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The operator had hoped to use water right it owns in the Excelsior Ditch Company, however it <br />was determined that this water can't be used for industrial use. The operator has engaged Deere <br />do Ault Consultants, Inc. of Longmont, Colorado to help to secure useable water and to prepare <br />the Substitute Water Supply Plan. Mr. Mark McLean P.E. is the principal in charge of this <br />project. His phone number is (303) 651-1468, mailing address is 600 South Airport Road suite <br />A-205 Longmont, CO 80503. <br />The operator would respectfully submit a modified reclamation cost to be used as the Finaical <br />Warranty in the interim to mitigate the possible need to reclaim the Gravel Pit before the <br />Substitute Water Supply Plan is approved by State Engineer's Office. This Exhibit "L" is <br />attached with this report. The scope of work is as follows: <br />During the period of time between the present and the approval of the Substitute Water Supply <br />Plan by State Engineer's Office the operator suggest the actions below: <br />Main Objectives: <br />1) Backfill the existing ponds to 2 feet above the water level leaving no exposed water. <br />2) Remove all of the scrap steel and other debris that would hinder proper reclamation. <br />3) Revegetation of the 40-acre permit area. With a Natural Resources Conservation Service <br />(MRCS) approved seed mixture. <br />Procedure and Methodology <br />Fill the ponds with borrow material from the site using the areas that have not been mined. Use a <br />scraper to remove approximately 2 feet of material from this area. Lower the grade to no closer <br />than 2 feet above the water table. Additional materials would have to be imported if needed. <br />Import topsoil and spread over the disturbed area. Ripping would not be needed since the <br />scrapers would break up the entire surface. <br />Prepare the surface for planting and re-vegetate with the approved MRCS seed mixture. <br />Remove the scrap steel and other debris salvage the scrape steel by taking the scrap steel to the <br />recycle location in Pueblo, Colorado. Apply the money made after the scrap steel removal to <br />help reduce the cost of reclamation. <br />Below please find the calculations and assumptions used to arrive at the reclamation cost for the <br />Financial Warranty.