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{ - • • Mr. Jeff Gregg January 15. 1998 Paoe 2 Provide a financial warranty to cover the cost of the construc[ion of the slurry wall in the event that DMG is required to complete the slurry wall. No groundwater in Phases 2 or 3 may be exposed until the financial warranty is provided and approved by DMG. In options b, c and d, the operator must provide information regarding the permeability and geologic condi[ions of the underlying bedrock that the slurry wall will be keyed into and would form the bottom of the reservoir. Pre- disturbancebaseline static water levels for the shallow groundwater such as from drillers or geotechnical logs of the auger holes drilled across the permit area and any ocher well information on or near the site currently available must be provided. Any of the above options must be submitted az a revision to the permit and be approved by the DMG prior to exposing groundwater in Phazes 2 or 3. The amount of financial warranty set by the Division for this operation is 5151,000.00. You must submit a fuumcial warranty in this amount and a performance warranty in order for us to issue a permit. In the event you have requested a futancial warranty form, we have enclosed it in this letter. If you have not, please select a type of financial warranty from Rule 4.3. Then contact us so that we can provide you with the appropriate warranty form. We have enclosed a performance warranty form with this letter for your use. PLEASE NOTE THAT MINING OPERATIONS MAY NOT COMMENCE UNTII, A PERMIT HAS BEEN ISSUED BY THE DMSION AFTER RECEIPT OF YOUR FINANCIAL WARRANTY AND PERFORMANCE WARRANTY. A PERMIT WILL NOT BE ISSUED UNTIL WE VERIFY THE ADEQUACY OF BOTH YOUR FINANCIAL WARRANTY AND PERFORMANCE WARRANTY. If you have any questions, please contact me. Sincerely, `T ~YJ tic ~~ Gary S. Curtiss Environmental Protection Specialist Enclosure cc: Carl B. Mount, DMG Gary Tuttle, Tuttle-Applegate, Inc. M:IOSSIPM MITEM flMA P 19058. GSC