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Upon completion of the Northwest Quadrant mining activity will turn to the <br />southeast. Phase 3 will establish the long term mining procedure of removal of <br />surface material, overburden and topsoil with immediate placement on the mined out <br />area to the northwest in a rolling 10 acre progression through the deposit. Gypsum <br />will be removed in 50-100 foot panels preferably by bulldozer but if drilling and <br />blasting become necessary, it will be performed by a licensed contractor. Any <br />necessary stockpiles will be located in the Processing and Stockpile Area, out of the <br />view shed of Highway 115 patrons. From Phase 3 and through the life of the <br />deposit, mining will proceed southeasterly, sloping or benching walls as material <br />integrity permits. <br />The processing area will include a screen and crushing plant. Processed <br />gypsum will be stockpiled and hauled to the GCC Pueblo facility, south of Pueblo as <br />market demands. Stockpile height will be limited to 25 feet or less. <br />Stormwater will be conveyed to a sediment basin constructed downgradient <br />and according to the engineered design provided in the Drainage Plan for Salt <br />Canyon Project. In the event mining activity allows stormwater management inside <br />the disturbance, the sediment basin will be removed and area stabilized. Temporary <br />berms and diversion ditches will be constructed as needed to convey stormwater to <br />the sediment basin. If necessary, required storm water diversions will be <br />constructed of overburden and reject material as required by Colorado Department <br />of Public Health and Environment's Water Quality Control Division. All diversionary <br />structures would be temporary and will be removed during reclamation. <br />The most southeasterly portion of the southern deposit will not be mined in <br />order to maintain visual buffering for Highway 115 patrons. When mining <br />approaches this area, a 3:1 slope will be maintained throughout mining and will be <br />contoured to blend with the natural topography during reclamation. This mining <br />technique will be used on other natural ridges that will be maintained for visual <br />buffering along Highway 115 as mining progresses northward. <br />Page 8 of 34