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At present, there have been no discharges associated with industrial activity. <br />Subsequently, the monitoring reports indicated above reflect a "No Discharge" status. GCC Rio <br />Grande will promptly pay this year's annual fees, when invoiced. <br />c. State Land Board Aonrovals: GCC Rio Grande continues to maintain its <br />"good standing" under the terms of its lease with the State Land Board. GCC Rio Grande has <br />done this, in part, by maintaining its payments of lease payments and mineral royalties to the <br />Board of Land Commissioners and by complying with all applicable provisions of the lease. <br />d. BLM Mining Claims: GCC Rio Grande continues to maintain its BLM <br />mining claims by paying the aimual fees associated with each claim. GCC Rio Grande paid <br />these fees in August, 2006. <br />e. Division of Minerals and Geology, Mined Land Reclamation Board <br />Reclamation Permit: By this submittal, GCC Rio Grande has made its annual fee payment and <br />filed its annual report. <br />(1) With the assistance of GCC Rio Grande, the DMG developed a <br />new escrow agreement form and escrow financial warranty form for statewide use in bonding for <br />reclamation of mining operations. The escrow forms were unanimously approved by the MLRB <br />on August 2Q, 2003, and GCC submitted completed escrow forms to the DMG on August 22, <br />2003. GCC Rio Grande has transferred funds into the escrow account in order to secure the <br />MLRB reclamation bond. <br />(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 is in the process of completing the required sampling program. Subsequently, the <br />baseline data will be evaluated and GCC will work with DMG to identify and develop a program <br />to monitor for specific concerns identified by the baseline data. <br />f. Water Sunuly. 1n 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. GCC maintains records of its well water useage. <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 2006. GCC has initiated the engineering work necessary to design facilities to deliver water <br />leased from the Pueblo Board of Water Works to the Pueblo site. <br />DN321 178862 <br />