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It is not expected that groundwater will be encountered at the proposed levels of excavation. <br />Korinek S &G commits to staying at least 2' above the local static groundwater level throughout <br />the life of the operation. If water is exposed as a result of the mining operation, the water will be <br />covered up with a minimum of 2' of material and all future excavation will stay approximately 2' <br />above the level at which groundwater was encountered. In the future, Korinek S &G may wish to <br />mine deeper at this site and below the local static groundwater level, however prior to any mining <br />within 2' of the expected groundwater level, a Substitute Water Supply Plan and Gravel Well <br />Permit will be applied for with the Colorado Division of Water Resources as well as a Technical <br />Revision with the Colorado Division of Reclamation, Mining, and Safety. <br />Korinek S &G mines using a 0.5H:1 V to near vertical slope on active mining faces. Highwall <br />mining will progress to an offset of the crest line which marks the mid -slope of the final mining <br />3H:1 V slope. Both boundaries will be staked prior to mining in the area. This offset serves two <br />purposes. First, the volume of material left in the highwall will allow the crest to be pushed <br />towards the toe with the final mining slope of 3H:1 V, which will maximize recovery. Secondly, <br />this offset provides additional slope safety. This is demonstrated through no evidence of slope <br />failure during the life of the pits which have used similar techniques in the same general area. A <br />failure would be governed by the internal angle of friction of the material. This would limit the <br />failed slope to an angle of 38 degrees or — 1.3H:1 V. This failure would not only stay within the <br />permit area, it would stay within the final slope envelope. <br />The anticipated future average total tonnage sold from the site in any one calendar year is 30,000 <br />tons. The material is generally sold in the raw screened form of sand and gravel, and raw shale. <br />Since topsoil is scarce on site, it will not be sold from the site; rather it will be kept on site for <br />future reclamation activities. <br />Korinek #1 Pit August 09 D -2 <br />