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Varra Companies, Inc. <br />Office of Special Projects <br />8120 Gage Street Frederick, Colorado 80516 Telephone (970) 353-8310 Fax(970)353-4047 <br />Tuesday 10 November 2009 <br />Michael A. Cunningham, EPS <br />Colorado Office of Mined Land Reclamation omm <br />Division of Reclamation Mining and Safety <br />1313 Sherman Street, 9215 NOV 12 2009 <br />Denver, Colorado 80203 <br />Divicien of Reclarnation, <br />Subject: M-2009-018 -Clarification for Heintzelman Project. Application. Mining and Safety <br />Dear Michael: <br />Consistent with our conference of Wednesday 4 November 2009, the following is intended to clarify <br />matters related to phasing and initial operations at the location necessary to determine initial financial <br />warranty: <br />1. Respective of the dynamic phasing based upon an advancing 1600± foot wing comprised of <br />an 800± foot advancing wall and flanked by two 400± foot trailing walls that are graded at <br />the 800± foot wall advances. The original submittal foresaw three dynamic phases - one per <br />tract. This correspondence limits the activity at this time to one dynamic phase or wall in <br />Tract A. <br />2. For any designated Tract, additional dynamic walls may be added to the operation at a later <br />time with the understanding that the Division should be notified prior to such activity, and <br />warranty adjusted to account for it respectively. <br />3. To accommodate the extraction of Tract A, a discharge well will be established once initial <br />stripping of the soil and overburden commences in the northeast corner of Tract A. <br />4. Initial Plant Site preparation will commence side hill overburden removal at Tract C. The <br />advancing wall at Tract C however will be maintained in a 3H:1 V configuration as part of the <br />method of extraction and will not assume the configuration of a dynamic wall or phase until <br />the substantial overburden of Tract A is removed and activity commences the removal of <br />aggregate material below the existing groundwater table. <br />We trust the stated information is consistent with your understanding. Naturally, if you need further <br />clarification or information, please do not hesitate to contact us. <br />Sincerely, <br />OdInc. <br />Bradford Janes <br />Professional Forester <br />bli foresterAnisn.com <br />cc. Christopher L. Varra, President <br />Varra Companies, Inc. <br />BLJ/blj.