2009-12-03_REVISION - M1998022 (4)

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EXHIBIT D-Mining Plan The existing operation has harvested surface rock from the talus slope under a valid 110 permit since 1999. The historic annual production has ranged from 0 to 1,244 tons. The harvesting activities started at the gate and progressed northwest approximately 600 feet along the existing power line and then turned northeast and extended a ramp up the slope. Current harvesting activities are in the northeast corner of the permit area adjacent to the USFS lands. A Minerals Materials Permit application has been submitted to the USFS to expand the harvesting operation onto their lands adjacent to the current 110 permit boundary. An Environmental Assessment (EA) has been completed and a Record of Decision (ROD) of a Finding of No Significant Impact (FONSI) issued on July 17, 2009. The ROD is attached to Exhibit N Right to Enter. The ROD has been noticed. Two appeals were received. The USFS has reviewed the appeal and upheld the District Ranger's decision for a FONSI and to issue a Minerals Materials Permit. on October 13, 2009. Copies of the appeals and the USFS correspondence are attached for the file. The harvesting operation begins with an excavator creating wind rows of material in the designated harvesting area for that year. If market demand is high, the excavator may return to create additional wind rows. When an area is completely harvested, the excavator will rough grade the slope in the Fall. Surface rock is harvested by manual methods from wind rows created by an excavator. The rock is placed on pallets and moved by a bobcat down to the staging area where the rock is fastened onto the pallet with chicken wire for shipment. No waste rock removal is required since the rock to be harvested is on the surface of the slope. The estimated thickness of the talus slopes based on visual observation is 1 to 20 feet. The access to the proposed harvesting area is via an existing road with an estimated width of 10 to 12 feet. No road improvements are anticipated at this time as the road has been adequate to date for the operation. No buildings or processing equipment are required as the rock will be hauled to another location for processing. The existing slopes on the surface range from 20 to 60 percent (See Mine Plan Exhibit Q. The slopes are expected to be stable since the angular nature of the talus material stabilizes the rubble material and any soil present. TR-01 was approved in 2001 for the ramp constructed up the slope to the current harvesting area and the use of 2:1 H:V slopes for reclamation. A five foot diameter circle of undisturbed rock has been left around the base of the power poles per our understanding with Holy Cross Electric Association. If a power pole requires relocation, The Gallegos Corporation will notify Holy Cross Electric Association to work out the relocation process, (See attached letter). On USFS lands, tree islands greater than 20 feet in diameter and individual conifer trees greater than 3 inches dbh will be avoided. All standing trees and snags will be left in place for cavity nesting birds and wildlife cover. No tree clearing for harvesting operations will occur without prior authorization from the USFS. A staging area just inside the gate is used to store pallets for shipment and to load a 15 ton flat bed truck. The 15 ton truck hauls the stone to another location for processing. The estimated annual tonnage will vary with market demand and is expected to range from 0 to 2,000 tons. Historically, 23-95 truck loads have been removed annually. This equates to a daily trip range from 0.19 to 0.78 using a 122 day harvesting season. The crew also drives a pick up to and from the site on the days the harvesting occurs. Harvesting occurs from late May to September with contemporaneous reclamation being done in the Fall (late September and October). Due to elk calving concerns, no disturbance will be allowed in the USFS portion of the permit area from May 15 to June 20. The harvesting occurs intermittently and is less than Revised: 12/2/09