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No bond adjustment or recalculations should be necessary as the amount of unaffected <br />and bonded land far exceeds the land that has been affected and would require reclamation in the <br />event of permit default. <br />In the event Arapahoe County approves the Special Use Permit, it is highly likely that all <br />mining in the original permit area, except for the processing plant, will cease and extraction <br />operations will quickly shift to the amendment area. All affected land in the original permit area, <br />except for the processing plant, would then be reclaimed. <br />The quality of the sand being mined in the original permit area has steadily declined <br />while awaiting Arapahoe County action on the Special Use Permit and most of the sand believed <br />to exist in the 15.9 acres of new land in the original permit area is of a quality that normally <br />would not even be mined. This is because of the large amount of washing required to clean it and <br />extract a salable product. Because of the washing, the amount of sand actually produced is rather <br />low, but sufficient to keep the operation going for a few more months. It appears that this 15.9 <br />acres contains the last of the mineable and marketable sand in the original permit area. <br />Investigations in other areas has not found any appreciable sand that is of even marginal quality. <br />Unfortunately, the delays in county permitting has resulted in disturbing more land than would <br />normally occur because the quality of the sand is lower and therefore more raw material is <br />needed to produce a given quantity of product. Many areas that have been mined in the past two <br />years would normally not even be disturbed. It is hoped that this situation will be rectified by the <br />county action in June. <br />Technical Revision- Coal Creek Resources - M-1988-044 May 23, 2008 Page 2 of 2