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<br />10. Mr. Mills explained the notations on the map which <br />delineated each 5-year increment of the mining operations. These <br />were just projections which were made at the time the map was <br />created. Changes in the business plan have caused these notations <br />to become inaccurate. The map depicted a large area of reserves and <br />a projected mining pattern to the north of the current active area. <br />However, because of the higher costs of driving the main access <br />shaft further north and the restrictions to mining beneath the <br />stream, the current plan is to revise the boundary to include <br />reserves to the east of the present main access shaft and mine this <br />area in the next five years. <br />11. Toward the economic life issue, Mr. Mills testified that <br />the physical life of the reserves could exceed the economic life <br />because of environmental and legal restrictions such as those which <br />govern alluvial valley floors; failing to obtain leases to the <br />reserves; and failing to get the needed permits to subside roads, <br />power lines, or other surface characteristics. However, he also <br />testified that the active area already mines beneath two county <br />roads and a power line. Also, the company had conducted an <br />experiment, with the permission and the cooperation of the <br />regulatory agency, to mine a small area of a minor alluvial valley <br />floor within the active area. This had proven successful and had <br />provided valuable data and new technical information which might <br />allow further mining of these areas in the future. <br />12. Toward the issue of the reserve tonnage, Mr. Mills stated <br />that the company did not currently control all the reserves within <br />the life of mine boundary, but did control some outside. He was <br />unable to give any leasing statistics in tonnage or acreage, but <br />testified that he believed approximately 20~ of the proposed <br />Eastern District was controlled by the company as of January 1, <br />1994. The Eastern District is the area for which they have <br />submitted a request for revision of the permitted boundary. <br />13. Petitioner's witness, Roger Baer, manager of <br />administration and controller for the subject, testified as to the <br />reporting made to the Assessor and his opinion as to the economic <br />life of the mine. <br />14. Mr. Baer stated that he believed the Assessor's <br />declaration form was poorly designed and did not gather the correct <br />information. Specifically, he said there were insufficient <br />definitions for the reserve information: estimated recoverable <br />reserves and estimated durability in years. He reported to the <br />Assessor the total tonnage controlled by the company as recoverable <br />reserves . <br />UA/A27512 <br />3 <br />