2009-09-01_PERMIT FILE - M2009018 (9)

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Revised `Letters of Understanding' have been mailed certified with return receipt, and include the necessary language. A copy of the letter and proofs of certified mail and any return receipts or signed letters will be provided to the Office under separate cover. 9. The Applicant has indicated that an agreement to relocate the gas lines in Tract A is pending. Without an actual agreement in place, the Division cannot approve the Reclamation Permit in its current form. The Applicant may submit an alternative Mining and Reclamation Plan that accounts for the existing gas lines. When an agreement with owner of the gas lines is finalized, the Applicant may file a Technical Revision to address the relocation of the gas lines. Please commit to maintaining a 200 foot buffer around the gas lines until an agreement is reached. In addition, please illustrate the 200 foot buffer on all of the maps. No extraction related activities will occur within the 200 foot of any existing oil and gas line without first making a good faith effort to obtain an agreement with the owner of the facilities that damage to any of their structures will be compensated for by the applicant; and failing that, confirmation with the Office that our structural analysis is sufficient to extract within the 200 foot boundary to the extent shown. Further, extraction will not occur inside Tract A without a prior agreement to relocate any lines necessary to allow for the practical extraction of Tract A. We still maintain that the presence of any oil and gas lines that obstruct a valuable mineral deposit are placed in direct violation of Title 34; and complicit with Weld County inaction and inappropriate regulatory oversight on the part of the Colorado Oil and Gas Commission; which we understand is beyond the purview of the Office. Regardless, any extraction and reclamation plan for Tract A is conditional upon satisfaction of this concern, as stated above, and an understood condition to any permit approval. Once the agreement for and subsequent relocation of the gas lines have occurred for Tract A; the extraction and reclamation plan shown for Tract A will conform to the approved plan as shown in Exhibit C-2: Mine Plan Map. We believe this statement is consistent with our understanding determined at the 4 August 2009 meeting with the Office. Respective of the 200 foot buffer for the lines as they presently occur, we have submitted a second effort to obtain agreements. The first effort failed to request notarized signatures. The second effort requests notarized signatures. We have not received any objections from the oil and gas entities for our operations, and believe in the absence of any written agreement following our last effort, that the Stability Analysis of Exhibit S will support the present plan. 6.4.5 Exhibit E - Reclamation Plan 10. The Applicant states the post-mining land use will include industrial/commercial, general agriculture, and residential. Rule 6.4.5(b) states in those instances where the post-mining land use is for industrial, residential, or commercial purposes, appropriate evidence supporting such reasonable assurance shall be submitted. As the Applicant Vaasa Companies, Inc. correspondence of 1 September 2009 to the Colorado Office of Mined Land 5 Reclamation (Office) in reply to Office correspondence of 27 July 2009 - Heintzelman Project - M2009-018.