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-2- February 15, 2008 <br />The mine area, as shown on the attached map, totals approximately 62 acres. All site <br />mining, processing and temporary stockpiling will be within the excavation footprint of <br />the planned ponds. Each pond will be required to have a gravel pit well permit and any <br />excavation/pond edges will be a minimum of 100 feet from the Yampa River as per the <br />Colorado Division of Water Resources District Engineer. Mining activities may take <br />place in any of the 4 pond. footprint areas at any time in order to establish the initial 4 <br />separate water surfaces for stormwater control and dewatering. Concurrent reclamation <br />is planned for all the pond edges as each excavation footprint area is developed over <br />time. <br />Aggregate materials will be removed via dragline or excavator. Topsoil will be <br />removed from and temporally stockpiled around the pond footprint limits for use in the <br />planned concurrent pond edge reclamation and for any 3:1 bank slope stabilization to 10 <br />feet below the average water surface elevation. Pond footprint areas that will be used for <br />material processing and stockpiles will eventually be excavated and developed to water <br />surfaces as the pond areas expand to the planned area limits. Any and all topsoil found <br />within the excavation/pond footprints at the site will be stripped (as necessary) and <br />stockpiled as described above for use in site reclamation. Disturbance will be minimal to <br />the adjacent remaining pasture areas out-side the excavation footprints. The planned site <br />reclamation will provide additional wildlife habitat within the Yampa River Basin <br />corridor <br />Depending on local needs and market conditions, mining and processing for road <br />base, fill material and asphalt pavement may take from 10 to 15 years or longer. Limited <br />screening and crushing, asphalt production and material stockpiling operations may be <br />temporally located at the site from time to time. Portable mobile process equipment for <br />crushing, screening and asphalt production will be mobilized as necessary and will have <br />all necessary construction and air permit for such equipment. Please contact me at (719) <br />655-2709 if you have any comments or questions. Thank You. <br />Regards, <br />Timo . Scanlon <br />Geologis