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MINREC, INC. 2768 COMPASS DRIVE, SUITE 101 GRAND JUNCTION, COLORADO 81506 PHONE: (303) 245-4101, FAX 242-7908 August 14, 1992 NORTH THOMPSON CREEK MINES Robert M. Perry North Thompson-Four Mile Mineral and Land Corporation 0163 Mt. Sopris Ranch Road Carbondale, CO 81G23 Re: North Thompson Creek Mine; Postmining Land Use Change Dear Mr. Perry: As you know, the mine sites were reclaimed during 1986 and 1987. The reclamation was designed to restore the land surface to unimproved rangeland. The Mined Land Reclamation Division defines rangeland as "land on which plant cover is principally valuable for forage. Except for brush control, management is primarily achieved by regulating the intensity of grazing and season of use'. During 1988, water within the mine reached the level of the portals and started leaking from Them. A series of three ponds were constructed to allow iron to settle [rom the water prior to it being discharged into North Thompson Creek. The mine water treatment ponds will remain in place for many years. For this reason, Minrec has asked the Mined Land Reclamation Division to amend the postmining land use for the mine sites. The No. 1 Mine Site will have two postmining land uses. One will be unimproved range and explained above. The other postmining land use for the water treatment system will be developed water resources. The Mined Land Reclamation Division defines developed water resources "as use of land for storing water for beneficial uses such as stockponds, irrigation, fire protection, flood control and water supply". The treatment ponds could be considered both treatment ponds and stockponds. Therefore the land owner will realize a beneficial use of the treatment system because it will have a reliable source of water [or its cattle operation. Wildlife such as deer and elk, which seasonally use the mine site also benefit from the ponds. The reason Cor this letter is that Minrec's mining permit with the Mined Land Reclamation Division requires it to notify the landowner of any changes to the postmining land use. Please signify your approval of the revised post mining land use by signing in the space provided below and returning the signed copy of this letter to me in the enclosed self addressed stamped envelop. If you have any questions, please call. Sincerely, Postmining Land Use Approved: ~.-rJ Jim Stover, P.E. Chief Engineer cc: S. E. Smith, CMLRD Robert M. Perry, President North Thompson-Four Mile Minemland Land Corporation