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<br />Mr. Michael S. Mottice <br />Mr. Gregg R. Squire <br />November 21, 1996 <br />Page - 4 <br />In addition, Pitkin Iron would reimburse BLM for <br />testing costs mentioned above, not to exceed $1,500. <br />5.0 Operating Plan. <br />If settlement is reached and Pitkin Iron is allowed to <br />remove the quarried limestone within five years, it is expected <br />that reclamation would proceed during each working season to an <br />extent that would not unduly interfere with removal of quarried <br />limestone, with the expectation that application would be made <br />for reduction of bonding as reclamation proceeded in according <br />with the Colorado statutes. Under the circumstances, and <br />considering that operations are limited to removal of quarried <br />stone (a process that will enhance reclamation) it is not <br />intended that there be a major modification of the approved <br />reclamation plan. In view of the substantial deviation from the <br />plan of road reclamation as recommended by BLM, it is expected <br />that road reclamation would be performed by DMG utilizing funds <br />made available to them under this arrangement. The specific <br />tasks to be performed by Mid-Continent and those to be performed <br />by DMG would be further defined in the settlement contract. <br />Sincerely, <br />MID-CONTINENT RESOURCES, INC. <br />By //~~L/_,GGt*x~U <br />Robert De y <br />Vice Pr ident <br />RD/lta <br />cc: Mr. Michael Long <br />Ms. Cheryl Linden <br />Mr. Bucky Arbaney <br />