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EXH181T C - paragraph 2 COM, fnc. asserts that the current tailings impoundment dam and tailings are structurally sound. In 1985. Mr. Louis Cope, a registered engineer, certified that the dam was properly built and structurally sound. In September 1994, Mr. Jean Pridemore. a registered engineer examined the tailings placed in the impoundment. Mr. Pridemore then met with Carl Mount and informed Mr. Mount that the ^tailings had been properly placed in the impoundment by the upstream method^ and that the ^tailings in the impoundment are structurally sound and will support future lifts in the impoundment^. Based on the opinions of these registered engineers, COM. Inc. has reason to believe that the tailings impoundment is structurally and environmentally safe and that there is no reason why GOM, Inc. can not continue to utilize it to its full designed capacity of 25,000 tons as approved by DMG in 1985. EXHIBIT C - paragraph 9 According to the U. S. Dept, of Labor. M.S.H.A.. Mine Waste and Construction Division Report kD8106.W3628, the SOO year storm at the Gold Hill Mill area is 3.6 inches. A storm of this magnitude "would be contained". The report recommends minimum freeboard of 36^. The current freeboard is 32^ as surveyed on February 15, 1995. We feel that 18" freeboard is adequate since the report states that "it appeared (without taking measurements the available storm storage was less than one foot before the embankment would be overtopped" and that even with the erroneous information of freeboard depth of one foot the report further stated that "if this storm were to occur. it is likely that the storm would be contained. COM, Inc. will extend the synthetic liner up hill for the tailings so that there is a liner under the tailings. COM,Inc. will hire a licensed contractor to perform liner repairs and test penetration on seams. An inspection and maintenance log will be maintained at the mill. Inspections will be once a month.