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January 21, 1998 Fax 544-5897 The Pueblo Chieftain Attn: Dennis Darrow Subject: Mining operations story -Page 4B, Wednesday, January 21, 1998 Siloam Stone, Inc. has applied to the Colorado State Division of Minerals and Geology for a permit to cover future mining operations on Section 36 Township 21 South Range 68 West. The application must also be approved by the Pueblo Planning Commission. The minerals lease held by Siloam Stone, Inc. dates from 1972. Mining has taken place continuously in this section since 1959 when a clay lease was issued to Harbison-Walker Refractories Co. The mineral lease on the section is valid, and in good standing, but a 1976 law passed by the State requires a permit to do mining. The permit requires an approved mining and reclamation plan. A bond to cover reclamation is required by the State should an operator default. The State Division of Minerals and Geology has inspected the area covered by the permit application of Siloam Stone, Inc., and has requested certain stipulations be incorporated in the permit application. This has been done. One stipulation specifically addresses the canyon in question, and, in part, is as follows: °The operator commits to not slab mining within 200 feet of the center line of the Rock Creek tributary, etc." The Kelly Parks property referred to in your article of January 21 incorporates part of this Peck Creek canyon. To the best of our knowledge, all existing property owners were advised before purchase that the mining lease existed as well as the nature of the ]ease. It is the hope of Siloam Stone, Inc. that a mining permit will minimize chances for future misunderstandings. Concerned persons should be aware that only 20 acre parcels will be disturbed at any one time. The average production life of a 20 acre parcel is estimated at 80 years based on uniform stone depth. Sincerely, Ferd A. Mueller, President