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Response to Second Adequacy Letter by Item <br />The following summarizes each item brought forward by the DRMS in their second adequacy <br />review of the Amendment application (AM-01) to the Ruby Trust permit (M-1979-181) <br />(provided by DRMS on August 20, 2010). The following is formatted to describe the location <br />of the issue item by page and paragraph within the August 20 letter, a summary of the issue <br />item as stated by DRMS, followed by a response provided by Grayling LLC and the Mount <br />Sneffels Mining Company. <br />1. Cover Page, Second Paragraph "Exhibit C-Mining Plan (Rule 6.3.3)":..."You provided a <br />copy of a new agreement.... Please acknowledge the facts that... the agreement does not <br />obligate the county to take or receive the waste rock, so if the waste rock storage <br />capacity is reached, the operation could conceivably have to cease temporarily ..... all <br />waste rock to be removed from the site will be tested and found inert prior to removal..." <br />RESPONSE: The Mount Sneffels Mining Company acknowledges the fact that the permit <br />area contains a limited amount of waste rock storage space, therefore the Company will <br />proactively manage materials so that capacity is never exceeded and materials are <br />always cooperatively exchanged with Ouray County Road and Bridge as per the <br />specifications outlined within the letter agreement provided by the County (refer to <br />Attachment B of the Initial Technical Review Response provided to DRMS August 9, <br />2010. <br />As previously stated in the initial response to DRMS and as per correspondence with the <br />County, they are capable of taking all of the produced waste rock. There are <br />contingencies to this agreement based upon the character of the waste rock. The <br />Mount Sneffels Mining Company is responsible for the determination that the material <br />is safe to the environment and will therefore continue the sampling and analysis of <br />material to assure that it is inert (does not leach metals) and does not generate acid. <br />Since the County is capable of taking as much material as the mine can provide, the <br />amount of storage space on-site should be more than adequate to manage materials <br />produced, managed and ultimately transported to the County. The quantities the three <br />dump areas can accommodate equate to 4S3 cubic yards. <br />2. Cover Page, Third Paragraph "Exhibit C-Mining Plan (Rule 6.3.3)": "the proposed snow <br />shed structure appears adequate... please forward a copy of the permit to the Division N <br />an <br />CZ <br />a.