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• Recalculation of Financial Warranty <br />Cemex requests that the Division review their previous calculations that <br />resulted in the current financial warranty for the Dowe Flats Mine. If <br />possible, we would also like to review these calculations. The rationale for <br />this request is to make sure that any increase in financial warranty <br />required by the Division as a result of this Technical Revision isn't <br />something that is already included in the existing financial warranty. For <br />example, the 1994 amendment included moving the large waste rock pile <br />at the southern end of the mine to the extreme northern end of the mine <br />for final reclamation backfill. If the movement of that material is already <br />covered by the financial warranty then it should not result in an increase in <br />the financial warranty. Furthermore, if Cemex is allowed to move that <br />material shorter distances, as requested in this Technical Revision, that <br />may result in a decrease in the financial warranty. <br />• Ponded Surface Water Runoff in the Mine <br />Rainfall and snowmelt accumulate on the mine floor. Currently this occurs <br />in three areas in the mine and these areas are shown on Figure 5. As of <br />this writing, the three ponds cover about 2.8 surface acres and contain an <br />estimated 16.7 acre feet of water. These numbers will vary with the <br />season of the year and precipitation events. <br />Cemex has a valid CDPS Discharge Permit and Dewatering Permit, and <br />may dewater into a nearby drainage or ditch. There is also a dewatering <br />well in the mine and its location is shown on Figure 5. Around January <br />2006, Cemex began using this ponded water for dust control in the mine <br />and does not currently dewater and discharge off-site. Cemex reserves <br />the right to reactivate dewatering in the future. <br />Because Cemex is storing and using some of this water out-of-priority, <br />and there are evaporative losses, Cemex has retained the law firm of <br />Petros & White, LLC to address this issue. Petros & White has discussed <br />the matter with the local Water Commissioner and the Division of Water <br />Resources. Attached to this Technical Revision request are letters from <br />Petros & White to the Water Commissioner and Assistant Division <br />Engineer which proposes a plan of surface water exchange or substitution <br />to resolve this issue. <br />Should you need additional information, please feel free to contact me at 303- <br />274-4277, or by electronic mail to: paulb@banksandgesso.com or Monica <br />Sowders at Cemex, 303-823-2115, or by electronic mail to: <br />monica.sowders@cemex.com. <br />Cemex, Inc. - Dowe Flats Limestone Mine Page 5 <br />2009 TR-02