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Mr. Michael S. Mottice Mr. Gregg R. Squire November 21, 1996 Page - 3 the DMG for Mid-Continent Resources Quarry reclamation, $2,500 in the form of a Certificate of Deposit payable to the DMG for reclamation of the Marblehead Quarry. Considering that the Rock Dust Plant was pledged by Deed of Trust and Surety Agreement to provide reclamation bonding for the Mid-Continent Quarry, and the liquidation of this property with proceeds paid to DMG, DMG could consider allocation of a part of this money to the Mid-Continent Quarry reclamation equal to the amount for which the Limestone Plant was pledged; that is, the deficiency of $6,213. If DMG is unwilling to make this allocation, then the following approach is suggested: Amount held by DMG $ 7,000.00 Certificate of Deposit on Marblehead Quarry, to be assigned to Mid-Continent Quarry reclamation on transfer of Marblehead Quarry to County 2,500.00 Pitkin Iron would pay Mid-Continent $3,713 to make up the deficiency, which Mid-Continent would pledge by way of a Certificate of Deposit to the Mid-Continent Quarry reclamation Account. Amounts in excess of the $13,213 directed by the DMG to be posted would be made up from an allocation out of the $0.75 per ton royalty to be paid by Pitkin Iron for limestone materials removed from the Quarry. In this connection, our investigation indicates that the usual royalty for gravel in this locality is $0.50 per ton. The only comparable royalty I have located charged by BLM on limestone under similar circumstances was through Pete Lien & Sons of Rapid City, South Dakota, who agreed to a compromise settlement of $0.46 per ton.