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TECHNICAL REVISION RECEIVED <br />COAL CREEK RESOURCES <br />M-1988-044 MAY 2 3 2008 <br />May 23, 2008 <br />Division of Reclamation, <br />Mining and Safety <br />Introduction: In accordance with the permit document, as amended, new bonded land may be <br />added, as needed, via technical revision provided the land being added is within the affected land <br />and does not violate any of the riparian setback requirements or other restrictions. At this time, <br />however, the only land that can be added and actually affected must be within the original permit <br />area. No land within the amendment area can yet be affected due to a lack of an approved Special <br />Use Permit from Arapahoe County for the amended land. Therefore, until that permit is <br />approved, all new mining and new bonded land must be within the original permit area. A <br />hearing before the Arapahoe County Commissioners is set for later in June 2008. <br />As no available sand remains within currently bonded land in the original permit area, <br />new land must be added. The maps contained in this revision show the location of three parcels <br />that contain some additional sand. Although the amount of sand available is low as is the quality, <br />this land is needed to keep the operation going until a decision is made on the Special Use <br />Permit. <br />Acreage Being Added: The enclosed maps (Map 1 and Map 2) show the locations of the <br />three parcels requested for addition. These three parcels total 15.9 acres. <br />Two options are available for adding this land. First, the 15.9 acres could be added to the <br />existing bonded land, which includes a great deal of land in the amendment area where no <br />operations can currently occur. Alternatively, bonded land from the amendment could be <br />removed and applied to the 15.9 acres resulting in no net change in the bonded acreage. The <br />latter approach is preferred as none of the amendment land can be affected anyway and because <br />some of that land may be removed from a mining designation as a result of the Special Use <br />Permit consideration and other issues regarding sensitive species. In the event that traded bonded <br />land from the amendment area is affected in the future it could then be added back to the bond at <br />that time. The land removed is located in the Area 1L bonded land in the amendment area. <br />The total amount of land currently bonded, including the amendment area, is 556.1 acres. <br />This includes 234 acres in the original permit area that is bonded. There are 306.3 acres bonded <br />in the amendment area. By deducting 15.9 bonded acres from the amendment area that has not <br />been affected and adding that to the 234 bonded acres in the original permit area, the total <br />bonded area remains at 556.1 acres. <br />Liability to State in the event of default: As reflected in the last annual report, a large portion <br />of the original permit area has been backfilled, graded, and some of it has been topsoiled in <br />preparation for seeding. Therefore, the liability to the State for all disturbed land, assuming the <br />operation were to be abandoned, is far less than the amount of the bond due to the fact that about <br />300 acres of land is fully bonded that has never been affected. <br />Technical Revision- Coal Creek Resources - M-1988-044 May 23, 2008 Page 1 of 2