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(2) GCC Rio Grande developed and submitted two plans required as <br />conditions of approval for the mining permit application. Specifically, GCC Rio Grande <br />developed and submitted a Noxious Weed Management Plan and a Drought Management Plan as <br />required by the MLRB Order approving the GCC Rio Grande mining permit application. <br />(3) The MLRB Order approving the GCC Rio Grande mining permit <br />application requires GCC Rio Grande to develop a plan to conduct water monitoring and <br />sampling to obtain background data on water quality in the area of facility operation. GCC Rio <br />Grande has completed the required sampling program. Subsequently, the baseline data will be <br />evaluated and GCC will work with DMG to identify and develop a program to monitor for <br />specific concerns identified by the baseline data. <br />f. Water SuDUIy. In 2003, GCC completed its first production well in the <br />Dakota aquifer. In 2004, GCC dedicated considerable resources and expenses to completing two <br />more production wells - a second production well into the Dakota aquifer and a Cheyenne <br />aquifer well. Upon completion of its wells, GCC submitted the reports to the State Engineer's <br />Office necessary to indicate that the wells were completed within the permit deadlines. GCC <br />anticipates that its wells will provide most of the water needed for mining limestone and <br />producing portland cement. <br />In addition to its three wells, GCC continues to maintain a water lease with the Pueblo <br />Board of Water Works. Its most recent payment to the Pueblo Board of Water Works was made <br />in July, 2005. GCC has initiated the engineering work necessary to design facilities to deliver <br />water leased from the Pueblo Board of Water Works to the Red Rocks site. <br />g. Water Quality. GCC has completed the water sampling program required <br />by the MLRB pursuant to Condition No. 1 of the Mine Permit. The data gathered between April, <br />2003 and August, 2004 will be used to determine the extent and design of further water quality <br />monitoring efforts during operation of the mine. <br />GCC has obtained preliminary effluent limits from the Colorado Water Quality Control <br />Division. With this information, GCC can proceed to finalize its domestic wastewater treatment <br />system design and begin the local permit approval process. <br />h. GCC Rio Grande is actively pursuing engineering related to the <br />development of a bridge crossing the St. Charles river. <br />i. GCC Rio Grande is actively pursuing engineering related to the <br />development of internal roads on the plant property. <br />j. GCC Rio Grande has pursued the development of studies and assessments <br />to support soon to be sought floodplain "water of the U.S." -related applications to the Pueblo <br />County and the U.S. Army Corps of Engineers. <br />2. Lime Road to i -25 designated as the primary haul route. <br />a. On August 5, 2003, GCC Rio Grande and the Pueblo County Department <br />of Public Works entered into an agreement for the improvement of Lime Road. The Agreement <br />DN:32109860.1 <br />