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San Luis Project <br />CDMG Annual Report <br />March 29, 2006 <br />Page 5 <br />Pit pumping wells to the adjoining Newmont Reality Company ranch. In addition, the application <br />proposed construction of an approximate I1 acre earthen soil lined pond for the winter season <br />storage of water from the West Pit. The proposed construction would be for the long-term use of <br />the West Pit water at the ranch as crop irrigation water. To facilitate the use of the water, a land <br />application permit is to be secured from the Colorado Department of Health and Environment and <br />a temporary substitute supply plan approved with the Colorado Department of Natural Resources <br />and subsequent a filing concerning the transfer or use of water rights. <br />Attached are the Annual Fee and Report Request and the $1,000 annual fee payment. <br />Should any questions concerning the above reported activities arise, please feel free to contact <br />either Mr. Julio Madrid or myself. <br />Sim rely, <br />ill Lyl, <br />Director of Env. Affairs <br />Cc: Julio Madrid <br />Jim Finley, Telesto <br />