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ENVIRONMENT, INC. MARCH 26, 2007 PACE 4 Leonard Rice Consulting Water Engineers (LRCWE) was retained to prepare an analysis on the impacts that might be expected using this plan, the report is attached for your review. They are also working on a long term plan that may involve building and/or installing a water recharge ditch/lake up gradient from the dewatered area that would act as a recharge barrier between the excavation and adjoining wells. This would allow dewatering on larger areas in the mine. This method has been used by Weld County Highway Department in their pits to offset possible off site impacts. The analysis will include all the necessary technical information to show it will have little or no impact to surrounding water structures. As soon as LRCWE has the analysis complete it will be submitted to the Division for review. PS6G will commit to not dewatering areas larger than 5 acres until a proper analysis showing that dewater will not have a significant impact on adjacent wells. An interest- ing fact is that if the total area proposed in each area was added up and divide it by the total mined area PS&G will have only dewatered 1.06$ of the entire area under this plan. 12. Desilting ponds will be built in the plant site area and consist of two ponds, the primary pond will accept water from the processing plant and the secondary pond will accept water from the primary pond. The ponds will intersect the watertable and will be unlined. Once they fill, the silt will infiltrate the gravel strata an affectively seal them. They will be cleaned as needed and the silt will be used by the operator as needed. Water will be pumped from the main lake area to the processing plant and the clean water from the secondary pond will return to the excavation area. Adequacy Exhibit 3 show a typical siltation collection facility, but until the plant is actually set up, we do not know where the ponds will be located. They will be contained in the Plant Site area. Since each plant site will be mined the ponds would be removed by mining at that time. if they were left as a result of premature stoppage the above water areas would be reclaimed using the methods described in the reclamation plan. The fines would settle out and the clean water would reenter the main lake. No special actions will be necessary during dredging to avoid silting in the ground water.. Any dirt stirred up by mining would remain in the excavation area and settle when mining ended for the day. This is typical to what is done in similar operations around the state and I know of no problems with it affecting groundwater quality in those operations. Rule 6.4.5 Exhibit E -Reclamation Plan 13. PS&G will commit to placing field markers to delineate the setbacks around the mining areas. This includes along the river, gaslines, wells, or other structures around the site.