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REX E LOESBY PE 3037719652 P. 06 • The waste piles are quite porous so even during heavy rainfall or spring snow melt periods, water drains through the piles and into the sediment control structure at the toe of the waste pile, then into Yule Creek. The pH of the water runoff tends to be slightly high (basic). Yule Creek tends to be acidic, so the result may be a very slight improvement in the quality of Yule Creek water. (ll! Water Rights: A well permit was acquired by CYMC from the Colorado Division of Water Resources. Sierra received approval of a transfer of ownership of the well permit on May 14, 1999. (Permit No. 034872-F, copy shown here). There has been no reported effect on existing water rights from CYMC's past operations, and none is anticipated with Sierra's operations. (kl Re[use, Acid, and Toxic Materials: The quarry operation generates no refuse, acid, or toxic materials other than the waste marble to be placed on the surface as discussed above. Maintenance of diesel powered equipment will generate waste oil and other fluids that will be transported off site and disposed of in an approved manner. Other refuse will be transported off site and disposed of in an approved manner. (IZ Hydrologic Balance, Off-Site Damage, Site Stability: After mining is complete, the large underground openings are expected to partially fill with water, then overflow at the lowest quarry portal during high runoffperiods. Since the quarry does rwt generate large volumes of water, and all runoff from the quarry area eventually feeds into Yule Creek, no significant impacts aze anticipated on the hydrologic balance of the area. 7'he Colorado Division of Minerals and Geology (CDMG) has determined that CYMC caused off-site damage from its operations and violated other terms of its permit. Marble waste blocks were dumped by CYMC at a poiuot drrectly outside the portal. These blocks rolled down the slope and crossed the property line and the boundary of the affected area established by CYMC. The blocks also filled the sediment control structure built by CYMC and damaged its ability to stop sediment from reaching Yule Creek. By submitting this permit application, Sierra does not assume responsibility for any damage caused by CYMC. Sierra intends to conduct its operations entirely within the affected area as defined by this application. In addition, until the CYMC off-site dvnage issues are resolved and corrective action taken (expected during 1999), Sierra will not perform any activity that will impact azeas where CYMC may have caused damage that may be a violated its permit. Specifically, Sierra will not add sediment to the waste piles or dump quarry blocks in the area where they may effect the current condition of the sediment control structure. If substantial delays occur in the process, Siena will work with CDMG to reestablish the effectiveness of the sediment control struchire before any fines are added to the waste dump. Sierra specifically disclaims aiay responsibility for any past or future off-site damage caused by CYMC. Future off-site damage may result from the actions of CYMC, including further movement of material from the waste piles below the quarry portal or from below the quarry portal access road onto neighboring property. It is anticipated that the CDMG will use