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<br />12 months from the date of this letter to consummate the necessary water rights. In addition, the <br />Operator will provide up-dates as to its progress in securing sufficient: water rights at three month <br />intervals. <br />Item number two (2) in the September 26th, 2007 inspection report concerned placement of an <br />"... impermeable berm below the fuel storage tanks and either have the contents of the 55-gallon <br />drums certified as non-hazardous or have the drums and their contents removed from the site and <br />supply the Division with documentation of the above activities within thirty (30) days of receipt <br />of this inspection report." <br />As of the date of this letter, the operator has removed the fuel storage facility and cleaned up the <br />soil surface from the area next to the processing site. We will therefore consider this item <br />resolved. <br />The Operator's consultant L J DEVELOPMENT, INC. , Joe Gagliano looks forward to working <br />with you on this situation and designing a plan that will satisfy the financial warranty bond <br />amount. <br />We look forward to working with you to get these issues resolved and wish to thank you in <br />advance for your help in this matter. <br />Respect <br />Joe Gagliano <br />Consultant <br />cc: Ralph Martinez <br />Southwest Ready Mix, Inc. <br />117 White Pine Dr. <br />Alamosa, CO 81101