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IiEX E LOESBY PE • 3037719632 • P. B2 (Permit No. COG-500356). The maximum flow from the quarry is estimated at 33 gpm (0.13 cfs} during the high flow season, so there should be no noticeable impact on Yule Creek from such discharge. The sediment control structure constructed by CYMC at the tce ofthe waste pile was observed in June of 1499 to be ineffective in preventing sediment from the waste piles from reaching Yttle Creek. Sierra determined that quarry dischazge water should not be pumped into the waste pile as had been CYMC's practice. Sierra sought, and received, ao amendment to its discharge permit from the Colorado Department of Health so that Sierra can discharge the quarry water directly into Yule Creek. The Colorado Divisioa ofMinerals arrd Gealogy has determined that CYMC violated some Of the terms of its mine permit with CDMG. These violations have resuhcd the lack of effectiveness of the sediment control structure and offsitc damage to a neighbor s property. CDMG may be able to use bond tnoaey posted by CYMC to corroct the damage and restore the effectiveness of the sediment control structure, but this may take a few months to resolve. Bven though Sierra has included areas of potential violations within the affected area for this permit, S Terre wit I not perform any activity that may impact the areas of poteatial damage until such damage is corrected by CDMG or CYMC. L Wlldiite: Based on recent contact witlt the Colorado Division of Wildlife, there are no critical or important wildlife Habitats or wildlife species that will be impacted by the pro osed operation. A letter from the Division to that effect is attached. ~eC@IVed JUN 21 1999 EXHIBIT C: MINING PLAN Durango Field Office Division of Minerals 8 Geology (al Period of O~eratlon: Sierra Minerals Corporation (Sierra) desires to begin quarry operations in July or August of 1999. Colorado Yule Marble Company (CYMC) operated the quarry beginning in September of 1990 up until January of 1999 when the company failed. Sierra has leased the quazry for 35 yeazs, and holds an option to lease the quarry for and additiona135 years. Reserves are sufficient to support a mine life well beyond the 70 years covered by the lease. Sierra intends to operate the mine for at least 20 years. This is rho time period envisioned for the term of this permit. (bl Topsoil: The topsoil in the affected area is very thin to non-existent and found in small pockets on the generally rocky landscape. However, there is as area ofabout'/. acre to the south ofthe existing waste plies where salvage of topsoil appears feasible. Sierra will recover these soils and create a topsoil stockpile at the southern boundary of the affected area before waste is deposited in this azea. Such topsoil piles will be placed to avoid contamination with rock or other materials, out of traffic areas, and not in areas where the material would be lost to erosion.