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~~ Banks and Gesso, LLC <br />~~ <br />September 14, 2004 <br />Erica S. Crosby <br />Division of Minerals and Geology <br />1313 Sherman St, Room 215 <br />Denver, CO 80203 <br />720 Kipling St.,Suite117 <br />Lakewood, Colorado 80215 <br />(303)274-4277 <br />Fax (303)274-8329 <br />www. banksandgesso.com <br />Subject: Cemex, Inc., Dowe Flats Mine, Permit No. M-1993-041; <br />Compliance with Permit Stipulations '~ <br />Dear Erica: <br />This letter is in response to your letter dated July 30, 2004, regarding Cemex's Dowe Flats <br />Mine. Following is our documentation of compliance for each condition listed in your letter. <br />Stipulation C (Initial permit approval, MLRB Order dated March 3, 1994). <br />`Southdown will not disturb the 4`h Ridge area until acid-base neutralization tests <br />are run on a representative group of samples from the pyritic rock material to be <br />mined or exposed in this area. A separate remediation plan must be approved <br />by the Division which prevents potential acid mine drainage before any activity <br />can begin on the site." <br />Research: Please see the attached letter from SHB AGRA, Inc. to William C. York- <br />Feirn at the Division, dated April 8, 1994. This letter documents testing done to <br />determine the acid potential of the 4~' Ridge Shale, and concludes that the potential for <br />any acid generation from exposed 4~' Ridge Shale is low, and no remediation plan or <br />revision to the reclamation plan is necessary. We reviewed the Division's files, and did <br />not find any acknowledgment of or response to this letter by the Division. <br />Conclusion: Southdown did fulfill the requirement to run acid-base neutralization tests <br />and since there was low acid potential, no remediation plan or revision was necessary. <br />Therefore Cemex, as successor to Southdown, is in compliance with this stipulation. <br />Stipulation E (Initial permit approval, MLRB Order dated March 3, 1994). <br />`The Division must receive copies of all signed letters from all owners of <br />structures within 200 feet of the affected area boundary as to who is responsible <br />for any damage sustained to the structures as a result of the mining operation. <br />Alternatively, the operator may provide an engineering study that demonstrates <br />to the satisfaction of the Division that the mining operation will not adversely <br />affect the stability of such structures. These studies will be provided to the <br />objector." <br />