowell, Flatiron Companies <br />Suzatme Jansen, Lafazge <br />Richard Raines, Applegate Group <br />